Is car insurance cheaper in New Jersey if you buy a new policy with the same company rather than renew the policy?

My NJ car insurance policy is up for renewal. My insurer quoted me a six-month rate of $1,500. Out of curiosity, I went on their site and applied for a new policy. It was only $1,200. Is it always cheaper to purchase a new policy rather than renew your old policy?

“While there’s no definitive answer for the discrepancy in prices, several things could be at play. For example, you might have gotten a speeding ticket or been in an accident during your most recent policy term. This may account for your renewal price being more than your quoted rate for a new policy.
Keep in mind that quoted rates aren’t necessarily legally binding. Your insurance company will look at your driving record, geographic location, age, and other factors and adjust your premium accordingly, if they deem it necessary.
Instead of canceling your old policy and getting a new one, just call the company about the difference in rates on your car insurance. They should be able to give you a straightforward answer about what’s going on.”
Eric Schad
Answered on Apr 22, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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