How To Lower Your New Jersey Car Insurance Rates in 2024

While the economy seems to be in a state of recovery after the recent inflationary surge, it might not feel like that for automobile owners. Going into 2024, New Jersey motorists are bracing themselves for another round of insurance rate hikes. Allstate, for example, has already secured regulatory approval for a 20% hike, and other insurance companies are likely to follow suit. In short, 2024 could be a brutal year when it comes to your auto insurance premiums.

So why are rates rising so much? First of all, there is the aforementioned surge of inflation. Not only did it raise the prices of everything from food to fuel to utilities, it also put huge pressure on insurance companies to maintain their profitability. The rising costs of parts and labor means auto insurance claims cost a lot more to resolve, and those costs have to be passed along to the customer.

In addition, the onset of the pandemic saw a major spike in risky driving behaviors, which was further exacerbated by the waning of the pandemic. As more drivers got back on the road after a long absence, the number of claims spiked even further. There’s also been a major increase in the number of extreme weather events in the past couple of years, which can incur costly damages to automobiles as well as property.

What can you do?

Currently, cheap New Jersey car insurance is still a possibility: per numbers from The Zebra’s Ross Martin, New Jersey’s average annual premium is only 4% above the national average at $1,459 per year. But if rakes take a huge hike nationwide, that’s not going to be much of a comfort. Plenty of Jersey motorists are looking for ways to mitigate those cost increases -- or even bring them down -- with some time-honored strategies. Here are a few ways you can do the same.

Negotiate with your current insurer

One of the easiest and most effective ways to see about lowering your rates is to talk directly to your insurance company. The average insurance company has dozens of discounts available for their customers -- everything from loyalty discounts for long-standing clients to discounts for putting a telematics device in your car. There are even discounts for certain professions, such as first responder, doctor, nurse, or even teacher. Get in touch with them and see what they have to offer!

Shop around

Another easy way to find a better rate is to shop around. You don’t even have to make a lot of phone calls or write emails to do this -- there are lots of free tools online to help you shop and compare quotes. For example, Geico is one of the cheapest insurance companies in New Jersey, while Progressive is by far the most expensive. With a little footwork, you might find out that you’re buying from the wrong insurance company altogether.

Try the bare minimum

If money is truly tight, consider dropping everything but the bare minimum liability coverage. This means no collision, no comprehensive, just the absolute legal minimum. You’ll be out of pocket if you get in an accident, but your rates will be the lowest they can be in the meantime.

Make up-front payments

One of the many discounts you can get from your local insurer is a discount for paying a year in advance -- which means having a solid chunk of change in your bank account to begin with, but it can lead to a substantial discount (and one less bill to worry about during the rest of the year).

Bundle your policies

If you happen to be a homeowner as well as a car owner, you can also get a discount for bundling your home and auto insurance together. If you rent an apartment, you may also be able to bundle your car insurance with your renter’s insurance. This could end up saving you significant amounts of money in the long run.

Try usage-based insurance

If you don’t drive your car very often -- if you work from home, for example -- you might consider switching to a usage-based model for your insurance. Low-mileage drivers pose less of a risk on the road, and so you could end up getting a discount by virtue of simply not driving as often.

Raise your deductible

Finally, if you’re both confident enough in your driving abilities and have enough money in your bank account to soak the expenses if you should get in an accident, you might consider a higher deductible. Having a higher deductible means more out-of-pocket expenses if you do get in an accident, but lower premiums in the meantime -- and you may not end up getting in an accident at all. However, it’s best to consider this only if you can cover possible repair expenses.