Reader’s Question:

I heard about these waivers from a rental vehicle company here in Alabama, are these waivers the same as auto insurance?

Harris

Dothan, AL

Rental vehicle companies provide a lot of different kinds of car insurance and waivers that widen your liability coverage and that could ease you the accountability of making a payment for a ruined rental vehicle. Loss damage waivers (LDW) as well as collision damage waivers (CDW) that are being offered by the rental vehicle company more or less substitute the collision and comprehensive coverage of your car insurance policy in Alabama. These waivers will have you excused if the rental vehicle is damaged or stolen. Several LDW’s involve the CDW and a number of waivers oblige you to pay a deductible, similar to your collision and comprehensive coverage.

These waivers from the rental car company are not insurance and for these to be real insurance, you need to buy them from a car insurance provider. This alternative is not sold by an insurer but it would be the rental vehicle company’s form of collision and comprehensive coverage. The price for these waivers would be $7 to $25 per day and it depends on the rental vehicle company and the type of vehicle that you rent. Furthermore, a good number of rental vehicle companies sell “personal effects” coverage to protect your personal properties that could be robbed from the rental car.

Tags: auto insurance, collision coverage, comprehensive coverage, rental car insurance

Reader’s Question:

I have already decided which car to purchase but I also need to make sure that I know all the things I need to know about car insurance. What are the steps that I need to take to make sure that I have low-cost premiums for my new car insurance here in Alabama?

Ahmad

Montgomery, AL

Aside from shopping around to get low-cost premiums for your new car insurance in Alabama, there certain things you also need to do. These include:

Making sure that Your Policy is Up to Date
You may have recently moved, a newlywed, or it has already been no less than three years since you committed your last traffic infraction. If any of these situations apply to you, make sure that you check with your car insurance provider because you could be qualified for a discount on your premiums.

Knowing the Type of Car to Buy
Prior to buying your new vehicle, find out how much it would cost to insure that vehicle. Normally, smaller vehicles that have lower horsepower cost less to insure.

Knowing if Excess Coverage is Necessary
A lot of car insurance providers offer you optional coverage such as rental coverage and this would pay for a rental vehicle while your automobile is being repaired. Although circumstances and charges differ from each car insurance provider, you may not need this kind of coverage if you could find other means of transportation.

Raising Your Deductible
Increasing your deductible can lessen your comprehensive and collision charges by 15 to 20%. You car insurance agent could demonstrate to you how increasing your deductible could lessen your insurance rates.

Asking for Discounts
You may inquire with your insurance agent if you may be eligible for some kind of discounts such as installing safety devices and for being a good driver.

Tags: car, car insurance, car insurance premiums, cheap auto insurance

Reader’s Question:

My brother has just gotten his driver’s license back after his DUI conviction here in Alabama. I see that he’s so worried about his auto insurance because he said that it will increase tremendously, is this true?

Nate

Mobile, AL

Well, if there is one thing that can make an auto insurance premium rise through the ceiling, it would be a driving under the influence (DUI) conviction. Apart from the risk of causing injury or death to yourself and others, drunk driving has severe consequences from your auto insurance provider.

Car insurance providers could review your motor vehicle record (MVR) only once in three years or at the time of application for a new car insurance policy. There is a possibility that accidents, tickets and drunk driving convictions will not pass their way to your brother’s official MVR. But in the event that his auto insurance provider in Alabama finds out about his DUI and tags him as a high risk driver, he still has the option to shop around for auto insurance because premiums differ widely among car insurance providers.

Then again, a premium increase could be the least of your brother’s difficulties because his car insurance could be terminated or not be renewed, especially if he is in a preferred rate class at the moment. Then he would be pushed to find new auto insurance coverage with two unpleasant conditions with him — his DUI conviction and car insurance policy cancellation under his belt.

Tags: auto insurance, driver’s license, drunk driving insurance, DUI, high risk insurance

Reader’s Question:

I probably just have to go directly to the auto insurance company of the guy who smashed into my car here in Alabama. Since I wasn’t the one who caused the accident, can I possibly do that?

