How to Know You’re Spending Too Much for Car Insurance in Fairbanks, AK

Expensive car insurance can take a big chunk out of your personal savings and force you to prioritize other expenses. Comparison shopping is free and is an excellent way to slash your bill and have more diposable income.

Insurance companies such as GEICO and Progressive constantly bombard you with ad campaigns and it can be hard to separate fact from fiction and take the time to shop coverage around.

You should make it a habit to check car insurance prices on a regular basis due to the fact that insurance rates change frequently. Despite the fact that you may have had the lowest rates a year ago there is a good chance you can find better rates now. So forget anything you know (or think you know) about car insurance because you’re going to learn the tricks you need to know to lower your annual insurance bill.

If you are paying for car insurance now, you will most likely be able to save some money using this information. Finding affordable coverage in Fairbanks is not that difficult. But Alaska drivers should learn how companies market insurance on the web because it can help you find the best coverage.

These discounts can lower your rates

The cost of insuring your cars can be expensive, but discounts can save money and there are some available to reduce the price significantly. Some discounts apply automatically when you complete an application, but lesser-known reductions have to be manually applied before you will receive the discount.

• Student Driver Training – Have your child take driver’s ed class in school.
• Safe Driver Discount – Insureds without accidents may save up to 50% more than drivers with accident claims.
• Multiple Vehicles – Having multiple vehicles on one policy can get a discount on all vehicles.
• Homeowners Savings – Owning a house in Fairbanks can help you save on car insurance because maintaining a house requires personal responsibility.
• Senior Discount – If you qualify as a senior citizen, you may be able to get better car insurance rates.
• Auto/Life Discount – Larger companies have better rates if you take out life insurance from them.
• Club Memberships – Belonging to a professional or civic organization is a good way to get lower rates on your policy.
• Sign Early and Save – Some insurance companies reward drivers for switching to them prior to your current policy expiring. It can save you around 10%.
• Seat Belt Usage – Drivers who require all occupants to wear their seat belts could cut 10% or more off your medical payments premium.

A little note about advertised discounts, most discounts do not apply to the overall cost of the policy. Most only reduce specific coverage prices like collision or personal injury protection. So despite the fact that it appears all those discounts means the company will pay you, companies wouldn’t make money that way. Any qualifying discounts will bring down your premiums.

To choose providers who offer car insurance discounts in Alaska, click this link.

Learn How to Buy Car Insurance Cheaper

Smart consumers have a good feel for the rating factors that come into play when calculating your car insurance rates. Having a good understanding of what impacts premium levels enables informed choices that will entitle you to much lower annual insurance costs.

• Keep rates low by being claim-free – Auto insurance companies in Alaska provide lower rates to policyholders who are claim-free. If you file claims often, you can pretty much guarantee higher rates. Your insurance policy is intended to be relied upon for major claims that would cause financial hardship.
• Lower rates come with age – Older drivers are more responsible, tend to cause fewer accidents and tend to be better behind the wheel. Young drivers tend to be less responsible behind the wheel and because of this, their car insurance rates are much higher.
• Bad driving skills means higher rates – Only having one citation can boost insurance rates by as much as thirty percent. Careful drivers receive lower rates than their less careful counterparts. Drivers with dangerous tickets like reckless driving, hit and run or driving under the influence are required to submit a SR-22 or proof of financial responsibility with their state DMV in order to prevent a license revocation.
• Where do you drive? – Driving more miles in a year’s time the higher your rate. Most companies apply a rate based on how the vehicle is used. Autos used primarily for pleasure use qualify for better rates than vehicles that are driven to work every day. Double check that your car insurance coverage shows the proper vehicle usage.
• Optional equipment can affect rates – Owning a car that has an advanced theft prevention system can help bring down rates. Anti-theft devices like LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system can help prevent auto theft.

Do drivers who switch really save?

Car insurance providers like State Farm, Allstate and GEICO constantly bombard you with ads on TV and radio. They all have a common claim that you’ll save big if you switch to their company. How does each company make the same claim?

Insurance companies can use profiling for the type of customer that is profitable for them. An example of a driver they prefer might be profiled as between 30 and 50, has no tickets, and has great credit. Any new insured who matches those parameters is entitled to the best price and therefore will save a lot of money.

Potential customers who don’t qualify for the requirements will be quoted a more expensive rate which leads to business going elsewhere. The ad wording is “people who switch” not “everyone that quotes” save that much. This is how companies can truthfully advertise the way they do.

This emphasizes why you absolutely need to get as many quotes as possible. It’s impossible to know which insurance companies will fit your personal profile best.

Online resources for education

Additional information is available on the website for the Alaska Division of Insurance. Click here for link. Alaska consumers can read industry bulletins, discover disciplinary actions, file complaints about an insurance agent or broker, and find out which companies have the most complaints.

Buy online or local, you save

We’ve covered many tips how you can save on car insurance. The key thing to remember is the more you quote, the better your comparison will be. Consumers could even find that the lowest rates come from a small mutual company. Some small companies may cover specific market segments cheaper than the large multi-state companies such as Progressive and GEICO.

When shopping online for car insurance, don’t be tempted to buy poor coverage just to save money. In too many instances, drivers have reduced physical damage coverage only to regret that it was a big error on their part. Your focus should be to purchase plenty of coverage at an affordable rate while still protecting your assets.

Lower-priced car insurance can be bought online and with local Fairbanks insurance agents, so you should compare both so you have a total pricing picture. There are still a few companies who do not offer online price quotes and many times these regional insurance providers only sell through independent insurance agents.