Alabama Car Insurance Comparisons

State of AlabamaThe state Alabama requires that in order for a person to operate, register or maintain registration of an automobile, the vehicle must be covered liability coverage at all times. Although the state's average auto insurance premium is not above the national average, nobody should pay more than needed to become insured. Due to the various companies licensed to provide policies and the amount in which the cost of policies can vary, a quote comparison can help ensure that residents do not pay more than necessary for coverage.

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Tips for Comparing Alabama Car Insurance

Comparison shopping is a great way for individuals to find the best product at an affordable rate and is an important step in finding the right company. There are many aspects to comparing quotes and many never cross the minds of consumers as they shop around. One common mistake that motorists make is not to compare rates from enough companies; competition exists amongst carriers and consumers must take advantage of this fact in order to obtain the lowest rate.

One important factor of auto insurance comparisons is to ensure that rates are being obtained from each company based on the same product. It is not uncommon that consumers will get a quote based on one level of protection from one company and compare the quote to another carrier's who is offering a different product; this only leads to obtaining rates which are not comparable and can give the consumer the misconception that they are receiving a cheaper rate, but in reality they may be receiving less coverage. One should be careful and make sure that they are comparing apples to apples for an accurate comparison and to ensure the best deal is found.

Basing comparisons on higher levels of coverage may benefit motorists as well. Alabama auto insurance laws require that motorists carry liability limits of $25,000 for bodily injury to one person, $50,000 for bodily injury per accident and $25,000 for property damage; often abbreviated 25/50/25. This will compensate a third party if the policyholder is found liable for a traffic accident in which bodily injury or property damage occurs. In some cases this may not be enough to cover the costs arising from an accident, it is often suggested to purchase limits of 100/300/50 to help cover expenses that may exceed the state's minimum requirements.

U.S. flag shaped as AlabamaIn addition, Alabamans may want to consider comparing the cost of adding Uninsured Motorist to policies due to the unfortunate number of drivers who choose to drive illegally without a car insurance policy in place; the Insurance Research Council estimated that in 2007, 26% of residents operated automobiles without coverage and due to the economic downturn since, this number is expected to be higher in 2010. Many individuals decide to go without this additional protection believing that it is expensive when in fact it is fairly cheap and can be extremely beneficial if involved in an accident with a motorist that is uncovered or if victim of a hit and run.

Taking the time to compare the rates of multiple insurers is not only a great way to find the cheapest auto insurance policies, but can also lead to finding more extensive coverage that one may have felt they could not afford, which is a common misconception. There are some additional levels of protection that may benefit a motorist and can be quite affordable.