Tightwads Guide for Saving on Pequannock Auto Insurance

Have you had enough of trying to scrape together enough money each month for car insurance? You are in the same boat as most other car owners in New Jersey. Big companies like State Farm, Allstate, GEICO and Progressive increase brand awareness with fancy advertisements and it is difficult to sift through the bull and take the time to shop coverage around.

If you have insurance now or need new coverage, you can learn to find better prices and possibly find even better coverage. Finding affordable coverage in Pequannock is not that difficult. New Jersey consumers only need to know the most effective way to compare company rates online.

Be sure to get all your discounts

Companies that sell car insurance don't always advertise all available discounts in a way that's easy to find, so the following is a list of both well-publicized as well as the least known ways to save on auto insurance. If you aren't receiving every discount available, you are throwing money away.

  • Service Members Pay Less - Having a family member in the military could mean lower rates.
  • Employee of Federal Government - Active or retired federal employment may qualify you for a discount depending on your company.
  • Theft Prevention System - Vehicles equipped with anti-theft or alarm systems help deter theft and will save you 10% or more.
  • Payment Discounts - If paying your policy premium upfront instead of monthly or quarterly installments you may reduce your total bill.
  • Multi-car Discount - Buying insurance for more than one vehicle on one policy may reduce the rate for each vehicle.
  • Student in College - Any of your kids living away from home attending college and do not have a car can receive lower rates.
  • No Accidents - Claim-free drivers pay less when compared with drivers who are more careless.

A little note about advertised discounts, most discount credits are not given to the entire cost. Some only apply to individual premiums such as liability and collision coverage. So when the math indicates all those discounts means the company will pay you, you won't be that lucky.

auto insurance in Pequannock

Pequannock Rates are Influenced by These Factors

Smart consumers have a good feel for the rating factors that go into determining the price you pay for auto insurance. Having a good understanding of what impacts premium levels enables informed choices that could result in big savings.

Listed below are some of the items auto insurance companies consider when setting premiums.

  • Choose a safe vehicle and save - Vehicles with good safety scores tend to have better insurance rates. Safe vehicles reduce injuries and lower injury rates translates into fewer and smaller insurance claims and more competitive rates for policyholders.
  • High numbers of claims are not good - Auto insurance companies in New Jersey give cheaper rates to insureds who are claim-free. If you file claims often, you can definitely plan on either higher rates or even cancellation. Insurance coverage is designed for major claims that would cause financial hardship.
  • Bundling policies can get discounts - Most auto insurance companies will award you with lower prices to customers who have multiple policies with them such as combining an auto and homeowners policy. Discounts can add up to ten or even up to twenty percent in some cases. Even if you're getting this discount you still need to compare other company rates to ensure the best deal. You may still be able to find better rates by insuring with multiple companies.
  • Lower rates with optional equipment - Driving a car with an alarm system can help bring down rates. Anti-theft features like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all hinder your vehicle from being stolen.
  • Bump up deductibles to save - Physical damage deductibles represent how much money you are willing to pay before your auto insurance pays a claim. Insurance for physical damage to your car, termed comprehensive and collision coverage on your policy, is used to repair damage to your car. Some instances where coverage would apply could be colliding with a building, collision with an animal, and burglary. The more expense you are required to pay out-of-pocket, the less your company will charge you for insurance.
  • Older drivers pay less - Mature drivers are more responsible, file fewer claims and are safer drivers. Teen drivers are statistically proven to be more careless in a vehicle and because of this, their auto insurance rates are much higher.
  • Your job and insurance rates - Did you know that where you work can have an impact on rates? Occupations such as real estate brokers, executives and dentists tend to have the highest average rates because of high stress levels and lots of time spent at work. Other occupations like farmers, historians and homemakers receive lower rates.
  • Discounts for married couples - Getting married can actually save you money on your auto insurance policy. Having a spouse means you're more responsible and it's proven that drivers who are married are more cautious.

Is there truth in advertising?

New Jersey consumers get pounded daily by advertisements for the lowest price auto insurance by 21st Century, Allstate and State Farm. All the companies make the same claim about savings if you switch to their company.

How can each company make almost identical claims?

All the different companies can use profiling for the driver that earns them a profit. A good example of a profitable customer could possibly be a mature driver, is a homeowner, and has great credit. A customer getting a price quote who matches those parameters will qualify for the lowest rates and is almost guaranteed to save when they switch companies.

Potential insureds who don't measure up to the requirements must pay more money which leads to the driver buying from a lower-cost company. The ad wording is "customers that switch" but not "drivers who get quotes" save that much. That's why companies can truthfully advertise the savings. This illustrates why drivers should get quotes from several different companies. It's impossible to know the company that will give you the biggest savings.

Learn more today

Even more information can be read at the New Jersey Department of Banking and Insurance website. New Jersey consumers can find disaster information, download brochures, read consumer alerts, and view a list of available companies.

Best coverage at the best price

The cheapest auto insurance can be found online and also from your neighborhood Pequannock agents, and you need to price shop both in order to have the best chance of saving money. There are still a few companies who may not provide you the ability to get quotes online and usually these small insurance companies provide coverage only through local independent agents.

As you prepare to switch companies, it's not a good idea to skimp on coverage in order to save money. There are a lot of situations where an accident victim reduced full coverage and found out when filing a claim that the small savings ended up costing them much more. The proper strategy is to get the best coverage possible at a price you can afford while not skimping on critical coverages.