Tightwads Guide for Saving on Somerville Auto Insurance

No one in their right mind looks forward to paying for auto insurance, in particular when they are paying too much. Insurance companies such as GEICO and Progressive increase brand awareness with catchy ads and consumers find it hard to sift through the bull and effectively compare rates to find the best deal.

It's important to do rate comparisons occasionally because prices are constantly changing. Just because you found the best deal on your last policy a different company probably has better rates today. So just forget anything you know (or think you know) about auto insurance because you're going to get a crash course in the only way to remove unneeded coverages and save money.

Are you getting all your discounts?

Companies don't always list all their discounts in a way that's easy to find, so here is a list both well-publicized and also the lesser-known auto insurance savings. If you aren't receiving every discount you qualify for, you are throwing money away.

Accident Forgiveness - A handful of insurance companies allow you one accident before your rates go up as long as you don't have any claims prior to the accident.
Anti-theft Discount - Anti-theft and alarm systems help deter theft and earn discounts up to 10%.
Homeowners Savings - Owning a house in Somerville may trigger a auto insurance policy discount due to the fact that maintaining a home requires personal responsibility.
Accident Free - Good drivers with no accidents can earn big discounts as compared to drivers who are more careless.
Multiple Vehicles - Buying coverage for multiple vehicles on one policy can get a discount on all vehicles.

It's important to note that most of the big mark downs will not be given to your bottom line cost. Most only reduce specific coverage prices like liability, collision or medical payments. So even though they make it sound like you can get free auto insurance, you're out of luck.

Why some people pay less for insurance in Somerville

Smart consumers have a good feel for some of the elements that help determine the price you pay for auto insurance. Having a good understanding of what influences your rates allows you to make educated decisions that may reward you with lower auto insurance prices.

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

Women pay lower rates - Statistics show women are more cautious behind the wheel. However, this does not mean women are better drivers. Women and men are in accidents at about the same rate, but the males have costlier accidents. They also get cited for more serious violations such as DWI and reckless driving. Young males are the most expensive to insure and therefore are the most expensive to insure.
More than one policy can earn a discount - Many companies will give a discount to customers who consolidate policies with them such as combining an auto and homeowners policy. Discounts can be anywhere from five to ten percent in most cases. Even with this discount, it's still a good idea to compare other company rates to make sure you are getting the best deal.
Lower deductibles cost more - Insurance for physical damage to your car, also known as collision and other-than-collision, is used to repair damage to your car. Examples of covered claims could be collision with another vehicle, damage caused by hail, and rolling your vehicle. Your deductibles are how much you are required to spend before your auto insurance pays a claim. The more money you're willing to pay, the lower your rates will be.
Occupation reflects on rates - Did you know that where you work can have an impact on rates? Jobs such as doctors, architects and dentists tend to pay the highest average rates due to high stress and lengthy work days. Other occupations such as scientists, historians and performers have the lowest average rates.

Tailor your coverage to you

When it comes to buying proper insurance coverage for your vehicles, there really is not a cookie cutter policy. Your needs are not the same as everyone else's so your insurance needs to address that. For instance, these questions might point out whether you would benefit from an agent's advice.

Does my policy cover me when driving someone else's vehicle?
Do I need special endorsements for business use of my vehicle?
Does my policy cover my teen driver if they drive my company car?
Will I be non-renewed for getting a DUI or other conviction?
Am I covered when driving on a suspended license?
Does my insurance cover a custom paint job?
Can I rate high risk drivers on liability-only vehicles?

If you don't know the answers to these questions but you think they might apply to your situation, then you may want to think about talking to an agent. To find lower rates from a local agent, complete this form or you can go here for a list of companies in your area. It's fast, doesn't cost anything and you can get the answers you need.

How can State Farm, GEICO and Progressive save drivers who switch?

New Jersey consumers get pounded daily by advertisements for cheaper car insurance by companies like State Farm, GEICO and Progressive. They all seem to say the same thing that you can save after switching to them.

How can each company make almost identical claims? It's all in the numbers.

All companies have a certain "appetite" for the type of driver that earns them a profit. An example of a desirable insured could possibly be between 25 and 40, owns a home, and has great credit. A customer getting a price quote who fits that profile will get the preferred rates and as a result will probably save when they switch companies.

Potential customers who are not a match for the requirements will have to pay higher prices which usually ends up with the driver buying from a lower-cost company. The ads state "customers who switch" not "everybody who quotes" save money. That is how insurance companies can advertise the savings. Because of the profiling, drivers should compare many company's rates. It's impossible to know which company will fit your personal profile best.

Additional detailed information is available at the New Jersey Department of Banking and Insurance website. New Jersey consumers can learn about insurance regulations, read consumer alerts, report car insurance fraud, and read industry bulletins.

In the end, you save

Lower-priced auto insurance can be sourced online and with local Somerville insurance agents, so you should compare both so you have a total pricing picture. There are still a few companies who do not offer you the ability to get quotes online and most of the time these smaller companies sell through independent agents.

When you buy insurance online, it's a bad idea to skimp on coverage in order to save money. In many cases, an insured cut comprehensive coverage or liability limits to discover at claim time that the few dollars in savings costed them thousands. Your aim should be to get the best coverage possible at the best price.