Getting budget-priced quotes online is somewhat intimidating for vehicle owners that are not comfortable with quoting and comparing rates and buying insurance over the internet. Because there are so many companies in the marketplace, how can anyone even start to compare every possible option in order to find lower insurance premiums?
Surprisingly, a recent survey revealed that the vast majority of insurance customers kept their coverage with the same insurance company for four years or more, and approximately 38% of consumers have never shopped around. Montgomery drivers could save themselves almost $490 a year just by getting comparison quotes, but they don't want to spend time to shop around.
Cost influencing factors
An important part of buying insurance is that you know some of the elements that help determine the rates you pay for insurance. When you understand what determines base rates, this helps enable you to make changes that may result in big savings.
- If you don't need it don't buy it - Insurance companies have many additional extra coverages that you can get tricked into buying on your insurance policy. Insurance for things like rental car coverage, towing, and term life insurance may be wasting your money. They may seem like a good idea when buying your policy, but now you might not need them so get rid of them and save.
- With age comes lower prices - Teen drivers in Alabama have a tendency to be easily distracted when driving with friends so insurance rates are higher. More experienced drivers are viewed as being more responsible, file fewer claims, and are safer drivers.
- Decrease premiums by maintaining coverage - Having a gap between insurance policy dates can be a quick way to bump up your insurance costs. In addition to paying higher rates, being ticketed for driving with no insurance could result in fines or a revoked license.
- Vehicle options can affect rates - Selecting a car model with a theft deterrent system can help lower your rates. Systems that thwart thieves such as vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all help stop your vehicle from being stolen.
- Qualify for multi-policy discounts - Most larger insurance companies provide discounts to policyholders who consolidate policies with them such as combining an auto and homeowners policy. Even with this discount applied, it's in your best interest to get quotes from other companies to help ensure you have the lowest rates.
When comparing auto insurance rates, know that comparing more prices helps improve the odds of finding a lower rate.
The auto insurance companies shown below have been selected to offer price comparisons in Alabama. If several companies are displayed, we recommend you get rates from several of them in order to get a fair rate comparison.
|Make, Model, and Trim Level||Annual Policy Premium||6-month Policy Premium||Monthly Premium|
|Chevrolet Equinox LT 2WD||$1,172||$586||$98|
|Chevrolet Silverado LTZ Crew Cab 2WD||$1,342||$671||$112|
|Dodge Ram Quad Cab SLT 4WD||$1,024||$512||$85|
|Ford Escape XLS 4WD||$676||$338||$56|
|Ford F-150 FX4 Super Cab 4WD||$1,374||$687||$115|
|Ford Focus SE 2-Dr Coupe||$1,508||$754||$126|
|Honda Accord LX 4-Dr Sedan||$782||$391||$65|
|Honda CR-V EX-L 2WD||$1,018||$509||$85|
|Honda Civic DX 2-Dr Coupe||$1,038||$519||$87|
|Honda Odyssey LX||$1,010||$505||$84|
|Jeep Grand Cherokee Limited 2WD||$1,298||$649||$108|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$1,034||$517||$86|
|Kia Optima SX||$1,342||$671||$112|
|Nissan Altima 3.5 SR 2-Dr Coupe||$1,126||$563||$94|
|Toyota Camry XLE||$1,226||$613||$102|
|Toyota Corolla XRS||$1,278||$639||$107|
|Get Your Own Custom Quote Go|
Data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $250 deductibles, and Alabama minimum liability limits. Discounts applied include multi-policy, safe-driver, claim-free, homeowner, and multi-vehicle. Premium costs do not factor in Montgomery location which can affect price quotes noticeably.
Difference between liability only and full coverage rates
The chart below illustrates the difference between Dodge Ram premium costs with and without physical damage coverage. The data is based on no tickets, no at-fault accidents, $100 deductibles, single male driver, and no discounts are taken into consideration.
Dodge Ram rates are for example purposes only. To get rates for your specific vehicle, click here.
When to drop comprehensive and collision
There is no exact rule of when to stop paying for physical damage insurance, but there is a general convention. If the yearly cost of comp and collision coverage is 10% or more of the replacement cost minus the deductible, then you may want to consider only buying liability coverage.
For example, let's say your Dodge Ram settlement value is $8,000 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, you would only receive $7,000 after paying the physical damage deductible. If you are paying over $700 a year for full coverage, the it may be a good time to stop paying for full coverage.
There are some cases where buying only liability insurance is not recommended. If you still have a lienholder on your title, you are required to maintain full coverage in order to keep the loan. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should not drop full coverage.
The diagram below illustrates how your deductible choice and can raise or lower Nissan Sentra annual premium costs for each different age category. The costs are based on a single female driver, full physical damage coverage, and no other discounts are factored in.
Nissan Sentra rates are for example purposes only. To get rates for your specific vehicle, click here.
Why do I need car insurance?
Despite the fact that auto insurance is not cheap in Montgomery, paying for auto insurance is most likely required but also gives you several important benefits.
- Just about all states have mandatory liability insurance requirements which means it is punishable by state law to not carry specific minimum amounts of liability coverage in order to drive the car. In Alabama these limits are 25/50/25 which means you must have $25,000 of bodily injury coverage per person, $50,000 of bodily injury coverage per accident, and $25,000 of property damage coverage.
- If your vehicle has a lienholder, most banks will stipulate that you buy full coverage to ensure the loan is repaid in case of a total loss. If coverage lapses or is canceled, the bank may buy a policy for your vehicle at a much higher rate and require you to pay the higher price.
- Insurance protects not only your vehicle but also your assets. It will also pay for hospital and medical expenses for both you and anyone you injure as the result of an accident. One of the most valuable coverages, liability insurance, also covers legal expenses if you are named as a defendant in an auto accident. If you receive damage to your vehicle caused by a storm or accident, your policy will pay to have it repaired.
