Tightwads Guide to Saving on Milford Auto Insurance

Are you sick and tired of not being able to afford each month for car insurance? You're in the same situation as millions of other consumers. With consumers having so many online and local companies to choose from, it can be challenging to locate the most affordable company.

Don't pay full price with these discounts

Companies don't necessarily list every discount very well, so here is a list some of the best known and also the lesser-known auto insurance savings. If you don't get every credit available, you are throwing money away.

Driver's Ed - Make teen driver coverage more affordable by requiring them to successfully complete driver's ed class if it's offered in school.
Payment Method - If you pay your bill all at once instead of monthly or quarterly installments you can actually save on your bill.
Multiple Policy Discount - If you have multiple policies with the same insurance company you will save approximately 10% to 15%.
Theft Prevention System - Anti-theft and alarm systems are stolen less frequently and earn discounts up to 10%.
Military Rewards - Having a deployed family member may qualify for rate reductions.

Keep in mind that most credits do not apply to the entire cost. Most only reduce specific coverage prices like liability and collision coverage. Just because it seems like all those discounts means the company will pay you, it just doesn't work that way.

What determines how much you pay?

Smart consumers have a good feel for some of the elements that help determine auto insurance rates. When you know what positively or negatively influences your rates allows you to make educated decisions that will entitle you to big savings.

The following are some of the factors companies use to determine prices.

High numbers of claims are not good - Companies in New Jersey provide discounts to drivers who file claims infrequently. If you frequently file small claims, you can look forward to either a policy non-renewal or much higher rates. Insurance coverage is intended to be relied upon for major claims that would cause financial hardship.
Equipment add-ons that lower auto insurance rates - Driving a car with a theft deterrent system can help lower your rates. Theft prevention features such as GM's OnStar, tamper alarm systems and vehicle immobilizers all hinder your car from being stolen.
Where you live - Being located in less populated areas can save you money when buying auto insurance. City drivers tend to have traffic congestion and much longer commute distances. Fewer people means fewer accidents and also fewer theft and vandalism claims.
Consolidate policies to earn discounts - Many companies provide better rates to people who buy several policies from them, otherwise known as a multi-policy discount. Even with this discount, it's still a good idea to compare other company rates to make sure you are getting the best deal. You may still find better rates by splitting coverages up.
Drive a safer car and pay less - Vehicles with good safety scores are cheaper to insure. The safest vehicles result in less severe injuries and better occupant protection translates into fewer and smaller insurance claims passed on to you as lower rates.
Traffic citations inflate rates - A bad driving record has a big impact on rates. Even one speeding ticket can increase rates by as much as thirty percent. Good drivers get better rates compared to drivers with tickets. If you have flagrant violations such as DWI, reckless driving or hit and run convictions may find they need to file a proof of financial responsibility form (SR-22) with the DMV in their state in order to keep their license.
Better credit means lower rates - Having a bad credit history is a big factor in your rate calculation. Therefore, if your credit is not that good, you could potentially save money when insuring your by improving your rating. Drivers with good credit tend to file fewer claims and have better driving records than those with lower credit scores.

The auto insurance bait and switch

New Jersey drivers get pounded daily by advertisements for the lowest price auto insurance by companies like State Farm, Allstate and GEICO. They all say the same thing that you can save after switching to them.

But how can every company say the same thing? It's all in the numbers.

All the different companies can use profiling for the type of driver that earns them a profit. An example of a driver they prefer might be profiled as between the ages of 30 and 50, has no tickets, and drives less than 7,500 miles a year. A propective insured who fits that profile will get the preferred rates and therefore will save a lot of money.

Potential customers who don't measure up to this ideal profile will be quoted a more expensive rate which usually ends up with business not being written. The ads state "customers who switch" not "everyone that quotes" save money. That's why insurance companies can advertise the way they do. This emphasizes why drivers should get a wide range of price quotes. It's not possible to predict the company that will provide you with the cheapest rates.

More New Jersey auto insurance information

Additional detailed information is available at the New Jersey Department of Banking and Insurance website. New Jersey drivers can download brochures, view a list of available companies, view agent and company licensing information, and read consumer alerts.

Also read more on this site for auto insurance rates in New Jersey and this list of insurance agents in Milford, NJ.

Best coverage at the best price

When shopping online for auto insurance, do not skimp on coverage in order to save money. There have been many situations where an insured dropped comprehensive coverage or liability limits to discover at claim time that a couple dollars of savings turned into a financial nightmare. The proper strategy is to get the best coverage possible at the best price while still protecting your assets.

In this article, we covered a lot of information how to reduce auto insurance prices online. The most important thing to understand is the more providers you compare, the more likely it is that you will get a better rate. Consumers may even find the lowest rates come from a small mutual company. Regional companies can often insure niche markets at a lower cost as compared to the big name companies such as .