Consumer Tested Strategies for Buying Cheaper Bessemer, AL Auto Insurance

Shopping for low-cost Bessemer auto insurance over the internet can seem to be rather challenging for consumers not familiar with buying insurance on the web. With a ridiculous number of companies in the marketplace, how can consumers possibly compare every company to locate the cheapest rates?

If you are paying for car insurance now, you stand a good chance to be able to reduce your rates substantially using this information. The purpose of this article is to teach you the most effective way to quote insurance. But Alabama consumers must understand the way companies compete online and use this information to your advantage.

How insurance companies determine rates

It’s important that you understand the factors that help determine auto insurance rates. Understanding what determines base rates enables informed choices that could result in better auto insurance rates.

The following are some of the items auto insurance companies consider when setting premiums.

• Keep rates low by being claim-free – Companies in Alabama give lower rates to drivers who are claim-free. If you frequently file small claims, you can expect higher rates. Auto insurance is intended to be relied upon for major claims that would cause financial hardship.
• Don’t sacrifice liability coverage – Your policy’s liability coverage is the coverage that protects you if you are found liable for damages caused by your negligence. Liability provides you with a defense in court which can be incredibly expensive. Carrying liability coverage is mandatory and cheap as compared to coverage for physical damage, so buy as much as you can afford.
• Having a spouse can save you money – Getting married can actually save you money on your policy. Having a significant other means you’re more mature it has been statistically shown that drivers who are married are more cautious.
• Lower miles equals lower premium – The more you drive each year the more you will pay for auto insurance. Most insurance companies apply a rate based on how the vehicle is used. Cars left parked in the garage receive lower rates than vehicles that are driven to work every day. Make sure your auto insurance policy is rated on the correct driver usage, because improper ratings can cost you money.
• Lower rates with optional equipment – Owning a car with a theft deterrent system can help lower your rates. Theft prevention devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can help prevent car theft.
• Allowing your policy to lapse raises rates – Letting your insurance expire is a fast way to increase your auto insurance rates. And not only will insurance be more expensive, but not being able to provide proof of insurance can result in a license revocation or jail time.Then you may be required to file a SR-22 with the Alabama motor vehicle department.

Finding Auto Insurance in Bessemer

The are a couple different ways to compare rate quotes and find the best price. One of the best ways to find the cheapest insurance rates is to perform an online rate comparison. This can be done using a couple different methods.

1. The first (and easiest) way to find the lowest comparison rates is to use a rate comparison form click here to open form in new window. This method keeps you from doing separate quotation requests for every auto insurance company. In just a few minutes this one form gets you coverage quotes from all major companies. It’s the fastest way to compare.
2. A slightly less efficient method to get quotes online requires visiting the website for every company you want to comare to request a price quote. For examples sake, let’s assume you want to compare rates from State Farm, Farmers and Liberty Mutual. To get each rate you have to visit each site to input your insurance information, which is why most consumers use the first method.

   For a list of links to companies insuring cars in Bessemer, click here.

3. The most time-consuming way of comparing rate quotes is driving to different Bessemer agent offices. Shopping for auto insurance online has reduced the need for local agents unless you want the professional advice of a local Bessemer agent. However, consumers can obtain prices from the web and still use a local agent and we’ll cover that in a bit.

It’s up to you how you get prices quotes, just ensure you’re using the exact same coverages and limits with every price quote. If the quotes have different liability limits you can’t possibly determine the lowest rate in Bessemer. Slightly different coverage limits can result in a big premium difference. And when quoting auto insurance, remember that comparing a large number of companies will improve the odds of getting the best rates.

These discounts can slash auto insurance rates

Auto insurance companies do not list every discount very well, so the following is a list of some of the more common as well as the least known ways to save on auto insurance.

• Theft Prevention System – Cars that have factory anti-theft systems prevent vehicle theft and therefore earn up to a 10% discount.
• Auto/Life Discount – Some companies give better rates if you take out auto and life insurance together.
• Discount for Good Grades – A discount for being a good student can be rewarded with saving of up to 25%. The good student discount can last until age 25.
• Pay Upfront and Save – If you pay your entire premium ahead of time instead of monthly or quarterly installments you may reduce your total bill.
• Accident Free – Good drivers with no accidents can earn big discounts when compared to frequent claim filers.

