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How to Shop for Auto Insurance
The key to getting the most out of your premium dollars is to comparison shop among insurers. Before you start shopping, consider what insurance coverage you need, then compare how much the same coverage would cost from several insurers.
Comparison shopping takes time, but the effort may result in a lower premium since different companies charge different rates for identical products and services. Some companies employ agents or brokers to sell policies, while others sell policies directly through the mail or their web sites.
New Jersey law requires insurance agents, brokers and companies to provide you with three coverage options, called Insurance Scenarios, when applying for a new policy, or at any time upon your request if you are already insured. You must be told how each choice may affect what you pay and what your benefits would be in the event of an accident. You always have the right to ask about additional options.
When shopping for insurance, you should also consider an insurer’s reputation for financial stability, policyholder service and claims handling practices. Many insurers offer information about their services on their web sites, and companies such as A.M. Best (www.ambest.com), Moody’s (www.moodys.com) and Standard & Poor’s (www.standardandpoors.com) rate the financial condition of insurers.
As the regulatory authority for the state’s insurance industry, the Department cannot recommend insurers to consumers. However, the Department’s web site (www.njdobi.org) offers many shopping tools, as well as a current list of insurance companies that write policies in New Jersey.
Before You Shop...
Try the Department’s online tool, the Auto Insurance Purchasing Planner (www.njdobi.org/ autoplanner.htm).
This interactive tool guides you through the coverage selections that must be made when purchasing an auto policy. You can print out information about the types of coverage that are right for you and use it when speaking to an agent or insurance company.