No one likes paying for car insurance, especially when the cost is too high. With so many online and local companies to choose from, it is very difficult to locate the most cost effective car insurance company.
Discounts can save BIG
Properly insuring your vehicles can get expensive, but there could be available discounts to cut the cost considerably. Certain discounts will be applied when you quote, but some may not be applied and must be specifically requested before you get the savings. If they aren’t giving you every credit available, you’re paying more than you need to.
- Multiple Vehicles – Buying insurance for multiple vehicles on one policy can get a discount on all vehicles.
- New Car Discount – Buying coverage on a new vehicle can cost up to 25% less because new vehicles have to meet stringent safety requirements.
- Clubs and Organizations – Belonging to a professional or civic organization could qualify you for a break when buying car insurance.
- Student Driver Training – Require your teen driver to take driver’s ed class if it’s offered in school.
- No Charge for an Accident – Some insurance companies will forgive one accident without raising rates if you are claim-free for a particular time prior to the accident.
- Government Employees – Employees or retirees of the government can earn a discount up to 10% depending on your company.
- Life Insurance Discount – Some companies give better rates if you take out a life insurance policy as well.
- College Student – Kids in college who attend school more than 100 miles from home and do not have access to a covered vehicle may be able to be covered for less.
It’s important to note that most discounts do not apply to your bottom line cost. Most only apply to the cost of specific coverages such as collision or personal injury protection. So when the math indicates all those discounts means the company will pay you, you’re out of luck. Any amount of discount will cut your premiums.
Will just any policy work for me?
When choosing proper insurance coverage for your personal vehicles, there really is not a one size fits all plan. Everyone’s situation is unique and your policy should reflect that. For example, these questions could help you determine whether your personal situation would benefit from professional advice.
- Do I benefit by insuring my home with the same company?
- Am I covered when renting a car or should I buy coverage from the car rental agency?
- Is rental equipment covered for theft or damage?
- What is the difference between comprehensive and collision coverage?
- Can I afford to buy a different vehicle if my vehicle is totaled?
- Am I covered by my spouse’s policy after a separation?
- When should I drop full coverage on my vehicle?
- Should I buy more coverage than the required Alabama minimum liability coverage?
- What if I total my vehicle and owe more than it’s worth?
If you can’t answer these questions but a few of them apply, you might consider talking to an insurance agent. To find lower rates from a local agent, simply complete this short form or go to this page to view a list of companies. It’s fast, free and you can get the answers you need.
Buyer beware of car insurance advertising tricks
Consumers in Alabama get pounded daily by advertisements that promise big savings by companies like Geico, State Farm and Progressive. All the ads have a common claim that you can save after switching to them.
But how can every company claim to save you money?
Different companies are able to cherry pick for the driver that is profitable for them. A good example of a desirable insured might be over the age of 50, is a homeowner, and drives less than 10,000 miles a year. Any new insured who fits that profile receives the best rates and therefore will pay quite a bit less when switching companies.
Potential customers who don’t qualify for the “perfect” profile will have to pay higher rates and ends up with the driver buying from a lower-cost company. The ad wording is “people who switch” not “everybody who quotes” save money. This is how companies can claim big savings.
Because of the profiling, you need to get quotes from several different companies. It’s not possible to predict which company will fit your personal profile best.
Additional Alabama car insurance resources
More information is available on the website for the Alabama Department of Insurance. Click here for link. Consumers can find out industry alerts, view agent and company licensing information, file complaints about an insurance agent or broker, and view a list of available companies.
Other related articles:
- Techniques for Paying Less for Florence, KY Auto Insurance Rates
- Tested Methods for Low-Cost Florence, KY Car Insurance
More effort can pay off
Discount car insurance can be found online and also from your neighborhood Florence agents, so compare prices from both to have the best rate selection. Some car insurance companies may not provide the ability to get a quote online and these regional insurance providers work with independent agents.
When trying to cut insurance costs, it’s a bad idea to buy less coverage just to save a little money. Too many times, someone dropped liability limits or collision coverage and discovered at claim time that saving that couple of dollars actually costed them tens of thousands. The proper strategy is to buy the best coverage you can find for the lowest price while not skimping on critical coverages.