Drivers should understand that many deductions do not apply the the whole policy. A few only apply to specific coverage prices like comprehensive or collision. Even though it may seem like all those discounts means the company will pay you, it just doesn’t work that way.

Price shop online but buy from a local Bessemer agent

Some people would rather buy from a licensed agent and that is OK! The biggest benefit of price shopping on the web is that you can obtain lower rates but still work with a licensed agent.

By using this form (opens in new window), your coverage information gets sent to participating agents in Bessemer who will battle for your coverage. You won’t need to leave your house because quoted prices will be sent directly to your email. How’s that for easy! You can find the lowest rates AND a local agent.

Choosing a company shouldn’t rely on just the bottom line cost. These questions are important to ask:

• Are glass claims handled on-site or do you have to take your vehicle to a repair shop?
• What is the agency’s Better Business Bureau rating?
• Do they have advanced training designations such as CPCU, AAI, AIC, or CIC?
• Do they feel the quoted coverages are adequate?
• If they are an independent agency, which companies do they recommend?

Do you need an independent or captive insurance agent?

When looking for an insurance agent, there are two different types of agents from which to choose. Agencies in Bessemer are classified as either captive or independent (non-captive).

Agency Captives

Captive insurance agents are contracted to one company and examples are Allstate, State Farm and Farmers Insurance. They are unable to place coverage with different providers so it’s a take it or leave it situation. Captive agencies receive extensive training on their company’s products which helps them sell insurance even at higher premiums. Consumers frequently buy from captive agents mainly due to the brand legacy and the convenience of having a single billing for all their coverages.

The following is a list of captive agencies in Bessemer that can give you comparison quotes.

• Allstate Insurance – 901 9th Ave SW – Bessemer, AL 35022 – (205) 426-8670

Independent Agents (or Brokers)

Independent agents are not required to write business for one company so they can insure your vehicles with multiple insurance companies depending on which coverage is best. If you are not satisfied with one company, the business is moved internally and you won’t have to switch agencies.

When comparison shopping, you should always include several independent insurance agents to have the most options to choose from.Many can place coverage with different regional companies which may provide better rates.

Below are independent agencies in Bessemer willing to provide rate quotes.

• Liberty National Insurance Co – 650 9th Ave SW # 104 – Bessemer, AL 35022 – (205) 425-5285
• Alfa Insurance Corp – 700 Academy Dr # 104 – Bessemer, AL 35022 – (205) 425-0200

To view a complete directory of insurance agents in Bessemer, visit this site.

Upon getting good answers to these questions and a low price estimate, you may have just found an auto insurance agent that can properly service your auto insurance policy.

Tailor your coverage to you

When it comes to choosing the best auto insurance coverage, there isn’t really a “perfect” insurance plan. Each situation is unique.

For instance, these questions can help discover if your situation might need professional guidance.

• Am I covered if I crash into my own garage door?
• What happens if I owe more than my vehicle is worth?
• Does coverage extend to a rental car in a foreign country?
• Exactly who is provided coverage by my policy?
• Does having multiple vehicles earn me a discount?
• Is my cargo covered for damage or theft?
• Is Alabama a no-fault state?
• Do I need to file an SR-22 for a DUI in Alabama?

If it’s difficult to answer those questions but you think they might apply to your situation, then you may want to think about talking to an agent. If you don’t have a local agent, complete this form.

More tips and info about auto insurance can be read at the Alabama Department of Insurance website. Consumers can find out which companies have the most complaints, learn about insurance regulations, read industry bulletins, and view agent and company licensing information.

Other informative sites include this link for Alabama coverage information and CarInsuranceDIY.com.

Affordable insurance is out there

People leave their current company for any number of reasons including delays in responding to claim requests, questionable increases in premium, an unsatisfactory settlement offer or even policy non-renewal. No matter why you want to switch, finding a great new company is actually quite simple.

We’ve covered many ways to reduce auto insurance prices online. The key thing to remember is the more rate quotes you have, the more likely it is that you will get a better rate. Consumers could even find that the lowest priced auto insurance comes from a company that doesn’t do a lot of advertising.

Budget-conscious auto insurance is available from both online companies and with local Bessemer insurance agents, and you should be comparing both to have the best selection. Some auto insurance companies do not offer you the ability to get quotes online and many times these small insurance companies only sell through independent insurance agents.