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We’ve done the research for Alabama drivers looking for car insurance information. From state requirements, laws surrounding driving, coverage options, and more–this guide has you covered.
What Are The Alabama State Minimums?
Don’t have auto insurance in Alabama? You’re breaking the law. Alabama is considered an “at-fault” state, so if you cause an accident you’ll foot the bill for everything and everyone involved. Don’t play with fire by driving without insurance in the Cotton State. Below is the minimum coverage a person needs to have on a car insurance policy in Alabama to remain legal.
- $25K Per Person
- $50K Per Accident
- $25K in property damage
Keep in mind, this is liability insurance. In short, if you’re in an at-fault accident, your coverage will cover the other party’s property damage and injuries. If you don’t have additional coverage, you’ll be on your own to cover your own losses. Even if you have an old car that wouldn’t be worth insuring with comprehensive or collision insurance, PIP (personal injury protection) can still save you thousands of dollars. Many people also choose to get uninsured or underinsured motorist coverage to protect themselves in the event that they’re hit by a drunk driver or other uninsured or underinsured driver.
What Additional Coverage Should You Consider?
Bad things can happen to you and your car. If you only carry a policy with state minimum coverage, you could be in for a shock if you do get into an accident. Below is a list of some additional coverage options you may want to consider to put your mind at ease.
Collision Coverage – If your car gets banged up, bangs something else up, or both, this coverage helps pay for it. It only covers collision-related damage.
Comprehensive Coverage – This coverage takes care all of the above and add coverage for vandalism, weather, and other things that can harm your car. It covers damage that is not related to a collision.
Medical and Funeral Services Coverage – If someone gets hurt in an accident, or worse, dies, this coverage can help pay medical bills and final expenses.
Uninsured/Underinsured Motorist Coverage – Get this coverage to make sure you’re protected from having to pay for repairs or medical bills in an accident where the at-fault driver has little, or no insurance to cover it. You can get one or both and stacked or unstacked.
How Much Does Alabama Auto Coverage Cost?
Auto insurance premiums are on the move as much as your car. If you don’t shop around, you could wind up overpaying. A good rule of thumb is to get quotes from three different companies or more and to check back in every year or so to see if you can get a cheaper premium. The good news it regardless of your insurance status, quotes are free. So you can always see if you’re paying too much. If you let your current insurance lapse and need to pay a reinstatement fee, you can take that into account when deciding what to do. Just make sure you input all relevant information, or your quote could change.
We analyzed auto insurance rates across Alabama and on average, drivers pay $2,028.51 for car insurance. That doesn’t mean you need to pay that much. Based on our research, you may be able to find the most affordable insurance with the following companies:
| Average Annual Rate | |
|---|---|
| Travelers | $1,348.97 |
| Alfa Insurance | $1,383.75 |
| Safeco | $1,423.69 |
| USAA | $1,525.42 |
| Farmers | $1,642.51 |
See our full analysis of the cheapest car insurance in Alabama to see if you could save.
How Can You Save on Auto Insurance?
Don’t worry if you have a moving violation or shaky credit score. There are usually a couple ways to dial down your insurance premium. When shopping for your next insurance policy be sure to ask about some of these top discounts offered by most insurance companies:
- Multi-Policy Discount
- Homeowners Discount
- Multi-Car Discount
- Safe Driver Discount
- Good Grades Discount
A growing number of insurance companies also offer telematics programs. Depending on who you go with, they offer a small discount up front for signing up. Then you get an additional discount based on your driving performance after a 90 day assessment period.
These apps provide live feedback. So you have the chance to change your habits as you go. Some insurance companies also provide the assurance your rates won’t go up because you participated in their telematics program.
How Do Insurance Companies Determine Premium?
There are a number of variables that go into determining an individual’s insurance premiums. Some insurance companies can go as deep as giving better rates to those with a PhD while others may focus on your credit score. Every insurance company is different, but our research shows the variables below can affect your insurance premiums pretty dramatically.
- Age
- Marital Status
- Driving record
- Credit Score
- Make and model of car
Are You A High Risk Driver?
Then you probably know that finding and insurance plan isn’t the easiest thing in the world. However, thanks to the Alabama Auto Insurance Plan (ALAIP), insurance companies have to insure you in Alabama. If you’ve gotten a DUI or other serious charges, you can’t be denied coverage. Keep in mind, this doesn’t mean every company has to offer you affordable rates. They can set their rates to match the risk they have assessed. Insurance companies can still cancel your policy if you don’t pay. So getting multiple quotes is even more important, and putting your
The ALAIP means that each company in Alabama is equally responsible for the risk associated with writing you a policy.
Which Potential Violations and Penalties Affect Your Insurance Rates?
If you do drive without the minimum required mandatory liability insurance in Alabama, you’ll face a $500 fine on the first offense and a $1,000 fine for all subsequent violations. On top of that, the state can take your license and registration away for up to six months. Ensure you have the proper coverage to avoid these potential penalties.
Did You Know?
All premiums are based on risk and driving a car that’s on the “most commonly stolen” list can make your premiums go up. Below is a list of the most stolen cars in Alabama.
- Chevrolet Pickup (Full Size)
- Ford Pickup (Full Size)
- Honda Accord
- Chevrolet Impala
- Toyota Camry
- GMC Pickup (Full Size)
- Dodge Pickup (Full Size)
- Nissan Altima
- Ford Explorer
- Chevrolet Pickup (Small Size)
Where Can You Find an Alabama Agent Who Meets Your Needs?
With years of experience navigating Alabama insurance policies to simplify purchasing car insurance, an agent can find you the most comprehensive policy for your needs and at a price that makes you smile. If you aren’t ready for a quote, they are ready to help answer all of your questions. Call [mapi-phone /] to get started.
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