Living in today’s global market, we know money can be tight. Everyone seems to be on a budget and trying to figure out how to make ends meet. Fortunately, there are simple ways to cut expenses without sacrificing household favorites, such as the SUV. Consider eight ways to save money on NJ SUV insurance.
1. Shop around
This is perhaps the easiest thing you can do. To truly get the best quote, it will take some legwork. Shop around for the best price and allow the insurance companies to compete for your business. It is even wiser to work with a local insurance agency that does all of this shopping around for you. Agents work with multiple insurance companies to help you find the best deal on SUV insurance in New Jersey.
2. Consider higher deductibles in exchange for lower rates
The only thing you need to do is to make sure you put some money away to cover the deductible. It really is easy. Consider this scenario. You know how you can walk into your local supermarket and easily spend $100 or more than you intended to? The items you add to your cart add up. Savings work just as quickly. Consider setting aside between 2% – 5% of every paycheck in an entirely separate bank than your normal one. By having more than one bank, you are much more unlikely to be tempted to dig into your savings. If an accident occurs, you will have money saved to cover the cost of the deductible. This makes it possible to raise it to $500 or $1,000 to save on your monthly insurance premiums.
3. Get the bare minimum for older vehicles
On vehicles that are older than ten years, consider getting liability only. The reason banks require you to have full coverage insurance on newer cars with liens on them is because it protects them. If, for whatever reason, you’re unable to pay on the car, this is their way of ensuring your vehicle remains in good working condition. If you get in an auto accident with a car that is old enough, chances are the damage will cost more than the vehicle is worth. The insurance adjuster may total the car and cut you a check for another vehicle.
4. Purchase an inexpensive vehicle
Your insurances rates for a $120,000 Land Rover SUV are likely to be more expensive than an $18,000 Ford Explorer. Several things are considered when an insurance company gives you a quote—and the type of vehicle is near the top of their list.
5. Examine the benefits of UBI
UBI, or usage-based insurance programs, offer the possibility of saving money if you’re a good driver. The insurance company will install a telematics device underneath the steering wheel and monitor your driving habits. However, if you drive more often than you told the insurance company, if you drive after the sun goes down, or if you have a habit of frequently slamming on the brakes, UBI probably won’t save you much money.
6. Maintain your driving record
Your driving record and history is most certainly at the top of any list of quote considerations for any insurance company. Every accident and every claim carries with it the possibility of raising your rates. The other side of this—if your insurance carrier offers it—is the opportunity of receiving a discount for having a good driving record. These records are direct indicators of your risk factor. The more accidents or other claims you’ve made the insurance company pay for, the more they might charge you. This rate hike carries with it the expectation that you will continue to make claims in the future that the insurance company will need to pay for.
7. Take advantage of sponsored insurance
Sometimes, your employer might offer a group insurance policy covering your vehicle at heavily discounted rates. If you’re lucky enough to have this offered to you, it would be in your best interest to take full advantage of it. Businesses may also be able to get competitive rates on vehicles used for work purposes.
8. Watch your credit
Indeed, your credit history illustrates your credibility and likeliness that you will pay your obligations. Insurance is one of those required obligations. If your credit gives the insurance company the impression that they might have a difficult time collecting premiums from you, they could raise your rates as a result. By paying your obligations on time and having a history of doing so, a discount might be offered because they’ll feel comfortable with you paying in full on time every month. An added benefit is you get to enjoy all the other benefits of having a good credit history.
There is hope for those who appreciate owning an SUV to transport multiple people or to tow recreational vehicles. Work with a qualified insurance agent to find the most affordable insurance coverage for your SUV.
Thank you for reading our blog! How can we help you? Contact us today.