The best way to save money on car insurance rates is to do a yearly price comparison from companies in Newark.
First, try to understand what coverages are included in your policy and the modifications you can make to prevent rate increases. Many factors that cause high rates such as traffic tickets, fender benders, and a negative credit history can be remedied by making lifestyle changes or driving safer. This article gives ideas to keep prices down and get discounts that may be overlooked.
Second, request price quotes from direct, independent, and exclusive agents. Direct companies and exclusive agencies can only quote rates from one company like GEICO or State Farm, while independent agents can provide prices for a wide range of insurance providers.
Third, compare the quotes to your current policy to see if a cheaper price is available in Newark. If you find a lower rate quote and switch companies, make sure the effective date of the new policy is the same as the expiration date of the old one.
Fourth, give notification to your current company of your decision to cancel your current coverage and submit the signed application along with the required initial payment to the new company. As soon as you have the new policy, place your new certificate verifying proof of insurance in an accessible location in your vehicle.
One thing to point out is to try to compare the same coverage limits and deductibles on every quote and to quote with as many different insurance providers as possible. Doing this ensures the most accurate price comparison and the best price selection.
It’s well known that car insurance companies want to prevent you from shopping around. People who compare rates at least once a year are highly likely to switch companies because there is a good chance of finding a policy with more affordable rates. A survey found that drivers who shopped around every year saved an average of $3,450 over four years compared to people who never shopped around.
If finding low prices for insurance in Newark is the reason for your visit, then learning about how to compare insurance can make it easier for you to save money.
The companies shown below have been selected to offer price quotes in New Jersey. If you want the best cheap car insurance in Newark, we recommend you click on several of them to get a more complete price comparison.
Insurance protects more than just your car
Despite the high cost, insurance may be required for several reasons.
- The majority of states have minimum liability requirements which means state laws require specific limits of liability coverage in order to be legal. In New Jersey these limits are 15/30/5 which means you must have $15,000 of bodily injury coverage per person, $30,000 of bodily injury coverage per accident, and $5,000 of property damage coverage.
- If you bought your LFA with a loan, it’s most likely the lender will require that you have insurance to guarantee their interest in the vehicle. If you let the policy lapse, the bank or lender will purchase a policy for your Lexus at a more expensive rate and force you to pay much more than you were paying before.
- Insurance preserves not only your car but also your assets. Insurance will pay for many types of medical costs that are the result of an accident. Liability coverage will also pay attorney fees in the event you are sued. If you receive damage to your vehicle caused by a storm or accident, your insurance policy will pay to repair the damage minus the deductible amount.
The benefits of having insurance more than offset the price you pay, especially when you need to use it. The average driver in America is overpaying more than $825 a year so we recommend shopping around every year to help ensure money is not being wasted.
Insurance Price Influencing Factors
Lots of factors are taken into consideration when pricing auto insurance. Some factors are common sense like an MVR report, but other criteria are less apparent such as your marital status or your vehicle rating. Smart consumers have a good feel for the factors that help calculate your premiums. If you have some idea of what controls the rates you pay, this enables you to make decisions that may result in big savings.
- Vehicle theft costs us all – Selecting a car model that has an advanced theft prevention system can help lower your rates. Anti-theft devices like GM’s OnStar, tamper alarm systems and vehicle immobilizers can thwart auto theft and help lower rates.
- Safer cars cost less to insure – Cars with five star safety ratings can get you lower premiums. These vehicles reduce the chance of injuries and fewer injuries translates into savings for insurance companies and thus lower rates. If your Lexus scored at minimum four stars on Safercar.gov or an “acceptable” rating on iihs.org you may pay a lower rate.
- Accidents inflate rates – Being a careful driver impacts your car insurance rates tremendously. Having just one speeding ticket or other violation could increase your next policy renewal forty percent or more. Good drivers get better prices as compared to careless drivers. Drivers who have received serious violations like reckless driving, hit and run or driving under the influence may find they need to file a SR-22 with their state motor vehicle department in order to legally drive a vehicle.
- More miles equals more premium – The more miles you rack up on your Lexus in a year’s time the more it will cost to insure it. Many insurance companies calculate rates based upon how much you drive. Autos left parked in the garage can be on a lower rate level compared to those used for work or business. It’s a smart idea to ensure your car insurance coverage properly reflects how each vehicle is driven, because it can save money. A policy that improperly rates your LFA may be wasting your money.
- When should you not file claims? – If you are the type of insured that files lots of claims you shouldn’t be surprised to get higher rates. Insurance companies in New Jersey provide lower rates to policyholders who do not file claims often. Auto insurance is intended to be relied upon for claims that pose a financial burden.
- Your job may affect premiums – Jobs such as doctors, executives, and medical professionals generally have higher premiums than the average policyholder attributed to intense work requirements and long work hours. On the other hand, jobs like actors, engineers and the unemployed generally pay rates lower than average.
- Credit rating impacts costs – Having a bad credit score can be an important factor in calculating your car insurance rates. Therefore, if your credit score can use some improvement, you could pay less to insure your Lexus LFA by taking the time to improve your credit score. Consumers who have high credit ratings tend to be more responsible and file fewer claims than drivers with lower ratings.
Keep this in mind when shopping around
As you prepare to switch companies, make sure you don’t buy less coverage just to save a little money. There have been many situations where consumers will sacrifice uninsured motorist or liability limits and found out when filing a claim that the savings was not a smart move. The proper strategy is to find the BEST coverage at the best price but still have enough coverage for asset protection.
People switch companies for any number of reasons including policy non-renewal, high rates after DUI convictions, policy cancellation or denial of a claim. It doesn’t matter why you want to switch finding a new company can be pretty painless.
You just read quite a bit of information on how to compare Lexus LFA insurance rates in Newark. It’s most important to understand that the more quotes you get, the more likely it is that you will get a better rate. You may even find the most savings is with some of the smallest insurance companies.
More information can be read at the links below
- How Can I Save Money on Auto Insurance? (Insurance Information Institute)
- Who Has the Cheapest Auto Insurance for 18 Year Olds in Newark? (FAQ)
- Who Has Cheap Newark Auto Insurance for Unemployed Drivers? (FAQ)
- How Much is Newark Car Insurance for Business Use? (FAQ)
- Who Has the Cheapest Car Insurance for Electric Cars in Newark? (FAQ)
- How Much is Auto Insurance for a Chevrolet Equinox in Newark? (FAQ)
- Who Has Cheap Car Insurance Quotes for Teachers in Newark? (FAQ)
- Shopping for a Safe Car (Insurance Information Institute)
- Front crash protection reduces rear-end crashes (Insurance Institute for Highway Safety)
- Hybrid vehicles cost insurers more (Insurance Institute for Highway Safety)
- State Laws for Cellphones and Texting (iihs.org)