Two highway signs on the New Jersey Turnpike.

Why the Cheapest Car Insurance in New Jersey is Not Always the Best

It’s always smart to find the best deal you can on any product or service, but the most cheaply priced product or service is rarely going to be the best value. If you convince yourself that insurance is something that you will never use, there’s not much sense in looking very closely at what you are purchasing. But NJ is a densely populated state with relatively high exposure to accident risk. Even if you are a great driver, as a Jersey motorist you certainly know that not everyone who shares the road with you is so careful. There are multiple reasons why the cheapest car insurance in New Jersey is not best. Car insurance is utilized quite frequently in the Garden State, and “cheap” is probably not a word that you want to associate with protecting your financial security.

Minimum Coverage

If you plan to drive a car in New Jersey, you will need to purchase at least a basic auto insurance policy. State law requires all drivers to purchase, at minimum, a basic limits policy which includes personal injury protection (PIP) and property damage liability coverage before they begin driving in the state. The minimum required policy is relatively inexpensive to purchase but isn't necessarily the best policy for most motorists. You need to count the costs of purchasing the cheapest option; doing so could put you at risk of being underinsured and financially vulnerable. It will also put you in a less favorable (and more expensive) category for future auto insurance purchases.

How Cheap Auto Insurance in NJ Affects Your Protection and Coverage

Cheap car insurance in NJ has minimal coverage and does not provide you with the best level of protection needed following all types of incidents. For example, if you are in an accident that causes damage to your vehicle and you are at fault, a simple liability policy will not pay to repair your car. Likewise, the most basic policy may not cover all of your medical bills. Furthermore, if your car is damaged by weather or stolen, a basic policy won't pay to replace or repair it.

A Cheap Automobile Insurance Policy Has Higher Deductibles

An automobile insurance policy that is cheap also tends to come with higher deductibles and a lower amount of coverage (low limits, high deductibles). This means that, even if an incident is covered by your policy, you will have to pay a large sum of out-of-pocket money towards the bills before your policy will cover anything. Once coverage does kick in, the policy will pay up to the maximum coverage amount you chose, which may not be enough to cover all of your bills.
Although many drivers are tempted to choose the cheapest insurance policy that meets state standards, this isn't always the wisest decision. By paying just a little more for your auto insurance coverage and selecting higher coverages, you can better protect yourself and your vehicle from potential losses.

Cheap Insurance Purchases Now Can Drive Up Your Future Insurance Premiums

Another reason why cheap insurance choices can backfire is that insurance companies use your prior liability limits as a factor in setting a price for your policy. Most insurance shoppers don’t realize this. Low or minimum liability limits purchased in the past will identify you as a less desirable risk and can disqualify you for the best rates. Save yourself money in the future by maintaining at least mid-range limits. This way the next time that you shop for auto insurance you won’t be penalized for falling into a “low prior limits” category. To help you find affordable auto insurance that will provide the coverage you need, call Plymouth Rock today.

Plymouth Rock Assurance and Plymouth Rock are brand names and service marks used by separate underwriting, managed insurance, and management companies that offer property and casualty insurance in multiple states. Insurance in New Jersey is underwritten by Palisades Insurance Company and its affiliates. Each company is a separate legal entity that is financially responsible only for its own insurance products. Actual coverage is subject to the language of the policies as issued by each separate company.

Call 855-993-4470, get your free quote online or find a local agent to see why cheapest car insurance in New Jersey isn't best. If you need additional information, please visit our Contact Us page.