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Useful Tips from a Car Insurance Agent in New Jersey for a Cheap Insurance Policy

Auto insurance in New Jersey is mandatory; if you drive without it you are breaking the law. Whether you are renewing your insurance policy or you are buying new one, you will need to make many decisions about your policy, which will affect how much money you will spend on premiums. Here are few advices derived from the mind of an insurance agent on how to find cheap auto insurance in New Jersey.

The first thing to comprehend is that purchasing an insurance policy is pretty much the same as with any other major purchase, you need to understand the product before you purchase it. It is also important to remember that you can change your policy limits and coverage at any time, regardless that you are not even close to your renewal date. If you get a better quote, you can simply cancel your old policy and ask for a refund for your unused premiums. Many people are not aware that this is possible and as a result rarely decide to cancel their current policy.

Limited right to sue is one way to get a cheap rate on your auto insurance policy. Limited right to sue means that in case of an accident you cannot sue the driver who cause the accident for your suffering or pain unless you sustain a permanent injury such as significant scarring and significant disfigurement, loss of fetus, loss of body part. Opting for limited right to sue doesn`t affect the ability to sue for economic damages like lost wages and medical expenses.

Every driver that passes the defensive drivers training can ask for car insurance discount. The State of New Jersey obligates every auto insurance company that works on its territory to give discounts for drivers that take this course. The New Jersey motor vehicle commission is the governing body that says who can organize defense-driving course. That is why you need to make sure that the training is approved by this commission before you enroll.

1998 was a significant year for auto insurance; it was the year when the automobile insurance cost reduction act (AICRA) permanently changed the way insurance companies conducts their business by creating the tier system. The tier system is a system used by insurance companies to make realistic assessment when identifying a good risk, opposite of simply penalizing drivers for their violations and accidents. Many factors influence your tier rating, things such as; driving experience, vehicle model and age, credit history, gender, age, marriage status, claims. However, most of the companies use different tier system. Some risk characteristics can significantly affect the tier system with one company and yet to be not so important to another insurance company. Each insurance company holds the privilege to say which characteristics are more important to them and which not so much, that`s up to their company policy.

Insurance score is one of the characteristics that`s used by many New Jersey auto insurance companies to evaluate and assign rate. The insurance score is largely based on your consumer credit score. Insurance companies through their insurance agents use your credit score in conjunction with your application information, loss report, and vehicle report to evaluate your insurance risk and assign your rate. However, one needs to know that the New Jersey state prohibits insurance companies to use insurance score to cancel, deny or not to renew coverage.

The type of the vehicle, the model, the make, its safety features, its cost, these are all factors that influence your premium. Generally, older cars cost less to insure than sports or luxury car. The cost to insure different models may vary from insurer to insurer, that is why you need to check with several insurance companies before you decide to purchase your insurance. In addition, many companies give special discounts for vehicles with plenty of safety features. There is an unwritten rule that says the safer the vehicle the lower your premium will be. This is especially important of you buy a new vehicle.

Where you live, your neighborhood can significantly affect your premium. If you live in a neighborhood with low crime rate and you park your car in your garage you will pay lower premium, opposite of if you live in an area with high car-theft average and you park your car on the street. Insurance companies also count the number of claims made by insurers in that particular area. The less claims the lower your premium.

Marital status is regularly taken into consideration when evaluating and assigning rate. The statistics show that younger married couples have fewer claims from unmarried people near their age; as a result, they pay lower premiums. Insurance companies see marriage as a sign of stability, which they award with lower auto insurance rates.

Age is also an important factor that is taken in consideration by the insurance agents. Teenagers in average pay the highest premiums. The reason for that is their lack of driving experience as well as the statistics that show that teenagers are the number one age category in accident cause.

Having multiple cars can also be an important and influential factor that affects your premium. If you insurance all of your vehicles on one insurance policy the insurance company will surely grant you a discount. Additional discount can be gained in case you have another policy such as life insurance or homeowner`s.

Good students are targeted as groups eligible for insurance discount. Students that maintain an average of “B” or higher usually are granted a discount. Insurance companies see that as a sign of stability and as with married couples, they reward that with a discount.  All that the students need to do is to bring a proof of their average and they can have their discount granted.

The last but not least important tip on how to obtain cheap auto insurance is to get as many quotes as possible. The easiest and fastest way to do so is by entering your zip on the top of this page and receives free quotes from most of the insurance companies that operate on the territory of New Jersey. That is the best way to find cheap auto insurance in New Jersey.