How to Know You're Throwing Money Away for Auto Insurance in Sitka
Are you sick and tired of paying out the nose each month for car insurance? Your situation is no different than many other drivers in Alaska. You have multiple to pick from, and though it is a good thing to have multiple companies, having more makes it harder to compare rates.
It's important to do rate comparisons once or twice a year because prices are constantly changing. If you had the best deal a year ago you will most likely find a better rate today. So just forget all the misinformation about auto insurance because you're going to get a crash course in the only way to remove unneeded coverages and save money.
Buying the cheapest auto insurance coverage in Sitka is simple if you know the tricks. If you are insured now or are shopping for new coverage, you can learn to get lower rates and possibly find even better coverage. Alaska drivers only need an understanding of the proper methods to get comparison rates online.
Save big with these discounts
Car insurance can cost a lot, but you may find discounts that can drop the cost substantially. A few discounts will automatically apply when you get a quote, but lesser-known reductions have to be specifically requested before you will receive the discount. If you're not getting every credit available, you are throwing money away.
- Passive Restraint Discount - Vehicles with factory air bags may earn rate discounts of up to 25% or more.
- Drivers Education - Make teen driver coverage more affordable by requiring them to take driver's ed class in high school.
- Employee of Federal Government - Active or retired federal employment could cut as much as 10% off with certain companies.
- Life Insurance Discount - Larger companies have a discount if you purchase life insurance.
- More Vehicles More Savings - Insuring multiple cars or trucks on one policy may reduce the rate for each vehicle.
- Anti-lock Brakes - Cars that have steering control and anti-lock brakes prevent accidents and earn discounts up to 10%.
- Discount for New Cars - Putting insurance coverage on a new car is cheaper because new vehicles have to meet stringent safety requirements.
It's important to understand that some of the credits will not apply to the entire cost. Most only apply to individual premiums such as medical payments or collision. Just because you may think adding up those discounts means a free policy, it doesn't quite work that way. Any qualifying discounts will bring down your overall premium however.
Auto insurance ads bend the truth
Alaska consumers get pounded daily by advertisements for the lowest price auto insurance by companies like State Farm and Allstate. All the ads have a common claim of big savings if you move to them.
How does each company make almost identical claims?
Insurance companies can use profiling for the type of driver that earns them a profit. An example of a preferred risk could possibly be between 30 and 50, has no tickets, and has excellent credit. A customer getting a price quote that hits that "sweet spot" is entitled to the best price and most likely will save when switching.
Drivers who fall outside these standards will be charged higher premiums and this can result in the driver buying from a lower-cost company. Company advertisements say "customers that switch" not "people who quote" save money. That's why insurance companies can confidently make those claims.
That is why you should get as many quotes as possible. It's impossible to know the company that will have the lowest rates.
More Alaska auto insurance information
Additional auto insurance information is available on the website for the Alaska Division of Insurance located here. Alaska consumers can find out industry alerts, download brochures, file complaints about an insurance agent or broker, and view a list of available companies.
Also read more on NAIC.org's Understanding your Policy and this directory of Sitka insurance agents.
And the best car insurance company is...
You just read a lot of techniques to reduce auto insurance prices online. The key concept to understand is the more you quote, the higher the chance of saving money. You may be surprised to find that the best prices are with some of the lesser-known companies. Regional companies can often provide lower rates in certain areas than their larger competitors like .
While you're price shopping online, make sure you don't buy lower coverage limits just to save a few bucks. There have been many cases where an insured dropped comprehensive coverage or liability limits to discover at claim time they didn't purchase enough coverage. Your goal should be to buy enough coverage at a price you can afford, not the least amount of coverage.
