Free Guide to Spending Less for Demopolis Auto Insurance Online

Paying for high-priced auto insurance can take a big chunk out of your checking account, especially in this economy. Comparison shopping is a great way to help make ends meet.

Insurance companies such as GEICO and Progressive promote their brand names with ad campaigns and it is challenging if not impossible to sift through the bull and find the best price available.

It's important to price shop coverage yearly because insurance rates are constantly changing. Just because you had the best price six months ago you can probably find a better price now. Block out anything you think you know about auto insurance because you're about to find out the proper way to get good coverage at a lower rate.

Learn How to Buy Auto Insurance Cheaper

Consumers need to have an understanding of the factors that go into determining the price you pay for auto insurance. Having a good understanding of what impacts premium levels helps enable you to make changes that can help you get better auto insurance rates.

Listed below are a few of the "ingredients" that factor into your rates.

Traffic violations increase rates - Even a single moving violation may increase your cost twenty percent or more. Drivers with clean records have lower premiums than bad drivers. Drivers who get serious violations like hit and run, DWI or reckless driving convictions may be required to file a proof of financial responsibility form (SR-22) with their state DMV in order to continue driving.
Where you live can impact rates - Residing in a small town has it's advantages when insuring your vehicles. Less people living in that area means reduced accidents. City drivers regularly have congested traffic and longer commute times. Higher commute times translates into higher accident risk.
Better credit scores mean better rates - Your credit score is a important factor in determining what you pay for auto insurance. Therefore, if your credit history is lower than you'd like, you could save money insuring your by improving your credit score. Consumers who have high credit scores tend to be less risk to insure than drivers who have poor credit.
Your occupation can affect rates - Did you know that where you work can have an impact on rates? Occupations like lawyers, social workers and dentists are shown to have the highest average rates because of high stress levels and long work hours. Other jobs such as pilots, historians and homemakers pay the least.
Higher safety ratings means cheaper insurance - Safer cars get lower rates. Safer cars have better occupant injury protection and lower injury rates translates into savings for insurance companies and more competitive rates for policyholders.

More discounts equal less premium

Companies offering auto insurance do not advertise every available discount in a way that's easy to find, so we took the time to find both well-publicized as well as the least known discounts you could be receiving.

Good Student Discount - This discount can save 20 to 25%. This discount can apply until age 25.
Multi-policy Discount - If you insure your home and vehicles with the same insurance company you could get a discount of 10% to 20% off each policy.
Passive Restraint Discount - Vehicles with factory air bags or automatic seat belts can qualify for discounts of 20% or more.
No Claims - Drivers who don't have accidents can save substantially compared to accident-prone drivers.
Low Mileage - Driving fewer miles can earn a substantially lower rate.
Payment Discounts - By paying your policy upfront instead of making monthly payments you could save 5% or more.

A little note about advertised discounts, some credits don't apply to your bottom line cost. Most only apply to individual premiums such as medical payments or collision. So even though they make it sound like you would end up receiving a 100% discount, you won't be that lucky.

To choose providers offering auto insurance discounts in Demopolis, click here.

Switch companies and save? Really?

Companies like State Farm and Allstate constantly bombard you with ads in print and on television. All the ads have a common claim about savings if you switch your policy. How can each company make almost identical claims?

Different companies have a preferred profile for the right customer that makes them money. For example, a preferred risk could possibly be between 25 and 40, has no prior claims, and has a high credit rating. A driver that hits that "sweet spot" is entitled to the best price and therefore will save when they switch companies.

Consumers who do not match the requirements will be charged higher rates and this can result in the driver buying from a lower-cost company. The ads state "customers that switch" not "everyone that quotes" save that kind of money. This is how companies can truthfully state the savings. That is why you should get a wide range of price quotes. It is impossible to predict which insurance companies will have the lowest rates.

It's not one size fits all

When buying the right insurance coverage for your personal vehicles, there really is not a one size fits all plan. Everyone's needs are different and your policy should reflect that. Here are some questions about coverages that can help discover if you would benefit from an agent's advice.

Should I buy only the required Alabama minimum liability coverage?
What are the best liability limits?
Should I drop comprehensive coverage on older vehicles?
Are there companies who specialize in insuring high-risk drivers?
Is my dog or cat covered if injured in an accident?
What can I do if my company won't pay a claim?
Does my policy cover my teen driver if they drive my company car?

If you can't answer these questions, then you may want to think about talking to a licensed agent. To find lower rates from a local agent, fill out this quick form or click here for a list of auto insurance companies in your area.

Even more information can be found at the Alabama Department of Insurance website. Alabama consumers can file complaints about a company, view agent and company licensing information, find out industry alerts, and read industry bulletins.

Final considerations

In this article, we presented a lot of ways to save on auto insurance. The key thing to remember is the more you quote, the better chance you'll have of finding lower rates. You may even discover the most savings is with a small local company. Some small companies may cover specific market segments cheaper as compared to the big name companies such as .

As you restructure your insurance plan, it's a bad idea to buy poor coverage just to save money. There have been many cases where consumers will sacrifice physical damage coverage only to regret at claim time that they should have had better coverage. Your goal should be to buy a smart amount of coverage at a price you can afford, not the least amount of coverage.