Having to pay for overpriced auto insurance can drain your savings account and make it hard to pay other bills. Doing a price comparison is a great way to slash your bill and have more diposable income.
There are many insurance companies to insure vehicles with, and although it’s nice to be able to choose, it can be more challenging to find the best rates.
Smart consumers have a good feel for the rating factors that come into play when calculating the rates you pay for auto insurance. Knowing what impacts premium levels empowers consumers to make smart changes that can help you get lower auto insurance prices.
Car insurance companies don’t always publicize all available discounts very clearly, so we break down both well-publicized as well as the least known discounts you could be receiving.
A little note about advertised discounts, some of the credits will not apply to the entire cost. Most only reduce the cost of specific coverages such as medical payments or collision. Just because you may think you can get free auto insurance, companies wouldn’t make money that way.
For a list of insurance companies with discount auto insurance rates in Huntsville, click this link.
Companies like Allstate, GEICO and Progressive consistently run ads on TV and radio. All the ads make the same claim of big savings if you change to their company. How do they all make the same claim?
Different companies have a certain “appetite” for the type of customer that earns them a profit. For instance, a preferred risk might be profiled as over the age of 50, has no prior claims, and has great credit. A driver that hits that “sweet spot” receives the best rates and as a result will probably cut their rates substantially.
Potential customers who fall outside these standards will be charged more money which leads to the customer not buying. The ad wording is “customers who switch” but not “drivers who get quotes” save that much money. This is how companies can truthfully make the claims of big savings. That is why drivers must get quotes from several different companies. Because you never know which auto insurance company will have the lowest rates.
When buying proper insurance coverage for your personal vehicles, there isn’t really a cookie cutter policy. Each situation is unique and your policy should reflect that. For example, these questions may help highlight if your insurance needs could use an agent’s help.
If it’s difficult to answer those questions, 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 auto insurance companies in your area.
More tips and info about auto insurance is located at the Alabama Department of Insurance website. Consumers can file complaints about a company, learn about specific coverages, get help finding coverage, and file complaints about an insurance agent or broker.
In this article, we presented some good ideas how to get a better price on auto insurance. The key concept to understand is the more companies you get rates for, the higher the chance of saving money. You may be surprised to find that the lowest rates come from some of the smallest insurance companies. Regional companies can often provide lower rates in certain areas compared to the large companies like GEICO and State Farm.
As you prepare to switch companies, it’s a bad idea to buy less coverage just to save a little money. Too many times, an accident victim reduced liability limits or collision coverage only to discover later that they should have had better coverage. Your strategy should be to purchase a proper amount of coverage at an affordable rate, not the least amount of coverage.