Tightwads Lessons for Saving on Auburn AL Car Insurance

Confused by the number of car insurance companies in Auburn? You’re not alone. People have so many options that it can turn into a ton of work to compare prices.

Choosing the best insurance company for you in Auburn is easy if you know what you’re doing. Essentially every driver who shops for car insurance will be able to find lower rates. But Alabama consumers must learn how the larger insurance companies market on the web and use this information to your advantage.

Save Money with These Tips

Smart consumers have a good feel for the different types of things that go into determining the rates you pay for car insurance. Having a good understanding of what controls the rates you pay allows you to make educated decisions that can help you get lower car insurance prices.

  • Too many car insurance claims drive up costs – If you file claims often, you can definitely plan on higher rates. Companies in Alabama provide lower rates to people who are claim-free. Insurance coverage is intended for major claims that would cause financial hardship.
  • Clean credit earns discounts – Credit history is a important factor in determining what you pay for car insurance. Therefore, if your credit history is not that good, you could pay less to insure your by spending a little time repairing your credit. Consumers who have high credit scores tend to be less risk to insure than those with lower credit scores.
  • Your location affects your rates – Living in a rural area has it’s advantages when buying car insurance. City drivers regularly have congested traffic and longer commutes to work. Less people living in that area means fewer accidents as well as less vandalism and auto theft.
  • Safer cars are cheaper to insure – Vehicles with high crash test scores are cheaper to insure. The safest vehicles have better occupant injury protection and lower injury rates means less money paid by your insurance company passed on to you as lower rates.
  • Your car’s features help determine rates – Owning a car with anti-theft technology or alarm system can get you a discount on your car insurance. Theft prevention devices such as LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system can help prevent car theft.
  • One company can mean more discounts – Some insurance companies will give a discount to people who have multiple policies with them, otherwise known as a multi-policy discount. Even with this discount, you may still want to shop around to ensure the best deal.

Are you getting all your discounts?

Companies that sell car insurance don’t list all their discounts in an easy-to-find place, so we took the time to find both the well known and the more hidden car insurance savings.

  • Defensive Driver – Successfully completing a course teaching defensive driving skills could cut 5% off your bill depending on where you live.
  • One Accident Forgiven – Some insurance companies will allow you to have one accident without raising rates as long as you don’t have any claims for a certain period of time.
  • Air Bag Discount – Vehicles with factory air bags may earn rate discounts up to 30%.
  • Safe Driver Discount – Insureds without accidents may save up to 50% more than drivers with accidents.
  • No Claims – Good drivers with no accidents can save substantially when compared with accident-prone drivers.
  • Memberships – Being a member of a qualifying organization could qualify you for a break on car insurance.
  • Discount for New Cars – Putting insurance coverage on a new car can be considerably cheaper because new vehicles have to meet stringent safety requirements.
  • Good Student Discount – Performing well in school can earn a discount of 20% or more. This discount can apply up until you turn 25.

Consumers should know that most credits do not apply to your bottom line cost. Some only reduce the cost of specific coverages such as medical payments or collision. Just because you may think all those discounts means the company will pay you, car insurance companies aren’t that generous.

But I want to work with a local agent

Certain consumers would prefer to visit with an insurance agent and that is OK! The best thing about price shopping on the web is you can get lower rates and still choose a local agent.

For easy comparison, once you complete this short form, your information gets sent to insurance agents in Auburn who will compete for your coverage. You never need to even leave your home since price quotes are sent to the email address you provide. It doesn’t get any easier! You can find the lowest rates without the usual hassles of price shopping.

Choosing a company requires more thought than just the price. Ask your prospective agent these questions:

  • If they are an independent agency, which companies do they recommend?
  • Do the coverages you’re quoting properly cover your vehicle?
  • Do they specialize in personal lines coverage?
  • If your car is totalled, how to they determine the replacement cost?
  • Is working in the agency their full-time job?
  • How long has their agency been in business in Auburn?

The difference between Auburn car insurance agents

When researching an insurance agent, there are two types of insurance agents that you can select. Insurance agencies in Auburn are either captive or independent.