Adriano

Huntsville, AL

I presume that you got all the information of the guy who smashes into your car in Alabama, including his auto insurance company’s name, a phone number you could call to reach them and their address. If so, you are ready to be a third-party claimant since it is not going to be your own auto insurance provider whom you are filing the claim with. This may cause you less trouble that being a first-party claimant since you don’t have any responsibility to that auto insurance provider. They could not order to whom they pay the funds since they don’t have a policy agreement with you. The auto insurance companies pay the claimant directly in majority of third-party claims.

In case your car has been declared a total loss, the other driver’s insurer would probably pay only you. Needless to say, in case you have a financed car, it would be your obligation to assure your lender that they get what you owe them. Being familiar with the procedures of filing a claim could help speed up the repair of your vehicle and reduce any surprises.

Tags: auto insurance, auto insurance claims, auto insurance company

Reader’s Question:

I still live with my parents here in Alabama but I already have my own car. I just wonder if I could have lower car insurance rates being a young driver and if so, how is that possible?

Noemi

Tuscaloosa, AL

Even though you already have your own car but you are still living with your parents in Alabama, you are still qualified to stay on their car insurance policy. This would certainly give you lower car insurance rates even if young drivers like you are considered higher risks. That is because your parents are in the lower risk category of motorists. This way, your car insurance premiums are cheaper that what they are going to be if you buy your own car insurance policy. But you need to ask first the car insurance provider of your parents because they might not allow this since you own your car.

There are also some other ways for you to have lower car insurance rates as a young driver. You need to go over your other insurance coverage and check you are paying for double-coverage. In case you already have family health insurance, you may opt not to have Personal Injury Protection or PIP. This coverage would pay for your medical bills in case you get into an accident. Sometimes, some auto insurance providers would let you to limit medical compensation under the uninsured motorist coverage in trade for a cheaper rate. You just need to make sure that you are not compromising the quality or your auto insurance to save some money.

Tags: car, car insurance, car insurance rates, cheaper auto insurance

Reader’s Question:

Please correct me if I am wrong in saying that the auto insurance company will pay for everything in case I’ll be in an auto accident. Also, could you give me one great advice on how to reduce my auto insurance payment here in Alabama?

Larry

Tanner-Williams, AL

It would be great if your auto insurance company in Alabama would pay for everything in case you get involved in an auto accident. But unfortunately, that is not the case because there are some things that you would have to cover out of your own pocket in an accident even though you have auto insurance coverage. The first on the list would be the deductibles which is the amount that you have approved to pay out from your own pocket before your auto insurance covers for the rest. Then, there can also be exclusions on your auto insurance policy like property damage that you have deliberately caused to other people. Also, you need to cover any payments for which you are accountable that go beyond the limits of your auto insurance coverage you are eligible to get under your policy.

One great advice that I can give you to reduce your auto insurance payment is that you have to shop around for your coverage. Auto insurance rates for the exact same coverage on the same vehicle could differ greatly among auto insurance companies. The perfect opportunity to seek other options is when your coverage is about to expire, but of course, you could shop and switch insurance companies anytime you’d like.

Tags: advice, auto insurance, cheaper auto insurance

Reader’s Question:

I am renewing my car insurance here in Alabama and I plan to get rid of some things to be able to save some money. Since I have health insurance, what kind of coverage can I take off from my current car insurance policy?

Ladarius

Decatur, AL

Times are so rough these days so I can’t blame you if you’d want to have as much savings on anything. If you are renewing your car insurance policy in Alabama, make sure that you speak with an insurance agent to be able to help you decide as to which coverage you could drop on your current policy. Tell the agent that you have health insurance coverage and make sure that you understand what’s covered in it with regards to medical payments.

