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.

Alabama State Minimums

Don’t have auto insurance? 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

Additional Coverage To 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.

Comprehensive Coverage – Take all of the above and add coverage for vandalism, weather, and other things that can harm your car.

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.

How Much Alabama Auto Coverage Costs

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.

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.

Ways To Save

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

How 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. The ALAIP means that each company in Alabama is equally responsible for the risk associated with writing you a policy.

Potential Violations and Penalties

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.

  1. Chevrolet Pickup (Full Size)
  2. Ford Pickup (Full Size)
  3. Honda Accord
  4. Chevrolet Impala
  5. Toyota Camry
  6. GMC Pickup (Full Size)
  7. Dodge Pickup (Full Size)
  8. Nissan Altima
  9. Ford Explorer
  10. Chevrolet Pickup (Small Size)

Alabama Agents Are Amazing

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  855-462-2213 to get started.

Additional Resources

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