Things You Should Know Before Buying Auto Insurance

Buying a car is always more than just paying the money and drive away. Auto insurance is just one of the confusing questions that many car owners trying to understand. Auto insurance is mandatory in New Jersey, and we know many car buyers ask questions like which insurance to buy, where to buy it and even more in-depth questions. Nutley Kia is the expert in cars but we don’t know much about insurance. However, the interview we did with the local auto insurance expert can definitely help you clarify some questions you have in mind. Check this out the let us know if you have more questions.

Nutley auto insurance expert introduction:

Renée Friscia, agent for State Farm Insurance Companies since 1995. Worked in the personal insurance industry for over 30 years. BA in Marketing from Seton Hall University.

What auto coverage is required in New Jersey?

Auto insurance is mandatory in New Jersey. The minimum coverage is a Basic Policy. It provides $5000 in coverage for Property Damage and $15000 of coverage for Personal Injury Protection. Most insurers do not offer collision and comprehensive coverage with a Basic Policy.

How many kinds of auto insurance products are in the market? Which one should I choose?

There is commercial insurance and personal insurance. There are many different options of coverages to choose. On the coverage you should choose, unfortunately, there’s no black and white answer: It depends a lot on what coverages you need and what kind of deductible you feel comfortable with. It is important to understand your needs. Do you rent or own your own home? Do you have assets to protect (including income from a job)? Will your own health insurance cover auto accident injuries? How much insurance coverage can you afford? These are some of the questions you should ask yourself before choosing a specific coverage plan.

Do I need an insurance agent? Why?

Having an insurance agent is a valuable asset to consumers. Agents are trained in the various insurance products and can assist consumers in choosing the proper coverage for their needs. When you buy a house, you use a real estate agent because of their expertise, as a parallel, insurance agent can provide peace of mind that you are protecting your family and assets now and in the future.

How do I choose a company that is reliable?

When shopping for insurance, you should always consider an insurer’s reputation for financial stability, policyholder service and claims handling practices. The New Jersey Department of Insurance has provided links for the different rating companies. http://www.state.nj.us/dobi/division_consumers/insurance/ratings.html

How high do I want my deductibles?

Leasing companies and Lienholders may dictate how high a deductible you may choose. It is a balancing act. Higher deductibles typically lower your premium, but will increase your out-of-pocket costs if a loss occurs. Ask yourself how much you’re willing and able to pay directly, often on short notice, to potentially save on your premium. If you want to lower the amount you have to pay when an accident occurs, you might want to opt for a lower deductible. Standard deductibles in New Jersey are $750 for comprehensive and collision.

What factors affect the insurance premiums I pay?

Many factors are used in determining premiums. Some of those factors include; the coverage you choose, where you live, the kind of car you drive including safety features and alarms, how your car is used, who drives the car, information from consumer reports such as your driving history. Additionally your age, sex, and marital status are included in determining the cost of your car insurance.

Are there any ways to reduce my premium with regard to youthful drivers?

There are several tools available to help reduce premiums on policies that include youthful drivers. State Farm offers programs such as a good student discount, driver training discount, Steer Clear discount, and our Drive Safe and Save program that consumers may qualify for. It is important to visit with your agent to see which program would apply to your household.

How does driving history affect auto insurance rates?

Having a good driving history without tickets or accidents can have a positive effect on the cost of your insurance. Drivers who cause accidents generally must pay more than those who are accident-free for several years. If you’ve been accident-free for a long period of time, don’t get complacent! Remain vigilant and maintain your good driving habits. And even though you can’t rewrite your driving history, having an accident on your record can be an important reminder always to drive with caution and care. As time goes on, the effect of past accidents on your premiums will decrease.

What are the most important things to look for in a policy?

It is vital that consumers obtain a policy that will meet the needs of their family.

Where can I find more information about auto insurance?

You can visit State Farm Learning Center https://learningcenter.statefarm.com/auto/insurance/. Also the NJ Department of Insurance has an informative site as well http://www.state.nj.us/dobi/division_consumers/insurance/auto.htm.   You can also contact me at 973-667-6600 for a competitive rate and review of your insurance or visit my website at http://www.nutleyinsurance.com/

What is your top suggestion to buying auto insurance?

Make sure you understand your coverages. Do not be afraid to ask your insurance agent questions.

 

For more interviews with local influencers and automotive experts, check out our interview section

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