Collision and Comprehensive Coverage: Always Necessary?

A NJ auto insurance policy is divided into seven types of coverages, but two of them, collision coverage and comprehensive coverage, are not required by law. However, these optional coverages may be required if you lease or finance your car. Remember, if you choose to purchase collision coverage, you must also buy comprehensive coverage.

If you have recently paid off a loan on your car, there are two important things you must do:

• What if you have an older, paid off car?
• Other ways to save money on your premium

What If You Have an Older, Paid Off Car?

• Drivers can save money on their auto insurance premium by eliminating coverage for older cars that are paid in full. By dropping these coverages, drivers must realize that they will be personally responsible for their own repair costs unless attributable to another driver's policy.
• Another choice is to get a higher deductible, but that means you will pay more out of pocket in the event of an accident. The standard deductible in New Jersey is $750, but higher or lower amounts are available as options.

You need to decide how much you can afford to pay out of pocket if an accident occurs.

Other Ways to Save Money on Your Premium

If you're not comfortable with dropping collision and comprehensive coverages from your auto insurance policy, there are other ways to lower your premium.

For example, you can ask your auto insurance company about discounts you might not know about or you're newly eligible for, such as completing a defensive driving course or becoming a homeowner.

If you're shopping for a NJ auto insurance policy or you'd like to find out if you can pay less than you do now on car insurance, give High Point Auto Insurance a call at 1-800-516-9242 for a free NJ auto insurance quote today.

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