Easy Techniques to Cut Costs on Haddonfield Auto Insurance

If you're new to shopping for auto insurance online, it's easy to be confused by the large number of auto insurance companies offering coverage in Haddonfield.

The purpose of this post is to familiarize you with how car insurance quotes work. If you are paying for car insurance now, you should be able to save some money using this strategy. But New Jersey drivers do need to know how companies sell online and take advantage of how the system works.

Good Decisions Result in Lower Rates

Consumers need to have an understanding of the rating factors that play a part in calculating the price you pay for auto insurance. Knowing what controls the rates you pay enables informed choices that could result in big savings.

Shown below are some of the factors auto insurance companies consider when setting premiums.

What are your deductibles? - Physical damage deductibles represent how much money you are willing to pay out-of-pocket if you file a covered claim. Physical damage coverage, also known as collision and other-than-collision, insures against damage to your car. Some instances where coverage would apply could be colliding with a building, damage from fire, and burglary. The more money you are required to pay out-of-pocket, the lower your rates will be.
Traffic violations increase rates - Only having one speeding ticket can boost insurance rates forty percent or more. Careful drivers tend to pay less for car insurance than their less careful counterparts. Drivers with dangerous tickets such as reckless driving, hit and run or driving under the influence are required to submit a SR-22 form with their state DMV in order to prevent a license revocation.
Lower miles equals lower premium - The higher the mileage driven each year the more you'll pay to insure your vehicle. Most insurance companies apply a rate based on how the vehicle is used. Autos not used for work or commuting can get a lower rate than vehicles that are driven to work every day. Ask your agent if your auto insurance declarations sheet shows the correct usage for each vehicle, because it can save money.
Discounts for married couples - Being married helps lower the price on your auto insurance policy. Having a spouse means you're more mature than a single person it has been statistically shown that married couples file fewer claims.

These discounts can lower your rates

Insurance can cost an arm and a leg, but you can get discounts that you may not know about. Some trigger automatically when you quote, but some must be asked about before you get the savings.

Homeowners Savings - Owning a home in Haddonfield may earn you a small savings because maintaining a house requires personal responsibility.
Good Student - This discount can be rewarded with saving of up to 25%. The discount lasts up until you turn 25.
Multiple Cars - Buying coverage for all your vehicles with the same company qualifies for this discount.
Auto/Life Discount - Select insurance companies reward you with a discount if you purchase auto and life insurance together.
Fewer Miles Equal More Savings - Low mileage vehicles can qualify you for better rates on cars that stay parked.
Paperless Signup - A handful of insurance companies will discount your bill up to fifty bucks for buying a policy and signing up over the internet.
Passive Restraints and Air Bags - Vehicles equipped with air bags or motorized seat belts may earn rate discounts of more than 20%.
Drivers Education - Cut your cost by having your teen driver enroll in driver's education if offered at their school.
No Accidents - Good drivers with no accidents can earn big discounts when compared with accident-prone drivers.
Service Members Pay Less - Having a family member in the military could be rewarded with lower premiums.

Drivers should understand that most discount credits are not given to the entire policy premium. Some only apply to the price of certain insurance coverages like physical damage coverage or medical payments. So even though it sounds like having all the discounts means you get insurance for free, companies wouldn't make money that way. But all discounts will bring down the cost of coverage.

To choose insurers with discount auto insurance rates in New Jersey, click this link.

Are you falling for claims of savings?

Allstate, GEICO and Progressive consistently run ads on television and other media. All the companies make the same claim that you'll save big if you change to their company. How does each company make almost identical claims? This is how they do it.

All the different companies have a certain "appetite" for the driver that makes them money. An example of a profitable customer could possibly be between 25 and 40, a clean driving record, and drives less than 10,000 miles a year. A driver who matches those parameters will qualify for the lowest rates and as a result will probably save when switching.

Drivers who are not a match for these standards must pay a higher premium which leads to the driver buying from a lower-cost company. The ad wording is "drivers who switch" not "everybody who quotes" save that much. That is how companies can advertise the way they do.

This illustrates why you should compare many company's rates. It is impossible to predict which company will provide you with the cheapest rates.

Different people need different coverages

When buying proper insurance coverage for your vehicles, there isn't really a one size fits all plan. Everyone's situation is unique.

For instance, these questions may help highlight whether you would benefit from an agent's advice.

When do I need to add a new car to my policy?
Why am I required to buy high-risk coverage?
Am I covered when driving on a suspended license?
What happens if I owe more than my vehicle is worth?
Is my vehicle covered for flood damage?
Does my liability insurance cover pulling a trailer or camper?

If it's difficult to answer those questions, you may need to chat with a licensed insurance agent. If you want to speak to an agent in your area, take a second and complete this form.

Additional New Jersey consumer information

Much more information about auto insurance in New Jersey is available on the New Jersey Department of Banking and Insurance website. Click here for link. New Jersey consumers can report car insurance fraud, file complaints about a company, and file complaints about an insurance agent or broker.

Other informative sites include this page for New Jersey auto insurance and this page for help finding agents in Haddonfield, NJ.

The best insurance company isn't always the cheapest

Budget-conscious auto insurance can be sourced online and also from your neighborhood Haddonfield agents, so you should compare both to have the best selection. Some auto insurance companies may not provide online price quotes and usually these smaller companies provide coverage only through local independent agents.

In this article, we presented some good ideas how to save on auto insurance. It's most important to understand that the more rate comparisons you have, the better your comparison will be. Consumers may even find the most savings is with a smaller regional carrier.

As you go through the steps to switch your coverage, make sure you don't buy poor coverage just to save money. In too many instances, someone dropped liability limits or collision coverage only to find out that the savings was not a smart move. Your focus should be to get the best coverage possible for the lowest price while not skimping on critical coverages.