Tips to Lower Your Auto Insurance
Auto insurance rates are on the rise. If you’ve recently experienced an increase on your auto insurance these tips will be helpful in lowering your auto insurance.
Shop Around:
Shopping around your auto insurance is one of the best ways to lower your auto insurance. If you’ve been with your current carrier for more than five years, there’s a good chance you may be paying too much. To save you time insurance brokers can shop around your insurance with multiple carriers, so you won’t need to call multiple different carriers to find the best rate.
Length of Continuous Prior Coverage:
One of the main factors insurance companies consider when providing an insurance quote for your auto insurance is the length of continuous coverage you've had. The longer you’ve had continuous coverage in place, the lower your insurance rate will be. Having even a day lapse in coverage can dramatically change your auto insurance rate.
Your Insurance Score:
Insurance companies run a report that is linked to your credit score. This is a soft pull so it doesn’t affect your credit score but it is directly linked to your credit score. Having strong credit will positively affect the price you pay for insurance. To improve your credit score it’s important to pay your bills on time, having only a few credit cards and focus on not using more than thirty percent of your credit limit most of the time.
Having Health Insurance for New Jersey Drivers:
New Jersey drivers are required to have a coverage called personal injury protection (PIP) on their auto insurance. PIP pays for a driver's medical, rehabilitative and living expenses after suffering an injury in a car accident in New Jersey. Even though this is a requirement, the amount of personal injury protection can be changed based on the personal health insurance coverage you have in place. If you have your own personal health insurance which covers all drivers on your auto policy talk with your insurance professional about possibly lowering your PIP coverage since PIP admittedly overlaps with standard health insurance policies in terms of functions.
There are additional ways to reduce your auto insurance rate but these four tips make up the majority of your auto insurance cost factors. To understand your personal situation concerning these tips its best to contact an insurance professional.
by Charles J. Greve at CJG Insurance Group
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