Five Ways To Save Money On Car Insurance

With the cost of auto insurance on the rise, many people are looking for ways to cut costs. Since it is against the law to drive a vehicle without insurance, it is not an option to simply drop all coverage. Therefore, drivers need to understand how insurance premiums are determined so that they can take advantage of opportunities to save a little, or a lot, of money. Thankfully, there are low cost auto insurance options out there that can provide excellent coverage if you know how and where to find them.

1- Check for discounts

Many insurance providers offer discounts on auto insurance. Some of the more popular options include discounts for a safe driving record, clean credit history, or owning a car with certain safety features. Many companies will also give discounts if you insure both your home and your car with them. These discounts represent a great way to save money without having to cut your coverage.

2- Select a higher deductible

By raising your deductible from $200 to $1000, you could lower your premium by as much as 40 percent. This option comes with risk, though. It is never a good idea to raise your deductible if you do not have enough money set aside in an accessible account to cover expenses should you be involved in an auto accident. If you do have a few hundred dollars tucked away, though, this may be a great way to save money.

3- Drop coverage you don't need

Selecting auto insurance is often a balancing act of trying to maintain enough coverage to protect your assets while keeping costs reasonable. While assuming too much risk by dropping necessary coverage is ill-advised, there are some types of coverage that may actually duplicate other types of insurance you already have. For example, medical payments coverage may not be necessary if you already have adequate health insurance. Moreover, if your car is older and low in value, it may not be worth the additional expense to carry comprehensive or collision coverage on that vehicle.

4- Buy the right car

The cost of insurance coverage can vary greatly between different vehicles. Some of the factors that insurance companies keep in mind when determining premiums include repair costs and how likely the vehicle is to be stolen. Some companies also consider the safety record of the vehicle. If you are shopping for a new car, you could save a significant amount of money by first checking crash tests results as reported by the Insurance Institute for Highway Safety before selecting a vehicle.

5- Take the time to shop around

Once you have determined exactly what types and amounts of coverage that you need, research insurance companies to weigh your options. Narrow your choices to at least three different insurance companies and request a quote from each. While cost will inevitably play a large role in which company you choose to purchase your policy from, don't forget to weigh in the reputation of the company, level of customer service they provide, and types of coverage they offer.

With a little time and research, it may be possible to save hundreds of dollars on New Jersey auto insurance each year while maintaining the coverage that you need. With costs on the rise, you do not have to sacrifice necessary protection to look after your health, safety, and future.

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