How to Know You're Spending Too Much for Car Insurance in Childersburg

Having to pay for overpriced car insurance can overdraw your checking account and force you to prioritize other expenses. Comparing price quotes is a great way to help make ends meet. With consumers having so many different company options, it's nearly impossible to locate the lowest cost company.

It's important to compare prices on a regular basis because rates are constantly changing. If you had the best price a couple years back a different company probably has better rates today. Ignore everything you know about car insurance because you're about to learn the fastest and easiest way to get good coverage at a lower rate.

Finding affordable coverage in Childersburg is quite easy. If you currently have a car insurance policy, you will be able to lower your premiums substantially using this information. Alabama drivers only need an understanding of the proper way to compare rates online.

Policy discounts you shouldn't miss

Companies offering auto insurance don't list all their discounts very well, so we took the time to find some of the more common as well as the least known discounts you could be receiving. If you don't get every credit you deserve, you are throwing money away.

College Student - Youth drivers who attend school more than 100 miles from home without a vehicle on campus can receive lower rates.
Own a Home - Owning a house in Childersburg can save you money because of the fact that having a home is proof that your finances are in order.
Government Employees - Active or retired federal employment could cut as much as 10% off with select insurance companies.
Anti-lock Brakes - Cars that have steering control and anti-lock brakes prevent accidents and will save you 10% or more.
Good Student Discount - Performing well in school can earn a discount of 20% or more. This discount can apply up to age 25.
Accident Waiver - Some insurance companies will forgive one accident before your rates go up as long as you don't have any claims for a set time period.
New Car Discount - Putting insurance coverage on a new car is cheaper because new vehicles have to meet stringent safety requirements.
Driver's Ed - Make teen driver coverage more affordable by requiring them to complete a driver education course in high school.

Consumers should know that some of the credits will not apply to all coverage premiums. The majority will only reduce individual premiums such as liability, collision or medical payments. Even though it may seem like all the discounts add up to a free policy, companies don't profit that way.

Good Decisions Result in Lower Rates

Smart consumers have a good feel for the factors that come into play when calculating your car insurance rates. When you know what positively or negatively determines base rates enables informed choices that may reward you with much lower annual insurance costs.

The list below includes a few of the "ingredients" car insurance companies consider when setting rates.

Older drivers pay less - Young drivers in Alabama tend to be more careless when driving so car insurance rates are higher. Parents adding a youthful driver to your car insurance policy can be very expensive. More mature drivers are viewed as being more responsible, statistically cause fewer accidents and are safer drivers.
High deductibles save money - Physical damage coverage, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Some instances where coverage would apply are a windshield shattered by a rock, damage from fire, or theft. The deductibles are how much you are required to spend out-of-pocket in the event of a claim. The higher the amount you are required to pay out-of-pocket, the bigger discount you will receive.
Keep rates low by being claim-free - If you are a frequent claim filer, you can expect either policy cancellation or increased premiums. Car insurance companies in Alabama generally give discounts to policyholders who are claim-free. Your insurance policy is meant to be used in the event of the bigger claims that can't be paid out-of-pocket.
Poor credit can mean higher rates - Credit rating is a important factor in determining what you pay for car insurance. Drivers who have good credit tend to be better drivers and file fewer claims than drivers with lower credit scores. If your credit rating can use some improvement, you could potentially save money when insuring your by improving your rating.
How's your driving record? - Careful drivers have lower premiums than people who have multiple driving citations. Even a single citation can boost insurance rates by as much as thirty percent. Drivers who have severe citations like reckless driving, hit and run or driving under the influence may need to submit a SR-22 or proof of financial responsibility with their state motor vehicle department in order to drive a vehicle legally.
Being married is a good thing - Having a spouse actually saves money on car insurance. It means you're more mature and responsible and it's proven that married drivers get in fewer accidents.

Save $429 a year? Really?

Consumers get pounded daily by advertisements for car insurance savings by Progressive, GEICO, Allstate and State Farm. They all seem to have a common claim of big savings if you move to their company.

But how can every company make the same claim?

Insurance companies have a preferred profile for the driver that earns them a profit. For example, a desirable insured could be between 25 and 40, insures multiple vehicles, and drives less than 10,000 miles a year. A customer that hits that "sweet spot" gets the lowest rates and is almost guaranteed to save a lot of money.

Drivers who don't qualify for this ideal profile will have to pay a higher premium and this can result in business going elsewhere. Company advertisements say "customers that switch" but not "drivers who get quotes" save that much. This is how insurance companies can confidently advertise the way they do. Because of the profiling, drivers should get as many quotes as possible. Because you never know which insurance companies will provide you with the cheapest rates.

For more Alabama car insurance information

More tips and info about car insurance can be found at the Alabama Department of Insurance website. Consumers can read enforcement actions against agents and companies, report car insurance fraud, download brochures, and find out industry alerts.

Also read more on this Car Insurance FAQ and this page of insurance agents in Childersburg.

And the best car insurance company is...

As you go through the steps to switch your coverage, do not skimp on coverage in order to save money. There are many occasions where drivers have reduced physical damage coverage only to regret at claim time that the savings was not a smart move. Your aim should be to buy the best coverage you can find at a price you can afford.

Cost effective car insurance is definitely available from both online companies and also from your neighborhood Childersburg agents, so you should compare both to have the best selection. Some car insurance companies may not provide you the ability to get quotes online and most of the time these regional insurance providers sell through independent agents.