How to search for cheaper car insurance in N.J. | Economy | -- Your State. Your News.

Jun 02nd
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How to search for cheaper car insurance in N.J.

considineTom120211_optState insurance commissioner offers tips for the new year

As the New Year arrives, state Banking and Insurance Commissioner Tom Considine suggests New Jersey motorists carefully review their car insurance coverage and shop around as they renew their policies. He said motorists sometimes neglect to update their information when they renew a policy and can end up needlessly paying higher costs.

“As consumers renew their auto policies in the New Year, they should first look at any recent life changes, including a new job or relocation, and see how that impacts their insurance needs,” Considine said. “Consumers should also review their policy line by line and determine if the coverage they had in 2011 is what they need in 2012.”

Considine offered these tips:

Factors That Affect the Cost of Insurance

* Consumers who married within the last year should alert their auto insurers. Statistically, young married couples tend to have a lower incidence of accidents and claims than unmarried individuals. This may result in lower premiums.

* People who have changed jobs and are now working closer to home are traveling fewer miles and lowering their exposure to risk. Insurers will

calculate premiums based on the average distance driven on an annual basis.

* Getting older could also mean a change in your rate. Younger drivers who are new behind the wheel may be considered riskier than older drivers with more experience. Consumers should check with their insurance agent to see if they have aged out of a younger bracket and are now considered a less risky driver.

Inquire About Discounts

* At renewal time a consumer may want to adjust the coverage from the previous year’s levels. Collision and comprehensive coverage are not required by the state but are strongly recommended, especially for newer cars. However for older cars, drivers may be able to save money be eliminating their collision insurance.

* To lower a rate, consumers can adjust the amount of their deductible. A higher deductible will mean paying more in the event of an accident, but it will also mean a lower premium.

* Married couples may want to insure all of their cars with the same company, as this may lower the cost of the premium.

* Consumers who pay their premium in one payment as opposed to in installments may pay less.

* Bundling insurance is another possible cost saver. Insuring your home and your car with the same company can highlight you as a loyal customer and may lower the premium.

* Consumers with teenage drivers with good grades could decrease the cost of insurance. Good grades help depict the driver as responsible and may mean they are less risky on the road.

* A new year may result in new offers or discounts that were previously unavailable. Consumers should contact their insurance agent to inquire about new updates or offers.

* Drivers with a few bad experiences on the road may want to start off the New Year by completing a defensive driver’s course. An approved course will help consumers behind the wheel and may also qualify them for a discount with their insurer.


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