Captive Agents

These agents write business for a single company and examples are AAA, State Farm, Farmers Insurance and Allstate. Captives cannot shop your coverage around so keep that in mind. These agents are trained well in insurance sales which helps them compete with independent agents. Consumers often buy insurance from these agents partially due to loyalty to the company and solid financial strength.

Listed below is a list of captive insurance agents in Auburn who can help you get comparison quotes.price insurance in Alabama

  • Allstate Insurance – 721 E Glenn Ave – Auburn, AL 36830 – (334) 821-7570
  • Kathy Powell State Farm – 2408 E University Dr # 104 – Auburn, AL 36830 – (334) 501-8245
Independent Insurance Agents

Independent agents do not work for one specific company so they have the ability to put coverage with multiple insurance companies enabling the ability to shop coverage around. If you are not satisfied with one company, they simply move the coverage in-house without you having to go to a different agency.

When comparison shopping, we recommend you include price quotes from several independent insurance agents to ensure the widest selection of prices.Many can place coverage with smaller regional carriers who may have lower rates.

Below is a list of independent agencies in Auburn that can give you price quote information.

  • Polidoro Insurance – 121 Mitcham Ave – Auburn, AL 36830 – (334) 821-1010
  • A C Huey Agency – 708 Green St – Auburn, AL 36830 – (334) 821-2553
  • Harper Insurance – 124 N Dean Rd – Auburn, AL 36830 – (334) 826-1313

To view a complete directory of car insurance agents in Auburn, please click here.

After receiving good answers to these questions as well as a affordable price, you have narrowed it down to an insurance agent that can service your policy.

Is there truth in advertising?

State Farm, GEICO and Progressive regularly use ads in print and on television. All the companies make the same claim that you can save if you move to their company. How can each company claim to save you money? It’s all in the numbers.

All the different companies have a preferred profile for the right customer that earns them a profit. A good example of a driver they prefer might be a mature driver, owns a home, and has great credit. Any new insured who matches those parameters will qualify for the lowest rates and most likely will save a lot of money.

Consumers who don’t meet the requirements will be charged higher rates and ends up with the customer not buying. The ads say “drivers who switch” but not “drivers who get quotes” save money. That is how companies can state the savings. That is why drivers should compare many company’s rates. It’s not possible to predict which company will provide you with the cheapest rates.

Which insurance is the “right” coverage?

When it comes to choosing adequate coverage for your personal vehicles, there isn’t really a one size fits all plan. Each situation is unique.

For example, these questions could help you determine if your situation would benefit from an agent’s advice.

  • Am I covered when driving a rental car?
  • Should I buy more coverage than the required Alabama minimum liability coverage?
  • What discounts do I qualify for?
  • Do I need PIP (personal injury protection) coverage in Alabama?
  • Are my tools covered if they get stolen from my vehicle?
  • When should I drop full coverage on my vehicle?
  • Are my friends covered when driving my vehicle?
  • Does my policy pay for OEM or aftermarket parts?
  • Is there coverage for injuries to my pets?
  • Do I need special endorsements for business use of my vehicle?

If you’re not sure about those questions but you know they apply to you, you may need to chat with a licensed agent. If you don’t have a local agent, complete this form.

Car insurance in Alabama

More tips and info about car insurance can be read at the Alabama Department of Insurance website. Alabama drivers can find disaster information, read state legal mandates and laws, get help finding coverage, and report car insurance fraud.

The following information may also be useful.

One last thing

The cheapest car insurance is available from both online companies and with local Auburn insurance agents, and you need to price shop both to have the best selection. There are still a few companies who do not offer online price quotes and many times these small, regional companies only sell through independent insurance agents.

People leave their current company for a number of reasons such as extreme rates for teen drivers, unfair underwriting practices, high rates after DUI convictions or even delays in responding to claim requests. Regardless of your reason, finding a great new company can be less work than you think.

As you go through the steps to switch your coverage, it’s not a good idea to buy poor coverage just to save money. Too many times, an insured cut physical damage coverage only to regret that a couple dollars of savings turned into a financial nightmare. Your aim should be to get the best coverage possible at a price you can afford while still protecting your assets.