Auto Insurance Hacks | NJM

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Auto Insurance Hacks

Use these tips to get the best value out of your car insurance.

Cheapest Isn't Best

Cheap car insurance typically means having the minimum amount of coverage legally required by the state. Opting for a policy with lower limits may save you some money in the short term, but if you cause an auto accident while driving your car, you could be responsible for any amount over your insurance limits needed to settle a claim.

Control Costs with a Higher Deductible

One way to keep your costs low without sacrificing coverage is to increase your deductible.

Choosing a higher deductible lowers the cost of your premium, since you're agreeing to pay a greater portion out of pocket after a covered loss. On the other hand, a lower deductible raises the cost of your premium.

If you opt for a higher deductible, make sure it's an amount you can afford to pay in the event you have a claim.

Ask Your Insurance Provider to Do a Policy Review

Changes in your lifestyle can introduce new opportunities for savings and discounts, but your insurance provider won't know unless you tell them! The representative conducting your policy review will confirm a few things, including:

  • Your eligibility for additional discounts
  • Licensed drivers in your household who might be on your policy
  • The age of your vehicle and whether comprehensive and collision coverage is still worthwhile

Check Your Credit Report

Many insurance companies use data from consumer reports to determine an insurance score. You should check your credit report through each of the three agencies — Equifax, Experian, and TransUnion — at least once a year. Under federal law, you are entitled to a free copy of your credit report from all three agencies once every twelve months. Companies that use consumer report data must inform you in writing if something on your report adversely affected your quote.

Read Your Policy Documents

When you purchase an insurance policy, you will receive a declarations page that provides information on policy limits and deductibles, as well as the individuals and cars insured under the policy. It is important to review your declarations page and policy so that you know what your policy covers and excludes.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.