Auto insurance premiums have risen over 20% in the US just in the last 12 months. Residents of Alabama are feeling this increased cost and in this post we want to arm you with some information to make the best decision for you and your family.
Here are some critical considerations:
💵Maybe You Should Pay that Claim Out of Pocket? Adding an at-fault accident to your driving record increases your annual premiums 20%-50%. (1) We often see people who have turned in small claims and since accidents remain on your record for 3-5 years, the claim might pay for itself in less than 2 years (from the increase in auto premiums). **Bonus: Ask your agent about an Accident Forgiveness endorsement.
⬆️Increase Your Deductible: If you’re not going to turn in a $1,200 claim, why pay more for a $250 deductible? Take advantage of lower premiums that come with raising your deductible.
🚓Whatever you do, avoid a reckless driving ticket in Alabama: It might be tempting for you to go 90 on the interstate, but getting a reckless driving ticket will easily increase your annual premiums by $500/year and you’ll have fewer options.
🦺🚗Are you a safe driver? Consider a Telematics Option: (A phone app or plug-in device that tracks your driving) If you believe you’re a safe and conservative driver you should consider a driving app to take advantage of what can be >30% discounts. We understand you’re wary of an insurance company tracking your driving habits, but let’s be real, if you’re on social media you’re already giving over way more information.
💳Monitor Your Credit Score: Keep your credit score as high as you can in order to keep your premiums down. Consider a monitoring service to ensure no surprises when you shop your insurance.
🙌🏼Discounts & Bundling: Bundling your auto insurance with other policies, such as homeowners or renters insurance, with the same provider. Insurance companies offer the biggest discounts for the home/auto bundle, claims-free, and adding an umbrella.
🛒Shop Your Auto Insurance with Multiple Companies: Shopping your insurance with an agent that has multiple options can identify insurance companies that might be more competitive on your auto insurance. Independent agents work with multiple companies to give you the most choices.
Lowering your auto insurance rates in Alabama is achievable with a combination of strategic choices and responsible driving habits. By staying informed about available discounts, maintaining a clean driving record, and regularly reassessing your coverage needs, you can navigate the roads to savings while ensuring you have the protection you need on every journey.
Call or email us at Allison Insurance so we can help you ensure you’ve got the right protection and premium for you and your family!
205-738-7444
- Some claims you are required to turn in to your insurer. We are mainly talking about smaller single-vehicle physical damage claims (you back into a pole or hit a deer).
- https://www.bankrate.com/insurance/car/rates-after-an-accident/#how-long-does-an-accident-stay-on-your-driving-record
