How to Know You're Spending Too Much for Auto Insurance in Alexandria

Having to pay for overpriced auto insurance can empty your checking account and make it hard to pay other bills. Comparing price quotes is free, only takes a few minutes, and is a good way to slash your bill and have more diposable income.

You have multiple to buy insurance from, and even though it's nice to be able to choose, having more makes it harder to compare rates.

Finding the best rates in Alexandria is quite easy. If you are paying for car insurance now, you will most likely be able to cut costs considerably using this strategy. Nevertheless, Alabama vehicle owners do need to know the way companies price online insurance because it can help you find the best coverage.

Why some people pay less for insurance in Alexandria

Consumers need to have an understanding of the different types of things that go into determining auto insurance rates. Knowing what determines base rates allows you to make educated decisions that could result in big savings.

Listed below are a partial list of the pieces companies use to determine premiums.

Higher deductibles cost less - Deductibles for physical damage represent how much money you are willing to pay if you file a covered claim. Physical damage insurance, commonly called comprehensive (or other-than-collision) and collision coverage, covers damage that occurs to your car. Examples of covered claims are colliding with a building, collision with an animal, and rolling your vehicle. The more you're willing to pay, the bigger discount you will receive.
Where you live is a factor - Residing in less populated areas is a positive aspect when buying auto insurance. Drivers who live in large cities regularly have more traffic problems and a longer drive to work. Lower population means fewer accidents as well as less vandalism and auto theft.
Do you qualify for a multi-policy discount? - Most insurers will award you with lower prices to people who consolidate policies with them in the form of a multi-policy discount. If you currently are using one company, it's in your best interest to comparison shop to make sure you are getting the best deal.
Battle of the sexes - Statistics have proven that women are safer drivers than men. That doesn't necessarily mean that women are better drivers. They both are in accidents in similar numbers, but the male of the species cause more damage. Men also tend to receive more costly citations like reckless driving and DUI. Male drivers age 16 to 19 tend to get in the most accidents and are penalized with high auto insurance rates.
More claims means more premium - Auto insurance companies in Alabama award lower rates to policyholders who file claims infrequently. If you are a frequent claim filer, you can pretty much guarantee either higher rates or even cancellation. Insurance coverage is intended to be relied upon for the bigger claims that can't be paid out-of-pocket.

Are you getting all your discounts?

Companies offering auto insurance don't necessarily list all available discounts very clearly, so we researched some of the best known and the harder-to-find savings tricks you should be using.

Multi-car Discount - Buying coverage for more than one vehicle with the same company qualifies for this discount.
Auto/Home Discount - If you insure your home and vehicles with one insurance company you could get a discount of approximately 10% to 15%.
Anti-lock Brake System - Vehicles equipped with ABS or steering control are safer to drive and therefore earn up to a 10% discount.
Senior Discount - If you're over the age of 55, you may qualify for reduced rates.
Government Employees - Employees or retirees of the government may qualify you for a discount depending on your company.
Theft Prevention System - Cars that have factory anti-theft systems prevent vehicle theft and therefore earn up to a 10% discount.
Drivers Education - Cut your cost by having your teen driver enroll in driver's education in school.
Military Rewards - Being on active duty in the military could mean lower rates.

Consumers should know that most discounts do not apply to your bottom line cost. Most cut the price of certain insurance coverages like physical damage coverage or medical payments. So when it seems like having all the discounts means you get insurance for free, companies don't profit that way.

To choose insurers offering auto insurance discounts in Alabama, click here to view.

How can Allstate, GEICO and Progressive save drivers who switch?

Allstate, GEICO and Progressive constantly bombard you with ads on television and other media. All the companies make an identical promise of big savings if you switch to them. How does each company say the same thing? This is how they do it.

All the different companies have a preferred profile for the type of driver that makes them money. For instance, a profitable customer might be profiled as between the ages of 30 and 50, has no prior claims, and has a high credit rating. A propective insured who meets those qualifications gets the lowest rates and as a result will probably save when switching.

Potential customers who are not a match for these standards must pay a more expensive rate and ends up with business not being written. The ads say "drivers who switch" not "everybody who quotes" save money. This is how insurance companies can confidently state the savings. This illustrates why you should get as many quotes as possible. It's not possible to predict which insurance companies will have the lowest rates.

Tailor your coverage to you

When buying the best auto insurance coverage for your personal vehicles, there isn't really a single plan that fits everyone. Every insured's situation is different so your insurance should reflect that For instance, these questions can help discover whether you might need an agent's assistance.

Am I covered when driving on a suspended license?
What is the difference between comprehensive and collision coverage?
Do I need PIP (personal injury protection) coverage in Alabama?
Should I put collision coverage on all my vehicles?
Am I covered if I drive in a foreign country?
Am I covered when renting a car or should I buy coverage from the car rental agency?
Is my cargo covered for damage or theft?

If you're not sure about those questions, you may need to chat with an agent. If you don't have a local agent, simply complete this short form or go to this page to view a list of companies.

Learn more about auto insurance in Alabama

More tips and info about auto insurance is located at the Alabama Department of Insurance website. Alabama drivers can report car insurance fraud, view agent and company licensing information, read consumer alerts, and learn about insurance regulations.

Affordable insurance is out there

Cost effective auto insurance can be found on the web and with local Alexandria insurance agents, and you should compare price quotes from both to have the best rate selection. Some insurance companies do not offer online price quotes and usually these small, regional companies provide coverage only through local independent agents.

As you restructure your insurance plan, it's very important that you do not buy poor coverage just to save money. In too many instances, consumers will sacrifice collision coverage and learned later that they should have had better coverage. Your focus should be to purchase plenty of coverage for the lowest price while not skimping on critical coverages.