Lower Car Insurance Rates in Alabama For Young Drivers

November 26 2008 by author in Teen Insurance |Comments Off

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.

Can I Keep The Auto Insurance Repair Check?

November 25 2008 by author in Insurance Questions |Comments Off

Reader’s Question:

Can I keep the check my auto insurance provider gave me to cover repairs done on my vehicle here in Alabama?

Jonas

Decatur, AL

It is perfectly legal for you to keep the check given by your auto insurance provider there in Alabama, even if its purpose is to have the damages to your car repaired. However, if you have an outstanding equity loan on your vehicle this is not advisable. Your auto insurance provider might consider this a breach in your agreement and they will have all the right to either reduce the amount of coverage on your insured vehicle, or terminate your auto insurance policy all together. Also, some auto insurance providers would issue the check directly to the body or repair shop where your car was brought in to be fixed, if your car is on equity or on loan.

Even though there is no law against keeping the check, you do want to make sure you get the damages on your vehicle repaired. It would be very unwise to get that vehicle into another accident or collision since your auto insurance provider would have reduced your coverage (for not using the check issued to get the car fixed properly). This might also complicate filing additional auto insurance claims in the future since it will be very hard for the claims adjuster to determine which damages were from the actual collision, and which damages were caused by the prior accident where you kept the check. It is highly recommended to use that check you got for its original intent.

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Will My Auto Insurance Company Pay For Everything?

November 25 2008 by author in Insurance Questions |Comments Off

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.

Teenager Driver Auto Insurance Rates in Alabama

November 19 2008 by author in Teen Insurance |Comments Off

Reader’s Question:

What’s the best way to save on car insurance expenses if you have teenage drivers? My kids just got their driver’s license here in Alabama and I don’t know how this will affect our rates.

Jemal

Montgomery, AL

Congratulations on your kids passing their driving tests and getting their first, real touch of independence, their Driver’s License. Now comes the hard part, how to keep your auto insurance costs in check while making sure that your teenagers are adequately protected while on the road. It is a known fact that teenagers, once added to their parents auto insurance policy, will cause the said policies rates to significantly increase. If you are not aware why, teenagers are considered by auto insurance providers to be “High-Risk” drivers, getting involved in more car accidents as compared to more mature drivers wh have more experience on the road.

Here’s the good news, there are ways to offset the costs the added costs of teenagers on your insurance rates there in Alabama, here’s a few tips:

1. Good Student Discounts
Now is a great time to encourage your kids to study better, most insurance companies provide Good Student Discounts for students who are performing academically well (at least an Average of B).

2. Defensive Driving Lessons
Did you know that taking accredited defensive driving lessons will qualify you for additional discounts towards your insurance premiums? It also has the added perk of teaching you the skills to become safer and responsible drivers.

3. Get A Higher Deductible
You may choose to get a higher deductible on your insurance coverage to lower your regular insurance premium, and offset the costs of teenage drivers on your car insurance.

How To Save Money On Car Insurance in Alabama

November 19 2008 by author in Alabama Insurance |Comments Off

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.

Cheap High Risk Auto Insurance in Alabama

November 16 2008 by author in Insurance Questions |Comments Off

Reader’s Question:

I’m trying to rebuild my driving record here in Alabama, I want to get my insurance rates down again, do you have any suggestions that could help me?

Lois

Birmingham, AL

Frankly, it will take time and discipline to rebuild a good driving record and of course, to get your car insurance premiums lowered again but it is not an impossible task. You would usually need to drive and have no traffic offenses or moving violations for at least two to about three years before your car insurance provider can reconsider your record for a better car insurance rate. But everyone deserves a second chance right? So here are a few tips on how to fast track your way into getting back a good driving record there in Alabama:

1. Take defensive driving lessons – not only will this impart good driving skills to keep you and your passengers (as well as everyone else) safe while driving on the road.
2. Obey Traffic Rules – This not need mentioning but you really cant afford to get even a minor traffic violation against your license since this will just prolong you having to pay high insurance rates.
3. Keep your temper in check – keep it cool and never fall victim to road rage, if someone cuts you off then fine. What matters is you stayed within speed limits and kept driving safely and responsibly.
4. Never allow your car insurance coverage to get canceled – you want to make sure you have complete coverage for two or three years so take good care of paying your regular premiums. It will be much harder and much more expensive to obtain another insurance policy if your current one gets canceled either due to driving negligence and violations or non-payment.

How To Get Affordable Car Insurance in Alabama

November 14 2008 by author in Alabama Insurance |Comments Off

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.

Do You Want Cheaper Auto Insurance in Alabama?

November 13 2008 by author in Alabama Insurance |Comments Off

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).

Lowering Car Insurance Costs Alabama The Easy Way

November 13 2008 by author in Alabama Insurance |Comments Off

Reader’s Question:

Our auto insurance provider here in Alabama raised their rates (again!) and it’s really throwing us off our annual budget. Do you have any suggestions on how to save on our car insurance bills?

Junnie

Mobile, AL

There are a lot of people out there that knows exactly how you’re feeling. With the economic crunch everyone’s feeling caused by the recent financial crisis and bills to pay left and right, the last thing we need is to have our car insurance company raise their premiums (again). Fortunately there are still a few things that an honest-paying, hard-working car owner can do to manage, save money and even lower their car insurance expenses. Listed below are a few tips on how you can enjoy car insurance without having to subside on noodles.

Balance Your Insurance Policy
Your car insurance is actually composed of several kinds of insurance coverage. Some are non-negotiable and must be kept at all times, such as liability insurance, while other’s like comprehensive insurance coverage can be reduced or removed all together depending on your circumstances or the type of vehicle you own. Do you really think you’ll need coverage for tornados or hail storms especially if you’re driving an older vehicle? Be realistic with what you need. You can also consider increasing your deductible to lower down your regular premiums.

Drive Safely
Accumulating traffic violations will only cause your rates to skyrocket and your budget to die sooner. Be a safe, law abiding citizen if only while on the road there in Alabama. You can even take defensive driving lessons to qualify for discounts on your insurance as well.

Are You Driving Without Auto Insurance in Alabama?

November 12 2008 by author in Alabama Insurance |Comments Off

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.

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