Alabama Car Insurance: Coverage, Cost & Best Options

Motorists in the state of Alabama are required by law to carry liability insurance on their cars, motorcycles, trucks, pickups, and recreational vehicles. The goal here is to ensure everyone’s safety after a car crash. Alabama law says that uninsured drivers can’t register, keep, or drive a car that doesn’t have at least the bare minimum of liability insurance. Read on to learn more about Alabama car insurance coverage, rates, and requirements. Enjoy the ride!

Best Alabama Car Insurance

Finding affordable car insurance in Alabama can be a challenge if you don’t know the rules and regulations. The same factors used across the nation determine insurance rates in Alabama. These include the policyholder’s driving record, age, vehicle make and model, and residence. Finding cheap car insurance in Alabama begins with knowing what coverage you need and how it will affect your rates. The following are the best Alabama car insurance companies you can go for:

#1. State Farm

The average full coverage quotation from State Farm is $1,185 annually, 29% less than the average for the state of Alabama. At about $37 a month, State Farm is far and away Alabama’s least expensive auto insurer. If you purchase less insurance, your monthly payments may be lower, but you will be less protected in the event of an accident. In Alabama, drivers who have been ticketed for speeding can get the best rates by shopping with State Farm, which averages about $107 per month. Insurance from State Farm is $710 cheaper annually for people who have received a speeding ticket than the national average.

After a collision where you are found at fault, the average monthly premium for State Farm drops to about $120. If you have a history of accidents or citations, you may want to look into State Farm because their prices are 43% lower than the national average.

#2. Allstate

Allstate offers the most affordable rates to drivers with a DUI, at $179 per month—23% less expensive than the average rate of $232 per month for drivers with a DUI. The cost of auto insurance in Alabama can increase by as much as 67% if you have a DWI.

#3. Nationwide

If you have bad credit and need car insurance, Nationwide has the lowest prices, on average saving you $74. In Alabama, car insurance rates for drivers with bad credit are over 63% higher than those with excellent credit. AM Best has given Nationwide an A+ for financial strength, which means that customers can trust the firm to pay for their accident’s damages. SmartRide® and SmartMiles® are two of the provider’s programs that may also appeal to drivers interested in usage-based insurance.

#4. Geico

In Alabama, Geico is one of the least expensive car insurance companies overall for a number of different types of drivers. The company has an above-average score in the J.D. Power 2021 U.S. Auto Claims Satisfaction StudySM, indicating good customer satisfaction with its claims procedure, and a strong financial strength rating, showing that it can reliably cover claims.

#5. USAA

When shopping for car insurance in Alabama, active-duty military personnel, veterans, and their families should seriously consider USAA’s offerings. According to the J.D. Power 2021 U.S. Auto Insurance StudySM, the company’s customer service is the best in the Southeast. For individuals who are eligible, it is a good option because it has among the lowest prices in Alabama.

#6. Travelers

If you’re a young driver in Alabama, Travelers is a good option because of its low rates. New vehicle replacement, ridesharing insurance, roadside assistance, and accident forgiveness are just a few of the coverage choices provided by the company.

Note: Prices can change at any time. So, always check the site of any of the car insurance companies you want to go for and get their current quotation whenever you are ready to buy your car insurance

Alabama Car Insurance Requirements

The state of Alabama, like many others, mandates minimum levels of auto insurance coverage for all drivers. There are several alternatives to consider while shopping for auto insurance in Alabama, but the state’s minimum requirements should be your primary focus. The state of Alabama requires a minimum of 25/50/25 coverage for car liability insurance. The abbreviation means:

Personal injury protection of $25,000
Payments for all bodily injuries sustained in a single accident are capped at $50,000.
$15,000 in bodily injury and $25,000 in property damage

A Look into Alabama Car Insurance

In the state of Alabama, motorists are required to carry liability insurance. It is common practice to separate bodily injury coverage from property damage coverage, as mentioned above. If you injure someone else while driving, the other person’s medical bills and lost wages are covered by your bodily injury insurance. If you wreck someone else’s car in an accident, their insurance will pay for the repairs. Injuries to you or your passengers, as well as property damage to your car, are never covered by liability insurance.

Therefore, you and your car do not qualify for the minimum liability coverage, and such coverage may not be sufficient to meet your financial obligations in the event that you cause an accident. In such a scenario, you would likely have to pay for any injuries or losses that exceed the limits of your liability coverage out of your own pocket. Increasing your coverage limits is one solution to this second issue, while diversifying your coverage is another. When combined, comprehensive and collision car insurance is referred to as “full coverage” and serves to protect you against financial loss should something happen to your vehicle. If you or your passengers are injured in an accident, regardless of who was at fault, having a personal injury protection policy in place can assist in covering related medical expenses.

Is Alabama a No-Fault State?

