Perplexed by the sheer number of car insurance choices in Birmingham? Lot’s of other consumers are too. Consumers have so many choices that it can be a real hassle to compare prices.
It is always a good idea to check car insurance prices periodically because prices are rarely the same from one policy term to another. Despite the fact that you may have had the lowest rates a few years ago there is a good chance you can find better rates now. Block out anything you think you know about car insurance because you’re about to find out the right way to eliminate unnecessary coverages and save money.
If you currently have a car insurance policy, you will most likely be able to reduce your rates substantially using this information. The purpose of this article is to let you in on the best way to quote coverages and some tips to save money. Nevertheless, Michigan vehicle owners must learn the way companies market insurance on the web and apply this information to your search.
Educated Consumers Know How to Buy Car Insurance Cheaper
It’s important that you understand some of the elements that help determine your car insurance rates. Understanding what determines base rates allows you to make educated decisions that will entitle you to much lower annual insurance costs.
The following are a partial list of the pieces companies use to determine prices.
- Small claims can cost you – If you are a frequent claim filer, you can pretty much guarantee either a policy non-renewal or much higher rates. Auto insurance companies in Michigan generally give cheaper rates to people who do not file claims often. Auto insurance is meant to be used in the event of the large, substantial claims.
- Adjust deductibles and save – Physical damage coverage, commonly called comprehensive (or other-than-collision) and collision coverage, protects your car from damage. Examples of covered claims are collision with another vehicle, damage from fire, and windstorm damage. Physical damage deductibles are the amount of money you are required to spend in the event of a claim. The more money you’re willing to pay, the bigger discount you will receive.
- How credit affects car insurance rates – Your credit history is a huge factor in determining what you pay for car insurance. If your credit rating is not that good, you could be paying less to insure your by repairing your credit. Consumers who have high credit ratings tend to be less risk to insure as compared to drivers with lower credit scores.
- Do you need those extra coverages? – There are a ton of additional coverages you can purchase if you aren’t careful. Coverages for roadside assistance, better glass coverage and additional equipment coverage are examples of these. These coverages may sound good initially, but now you might not need them so eliminate them to save money.
- Performance influences rates – The type of vehicle you own makes a big difference in determining your rates. Low performance passenger cars generally have the cheapest insurance rates, but there are many factors that impact the final cost.
- Consolidate policies to earn discounts – Some car insurance companies provide better rates to insureds who buy several policies from them. It’s known as a multi-policy discount. Discounts can add up to ten or even up to twenty percent in some cases. If you currently are using one company, you still need to shop around to confirm you are receiving the best rates possible.
- Your job and insurance rates – Did you know your car insurance rates can be affected by your occupation? Careers like real estate brokers, executives and stock brokers tend to have the highest rates attributed to job stress and long work days. On the other hand, occupations like scientists, students and performers receive lower rates.
- Safer cars are cheaper to insure – Vehicles with high crash test scores can get you lower premiums. The safest vehicles protect occupants better and fewer injuries translates into fewer and smaller insurance claims and thus lower rates.
Lower rates by qualifying for discounts
Companies that sell car insurance do not list every discount very clearly, so here is a list both well-publicized and the harder-to-find discounts you could be receiving.
- Anti-lock Brake Discount – Vehicles equipped with ABS or steering control are safer to drive and qualify for as much as a 10% discount.
- Bundle and Save – When you combine your home and auto insurance with one company you could get a discount of approximately 10% to 15%.
- Pay Now and Pay Less – By paying your policy upfront rather than paying monthly you can actually save on your bill.
- Resident Student – Any of your kids who are attending college and do not have access to a covered vehicle may qualify for this discount.
- Drive Safe and Save – Drivers who avoid accidents can get discounts for up to 45% lower rates than less cautious drivers.
It’s important to note that some credits don’t apply the the whole policy. Most only reduce specific coverage prices like physical damage coverage or medical payments. So when it seems like all those discounts means the company will pay you, car insurance companies aren’t that generous.
To see a list of insurance companies offering car insurance discounts in Birmingham, click here to view.
Do car insurance companies bend the truth?
Progressive, Allstate and Geico constantly bombard you with ads in print and on television. All the companies have a common claim of big savings if you switch your coverage to them. How do they all make almost identical claims? This is how they do it.
Different companies are able to cherry pick for the driver that is profitable for them. A good example of a profitable customer might be profiled as over the age of 40, a clean driving record, and chooses high deductibles. A customer who fits that profile gets the lowest rates and most likely will save quite a bit of money when switching.
Consumers who don’t meet the “perfect” profile will be quoted a higher premium which usually ends up with business going elsewhere. Company advertisements say “drivers who switch” not “people who quote” save money. That is how insurance companies can confidently advertise the savings. This emphasizes why drivers should get quotes from several different companies. It’s impossible to know which company will provide you with the cheapest rates.
Additional car insurance links
Even more information is available at the Michigan Office of Financial and Insurance Regulation website. Michigan drivers can file complaints about an insurance agent or broker, find a variety of consumer forms, and discover disciplinary actions.
The articles below may also help you learn more about car insurance in Birmingham
- Is Your Birmingham Auto Insurance Breaking the Bank?
- Learn How to Pay Less and Get More for Birmingham Alabama Car Insurance
A little work can save a LOT of money
Throughout this article, we presented many ideas to compare car insurance prices online. The key thing to remember is the more rate quotes you have, the higher the chance of saving money. Consumers could even find that the biggest savings come from the least-expected company.
As you restructure your insurance plan, it’s a bad idea to sacrifice coverage to reduce premiums. There are too many instances where someone sacrificed liability coverage limits and found out when filing a claim that the savings was not a smart move. Your focus should be to buy a smart amount of coverage for the lowest price.
Drivers leave their current company for any number of reasons including delays in responding to claim requests, being labeled a high risk driver, delays in paying claims or high prices. No matter why you want to switch, switching car insurance companies is less work than it seems.