Alabama’s highways and byways lead to many famous tourist attractions. These include Huntsville’s U.S. Space and Rocket Center, as well as the beautiful Gulf Shores waters. To be legally road legal, you’ll need to have car insurance before you can drive to these places. According to Bankrate’s 2021 study on annual premiums, the average cost for car insurance is $1,623 per annum.
According to the U.S. Department of Transportation in 2019, Alabama had almost four millions of licensed drivers. According to the Alabama Department of Transportation, a traffic accident occurs approximately every three minutes in 2019. Additionally, collision-related deaths occur approximately every nine and a quarter hours in Alabama. Therefore, it is a good idea to get automobile insurance. Bankrate reviewed the policies of some of the most well-known carriers to narrow down the best automobile insurance companies available in Alabama.
Alabama’s best car insurance companies
We used Quadrant Information Services to determine which Alabama insurers offer the best auto insurance policies. We compared the market share of the top five Alabama companies with their customer satisfaction scores, average premiums for 2021, and the recent customer satisfaction scores. Many top-rated companies offer standout coverages as well as affordable premiums. The 2021 J.D. rated each company. The 2021 J.D. Power Auto Insurance Study surveys how consumers rate providers on factors such as billing process, claims processing, and customer interaction.
Allstate
Allstate is the United States’ largest insurance company. Allstate is one of the largest insurance companies in the United States. Alabama’s cheapest car insurance rates average $1,313 per annum. However, many drivers choose Allstate because of its additional offerings like claims satisfaction guarantee and coverage options. Allstate agents in Alabama can help you get quotes and submit claims.
Alfa
Although Alfa has the highest average premium, it is a local provider that can provide specialized insurance advice to Alabama drivers looking for meaningful coverage. Alfa is based in Montgomery, Alabama and has been providing insurance since 1946. It also has hundreds of agents who can help you understand your policy options. You could also add loss of use coverage to pay for rental costs after an accident, up to $100 per day. A wide range of discounts are available, which can be used to cover almost every type of driver.
Geico
Geico has a reputation for offering affordable car insurance rates, including in Alabama. Geico offers the lowest average rate of car insurance in Alabama. They also offer a list of discounts that can help you save even further on your car insurance. You can get discounts up to 22% for having no accidents and as much as 15% on your car insurance for a new car.
Progressive
Progressive has a wide range of coverages that might justify the slightly higher average rate of $1573 per year for full coverage. For drivers who need 24/7 customer service, useful coverage options such as custom parts or equipment, and multiple discounts, Progressive might be the right choice. Innovative premium-saving tools include the Name Your Price option, and Progressive’s Snapshot safe driving program.
State Farm
State Farm, the largest provider of car insurance in the United States, is a popular choice for Alabama drivers looking for car insurance. State Farm offers affordable auto insurance in Alabama thanks to its high financial strength rating of A++ (Superior), from AM Best, and the availability of a variety policy types. State Farm provides affordable full coverage auto insurance in Alabama at an average cost of $1,470 annually. Although it is not the most affordable on the list, Alabama drivers are likely to be eligible for at least some of the discounts offered by State Farm, such as Drive Safe, Save and Steer Clear. This will help bring down the overall cost.
Alabama’s average car insurance costs
Alabama car owners pay an average annual car insurer premium $1,623 to get full coverage. Alabamans pay slightly more than other drivers when compared to the national average of $1674 for full coverage. Alabama’s premiums are somewhere in the middle of those of its Southeast neighbors. Tennessee drivers pay $1,338 annually on average for car insurance. On average, Georgia drivers pay $1,982 annually. This could be partly due to Georgia’s higher state and licensed driver populations than either Alabama or Tennessee.
Alabama’s minimum insurance requirements
All states require that drivers have minimum coverage. Alabama’s requirement for auto owners is a minimum amount for liability car insurance. Alabama requires you to purchase:
- Minimum $25,000 bodily injury liability per individual
- Minimum $50,000 bodily injury liability per incident
- Minimum $25,000 in property damage liability per accident
Alabama auto insurance providers must also offer coverage for uninsured motorists, but policyholders can decline it in writing.
Although the minimum amount of insurance for car is the most affordable, experts recommend that you purchase additional coverage to cover your out-of-pocket costs in the event of an accident. Liability-only insurance doesn’t cover vehicle damage. It is a good idea to add comprehensive and collision coverages to your policy to provide greater financial protection for your vehicle and yourself. These coverages are required to protect a loan if your vehicle is leased, financed, or both.
How to get the best car coverage
Car insurance is unique for each person and is based upon several rate elements. These factors will help you choose the right car insurance.
- Assess your needs: Every Alabama driver has unique requirements when looking for coverage. It is important to evaluate how you stack up against other potential insurers. If you have a driving record with a violation, getting the best rate might be a priority. A clean record can allow you to put more emphasis on customer satisfaction and meaningful coverages like original manufacturer parts. To help you make the best decision, regardless of your specific needs, it might be helpful to talk to a licensed agent about your options for coverage.
- Take into account state factors. Each state has its own insurance rules and requirements. Alabama, for example, is considered to be at-fault. This means that the driver responsible for the accident must pay the collision costs of any other driver. This is something you should keep in mind when deciding on coverage limits. You should also consider the common causes of vehicle damage as well as the number of uninsured motorists.
Alabama offers car insurance discounts
Alabama drivers have many options for lowering their car insurance premiums. This includes even the top companies in the state. Discounts for:
- Anti-theft devices. Many insurers offer discounts for taking preventative measures to protect your vehicle.
- Loyalty: Many insurers offer discounts to loyal customers who have multiple vehicles insured or bundle policies with the same company.
- Driver occupations and organizations: Certain occupations, such as federal employees or teachers may be eligible for special discounts when they insure a car with certain companies.
- Telematics programs: Insurers offer discounts based upon your driving habits. These are usually done using telematics devices in your car. Drivers could be eligible for savings such as reduced mileage, smoother braking, and safe driving hours.
Questions frequently asked
What is the best car insurance for Alabama?
Your driving record, vehicle make, and other factors such as your gender, credit history, and age will determine the lowest car insurance for Alabama. While quote-comparisons can be a great way to find affordable coverage, it is possible that an insurer with a higher average premium offers discounts that you are eligible for. It is a good idea to compare policies based on similar levels of coverage in order to find the best policy that suits your needs.
What information do you need to obtain Alabama car insurance?
Alabama insurance agents will need to know your details, including your type of car, age, location, annual mileage, and information about your driving history.
Alabama requires car owners to have no-fault coverage.
Alabama requires minimum liability insurance but does not require that car owners purchase no-fault coverage.
Is it possible to save money by including my teenager on my insurance policy instead of purchasing separate coverage?
Alabama teens often pay high car insurance rates. You can often save thousands of dollars each year by adding your teenager to an existing automobile policy. You may also be eligible for multiple discounts, including those that apply to students who are distant or good students, and programs that protect your driving skills. This could help you save money over the course of several policy periods.