How Can I Lower the Premium on My Alabama Car Insurance?
- 1). Shop around and compare prices with at least three different companies. Make sure you are comparing similar products, that is, the same types and amounts of coverage, the same mileage, deductibles and limits. If the polices are not similar, then you are not really comparing prices.
- 2). Lower your coverage, especially if the vehicles are paid for and/or have a reduced value. Lower your rates by requesting higher deductibles, that is the money you must spend out of pocket before your insurance picks up any repair costs from damage due to an accident. Also consider that you may not need collision or comprehensive coverage if you drive an older car that is paid for. Also, consider that the minimum requirements for Alabama auto insurance are: $25,000 total for bodily injury coverage per person; $50,000 total for bodily injury coverage per accident; $25,000 total for property damage. If you carry the minimum required amount of insurance, you will lower your premiums or keep the premiums low. However, you should understand that you will be assuming risk yourself, because if the amount of insurance you carry is not enough to pay for injuries and/or property damage from an accident you can be sued personally. There is a trade off between saving money and increased personal risk.
- 3). Take advantage of discounts offered. Insurers offer discounts to encourage good driving practices and the use of safety and security devices. It is possible to lower your Alabama rates by 5 to 55 percent by taking advantage of discounts. Insurers generally offer discounts for safety features; defensive driving and clean violation record; security systems; changing driving habits (commuting by public transit, using a company vehicle for work-related travel and car-pooling); formal agreements not to drink and drive; and buying home owners and auto policies from the same company Your agent can give you guidance as to which insurers offer discounts. Families with more than one driver may receive the multiple driver discount. Good driver, good student and senior discounts are also generally available.
- 4). Maintaining a low risk status by keeping a clean driving record will lower your rates or help to keep them low. Avoid tickets and accidents. If you get a lot of tickets and/or have an accident that is your fault, the insurance company will view you as a high-risk driver and your rates will increase. Obey all of the traffic laws, so you won't get any tickets and will be less likely to be involved in an accident.