Best Cheap Insurance for Drivers with Good Credit in New Jersey

The words “low-cost” and “auto insurance” really shouldn’t be used together, especially when trying to find the cheapest auto insurance for drivers with good credit. In an attempt to save some money, let’s start the ball rolling by going over some situations that help determine car insurance rates, and find out if we can help you cut the cost of your next policy.

The model of vehicle that is being insured is probably the largest consideration when comparing the best cheap insurance for drivers with good credit in New Jersey. Vehicles with average performance, an excellent safety record, or a low likelihood of having liability claims will cost less to insure than higher performance models. The data below illustrates car insurance premiums for the more afforable vehicles to buy insurance for.

Data assumes married male driver age 30, no speeding tickets, no at-fault accidents, $1000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, claim-free, multi-policy, homeowner, and multi-vehicle. Rate quotes do not factor in specific location which can lower or raise rates considerably.

Data based on married male driver age 30, no speeding tickets, no at-fault accidents, $1000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-vehicle, homeowner, claim-free, safe-driver, and multi-policy. Table data does not factor in vehicle garaging location which can decrease or increase price quotes substantially.

Table data represents married male driver age 30, no speeding tickets, no at-fault accidents, $1000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-policy, safe-driver, homeowner, multi-vehicle, and claim-free. Rates do not factor in vehicle location which can increase or decrease premium rates greatly.

When shopping for insurance for financially responsible drivers, one of the many considerations that establish insurance cost is where you normally keep your vehicle. Areas that are more densely populated or have higher claim rates like East Orange, West New York, and Elizabeth likely pay more, whereas areas with less people or fewer weather incidents tend to receive slightly lower rates.

The table below ranks the priciest cities in New Jersey for drivers with good credit to purchase car insurance in.

Premium costs are estimated as specific location information can alter premiums considerably.

Tickets and at-fault accidents raise rates

The best way to enjoy the cheapest insurance rates for financially responsible drivers is to drive cautiously and avoid accidents and keep your driving record clean. The example below shows how violations and at-fault accidents can influence insurance costs for different age groups. The premium estimates are based on a married female driver, comprehensive and collision coverage, $500 deductibles, and no discounts are factored in.

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In the chart above, the average cost of auto insurance per year with a clean driving record and no accidents is $2,305. Receive two speeding tickets and the average cost increases to $3,276, an increase of $972 each year. Now add in one accident along with the two speeding tickets and the yearly cost of insurance for drivers with good credit jumps again to an average of $4,275. That’s an increase of $1,970, or $164 per month, just for not driving responsibly!

Types of discounts on New Jersey auto insurance rates

Insurance companies that provide the best cheap insurance for drivers with good credit in New Jersey may provide rate discounts that may potentially lower prices by as much as 25% or more if you meet specific eligibility requirements. A list of insurance companies and a partial list of their discounts are shown below.

• State Farm may offer discounts for passive restraint, good student, driver’s education, anti-theft, accident-free, and Drive Safe & Save.
• Progressive offers discounts for homeowner, multi-policy, online quote discount, good student, continuous coverage, online signing, and multi-vehicle.
• Travelers has savings for new car, good student, save driver, driver training, continuous insurance, multi-policy, and home ownership.
• American Family includes discounts for good driver, air bags, bundled insurance, Steer into Savings, early bird, TimeAway discount, and good student.
• Liberty Mutual policyholders can earn discounts including newly retired, multi-policy, new graduate, exclusive group savings, preferred payment discount, multi-car, and safety features.

The diagram below compares car insurance rates with and without discounts being applied to the rates. Data assumes a male driver, no claims or driving citations, New Jersey state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.

The first bar for each age group shows the price with no discounts. The lower bar shows the rates with marriage, accident-free, safe-driver, passive restraint, multiple policy, and defensive driving course discounts applied. In this example, the the average yearly reduction on insurance for drivers with good credit is 28% or $608.

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How to get the best cheap insurance for drivers with good credit in New Jersey

It is possible to find better rates, and here are some of the better penny-pinching solutions that can help drivers find cheap car insurance.

• Maintaining good credit helps earn cheaper rates
• Avoid accidents and claims
• Choose a safer vehicle and pay lower rates
• Do not get traffic violations
• Save money by staying claim-free
• Shop your coverage around for the best deal

The last tip is highly vital, as we discussed in this piece. Coverage prices can change considerably based on profitability, so don’t be tentative to buy from a different company if you find a better deal.

Many drivers prefer to stick with one company, but we do not recommend it if your bullheadedness ends up costing you a small fortune. In just a couple of minutes you could shop around and find cheaper car insurance for drivers with good credit.

Who has the cheapest insurance quotes for financially responsible drivers?

Thanks to technology, there are a lot of ways to shop around for insurance in New Jersey, but the most common are through an independent insurance agent, an exclusive insurance agent such as Allstate or State Farm, or direct from companies such as Progressive or Geico.

All three ways can provide insurance quotes, but each is different in how they function.

Independent insurance agents have contracts with multiple insurance companies and can compare rates with every one. They have the freedom to provide you with more rates, which can give you the best chance of saving money. If your premiums go up, your policy is moved internally and you do not have to find a new agent.

Exclusive agencies are ‘exlusive’ to one company, a couple examples are Allstate or Farmers Insurance agents. Exclusive agencies are unable to compare other company’s rates, so you might not find the best rates.

Buying insurance direct means you bypass local agents and instead shop direct either online or via phone. This option may be a decent choice families who do not need advice for asset protection and have a good understanding of what specific coverages they need.

Which method works best to buy the best cheap insurance for drivers with good credit in New Jersey? Most people would assume that buying from a direct car insurance company saves money since that prevents the need to pay agent commissions, but that is generally not the case. An argument could also be made that an independent agent saves the most money since they can quote with many companies, but again, that’s not a true statement. In some circumstances, the exclusive agents may have prices that other companies cannot beat.

Due to the large number of rating factors, the best method to ensure you are not overpaying for insurance is to get quotes and compare the rates. Money-saving experts recommend you get price quotes from all three in order to be able to find the lowest price. For a list of companies offering online discounts, click here to view.