Quick Insurance Tips

Source: Free Press

How to reduce your Auto Insurance Costs


Owning and driving a car is one of the most potentially perilous things we can do. One wrong turn, one moment of hesitation, one second of taking your eyes off the road, one errant driver and the consequences may be severe and expensive. That potentially high cost is transferred to automobile insurance premiums.

There are many factors involved in determining auto rates, many of which are beyond our control. However, there are things you can do to save money on automobile insurance costs. Keep reading to learn more. Safe driving


Most national insurers offer their lowest rates to drivers with good driving records. Drivers with impeccable records can save as much as 60% over drivers who cause accidents. Money Saving Discounts Insurance companies often offer a number of special credits to customers who've done something to

reduce their risk of accidents. In some cases, these credits are a way to reward valuable customers for their loyalty and continuing business.


These credits are described in general terms so check with an independent agent.


Get an ins representative to find out the specific details of credits your auto insurer offers. Your agent or

Your representative will also be able to tell you which credits are available to you, too,

because these credits aren't available in all Travelers of New Jersey Companies.

Anti-lock Brake Credit: Anti-lock brakes are an automatic safety feature that reduces your risk

and that means you could qualify for a credit on your policy.

Anti-theft Credit: These security features could qualify you for credit because you've reduced

your risk by installing:

o alarms and active disabling devices (systems that you need to turn on)

o a passive disabling device (automatically kicks in when you remove the key from the


o keyless devices (like a remote door lock on your key chain)

o tubular locks (like a bar that locks on your steering wheel)

Defensive Driver Credit: Drivers who have completed a state-approved defensive driver or

accident prevention course could qualify for savings. This credit is good for only three years from

the completion date of the course.

Driver Training Credit: A driver under the age of 21 who has taken a driver training course could

qualify for savings. That's because the better the driver, the lower the risk.

Good Student Credit: If a driver in your household is younger than 25 years old and is a full-time

student with a B average, they could qualify for a credit. This may be because a conscientious

student is more than likely a conscientious driver!

Low Mileage Credit: The amount of miles you travel in a year could mean you'll get a credit on

your policy, depending on how low that mileage figure is. That's because the lower the miles on

the road, the lower the risk of an accident.

Multi-car Credit: Insuring more than one car with your auto insurance company may make you

eligible for savings.

Multi-Policy Credit: You could save money if you have more than one type of policy with the

same insurance company (for example, an auto policy and a homeowners policy). The more

good business you give the company, the more valuable you are as a customer.

Renewal Credit: Once you've had your auto policy for a certain number of years, you'll begin to

get a credit each year you renew. (It's the good customer thing again.)

Student Away Credit: You could get credit if a driver in your household is a student living away at

a school. If your student is more than 100 miles from home and doesn't have a car, that driver's

risk is lowered because his or her time behind the wheel is reduced.


A common deductible amount (what you pay out of your own pocket before your insurance policy kicks in)

ranges from $200 - $50. Choosing a higher deductible can mean paying less for your policy. Consider the

rising costs of car repairs and what you can afford to pay out of your own pocket.

Safer cars benefit

A car that is practical, safe to drive, and inexpensive to repair (relatively speaking!) will cost less to insure.

High-performance cars (that hot sports car you've always longed for!), expensive cars that are costly to

repair, and cars that are likely to be stolen will, of course, cost more to insure. Check the crash-test

reports, repair records, and manufacturer recalls of any car you are considering. A consumer protection

magazine can be very useful. Or, surf the many car sites on the net.

Eliminate unnecessary coverages

If you drive an older car with little cash value, consider eliminating "collision" and "comprehensive"

coverage from your policy. If the cost to repair body damage to an older car is more than the value of the

car itself, the insurance company will appraise the car as "totaled" and give you only the amount of the

car's value. Be sure you're not over-insured!

Sponsored programs

A number of companies, credit unions and associations make auto insurance available to their employees

or members through Travelers of New Jersey. The special program rates reflect the administrative

savings Travelers of New Jersey passes on to members of a large group. Credit union and association

members can pay their premiums through small, regular deductions from their checking or savings

account. Employees can have their premiums automatically deducted from their paycheck. Check with

your employer, credit union or association to find out if they enhance their benefits by sponsoring this type

of insurance program offered by Travelers of New Jersey.


Did you know that fraud costs you about ten cents for every dollar you spend on insurance? Think about

this: if you own a home and two cars and pay $1,800 for insurance each year, you'll have spent $900 on

fraud in just five years. So, ask your state legislators to make the fight against insurance fraud one of their

priorities. Report insurance fraud to your insurance agent, Travelers of New Jersey representative or local

police when you see or suspect it. Speak out against insurance fraud to your friends, family, and business

associates. After all, it's not just the big insurance companies that pay. All those costs eventually filter

down to you.