Are you at wits end from robbing Peter to pay Paul to buy auto insurance? You're in the same situation as many other Alabama consumers.
It's astonishing, but most drivers kept buying from the same company for over three years, and nearly 40% of drivers have never even compared quotes to find lower-cost rates. With the average premium in Alabama being $1,300, drivers could save 40% every year just by shopping around, but they just assume it's a time-consuming process to go online and compare rates. Multiple car insurance companies compete for your hard-earned dollar, and it can be difficult to compare rates and uncover the absolute lowest rate possible on auto insurance.
If you have coverage now or just want cheaper rates, use these techniques to find better prices while maintaining coverages. Finding the cheapest car insurance coverage in Homewood is actually quite easy if you know where to start. Shoppers just need to learn the proper way to shop for car insurance online.
Auto insurance companies offering competitive price quotes in Alabama
The providers in the list below are ready to provide free quotes in Homewood, AL. If the list has multiple companies, it's highly recommended you visit two to three different companies to get the lowest price.
|Make, Model, and Trim Level||Annual Policy Premium||6-month Policy Premium||Monthly Premium|
|Chevrolet Impala LT||$800||$400||$67|
|Chevrolet Malibu LT||$1,046||$523||$87|
|Chevrolet Silverado LS Extended Cab 4WD||$1,018||$509||$85|
|Dodge Ram Quad Cab SLT 2WD||$1,452||$726||$121|
|Ford Escape Limited 2WD||$972||$486||$81|
|Ford Explorer Eddie Bauer AWD||$1,072||$536||$89|
|Ford F-150 SVT Raptor Super Cab 4WD||$1,374||$687||$115|
|Ford Focus SES 2-Dr Coupe||$1,624||$812||$135|
|GMC Sierra SLT Crew Cab 2WD||$960||$480||$80|
|Honda Accord LX-P 4-Dr Sedan||$676||$338||$56|
|Honda CR-V LX 4WD||$990||$495||$83|
|Honda Civic DX 2-Dr Coupe||$1,234||$617||$103|
|Nissan Altima 3.5 SR 4-Dr Sedan||$1,010||$505||$84|
|Toyota Camry XLE||$1,226||$613||$102|
|Toyota Corolla S||$824||$412||$69|
|Toyota RAV4 Limited 4WD||$994||$497||$83|
|Get Your Own Custom Quote Go|
Data assumes married female driver age 30, no speeding tickets, no at-fault accidents, $1000 deductibles, and Alabama minimum liability limits. Discounts applied include homeowner, safe-driver, multi-policy, claim-free, and multi-vehicle. Premium costs do not factor in vehicle location which can modify premiums noticeably.
The diagram below shows how choosing a deductible and can influence Ford F-150 premium costs for different age groups of insureds. The rate quotes are based on a married female driver, full physical damage coverage, and no discounts are applied to the premium.
Ford F-150 rates are for example purposes only. To get rates for your specific vehicle, click here.
Full coverage rates compared to liability-only
The chart below shows the comparison of Kia Optima annual premium costs with full coverage compared to only the Alabama minimum liability coverage. The information is based on no claims, a clean driving record, $500 deductibles, single female driver, and no other discounts are factored in.
Kia Optima rates are for example purposes only. To get rates for your specific vehicle, click here.
Should you be buying full coverage?
There is no specific rule that works best for making the decision to drop full coverage on your policy, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is more than about 10% of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.
For example, let's say your Kia Optima replacement cost is $3,000 and you have $1,000 deductibles. If your vehicle is totaled in an accident, you would only receive $2,000 after paying your deductible. If you are currently paying more than $200 annually for physical damage coverage, then it may be the right time to buy liability only.
There are a few cases where dropping full coverage is not recommended. If you still owe a portion of the original loan, you have to maintain full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is damaged, you should not remove full coverage.
How careless driving impacts Homewood car insurance rates
The illustration below demonstrates how traffic citations and at-fault fender-benders can drive up Honda Accord premium costs for different categories of driver ages. The data assumes a married female driver, full coverage, $1,000 deductibles, and no discounts are factored in.
Honda Accord rates are for example purposes only. To get rates for your specific vehicle, click here.
Cheaper rates by applying discounts
Car insurance can cost a lot, but there could be significant discounts that can dramatically reduce your bill. Some trigger automatically at the time of purchase, but once in a while a discount must be requested specifically prior to getting the savings.
- Discount for New Cars - Adding a new car to your policy can save you some money because new vehicles keep occupants safer.
- Safe Driver Discounts - Accident-free drivers can pay as much as 50% less than less cautious drivers.
- Accident Forgiveness Coverage - This one isn't a discount, but some insurance companies permit an accident before hitting you with a surcharge if your claims history is clear for a particular time prior to the accident.
- Student in College - Kids who are enrolled in higher education away from home and won't have access to an insured vehicle can receive lower rates.
- Military Rewards - Being deployed in the military could be rewarded with lower prices.
- Homewood Homeowners Discount - Just being a homeowner can earn you a little savings because maintaining a house requires personal responsibility.