Unfortunately, Alabama is not a “no-fault” state. This means that the at-fault motorist will use their insurance to cover the costs incurred by the at-fault driver’s passenger. The law enforcement and insurance firms will use any and all evidence to assess fault. Damages to the other vehicle are covered by the at-fault driver’s insurance company. If damages exceed an insured amount, the driver who caused the accident must pay the difference.

To add insult to injury, “fault” can be split amongst the drivers. For instance, it is possible that one motorist is guilty of 25% of the accident and the other driver is accountable for the remaining 75%. If you were even 1% at fault for the accident, you have no legal recourse in Alabama, one of just five states with contributory negligence rules. The other motorist can file a lawsuit only if the other driver is found to be “at fault” (entirely liable) for the accident.

Penalties for Driving Without Car Insurance in Alabama

If you’re driving in Alabama without Alabama car insurance, you could be breaking the law and subject to penalties. There is a $500 punishment and a 45-day suspension of registration with a $200 reinstatement charge for a first offense. A $1,000 fine, a four-month registration suspension with a $400 reinstatement charge, and a license suspension of up to six months apply for a second or subsequent infraction.

Additional penalties, such as jail time and having to carry an SR-22, a document on file with the state verifying you have auto insurance with the proper coverages, may be imposed depending on the nature and number of offenses. This document is sometimes referred to as a “Certificate of Financial Responsibility.”

What is the Average Car Insurance Rate in Alabama?

Alabama drivers may expect to pay an average of $1,290 annually for car insurance. This means that Alabama has slightly higher insurance rates than the national average. Recent years have seen a general upward trend in premium costs across the insurance industry in Alabama.

The increase in the number of drivers in the state without car insurance is a common trend, which raises premiums. 20 percent of Alabama motorists are uninsured. Car insurance is more expensive in larger areas like Birmingham, Tuscaloosa, and Huntsville because of the higher incidences of theft and accidents.

Factors that Affect Car Insurance Rates in Alabama

Alabama car insurance rates actually vary widely according to individual circumstances. In one city, a 16-year-old driver may pay nearly $4,060 a year, while a 40-year-old driver with experience could pay just $1,221. The impact of these variables on your Alabama car insurance rates is discussed below:

#1. Age

Alabama drivers of all ages can expect to pay different amounts for car insurance. Young drivers have a reputation for being reckless because of their lack of experience. Teenage drivers in California pay an average of $4,787 for female drivers’ insurance and $5,897 for male drivers’ insurance annually. Most families with teenage drivers opt to bundle their insurance policy in order to save money. Prices for young drivers go down steadily as they develop expertise and maturity behind the wheel.

#2. Driving History

Alabama law requires insurance companies to charge more if you have a history of traffic violations. If you have a poor driving history, your insurance premiums will reflect that. Most businesses will charge you up to 49 percent more if you have a poor driving record. Your annual auto insurance premiums could range from $1,121 in the event of a spotless driving record to a whopping $1,957 if you have a history of traffic violations.

#3. Credit Score

Insurance rates are typically more expensive for consumers with lower credit scores. Credit scores are used as a predictor of timely premium payments by insurance companies. Insurers offer discounts of up to 40 percent to policyholders with excellent credit scores in an effort to deter those with low credit.

In the same vein, if you have a history of timely premium payments, you may qualify for these savings. If you pay $1,178 annually and have a good payment history, your insurance provider may lower your premiums to around $930 annually. When shopping for auto insurance in Alabama, be sure to take advantage of these savings opportunities.

What Can Increase My Car Insurance Rate?

When you finally settle on a policy, it’s important to remember the variables that can affect your Alabama car insurance rates. The following are things you need to always keep in mind:

#1. Infractions of Traffic Law

Minor infractions include things like speeding tickets, and significant infractions include things like careless driving and drunk driving.

#2. At-fault Accidents

Your rate could increase if you cause a serious accident and have to pay a significant claim.

#3. Adding a Driver to Your Policy

You need to add a driver to your insurance if anyone else uses your vehicle. Your insurance premiums could go up based on your driving history and record.

#4. Lack of Insurance Coverage

When a car is registered but no insurance is in place, this is known as a lapse in insurance. In many places, being a high-risk driver on an insurance application means driving without auto coverage.

How to Get the Best Car Insurance Rates in Alabama

If you own a car in Alabama, you must carry liability insurance. Different drivers have different car insurance rates because of:

What you drive
Whether or not you’ve had insurance before
The number of miles you drive
Where you are
One’s history behind the wheel
Your age
Your gender
Relationship status

The weight given to certain characteristics can vary widely among service providers. This highlights the need to shop around for the best deal. It’s possible to locate comparable insurance coverage elsewhere for a lower premium. In Alabama, you can get the lowest car insurance rates by:

Inquire about price cuts: Discounts on insurance premiums can be obtained for various reasons, including safe driving and good grades. Always inquire about possible price reductions.
Policy blending: Combining plans can help you save money, especially if you have many drivers on your policy or if you already have other types of insurance, like for your home or motorcycle.
Always check similar quotes: It’s a good idea to shop around for insurance every six months, just like you did when you initially bought coverage. If your insurance premiums are going up, it’s time to look elsewhere.
Check your insurance policies: You must at least carry the state-mandated minimum liability insurance in Alabama; beyond that, it’s up to you to determine your own degree of protection.

