Tightwads Guide to Saving on Alexander City Car Insurance

Have you had enough of robbing Peter to pay Paul each month for car insurance? You're in the same situation as many other drivers in Alabama.

With consumers having so many options when it comes to car insurance, it can be hard to pick the lowest price car insurance company.

It's important to do rate comparisons before your policy renews because rates are constantly changing. If you had the lowest price on your last policy the chances are good that you can find a lower rate today. There is a lot of wrong information about car insurance on the internet, so I'm going to show you some great ways to save money.

Are you getting all your discounts?

Companies that sell car insurance don't list all their discounts very well, so we researched some of the more common and also the lesser-known car insurance savings.

  • New Car Discount - Insuring a new car can be considerably cheaper since new cars are generally safer.
  • Accident Free - Claim-free drivers pay much less as compared to bad drivers.
  • Military Rewards - Having a deployed family member can result in better rates.
  • Sign Early and Save - Some companies give discounts for switching to them before your current expiration date. It can save you around 10%.
  • Anti-theft Discount - Anti-theft and alarm systems are stolen less frequently and earn discounts up to 10%.

It's important to note that most credits do not apply to the entire cost. Most only cut specific coverage prices like collision or personal injury protection. So when the math indicates you can get free auto insurance, you're out of luck.

To see a list of companies with the best car insurance discounts in Alabama, follow this link.

Alabama car insurance quotes

Comparison of Car Insurance in Alexander City

Most companies allow you to get pricing online. The process is pretty easy as you just type in as detailed in the form. Once you submit the form, their rating system will obtain your driving record and credit report and generates pricing information determined by many factors. This makes comparing rates easy, but the time it takes to visit multiple sites and enter the same data into a form can be a bit tiresome and repetitive. But it's very important to do this in order to find the best price on car insurance.

There is a better way!

The preferred way to lower your car insurance bill utilizes a single form that obtains quotes from many companies. The form is fast, requires less work, and makes comparison shopping much more enjoyable and efficient. After sending your information, it is rated and you are able to buy any or none of the price quotes you receive. If you find a better price you simply finish the application and purchase the new policy. The entire process can be completed in a matter of minutes and could lower your rates considerably.

If you want to find out if lower rates are available, click here to open in new window and enter your information. If you have coverage now, it's recommended you replicate deductibles and limits exactly as shown on your declarations page. This makes sure you are getting a rate comparison based on the exact same insurance coverage.

Why some people pay less for insurance in Alexander City

An important part of buying insurance is that you know some of the elements that come into play when calculating your car insurance rates. When you know what positively or negatively influences your rates allows you to make educated decisions that may reward you with lower car insurance prices.

  • Where do you drive? - The more you drive every year the more you will pay for car insurance. Most companies rate vehicles based on their usage. Vehicles left parked in the garage receive lower rates than vehicles that are driven to work every day. Make sure your car insurance policy properly reflects the correct driver usage, because improper ratings can cost you money.
  • Rates may be lower depending on your job - Jobs such as judges, architects and stock brokers tend to pay the highest rates due to high stress and lengthy work days. On the other hand, occupations such as farmers, students and the unemployed have the lowest average rates.
  • Safe vehicles cost less to insure - Cars with high safety ratings are cheaper to insure. These vehicles result in less severe injuries and fewer injuries translates into fewer and smaller insurance claims passed on to you as lower rates.
  • What type of vehicle do you drive? - The make and model of the vehicle you own makes a big difference in how high your rates are. The lowest base rates are usually for small economy passenger vehicles, but there are many factors that impact the final cost.
  • How's your driving record? - Your driving citation history has a big impact on rates. Good drivers get better rates than people who have multiple driving citations. Just one speeding ticket can increase rates by twenty percent. Drivers who have severe citations like DWI, reckless driving or hit and run convictions may need to submit a SR-22 form with their state motor vehicle department in order to drive a vehicle legally.
  • More than one policy can earn a discount - The majority of companies will give a discount to policyholders who consolidate policies with them, otherwise known as a multi-policy discount. Even with this discount, it's still a good idea to compare rates to make sure you are getting the best deal. Consumers may find better rates by splitting coverages up.
  • Marriage brings a discount - Having a wife or husband actually saves money when buying car insurance. It is viewed as being more mature and statistics show drivers who are married are more cautious.
  • Extra add-on coverages are wasting money - There are a lot of extra bells and whistles that you can buy on your policy. Things like rental car reimbursement, towing coverage and motor club memberships are examples of these. These coverages may sound good initially, but if you don't need them remove them from your policy.

How can GEICO, State Farm and Progressive save drivers who switch?

Car insurance companies such as GEICO, State Farm and Progressive regularly use ads on television and other media. They all seem to say the same thing that you can save if you move to them. But how can every company make the same claim? It's all in the numbers.

All companies can use profiling for the type of driver that is profitable for them. For instance, a desirable insured could be over the age of 50, is a homeowner, and has great credit. A customer who fits that profile will qualify for the lowest rates and as a result will probably save a lot of money.

Consumers who are not a match for this ideal profile will have to pay higher rates which usually ends up with business going elsewhere. The ad wording is "customers who switch" not "everybody who quotes" save money. That's why insurance companies can advertise the savings. Because of the profiling, drivers must get quotes from several different companies. Because you never know the company that will fit your personal profile best.

Final considerations

When you buy insurance online, don't be tempted to reduce coverage to reduce premium. In many instances, an accident victim reduced collision coverage and learned later that the few dollars in savings costed them thousands. The ultimate goal is to purchase a proper amount of coverage at the best price.

We just showed you a lot of information how to compare car insurance prices online. The key concept to understand is the more rate quotes you have, the more likely it is that you will get a better rate. Consumers could even find that the biggest savings come from some of the smallest insurance companies. These smaller insurers often have lower prices on specific markets than the large multi-state companies such as .

Additional detailed information is located at the Alabama Department of Insurance website. Consumers can file complaints about an insurance agent or broker, read industry bulletins, find disaster information, and learn about specific coverages.

Additional helpful sites include Auto Insurance 101 and this page where you can research Alexander City insurance agents.