The benefits of buying auto insurance are definitely more than the cost, specifically if you ever have a liability claim. Despite what companies tell you, the average driver overpays more than $855 a year so it's very important to do a rate comparison every year to ensure rates are inline.
Affordable Montgomery insurance quotes with discounts
Insurance can be prohibitively expensive, but you may be missing some discounts that can dramatically reduce your bill. Larger premium reductions will be automatically applied when you get a quote, but occasionally some discounts must be specifically requested before you get the savings.
- Responsible Driver Discounts - Insureds without accidents can pay as much as 50% less than less cautious drivers.
- Driver Safety - Completing a course that instructs on driving safety could possibly earn you a 5% discount and easily pay for the cost of the class.
- Good Student Discount - A discount for being a good student could provide a savings of up to 20% or more. The good student discount can last up to age 25.
- Multi-policy Discount - When you have multiple policies and insure them both with the same insurance company you could get a discount of 10% to 20% off each policy.
- Multiple Cars - Purchasing coverage when you have primary and secondary vehicles on one policy can reduce rates for all insured vehicles.
- Discount for Swiching Early - Some insurance companies provide a discount for switching to them early. The savings is around 10%.
- Payment Discounts - By making one initial payment rather than paying monthly you could save up to 5%.
- Use Seat Belts - Buckling up and requiring all passengers to wear their seat belts can save up to 15% on medical payment and PIP coverage.
- Senior Discount - Seniors could receive a slight reduction on a Montgomery auto insurance quote.
A little disclaimer on discounts, most discount credits are not given to the entire cost. Some only reduce the price of certain insurance coverages like collision or personal injury protection. Despite the appearance that you would end up receiving a 100% discount, it's just not the way it works. But any discount will definitely lower your policy cost.
To view companies that can offer you the previously mentioned discounts in Montgomery, click this link.
Should I have guidance from an agent?
Some consumers would prefer to get advice from a local agent and we recommend doing that One of the best bonuses of getting online price quotes is you may find better rates and still have an agent to talk to. Buying insurance from small agencies is still important in Montgomery.
To make it easy to find an agent, after completing this simple form, the coverage information gets sent to local insurance agents in Montgomery who want to provide quotes to get your business. It simplifies rate comparisons since you won't have to contact an agency as quotes are delivered to the email address you provide. You'll get the best rates AND an agent nearby. If you want to quote rates for a specific company, you would need to go to their quote page and complete a quote there.
Montgomery car insurance agents are either independent or exclusive
If you need to find an insurance agent, it's important to understand the different agency structures and how they can quote your rates. Auto insurance agents can be categorized as either independent agents or exclusive agents depending on their employer.
Independent Agents (or Brokers)
These agents often have affiliation with several companies so they can insure your vehicles with lots of companies and find you the best rates. If you want to switch companies, your policy is moved internally and that require little work on your part. When searching for an agent, it's recommended you get several quotes from several independent insurance agents in order to have the best price comparison. Most have the option of insuring with lesser-known insurance companies that may have much lower rates than larger companies.
Below is a partial list of independent agencies in Montgomery that can possibly get you free auto insurance quotes.
- Southern Harvest Insurance Agency PandC INC.
13 Holliday Dr - Montgomery, AL 36109 - (334) 272-1300 - View Map
- Alabama Municipal Insurance Corporation
110 N Ripley St - Montgomery, AL 36104 - (334) 386-3863 - View Map
- Thompson Insurance Inc
3300 Gatsby Ln - Montgomery, AL 36106 - (334) 277-8970 - View Map
Agents that elect to be exclusive are contracted to one company like Farmers Insurance, American Family, State Farm and Allstate. Exclusive agencies are unable to compare rates from other companies so always compare other rates. Exclusive agents are well schooled on their company's products which helps overcome the inability to quote other rates. Many people use the same exclusive agent mostly because of the brand legacy and solid financial strength.
Listed below is a list of exclusive insurance agencies in Montgomery that are able to give comparison quotes.
- Joe Hall - State Farm Insurance Agent
6940 Vaughn Rd - Montgomery, AL 36116 - (334) 270-2723 - View Map
- Courtney Combs - State Farm Insurance Agent
4137 Carmichael Rd #120 - Montgomery, AL 36106 - (334) 271-5900 - View Map
- Anthony Smith - State Farm Insurance Agent
1311 Tin Barn Ln - Montgomery, AL 36117 - (334) 279-1288 - View Map
Finding the right insurance agent should include more criteria than just the price. These are some questions you should get answers to.
- What insurance companies do they work with in Montgomery?
- Do they write coverage based solely on cost?
- Are they in the agency full-time?
- Do they specialize in personal lines auto insurance in Montgomery?
- Do they assist clients in filing claims?
- Are you getting all the discounts the company offers?
- When do they do a full risk review?
- How many years have they been established?
Don't give up on affordable rates
When getting Montgomery auto insurance quotes online, don't be tempted to reduce needed coverages to save money. There have been many situations where an insured dropped liability coverage limits and learned later that the small savings ended up costing them much more. Your goal should be to find the BEST coverage at the lowest possible cost, but do not sacrifice coverage to save money.
Affordable insurance in Montgomery can be found on the web as well as from independent agents in Montgomery, and you should compare rates from both in order to have the best price selection to choose from. There are still a few companies who may not offer internet price quotes and these regional insurance providers only sell through independent agencies.
We just covered some good ideas how you can shop for insurance online. The key concept to understand is the more price quotes you have, the better your chances of lowering your rates. You may even find the biggest savings come from a small mutual company.
To learn more, feel free to visit the resources below: