Know How to Find the Lowest Price on Birmingham Auto Insurance

Finding better rates for Birmingham auto insurance is nearly impossible for beginners to comparing rates online. You have so many choices that it can easily become a real hassle to find the best price in Birmingham.

It’s a great practice to compare prices quite often because rates change frequently. Despite the fact that you may have had the best deal a few years ago other companies may now be cheaper. Block out anything you think you know about auto insurance because we’re going to demonstrate how to use the internet to get good coverage at a lower rate.

If you have a current auto insurance policy or are shopping for new coverage, you can use these tips to find the best rates while maintaining coverages. This article will instruct you on how to effectively get price quotes and some tricks to saving. Alabama drivers just need to know the best way to compare rates online.

Take advantage of discounts

Companies that sell car insurance don’t always list every discount in a way that’s easy to find, so we break down both well-publicized and the harder-to-find savings tricks you should be using. If you aren’t receiving every discount available, you’re just leaving money on the table.

  • Seat Belts Save more than Lives – Using a seat belt and requiring all passengers to wear their seat belts could save 15% off your PIP or medical payments premium.
  • Safety Course Discount – Taking a course teaching defensive driving skills could possibly earn you a 5% discount if your company offers it.
  • Claim Free – Good drivers with no accidents can earn big discounts compared to bad drivers.
  • Early Signing – Some companies give discounts for buying a policy prior to your current policy expiration. This can save 10% or more.
  • Own a Home – Being a homeowner can save you money due to the fact that maintaining a home is proof that your finances are in order.
  • Discounts for Safe Drivers – Safe drivers can pay as much as 50% less than drivers with accident claims.
  • Multiple Vehicles – Insuring multiple vehicles on one policy can get a discount on all vehicles.
  • Drivers Ed for Students – Cut your cost by having your teen driver complete a driver education course if offered at their school.

It’s important to understand that many deductions do not apply to your bottom line cost. A few only apply to individual premiums such as liability, collision or medical payments. So even though it sounds like adding up those discounts means a free policy, companies wouldn’t make money that way.

To see a list of providers who offer auto insurance discounts in Alabama, click here to view.

Make smart decisions and save

Consumers need to have an understanding of the factors that play a part in calculating the price you pay for auto insurance. When you know what positively or negatively impacts premium levels empowers consumers to make smart changes that can help you get much lower annual insurance costs.

Shown below are some of the items used by your company to calculate your rates.

  • Is your vehicle built for speed? – The make and model of the car you are insuring makes a significant difference in how high your rates are. Lower performance four cylinder passenger cars generally receive the lowest base rates, but the final cost of insurance is determined by many other factors.
  • Don’t buy coverages you don’t need – There are quite a few extra coverages you can purchase when buying auto insurance. Coverages like personal injury protection, better glass coverage and additional equipment coverage may be wasting your money. These may sound like a good investment when you first buy your policy, but now you might not need them so get rid of them and save.
  • Protect your assets with liability insurance – Liability insurance is the protection in the event that you are found to be at fault for personal injury or accident damage. It will provide for a legal defense up to the limits shown on your policy. Liability is cheap compared to physical damage coverage, so drivers should carry high limits.
  • Rate your vehicle for proper use – The more miles you rack up on your car every year the higher your rates will be. The majority of insurers price each vehicle’s coverage based on their usage. Cars not used for work or commuting get more affordable rates as compared to vehicles used primarily for driving to work. Ask your agent if your auto insurance policy shows how each vehicle is driven.
  • Your age impacts your rates – Young drivers in Alabama are known to be careless and easily distracted in a vehicle so they pay higher auto insurance rates. Mature drivers are more cautious drivers, file fewer claims and are safer drivers.
  • Never let your coverage lapse – Allowing your coverage to lapse is a quick way to trigger a rate increase. And not only will insurance be more expensive, getting caught without coverage may earn you a revoked license or a big fine.You may then be required to file a SR-22 with the Alabama department of motor vehicles.

Auto insurance myths debunked

Alabama drivers can’t get away from ads for the lowest price auto insurance by companies like State Farm, Allstate and GEICO. They all seem to make an identical promise that you’ll save big if you move to them.

How do they all say the same thing?

Different companies are able to cherry pick for the driver that is profitable for them. For example, a driver they prefer might be between 25 and 40, has no prior claims, and has excellent credit. A driver who matches those parameters receives the best rates and therefore will save quite a bit of money when switching.

Drivers who fall outside this ideal profile will be charged a more expensive rate and this can result in the driver buying from a lower-cost company. The ads state “customers who switch” not “everybody who quotes” save that much money. That’s the way companies can truthfully state the savings. That is why it’s extremely important to compare as many rates as you can. It’s not possible to predict which auto insurance company will have the lowest rates.

For more Alabama auto insurance information

Additional detailed information is available at the Alabama Department of Insurance website. Alabama consumers can find disaster information, find out which companies have the most complaints, and report car insurance fraud.

compare rates in Alabama

More quotes mean more savings

When trying to cut insurance costs, don’t be tempted to reduce needed coverages to save money. There have been many cases where someone sacrificed liability limits or collision coverage only to regret at claim time that the few dollars in savings costed them thousands. The ultimate goal is to buy enough coverage at a price you can afford while not skimping on critical coverages.

We covered a lot of ways to lower your auto insurance rates. The key thing to remember is the more rate comparisons you have, the better chance you’ll have of finding lower rates. Drivers may discover the best price on auto insurance is with a company that doesn’t do a lot of advertising.

Cheaper auto insurance can be purchased online and also from your neighborhood Birmingham agents, so you should be comparing quotes from both in order to have the best price selection to choose from. Some auto insurance companies may not provide online quoting and usually these smaller companies provide coverage only through local independent agents.