The bare-bones coverage required by law in a given state is typically the most affordable option. However, make sure you get the appropriate amount of protection. Knowing the requirements for car insurance in Alabama will help you find a policy that meets your needs. It might also be useful for saving money while shopping.

Read Also: CAR INSURANCE COLORADO: Coverage, Cost & Best Options

What Are the Repercussions of Driving a Car Without Car Insurance in Alabama?

The consequences of driving without car insurance differ from state to state. Driving without insurance carries penalties that far surpass the cost of the required monthly payment. The following are the repercussions of driving a car with car insurance in Alabama:

#1. Fines

If you cause an accident, you might face fines of hundreds to thousands of dollars, depending on the state.

#2. Revoke Driver’s Permit

If you are discovered driving without car insurance, your license may be revoked or suspended in some states.

#3. Vehicle Impounded

Some states require proof of insurance before releasing a vehicle that has been towed. You’ll have to pay reinstatement and impoundment fees to get your automobile back.

#4. Expenses for car maintenance and healthcare

If you don’t have insurance and get into an accident, you’ll have to pay for the damages yourself, and that may add up to a lot of money depending on how bad it is. It’s possible that someone will sue you for damages to their person or property.

#5. Increase in car insurance premium

If you’re caught driving without car insurance, your premiums may be significantly higher than they would otherwise be. An SR-22 form is necessary in some areas to demonstrate that you have enough liability coverage. Your driving record will suffer if you are required to carry an SR-22.

Does Alabama Mandate Car Insurance?

Driving without car insurance is unlawful in the state of Alabama. There are many different kinds of insurance available in this state, including liability, bodily injury, comprehensive, and collision for rental cars, PIP, and uninsured motorists. In Alabama, failing to have car coverage can result in fines, suspension or revocation of your driving privileges, and even jail time.

Which Cars are Required to Be Insured in Alabama?

Any car registered in Alabama and driven on a public road or highway must carry the minimum level of liability insurance required by law.

What Is the Best Time to Buy Car Insurance in Alabama?

When relocating or purchasing a new vehicle, it is important to research the necessary auto insurance coverage to ensure legal compliance and financial security.

How Much Car Insurance Do I Need in Alabama?

The Alabama Department of Insurance mandates the following minimum levels of coverage for vehicles:

There is a $25,000 per person or $50,000 per occurrence limit on bodily injury coverage.
Damage to property is covered up to $25,000.

While not mandated by law, an uninsured motorist policy might provide financial protection in the event of an accident caused by another driver who does not carry liability coverage.

What Is the Average Cost of Car Insurance in Alabama City?

Dothan, Madison, Decatur, and Huntsville had annual premiums for car insurance of $1,350 or less, among the lowest in Alabama. Birmingham is one of the most costly cities, with an average yearly cost of almost $1,570, somewhat higher than the state annual cost of $1,424.

Car insurance rates can range widely from one person to the next and from one policy to another. Getting a quote for auto insurance is the easiest way to find out how much you will have to spend each month.

What Happens if I Don’t Have Car Insurance In Alabama?

According to the Alabama Mandatory Liability Insurance Law, a driver who does not carry liability coverage is guilty of a crime and must pay a fine of $200 for a first offense, $300 for a second offense, and $400 for any subsequent violation. If the fine isn’t paid within 15 days of notification, the license will be suspended for 90 days and won’t be reinstated until all fines are paid in full.

Does Alabama Law Mandate Having Liability Insurance?

Having liability insurance is mandatory in the state of Alabama. Medical expenses and other costs associated with injuries the policyholder causes to others are covered by liability insurance.

Do Electronic Insurance Cards Work in Alabama?

The state of Alabama does recognize electronic insurance policies. Instead of hunting down a paper copy, you can access this via an app provided by the company or by downloading it to your device. These can stand in for the original document in legal settings and at traffic stops. Inquire with your insurance company about digital insurance cards.

Final Thoughts

Proof of car insurance coverage is mandatory in the state of Alabama if you plan on driving on public roadways. If you are pulled over and cannot provide proof of insurance, you could face penalties, a suspended license, or even jail time. Providing false information on an insurance application can potentially result in the suspension of your driver’s license in the state of Alabama. I do hope this article was helpful. Let me hear from you in the comment section below!