Consumer Tested Strategies to Save on Parsippany Auto Insurance

Scraping up a payment for overpriced auto insurance can empty your checking account and force you to make sacrifices. Doing a price comparison is a smart way to help make ends meet. Big-name insurance companies like State Farm, Allstate, GEICO and Progressive all promote huge savings with catchy ads and it is challenging if not impossible to sift through the bull and do the work needed to find the best deal.

If you have a policy now or are shopping for new coverage, you will benefit by learning to find the best rates while maximizing coverage. Choosing the best insurance company for you in Parsippany is easy if you know what you're doing. New Jersey vehicle owners just need to know the most effective way to find the lowest price on the web.

How to Lower your Auto Insurance Rates

Consumers need to have an understanding of some of the elements that play a part in calculating auto insurance rates. Having a good understanding of what controls the rates you pay empowers consumers to make smart changes that could result in much lower annual insurance costs.

Shown below are some of the items used by your company to calculate premiums.

  • Liability coverage is peace of mind - Your policy's liability coverage is the protection if a jury decides you are liable for personal injury or accident damage. Liability insurance provides you with a defense in court which can be incredibly expensive. Carrying liability coverage is mandatory and cheap as compared to coverage for physical damage, so buy as much as you can afford.
  • Marriage pays dividends - Getting married helps lower the price when buying auto insurance. Having a spouse translates into being more mature than a single person and it's proven that married drivers get in fewer accidents.
  • Drive a safer car and pay less - Vehicles with high crash test scores are cheaper to insure. Safe vehicles protect occupants better and better occupant protection translates into savings for insurance companies and more competitive rates for policyholders.
  • Keep rates low by being claim-free - Auto insurance companies in New Jersey provide cheaper rates to people who do not file claims often. If you frequently file small claims, you can definitely plan on either policy cancellation or increased premiums. Your insurance policy is intended to be relied upon for the bigger claims that can't be paid out-of-pocket.
  • Your stress level may be raising your rates - Occupations such as real estate brokers, architects and dentists have the highest average rates because of stressful work requirements and long work days. Other jobs such as pilots, historians and retirees get better rates.
  • High deductibles save money - Your deductibles represent how much money you are willing to pay out-of-pocket before your auto insurance pays a claim. Insurance for physical damage to your car, commonly called comprehensive (or other-than-collision) and collision coverage, insures against damage to your car. A few examples of covered claims are colliding with a building, damage from fire, and rolling your vehicle. The more expense you have to pay, the bigger discount you will receive.

Don't pay full price with these discounts

Companies offering auto insurance do not advertise all available discounts in a way that's easy to find, so the following is a list of some of the best known as well as the least known auto insurance savings. If you aren't receiving every discount you deserve, you are paying more than you should be.

  • Multiple Cars - Having all your vehicles with the same company may reduce the rate for each vehicle.
  • Paperless Signup - A few companies give back up to $50 for buying a policy and signing up digitally online.
  • Fewer Miles Equal More Savings - Low mileage vehicles could qualify for lower rates on the low mileage vehicles.
  • Drivers Ed for Students - Cut your cost by having your teen driver enroll in driver's education if offered at their school.
  • Claim Free - Drivers who don't have accidents pay less when compared with accident-prone drivers.
  • Discount for Life Insurance - Select insurance companies reward you with better rates if you take out life insurance.
  • Safety Course Discount - Successfully completing a course teaching defensive driving skills could cut 5% off your bill if your company offers it.
  • Senior Discount - If you're over the age of 55, you may receive a small decrease in premiums.
  • Pay Now and Pay Less - If you pay your bill all at once instead of making monthly payments you could save up to 5%.

Consumers should know that most of the big mark downs will not be given to all coverage premiums. Most only reduce individual premiums such as physical damage coverage or medical payments. So even though they make it sound like all the discounts add up to a free policy, companies don't profit that way.

To choose insurers with discount auto insurance rates in Parsippany, follow this link.

The auto insurance bait and switch

New Jersey drivers can't ignore all the ads for car insurance savings from the likes of Allstate, GEICO and Progressive. All the companies say the same thing that you'll save big if you change your coverage to them.

How can each company say the same thing?

Insurance companies have a preferred profile for the type of customer that makes them money. A good example of a profitable customer might be profiled as a mature driver, insures multiple vehicles, and has a high credit rating. A propective insured who fits that profile will get the preferred rates and therefore will save when they switch companies.

Potential customers who don't measure up to the requirements must pay a higher premium which usually ends up with business not being written. The ads state "customers that switch" not "everyone that quotes" save that much money. This is how companies can state the savings. This illustrates why you should get as many quotes as possible. It's not possible to predict which insurance companies will have the lowest rates.

For more New Jersey auto insurance information

More detailed New Jersey auto insurance information can be read at the New Jersey Department of Banking and Insurance website. New Jersey drivers can find out which companies have the most complaints, get help finding coverage, find disaster information, and download brochures.

And the best car insurance company is...

Discount auto insurance is attainable on the web as well as from independent agents in Parsippany, and you need to price shop both to have the best rate selection. Some insurance companies don't offer online price quotes and usually these small insurance companies provide coverage only through local independent agents.

As you restructure your insurance plan, it's not a good idea to buy poor coverage just to save money. In too many instances, drivers have reduced full coverage and found out when filing a claim that they should have had better coverage. Your focus should be to get the best coverage possible at a price you can afford while not skimping on critical coverages.