Is Your Cordova Auto Insurance Breaking the Bank?

Tired of not being able to afford each month for car insurance? Your situation is no different than many other drivers in Alaska.

Since consumers have many companies and agents to choose from, it’s nearly impossible to pick the most affordable insurance company.

Smart consumers take time to shop coverage around before your policy renews because insurance rates are constantly changing. If you had the best deal last year you may be paying too much now. There is a lot of wrong information about auto insurance online but by reading this article, you’re going to learn some great ways to find affordable auto insurance.

These discounts can lower your rates

Auto insurance companies don’t always list every discount in an easy-to-find place, so we break down both the well known and also the lesser-known ways to save on auto insurance.

• Discount for Swiching Early – A few companies offer discounts for switching policies before your current policy expires. The savings is around 10%.
• One Accident Forgiven – A handful of insurance companies will forgive one accident before hitting you with a surcharge as long as you don’t have any claims for a particular time prior to the accident.
• Service Members Pay Less – Being on active duty in the military may qualify for rate reductions.
• Paperless Signup – A few companies give back up to $50 for buying your policy on their website.
• Braking Control Discount – Vehicles equipped with ABS or steering control prevent accidents and earn discounts up to 10%.
• Good Student – A discount for being a good student can be rewarded with saving of up to 25%. Earning this discount can benefit you until age 25.

Drivers should understand that most credits do not apply to all coverage premiums. Most only apply to individual premiums such as physical damage coverage or medical payments. Even though it may seem like adding up those discounts means a free policy, companies don’t profit that way.

To see a list of companies with discount auto insurance rates in Cordova, click here to view.

Where Can I Get Cheap Cordova Auto Insurance?

There are multiple methods to shop for auto insurance, but some are less time-consuming than others. You could waste a few hours driving to insurance agencies in Cordova, or you can utilize the internet to accomplish the same thing much quicker.

Most of the larger companies take part in a program where prospective buyers complete one form, and each participating company then gives them pricing based on that data. This saves time by eliminating quote forms to each company.

To participate in this free quote system, click here (opens in new window).

The one disadvantage to using this type of form is you cannot specify the providers to get quotes from. If you would rather choose individual companies to request quotes from, we put together a list of low cost auto insurance companies in Alaska. View list of Alaska insurance companies.

Whichever method you choose, ensure you’re using exactly the same quote information for every company. If you use different liability limits it will be very difficult to truly determine the lowest rate in Cordova. Just a small difference in coverage limits may cause a big price difference. And when comparison shopping, getting more free quotes provides better odds of finding lower pricing.

What impacts Cordova insurance rates?

Smart consumers have a good feel for the rating factors that help determine the rates you pay for auto insurance. When you know what positively or negatively impacts premium levels empowers consumers to make smart changes that could result in much lower annual insurance costs.

The following are a partial list of the pieces used by your company to calculate premiums.

• High deductibles save money – Insurance for physical damage to your car, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Some examples of claims that would be covered are running into the backend of another car, collision with an animal, and rolling your vehicle. Physical damage deductibles are how much you are willing to pay out-of-pocket before your auto insurance pays a claim. The more the insured has to pay upfront, the bigger discount you will receive.
• Choose a safe vehicle and save – Cars with high safety ratings get lower rates. These vehicles reduce injuries and any reduction in injury severity translates into savings for insurance companies and more competitive rates for policyholders.
• Credit scores impact auto insurance rates – Your credit rating is a large factor in determining your rates. Drivers with high credit scores tend to file fewer claims and have better driving records than drivers who have lower ratings. Therefore, if your credit history can use some improvement, you could be paying less to insure your by spending a little time repairing your credit.
• Where you live can impact rates – Residing in less populated areas can be a good thing when it comes to auto insurance. Drivers in populated areas have to deal with much more traffic and longer commute times. Fewer people means a lower chance of having an accident and also fewer theft and vandalism claims.
• Bad driving skills means higher rates – Even a single citation can increase rates by as much as thirty percent. Good drivers get better rates than bad drivers. Drivers who get serious violations like DWI, reckless driving or hit and run convictions may be required to submit a SR-22 or proof of financial responsibility with their state DMV in order to continue driving.
• Don’t buy coverages you don’t need – There are many add-on coverages that you can get tricked into buying when buying auto insurance. Coverages for personal injury protection, accidental death and membership fees may be wasting your money. They may seem good when talking to your agent, but your needs may have changed so eliminate them to save money.

Different people need different coverages

When choosing adequate coverage, there is no “perfect” insurance plan. Every insured’s situation is different so this has to be addressed. For instance, these questions might help in determining if you could use an agent’s help.

• I don’t drive much so do I pay less?
• Will my vehicle be repaired with OEM or aftermarket parts?
• Should I rate my vehicle as pleasure use or commute?
• Should I file a claim if it’s only slightly more than my deductible?
• When would I need additional glass coverage?
• When should my teen driver be added to my policy?
• What is the minimum liability in Alaska?
• Am I covered by my employer’s commercial auto policy when driving my personal car for business?

If you don’t know the answers to these questions, then you may want to think about talking to an insurance agent. To find lower rates from a local agent, simply complete this short form or go to this page to view a list of companies.

Don’t listen to company ads

Companies like Allstate and Progressive continually stream ads on TV and radio. All the ads make the same claim that you can save after switching your policy. How does each company make almost identical claims?

Different companies have a certain “appetite” for the type of driver that makes them money. A good example of a profitable customer could be over the age of 50, owns a home, and drives newer vehicles. A propective insured who matches those parameters will get very good rates and as a result will probably save when switching.

Potential insureds who don’t qualify for this ideal profile must pay higher rates which leads to the customer not buying. Company advertisements say “customers that switch” not “everyone that quotes” save that much money. That’s why companies can truthfully advertise the savings. This illustrates why it’s extremely important to get a wide range of price quotes. It’s just too difficult to predict which auto insurance company will give you the biggest savings.

The best insurance company isn’t always the cheapest

You just learned many ideas to compare auto insurance prices online. It’s most important to understand that the more you quote, the higher the chance of saving money. Drivers may discover the best prices are with the least-expected company. Smaller companies may cover specific market segments cheaper as compared to the big name companies such as Allstate and Progressive.

Budget-conscious auto insurance can be purchased both online as well as from independent agents in Cordova, and you should compare price quotes from both to have the best selection. Some companies don’t offer online price quotes and most of the time these small insurance companies sell through independent agents.

Learn more about auto insurance in Alaska

More tips and info about auto insurance can be read at the Alaska Division of Insurance website. Visitors are able to read state legal mandates and laws, find disaster information, and read industry bulletins.