How come some insurance carriers can promise cheap car-insurance rates even if you have a horrible driving record or bad credit? The answer lies within the fine print of your policy. Let’s take a look at one example of how “cheap” insurance carriers get away with giving you a “great” rate.
No coverage, or reduced coverage, for some drivers
Usually a standard NJ car insurance policy covers you, the listed members of your
household and friends or relatives you let borrow your car occasionally.
If you happen to have you have a new driver living with you, for example your teenage son who already has a
speeding ticket under his belt, a nonstandard policy may require you
to exclude him from coverage. Meaning your son, WILL NOT be covered!
Also some nonstandard policies might
exclude coverage for “permissive” drivers, as in people you allow to drive your car. Exclusions might also apply to drivers under age 25 or 21.
Moral of the story is that even if you end up getting some cheap rate insurance with your bad driving record or credit you could
have less protection in the end!
For Insurance in New Jersey, American Insurance Services Agency is
your Insurance Agent of choice. We offer affordable NJ auto, business
and home insurance coverage and policies. Contact us today online or by calling (732) 680-4444