- Multi-car Discount - Buying insurance for more than one vehicle with the same auto insurance company can get a discount for every vehicle.
A quick disclaimer, some of the credits will not apply to your bottom line cost. Some only reduce the price of certain insurance coverages like liability, collision or medical payments. Even though the math looks like you can get free auto insurance, it just doesn't work that way.
Large auto insurance companies and their possible discounts are detailed below.
- GEICO has savings for membership and employees, anti-lock brakes, good student, daytime running lights, and multi-policy.
- MetLife includes discounts for claim-free, multi-policy, good student, good driver, and defensive driver.
- State Farm offers discounts including good driver, Steer Clear safe driver discount, driver's education, passive restraint, Drive Safe & Save, and multiple policy.
- Progressive may include discounts for online quote discount, multi-vehicle, good student, online signing, homeowner, continuous coverage, and multi-policy.
- Mercury Insurance offers discounts for age of vehicle, ease of repair, multi-car, accident-free, and good driver.
- 21st Century has discounts for homeowners, student driver, good student, defensive driver, teen driver, and early bird.
- Allstate offers premium reductions for EZ pay plan discount, safe driver, eSmart discount, utility vehicle, senior citizen, and multi-policy.
If you need lower rates, check with all companies you are considering which discounts can lower your rates. Depending on the company, some discounts might not be offered on policies in Homewood. If you would like to see a list of providers that can offer you the previously mentioned discounts in Homewood, click here.
Learn how to get car insurance for less
Many factors are used when quoting car insurance. Some are pretty understandable such as your driving record, but others are more obscure such as your credit history or how financially stable you are. Smart consumers have a good feel for the rating factors that help calculate the price you pay for car insurance. If you have a feel for what determines premiums, this enables informed choices that will entitle you to big savings.
The list below includes a few of the "ingredients" used by insurance companies to determine premiums.
Credit score impacts premium prices - A driver's credit history will be a significant factor in determining what you pay. Drivers with excellent credit tend to be more responsible than drivers who have worse credit. If your credit can be improved, you could pay less to insure your vehicle by repairing your credit.
Liability coverage limits are a factor - The liability coverage on your policy will provide protection in the event that you are responsible for causing personal injury or damage in an accident. Liability provides legal defense coverage which can be incredibly expensive. Carrying liability coverage is mandatory and cheap compared to other policy coverages, so drivers should carry high limits.
Type of car determines base premiums - The performance of the car, truck or SUV you are trying to find cheaper insurance for makes a huge difference in your rates. The cheapest insurance rates will generally be found on smaller low performance passenger vehicles, but other factors influence the final cost greatly.
Responsible drivers pay the best rates - Only having one speeding ticket or other violation may increase your cost forty percent or more. Attentive drivers get better rates as compared to those with violations. Drivers who have flagrant citations such as DUI, reckless driving or excessive speeding may find they need to file a SR-22 with their state DMV in order to continue driving.
High deductibles save money - Physical damage coverage, also called comprehensive and collision insurance, insures against damage to your car. Examples of some claims that would be covered could be running into the backend of another car, damage caused by hail, and damage caused by flying debris. The deductibles you choose are how much you are required to pay if a claim is determined to be covered. The more you are required to pay out-of-pocket, the better rate you will receive.
Vehicle options impact premiums - Buying a car with a theft deterrent system can save you a little every year. Theft prevention features like vehicle immobilizer systems, OnStar, and tracking devices like LoJack all aid in stopping car theft and help bring rates down.
Auto insurance agents can find coverage gaps
Certain consumers would rather sit down and talk to an agent and that is a personal choice. Professional agents can help determine the best coverages and help submit paperwork. One of the best bonuses of comparing rates online is you may find cheap rate quotes and still choose a local agent.
Upon completion of this short form, your information is immediately sent to participating agents in Homewood who will gladly provide quotes to get your business. It's much easier because you don't need to contact any insurance agencies because prices are sent directly to your email. If you wish to quote rates from a specific insurance company, feel free to jump over to their website and submit a quote form there.
Choosing an insurance company requires more thought than just the premium amount. Any agent in Homewood should be forthright in answering these questions:
- Is there any savings for paying the full premium?
- Can you choose the body shop in case repairs are needed?
- Are all drivers listed on the coverage quote?
- What kind of financial rating does the company have?
- Did they already check your driving record and credit reports?
- How long has their agency been in business in Homewood?
- Do they reduce claim amounts on high mileage vehicles?
- What company do they have the most business with?
A conclusion for your auto insurance search
Budget-friendly auto insurance in Homewood can be purchased from both online companies and from local agencies, so you need to shop Homewood car insurance with both to have the best chance of lowering rates. Some auto insurance companies don't offer online rate quotes and these regional insurance providers provide coverage only through independent agents.
As you quote Homewood car insurance, you should never skimp on coverage in order to save money. There are too many instances where an insured dropped physical damage coverage only to regret that the savings was not a smart move. Your strategy should be to purchase a proper amount of coverage for the lowest price, but do not sacrifice coverage to save money.
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