Shopping for the most affordable Alabaster car insurance on the web can be difficult for consumers not familiar with buying insurance on the web. Because there are so many insurers to choose from, how can anyone possibly compare the different rates to find the lowest price available?
If you have car insurance now, you will be able to lower your premiums substantially using this strategy. This article will help educate you on the best way to quote coverages. Although Alabama consumers must know the way insurance companies market insurance on the web because it can help you find the best coverage.
Discounts are available to cut your rates
Car insurance is not cheap, but discounts can save money and there are some available to help offset the cost. Certain discounts will be applied when you quote, but less common discounts must be manually applied before they will apply.
- Multiple Vehicles – Buying insurance for multiple vehicles on one policy qualifies for this discount.
- Club Memberships – Belonging to a professional or civic organization could qualify you for a break on your policy.
- Discount for Swiching Early – Select companies give a discount for switching to them prior to your current policy expiring. The savings is around 10%.
- Service Members Pay Less – Having a family member in the military could mean lower rates.
- Theft Prevention System – Cars that have factory anti-theft systems can help prevent theft and therefore earn up to a 10% discount.
- Claim Free – Drivers with accident-free driving histories pay less when compared to accident-prone drivers.
- Good Student – This discount can earn a discount of 20% or more. This discount can apply well after school through age 25.
- Anti-lock Brake System – Anti-lock brake equipped vehicles are safer to drive and therefore earn up to a 10% discount.
- New Car Discount – Adding a new car to your policy can cost up to 25% less compared to insuring an older model.
- Passive Restraints and Air Bags – Vehicles with factory air bags or automatic seat belts can get savings of 20% or more.
A little note about advertised discounts, some of the credits will not apply to your bottom line cost. Some only apply to the price of certain insurance coverages like liability and collision coverage. So despite the fact that it appears all those discounts means the company will pay you, companies don’t profit that way. But any discount will reduce the cost of coverage.
How to Lower your Car Insurance Rates
It’s important that you understand the different types of things that help determine car insurance rates. Understanding what influences your rates helps enable you to make changes that can help you get big savings.
The following are some of the factors that factor into your rates.
- Safer cars are cheaper to insure – Cars with high safety ratings can get you lower premiums. Safe vehicles have better occupant injury protection and better occupant protection translates into savings for insurance companies and lower rates for you.
- An active claims history can cost you – Companies in Alabama provide discounts to people who are claim-free. If you are a frequent claim filer, you can look forward to higher rates. Auto insurance is intended to be relied upon for larger claims.
- Rates may be lower depending on your job – Did you know your car insurance rates can be affected by your occupation? Occupations such as doctors, architects and stock brokers have the highest rates attributed to stressful work requirements and long work days. On the other hand, jobs such as pilots, students and homemakers get better rates.
- Do you know you’re credit rating? – Credit score is a huge factor in determining what you pay for car insurance. Drivers with excellent credit tend to file fewer claims and have better driving records than drivers with lower credit scores. If your credit rating is low, you could pay less to insure your by spending a little time repairing your credit.
- Having a spouse can save you money – Having a wife or husband actually saves money on your policy. Marriage means you’re more responsible and it’s proven that married drivers get in fewer accidents.
- Men pay higher rates – Statistics show that men are more aggressive behind the wheel. That doesn’t necessarily mean that women are better drivers. Men and women tend to get into accidents at a similar rate, but the men cause more damage. Men also statistically have more aggressive citations such as reckless driving. Male drivers age 16 to 19 are several times more likely to be in an accident and thus pay the highest rates.
- Never allow your policy to lapse – Having an insurance coverage lapse will be a sure-fire way to increase your car insurance rates. Not only will rates go up, getting caught without coverage might get you a hefty fine and possibly a revoked license.Then you may be required to submit proof of financial responsibility or a SR-22 with the Alabama department of motor vehicles.
- Optional equipment can affect rates – Purchasing a vehicle that has an advanced theft prevention system can save you a little every year. Theft prevention devices like vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all aid in stopping auto theft.
Beware of misleading car insurance ads
Companies like Progressive, Geico, Allstate and State Farm continually stream ads in print and on television. All the ads make the same claim that you can save after switching to them. How can each company make the same claim? It’s all in the numbers.
Insurance companies have a preferred profile for the type of customer that is profitable for them. An example of a driver they prefer might be a mature driver, has no driving citations, and has great credit. Any new insured who matches those parameters gets the lowest rates and is almost guaranteed to save when they switch companies.
Potential insureds who don’t meet the “perfect” profile will be charged a higher premium and ends up with business not being written. Company advertisements say “customers that switch” not “everybody who quotes” save that kind of money. That’s why insurance companies can make the claims of big savings.
That is why drivers must get as many comparisons as possible. It’s impossible to know the company that will give you the biggest savings.
For more Alabama car insurance information
More information is available on the Alabama Department of Insurance website. Click here for link. Alabama consumers can read industry bulletins, read consumer alerts, and file complaints about a company.
Quote often and quote early
When you buy insurance online, don’t be tempted to sacrifice coverage to reduce premiums. There are a lot of situations where someone sacrificed comprehensive coverage or liability limits and found out when filing a claim that saving that couple of dollars actually costed them tens of thousands. Your goal should be to buy a smart amount of coverage at a price you can afford, not the least amount of coverage.
Insureds who switch companies do it for a number of reasons such as an unsatisfactory settlement offer, extreme rates for teen drivers, lack of trust in their agent or high rates after DUI convictions. No matter why you want to switch, switching car insurance companies can be pretty painless.
We covered a lot of ways to reduce car insurance prices online. The key concept to understand is the more companies you get rates for, the higher the chance of saving money. You may even find the lowest rates come from a smaller regional carrier.