Go over your car insurance policy as well and check if you have “Medical Payments” coverage included in it. If so, you can get rid of this since you have health insurance already. Medical Payments are intended for drivers who did not purchase health insurance policy. This would give coverage for motorists for their medical costs and expenditures that were caused by vehicular accidents. Once you talk to your insurance agent, inform him/her that you may eliminate this type of insurance benefit on your car insurance policy because you have health insurance. The entire medical coverage in your car insurance policy is generally supported by your health insurance.

Tags: auto insurance, car insurance policy

Reader’s Question:

My wife and I are having extraordinary high expenses for the past few months here in Montgomery, Alabama. We see that our car insurance is a potential expenditure that we can cut off the cost. How can we lower the amount of our car insurance premium payment?

Daniel

Montgomery, AL

Given your case, you don’t have to worry because there are a lot ways wherein you can decrease the cost of your car insurance policy there in Montgomery, Alabama. You can claim discounts from your insurance providers in many occasions. But you need to be acquainted to the guidelines of these insurance companies because there could be discrepancies in the instances when they can give discounts. But typically, discount opportunities are offered to car insurance clients who are with return or long period of subscription to an insurance company. For instance, a five-year subscription of a policyholder can claim a particular discount rate from his/her insurer; also repeat clients like those who only insure their car at particular season in the year.

Other discounts are usually given when you have multiple cars or drivers you include to your car insurance policy. Your car’s features that may reduce instances of theft, vandalism, serious property damages and bodily injuries such as anti-lock brakes, air bags and alarm devices can also lower your car insurance premium costs. If your sons and daughters are already able to get their own student driver’s license and if they have good grade point average in school, you can also include them in your policy to be granted of discounts.

Tags: car insurance, car insurance premium, cheap auto insurance

Reader’s Question:

I’m doing everything I could to be able to save money on a lot of things including my automobile insurance. Aside from shopping around and increasing my deductible, what else can I do to get cheaper premiums here in Huntsville, Alabama?

Benson

Huntsville, AL

Aside from increasing your deductible and shopping around, there are some other things that you could do to be able to get cheaper premiums for your automobile insurance in Huntsville, Alabama. You need to first make sure that you have a very good score on your credit report because this is one significant factor for a lot of auto insurance providers. A lot of studies show that there is a relationship between your credit history and the risk you have to insurance providers. Because of that, you need to pay your bills when it’s due and preserve your great credit rating for you to enjoy cheaper premiums.

The next step to take is to drive less as this could give you low-mileage discount. You may ask first if your auto insurance provider offers this kind of discount and if they do, try to reduce your driving as much as possible. Also, don’t use your vehicle for any business purposes. Any job-related driving normally means having higher rates so it will be better not to use your vehicle for business purposes. Lastly, you could be entitled for a discount on your auto insurance if you uphold to having a clean driving record for a particular time (normally for three years).

Tags: auto insurance, auto insurance premium, cheaper auto insurance

Reader’s Question:

I just graduated from college and I have a lot of debts that I need to start paying once I get my first real job. My father has just gotten a new car for me which of course I need to have insured. In case I drive my car and I don’t have proof of insurance, what are the penalties that I will have here in Tuscaloosa, Alabama for driving without insurance?

Najee

Tuscaloosa, AL

You may have struggled so much to get out of and graduate from college that you have a lot of debts to fork out. This could drive you to cut down on other essential payments, like your car insurance there in Tuscaloosa, Alabama. But let me just tell you that your car insurance is one thing that you couldn’t drive without because this is illegal in any of the states. A lot of youngsters opt to drive without car insurance because they assume that they could not afford to have it. Keep in mind that more or less 15% of all vehicular accidents are brought about by motorists who are 20 to 24 years old.

The penalty for driving without car insurance differs from each state, according to the Insurance Information Institute. In the state of Alabama, if you opt not to have car insurance, you have to prove that you either have a motor vehicle liability bond or deposit of cash in the amount of $50,000. So if you don’t have any of those, you need to have with you a proof of insurance while driving. If the Alabama Department of Revenue finds out that your car is not insured, your vehicle registration tag would be suspended until you already have a proof of insurance and you have to pay reinstatement fee of $100.

Tags: car, car insurance, driving without insurance