Easy Tips to Pay Less on Northport Car Insurance

No one looks forward to paying for car insurance, especially when the cost is way too high. Since consumers have many online and local companies to choose from, it is hard for the average consumer to find the best car insurance company.

Buying car insurance in Northport is quite easy. If you currently have a car insurance policy, you should be able to lower your premiums substantially using these tips. Alabama vehicle owners just need to know the best way to compare price quotes online.

Rate influencing factors

An important part of buying insurance is that you know the rating factors that play a part in calculating the rates you pay for car insurance. When you know what positively or negatively determines base rates empowers consumers to make smart changes that may reward you with lower car insurance prices.

Shown below are a few of the “ingredients” used by your company to calculate rates.

  • Proper usage rating affects rates – Driving more miles in a year the more you will pay for car insurance. Most insurance companies apply a rate based on their usage. Cars not used for work or commuting qualify for better rates compared to those used for work or business. Ask your agent if your car insurance coverage is rated on the proper vehicle usage.
  • Sex matters – The statistics show that men are more aggressive behind the wheel. That doesn’t necessarily mean that men are WORSE drivers than women. Men and women are in accidents at a similar rate, but the males cause more damage. They also have more aggressive citations such as DWI and reckless driving. Young males are most likely to cause an accident and therefore have the most expensive car insurance rates.
  • Safer cars cost less to insure – Safer cars can get you lower premiums. The safest vehicles reduce injuries and better occupant protection translates into savings for insurance companies and lower rates for you.
  • More than one policy can earn a discount – Many insurance companies will award you with lower prices to people who carry more than one policy in the form of a multi-policy discount. Even with this discount, you may still want to comparison shop to verify if the discount is saving money. You may still find better rates by splitting coverages up.
  • Bump up deductibles to save – Coverage for physical damage, termed comprehensive and collision coverage on your policy, protects your car from damage. A few examples of covered claims are colliding with a building, damage from fire, and windstorm damage. The deductibles are the amount of money you are willing to pay out-of-pocket if you file a covered claim. The more money you have to pay, the less your company will charge you for insurance.
  • Better credit scores mean better rates – Your credit score is a big factor in your rate calculation. If your credit is lower than you’d like, you could potentially save money when insuring your by repairing your credit. Consumers who have good credit tend to be less risk to insure than drivers who have poor credit.

Don’t pay full price with these discounts

Car insurance companies don’t necessarily list all available discounts very well, so we researched some of the best known and the harder-to-find savings tricks you should be using. If you don’t get every credit you deserve, you’re just leaving money on the table.

  • No Charge for an Accident – A handful of insurance companies allow you one accident without raising rates if you are claim-free prior to the accident.
  • Auto/Life Discount – Some companies give lower rates if you buy life insurance.
  • Payment Discounts – If you pay your bill all at once instead of making monthly payments you may reduce your total bill.
  • Drivers Ed for Students – Require your teen driver to enroll in driver’s education if it’s offered in school.
  • Seat Belts Save – Buckling up and requiring all passengers to buckle their seat belts can save 10% or more on the medical payments or PIP coverage costs.
  • Good Student Discount – A discount for being a good student can save 20 to 25%. The discount lasts well after school through age 25.
  • Fewer Miles Equal More Savings – Fewer annual miles can qualify you for better rates on cars that stay parked.

As a disclaimer on discounts, many deductions do not apply to your bottom line cost. A few only apply to the price of certain insurance coverages like liability, collision or medical payments. So when the math indicates adding up those discounts means a free policy, companies don’t profit that way.

To choose insurers with the best car insurance discounts in Alabama, click here.save money image

Ads can be misleading

Alabama drivers get pounded daily by advertisements that promise big savings by companies like State Farm, GEICO and Progressive. All the companies have a common claim that you can save if you move to them.

How does each company say the same thing? This is how they do it.

Different companies are able to cherry pick for the type of driver that earns them a profit. A good example of a driver they prefer could be over the age of 40, is a homeowner, and chooses high deductibles. Any new insured who fits that profile will get very good rates and most likely will save quite a bit of money when switching.

Consumers who don’t measure up to this ideal profile will have to pay higher premiums which leads to the customer not buying. The ads state “drivers who switch” not “people who quote” save that much money. That is how insurance companies can confidently make those claims. Because of the profiling, it is so important to compare many company’s rates. It is impossible to predict which car insurance company will provide you with the cheapest rates.

Your personal situation dictates your coverage

When it comes to buying adequate coverage, there really is no perfect coverage plan. Everyone’s needs are different and a cookie cutter policy won’t apply. Here are some questions about coverages that could help you determine whether your personal situation may require specific advice.

  • Does my vehicle qualify for pleasure use?
  • Is a new car covered when I drive it off the dealer lot?
  • Is there coverage for injuries to my pets?
  • When would I need rental car insurance?
  • What if I total my vehicle and owe more than it’s worth?
  • Why am I required to get a high-risk car insurance policy?

If you don’t know the answers to these questions but a few of them apply, then you may want to think about talking to an agent. If you want to speak to an agent in your area, take a second and complete this form or click here for a list of car insurance companies in your area. It only takes a few minutes and you can get the answers you need.

To find out more about Alabama car insurance

Additional detailed information can be read at the Alabama Department of Insurance website. Visitors are able to read enforcement actions against agents and companies, discover disciplinary actions, and read state legal mandates and laws.

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Additional helpful sites include III.org’s auto insurance page and this resource to find Northport, AL insurance agents.

Affordable insurance is out there

We covered a lot of techniques to reduce car insurance prices online. The most important thing to understand is the more price quotes you have, the better your comparison will be. Consumers may even find the lowest priced car insurance comes from a small local company. Some small companies can often provide lower rates in certain areas than the large multi-state companies such as Allstate and Progressive.

As you shop your coverage around, it’s very important that you do not buy less coverage just to save a little money. In too many instances, drivers have reduced liability limits or collision coverage to discover at claim time they didn’t have enough coverage. The proper strategy is to find the BEST coverage at a price you can afford, not the least amount of coverage.