CheapInsurance.com has compiled guidelines, tips, price comparisons, and the best deals to help you find cheap car insurance in Alabama.
Alabama is known for its friendliness, hospitality and its warm weather.
There’s also no shortage of beautiful natural areas in the state, including miles of pristine beaches along the Gulf Coast.
Motor vehicle thefts rates are a contributing factor in setting auto insurance rates.
Like most states, Alabama requires vehicle owners to carry certain minimum amounts of liability car insurance coverage.
Is Alabama an “At-Fault” Car Insurance State?
Alabama is an at-fault (tort) state. This means that drivers who have caused a collision may be responsible for paying the medical bills and other losses they have caused others to suffer.
In tort states, car accident victims must first turn to the liability insurance of the person who caused the accident to recover compensation.
In no-fault states, drivers must first file a claim with their own insurance company before they can bring a claim against another party.
What Is the Difference Between At-Fault and No-Fault States?
No Fault States:
- No-fault insurance means that accident victims do not have to consider fault after a car crash in order to recover compensation.
- Most states that have a no-fault insurance system allow drivers to file a lawsuit against a negligent driver only if the injured party has incurred damages that reach a specified amount, or if they have suffered extensive injuries.
At-Fault or Tort States:
- In an at-fault-based system such as Alabama, accident victims must prove that another driver was to blame for the accident that caused their injuries.
- Accident victims must file a claim with the negligent driver’s insurance company.
- Bodily injury liability insurance provides compensation for the victim’s personal injury.
- Property damage liability insurance covers damage to the accident victim’s vehicle and other personal property.
Minimum liability insurance is the least amount of coverage you need to pay for any damages you cause in a car accident and it typically includes:
- Bodily injury liability coverage: Bodily injury liability coverage covers other people’s physical damages in a motor car accident.
- Property damage liability coverage: Property damage liability coverage covers damages to the other driver’s property.
Minimum liability coverage won’t cover your vehicle if you are responsible for the accident.
To get full coverage auto insurance in Alabama, consider adding collision or comprehensive insurance to your auto insurance policy.
In Alabama, the state’s Mandatory Liability Insurance Law requires vehicle owners to have the following minimum amounts of liability car insurance coverage:
- $25,000 for death or bodily injury liability to one person injured or killed in an accident you cause.
- $50,000 for total death bodily injury liability when two or more people are injured or killed in an accident you cause.
- $25,000 for property damage in an accident you cause.
Factors Affecting The Price Of Car Insurance in Alabama
What you pay for car insurance coverage will depend on factors in your unique driving profile, including the kind of car you drive and the amount of coverage you need.
Other factors include:
- Your age: Drivers under 25 and over 65 pay higher auto insurance rates because they are statistically more likely to be involved in accidents.
- Your License status: You can check your driving record and license status with the Alabama DMV
- Location: Cities with higher population densities charge steeper auto insurance premiums because the chances of accidents are higher than in rural areas.
- A poor credit rating: In Alabama, a driver with a poor credit score is likely to pay higher automobile insurance premiums than a driver with an excellent credit score.
- Financial responsibility: You can demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.
Full coverage car insurance in Alabama includes optional collision and comprehensive insurance.
- Collision insurance covers repair or replacement costs if you are in an accident, drive into an object, or flip your car over.
- Comprehensive insurance covers repair or replacement costs if your car is damaged by falling objects, natural disasters, floods, fires, theft, vandalism, or animals.
If you do not have comprehensive car insurance coverage, it would benefit you to have savings that will cover damage to your vehicle in the event of the following:
- Theft or theft of parts.
- Non-crash damage (natural disasters, fire, flooding).
- Car damage from hitting an animal.
- A broken windshield.
The cost of repairing your car, whether it has been damaged in an accident or by natural causes, can run into the thousands. You may even find that you are unable to drive because you cannot afford to pay for the costs to repair the damage to you automobile.
