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Controlling the Cost of Auto Insurance |
While some of the factors used by insurers to determine risk are out of your control (i.e., gender, age), you do have control over a variety of factors that influence the cost of your insurance.
Before you
purchase auto insurance, check out: |
Your Collision and Comprehensive deductibles |
In many cases, consumers can save premium dollars by choosing higher deductibles or eliminating coverage for older cars that are paid in full. Remember, a higher deductible means you will pay more out of pocket in the event of an accident. You will need to decide how much you can afford to pay if an accident occurs. |
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Your Auto-related Health Insurer option |
Consumers can save premium dollars by choosing their health care insurers as primary in the case of auto accident-related injuries. It is important to check with your health care insurer before choosing the Health Care Primary Option. |
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Your Personal Injury Protection deductible and limits |
Standard policies usually carry a deductible of $250 and a PIP limit of $250,000. Consumers can save premium dollars by choosing a higher deductible of $500, $1,000, $2,000 or $2,500 and/or choosing one of the lower PIP limits of $15,000, $50,000, $75,000 or $150,000. |
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Your Lawsuit option |
Consumers can save premium dollars by choosing the Limited Right to Sue (Limitation on Lawsuit Option), which limits suits for pain and suffering except in cases of death or permanent injury. |
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Your Vehicle options |
The make, model and value of your vehicle affects the cost of your auto insurance premium. Generally, an older vehicle will cost less to insure, while a high performance or luxury car will cost more. The cost to insure different makes and models of vehicles can vary among insurers, so be sure to check with several insurers to get the best price and coverage for your needs. Companies may offer discounts for vehicles with safety features, so check with your insurer for details, especially when you are considering purchasing a vehicle. |
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It is always a good idea to ask your insurer if any discounts may be available to you. The following are some of the discounts insurers may offer and to which you may be entitled:
Before you
purchase auto insurance, check out if you are eligible for discounts... |
Multiple Car/Other Policies |
Insuring two or more vehicles on one policy may reduce your premium. Discounts may also apply if you have another policy, such as homeowner’s, renter’s or life insurance, with the same company. |
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Vehicle Safety Features |
Insurers must offer discounts for vehicles that have anti-lock brakes, air bag and passive restraint systems, and anti-theft vehicle recovery systems. |
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“Good Student” |
Many insurers offer discounts for young drivers who maintain a 3.0 (“B”) or higher grade point average or for those family members attending school away from home. |
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Defensive Driving |
New Jersey law requires insurers to offer discounts for drivers who have completed a Defensive Driving course (approved by the New Jersey Motor Vehicle Commission). |
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Finally, remember your insurance ABCs: check with your Agent, Broker or Company
representative if you have questions about your coverage options. |
Updated 07-04 |