6 Tips Guaranteed to Save Money on Auto Insurance Costs in Madison

I can’t think of anyone who cherishes buying auto insurance, especially knowing the cost is too high.

Insurance companies such as State Farm, Farmers Insurance, GEICO and Allstate all claim big savings with advertising and consumers find it hard to ignore the propoganda and do the work needed to find the best deal.

It’s a great practice to compare rates yearly since insurance rates are variable and change quite frequently. Even if you think you had the best rates on your last policy you can probably find a better price now. Don’t believe everything you read about auto insurance on the web, but by reading this article, you’re going to learn a bunch of ideas how to save money.

If you have car insurance now, you will be able to lower your premiums substantially using this strategy. Buying car insurance in Madison is easy if you know what you’re doing. Although Alabama car owners do need to know the way insurance companies market insurance on the web and apply this information to your search.

Free Madison Auto Insurance Quotes

Most major insurance companies provide pricing directly from their websites. Getting online quotes is fairly simple as you just type in your personal and coverage information into a form. When complete, the company’s rating system collects your driving and credit reports and generates a price. This simplifies rate comparisons, but the process of having to visit each company’s website and repetitively fill out multiple forms can be a bit tiresome and repetitive. Unfortunately, it is important to perform this step if you want to find the lowest auto insurance rates.

An easier way to compare auto insurance pricing uses one simple form that gets prices from a bunch of companies at once. It’s a real time-saver, requires less work, and makes quoting online much easier. As soon as the form is sent, it is rated with multiple companies and you can pick any one of the returned quotes.

If you find a better price you can click and sign and buy the new coverage. The entire process just takes a couple of minutes and may result in a nice savings.

To save time and fill out one form to compare multiple rates now, click here and input your coverage information. If you have coverage now, it’s recommended you type in just like they are on your policy. Doing this guarantees you will have a rate comparison using the same coverage and limits.

The fine print in auto insurance ads

Companies like Progressive, Allstate and GEICO continually stream ads on television and other media. All the ads say the same thing of big savings after switching to their company. But how can every company claim to save you money? It’s all in the numbers.

All companies have a preferred profile for the type of driver that makes them money. A good example of a profitable customer might be between 30 and 50, has no prior claims, and has a short commute. A customer getting a price quote that hits that “sweet spot” will get the preferred rates and therefore will save when switching.

Potential insureds who fall outside these standards must pay higher premiums and this can result in business going elsewhere. The ads state “customers who switch” not “everybody who quotes” save that much. That’s why companies can truthfully state the savings.

This illustrates why drivers should get as many quotes as possible. It’s just too difficult to predict which insurance companies will have the lowest rates.Madison AL car insurance quote

Don’t miss these six discounts

The price of auto insurance can be rather high, but you can get discounts to help bring down the price. Certain discounts will be triggered automatically at the time of quoting, but lesser-known reductions have to be requested specifically before they will apply.

  • Discount for Good Grades – A discount for being a good student can earn a discount of 20% or more. This discount can apply up to age 25.
  • Drivers Education – Make teen driver coverage more affordable by requiring them to successfully complete driver’s ed class in school.
  • Multiple Cars – Having all your vehicles on one policy can get a discount on all vehicles.
  • Safe Driver Discount – Insureds without accidents can pay as much as 50% less than drivers with accident claims.
  • Discount for New Cars – Putting insurance coverage on a new car can be considerably cheaper because new vehicles have to meet stringent safety requirements.
  • Pay Upfront and Save – If you pay your bill all at once instead of making monthly payments you could save up to 5%.

It’s important to note that most credits do not apply to the overall cost of the policy. Some only reduce the price of certain insurance coverages like medical payments or collision. Just because you may think you can get free auto insurance, you’re out of luck. But all discounts will help reduce your overall premium however.

To see a list of companies who offer auto insurance discounts in Alabama, follow this link.

Additional information can be found on the website for the Alabama Department of Insurance through this link. Consumers can download brochures, view agent and company licensing information, read industry bulletins, and file complaints about an insurance agent or broker.

The following information may also be useful.

Detailed coverages of your auto insurance policy

Learning about specific coverages of your policy can be of help when determining appropriate coverage and proper limits and deductibles. Auto insurance terms can be ambiguous and reading a policy is terribly boring. Below you’ll find the usual coverages found on the average auto insurance policy.

Coverage for uninsured or underinsured drivers

Uninsured or Underinsured Motorist coverage provides protection from other motorists when they do not carry enough liability coverage. Covered losses include injuries to you and your family as well as damage to your vehicle.

Because many people carry very low liability coverage limits (which is 25/50/25), their limits can quickly be used up. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important. Usually these limits are set the same as your liablity limits.

Coverage for medical expenses

Personal Injury Protection (PIP) and medical payments coverage kick in for bills like X-ray expenses, doctor visits and nursing services. They can be used to fill the gap from your health insurance program or if you do not have health coverage. They cover both the driver and occupants and will also cover being hit by a car walking across the street. PIP coverage is only offered in select states and may carry a deductible

Collision coverage

Collision insurance pays for damage to your vehicle resulting from colliding with another car or object. A deductible applies then the remaining damage will be paid by your insurance company.

Collision can pay for things such as colliding with another moving vehicle, hitting a mailbox, sustaining damage from a pot hole and damaging your car on a curb. This coverage can be expensive, so consider removing coverage from vehicles that are 8 years or older. It’s also possible to increase the deductible to save money on collision insurance.

Comprehensive auto insurance

This covers damage from a wide range of events other than collision. You first have to pay a deductible then your comprehensive coverage will pay.

price insurance in Madison

Comprehensive coverage pays for claims like falling objects, damage from flooding, damage from getting keyed and vandalism. The maximum payout you’ll receive from a claim is the cash value of the vehicle, so if the vehicle’s value is low consider removing comprehensive coverage.

Coverage for liability

This coverage provides protection from injuries or damage you cause to other people or property by causing an accident. This insurance protects YOU from legal claims by others. It does not cover your own vehicle damage or injuries.

Split limit liability has three limits of coverage: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. As an example, you may have values of 100/300/100 which stand for $100,000 bodily injury coverage, a limit of $300,000 in injury protection per accident, and $100,000 of coverage for damaged propery. Another option is a combined single limit or CSL which combines the three limits into one amount without having the split limit caps.

Liability insurance covers claims such as emergency aid, legal defense fees, loss of income, bail bonds and funeral expenses. How much coverage you buy is a personal decision, but it’s cheap coverage so purchase as much as you can afford. Alabama state law requires minimum liability limits of 25,000/50,000/25,000 but it’s recommended drivers buy higher limits.

And the best car insurance company is…

As you shop your coverage around, don’t be tempted to buy poor coverage just to save money. In many cases, an insured cut full coverage and learned later that saving that couple of dollars actually costed them tens of thousands. The proper strategy is to get the best coverage possible for the lowest price while not skimping on critical coverages.

Cheaper auto insurance can be purchased on the web and with local Madison insurance agents, so you should be comparing quotes from both in order to have the best chance of saving money. There are still a few companies who do not offer you the ability to get quotes online and these small, regional companies work with independent agents.