You can qualify for good driver rates by practicing safe driving and having a motor vehicle record that is free of accidents and claims.
Companies may offer one or both of the following good driver discounts:
- A discount for avoiding violations for a certain number of years.
- Discount for avoiding accident claims for a certain number of years.
If you are a new driver and you do not have enough driving experience to qualify for a good driver discount, you may wish to consider enrolling in a defensive driving course in order to increase and improve your driving.
Some automobile insurance companies will offer an additional discount if you have completed an accredited defensive driving course.
Car insurance companies use the term ‘high risk’ to describe drivers who are more likely to make a claim against their auto insurance policy.
Some of the offenses that may lead to being considered a high risk driver include:
- Receiving a DUI conviction (driving under the influence of alcohol).
- Irresponsible driving.
- Speeding tickets.
- Driving without meeting the minimum liability coverage requirements.
- A poor credit record.
- Unpaid insurance policy premiums.
If you are a high risk driver, Alabama car insurance companies are likely to increase the price of car insurance in Alabama.
Since young drivers have less experience behind the wheel, insurers tend to charge them higher rates compared to more mature drivers.
Teens tend to get into accidents more often than adult drivers, so they’re more likely to benefit from insuring their own vehicles against damage.
A minimum coverage policy, though it is much cheaper, could cost more if a teen gets into a serious accident and has to pay for repairs completely out-of-pocket.
Good student and driver safety course discounts can help young drivers reduce their rates, as can staying on a parent’s policy for as long as possible.
On average, most drivers will see their rates decline as they get older, with a significant decrease once they turn 25 years old.
Out-of-state insurance is illegal in almost all U.S. states and is considered to be insurance fraud.
This means that your car insurance must be registered in the state in which you live. Some of the penalties for committing insurance fraud include:
- Up to five years in prison.
- A $50,000 fine.
If you plan to move from Alabama, you will need to find a new car insurance company in the state you move to.
You will usually have a 90-day grace period to cancel your car insurance and get car insurance in your new state.
Tips for Finding Cheap Car Insurance
Compare cheap car insurance quotes from different insurance companies
It’s always a good idea to shop around for cheap car insurance quotes before making a decision about car insurance in Alabama.
The only way to be completely certain that you’re getting the lowest car insurance price for your car insurance is to compare auto insurance quotes from multiple insurers.
Look For Car Insurance Discounts
Ask your insurance provider if you qualify for any discounts because these can reduce your monthly premiums.
Many auto insurance providers offer discounts for:
- Cars equipped with airbags, antilock brakes, and other safety features.
- Student drivers.
- Teens and adults who complete safe driver courses.
- Enrolling in autopay or going paperless with your billing.
- Paying your premium in full up front.
What happens if my car is not properly insured in Alabama?
The Alabama Mandatory Liability Insurance Law states that a driver without the proper car insurance can be charged with a crime and can be fined $200 for the first offense, $300 for the second, and $400 for each thereafter.
Your driver’s license can also be suspended for 90 days if the fine isn’t paid within 15 days of receiving notice and won’t be reinstated until all fines are paid.
In Alabama, is it necessary to have proof of auto insurance when driving?
Alabama drivers must carry their insurance cards at all times. It’s recommended to leave it in your car.
Insurance cards must have this information:
- Car’s make, model, year, and vehicle ID number.
- Name of the insured.
- Insurance company name.
- Policy number with its validity date.
Alabama drivers must show evidence of insurance on at least three occasions:
- When traffic police ask for your license at a traffic stop.
- State registration.
- When involved in an accident and you need to share your information with the other party.
What are the cheapest car insurance companies in Alabama?
The amount you pay for a car insurance policy in Alabama depends on several criteria, including your age, credit score, and gender, along with your claims and driving history.
What is the best car insurance company in Alabama?
Determining the best car insurance company in Alabama comes down to individual preferences and needs.
When choosing the best auto insurance, consider what is most important to you, such as price, coverage offerings, available discounts, and customer satisfaction.
