Auto insurance is a necessary evil today, with states across the country requiring coverage for all drivers. However, the world of auto insurance can be a confusing one, with deductibles, different types of coverage and minimum requirements muddying the waters. Since purchasing auto insurance is not optional, it is worthwhile to spend some time educating yourself about auto insurance basics. This article will explain the fundamentals of auto insurance in New Jersey, from why you need it to how to save the most money.
What’s the Point?
You may go years without ever contacting your auto insurance agent in New Jersey. In fact, you may begin to wonder whether there is a point to having coverage that you must continue to pay for but never use. The truth is that no one is immune from the occasional auto accident. Once an accident occurs, the cost of repairing the vehicle, coupled by potential medical expenses for injuries incurred, can be more than the average adult can handle. That is where auto insurance comes into play. While you hope you will never need to use it, a good policy offers infinite peace of mind while you are on New Jersey roads and elsewhere.
How Much is Necessary?
Many drivers make the mistake of paying for more coverage than they need or not purchasing enough to cover them adequately. Knowing how much auto insurance you need is a tough call, but having some basic information under your belt can help. All drivers benefit from liability insurance that covers other drivers and vehicles that might be involved in an accident with their car. In fact, nearly every state across the country, including New Jersey, requires drivers to have a minimum amount of liability insurance. On the other hand, older vehicles may not need comprehensive or collision insurance that covers autos in an accident or natural disaster. You may end up paying more in premiums than the car is actually worth, which is not savvy money management in the least.
If you are not sure how much coverage is right for you, talk to an experienced New Jersey insurance agent who can explain the various coverage types to you. But do your homework first, so you have an idea of what each insurance component can do as well. Otherwise, you might fall into the hands of some unscrupulous agent who will try to sell you more coverage than you really need.
What is the Best Way to Save?
There are two methods for saving on auto insurance. The first is to shop around to a number of different insurance companies to get the best rate possible. The second is to educate yourself about the types of discounts you might qualify for, so you can get every bit of savings for your car model, driving record and even your age. Learning your way around auto insurance discounts is the best way to save a bundle, rather than leaving it up to your insurance agent to come up with every possible discount for you.
Shopping for car insurance can feel like an overwhelming endeavor, but a little information goes a long way. Take a little time to educate yourself before heading to the bank or dealer, and you are sure to get the right policy for your needs for the best price possible.