You’re paying to much for NJ auto insurance

The overwhelming majority of New Jersey drivers understand that there are a couple of big factors that all auto companies look at the when it comes time to charge you for your NJ auto insurance.

We are talking about:

  • The kind of car you are driving and its condition
  • Your driving record and any blemishes and
  • Whether or not you’re able to bundle coverage together with one company

At the same time, the overwhelming majority of people that have NJ auto insurance are completely and totally unaware of a number of key considerations that these companies pay attention to that dramatically impact the amount of money you have to spend on coverage – details that you might never have thought would have any bearing on your bill whatsoever.

We are going to break down some of those details below and hopefully point you in the right direction in how to avoid those hits to your wallet.

Let’s get right to it!

Are you single?

According to information published by the Consumer Federation of America, major companies all over the country – and New Jersey companies alike – have a tendency to charge a lot more for customers that are single as opposed to those that are married.

You are definitely going to want to raise a couple of eyebrows when your car company wants to know your marital status before they will provide you with any NJ policy quote, and you’re going to want to make sure that you talk to a representative so that this kind of meaningless detail has no impact on the amount you’re charged for policy.

Are you a renter?

If you rent your home, you are usually going to be able to save quite a bit of money – you don’t have to pay property taxes, you don’t have to pay for maintenance, and you don’t have to worry about repairs or upgrades – but you are going to have to pay about 6% more per year for car coverage than people that own homes do.

This is according to the same information published in the report we mentioned above by the CFA, and is something that you aren’t going to have a tremendous amount of control over. At the same time, it may be worthwhile to talk to your NJ company before you sign on the dotted line and ask them about whether or not your homeowner status is going to have any impact whatsoever on the amount of money you are asked to pay for car coverage.

Have you been with one NJ auto insurance company for quite a while?

A lot of people are under the impression that they are going to be able to save a lot of money when they stick with one NJ auto insurance company for a considerable amount of time.

Nothing could be further from the truth.

NPR recently conducted a report to find out just how much money loyal customers of a particular company were able to save, only they found out that in the majority of cases these people weren’t saving ANY money at all but instead of paying almost 15% more.

This was a pretty shocking turn of events that really caught people off guard, and it’s easy to see why. You’d think that regularly keeping your business with one particular organization and paying your bill faithfully every month would entitle you to a considerable discount, but that’s just not the way that things shake out.

If you do want some kind of loyalty discount you need to bring it up with your  agent and specifically request that they drop your coverage costs or lose you to someone that will.

How is your neighborhood?

NJ  companies aren’t just going to consider the flanks or time of your daily commute and the condition of your car but are also going to consider how “good” your neighborhood is at home and at work.

If you’ve been in a nasty part of town – or if you work in one – you can expect to spend close to 7% more on car coverage than if you had lived in a nicer part of the city. A lot of people are surprised to learn about this “extra charge”, but it makes sense.

Those that live and work in higher crime areas are more likely to have something happen to their vehicle, are more likely to utilize a policy and therefore are asked to pay at least a little bit more for coverage.

How is your credit score looking?

Another surprising detail that will impact your coverage costs is how your credit score health is shaping up.

Those with fantastic credit are going to be able to save quite a bit of money on car coverage while those with less than stellar credit will almost always pay more. It’s another thing to ask your NJ auto insurance company about.