Alabama residents pay an average $1,623 per a year for full-coverage car insurance, and $469 for minimum coverage. However, there are many ways to get a lower policy. There are many factors to consider when selecting a car insurance company. However, the most important consideration for many drivers is finding the lowest car insurance rates in Alabama.
A car insurance policy in Alabama makes sense financially, with more than four millions of drivers licensed to drive. Your car insurance policy may be able to pay for any damages or injuries you cause, saving you money and potentially financial ruin. Alabama offers affordable auto insurance that can protect your finances and your budget.
Alabama’s cheapest car insurance company
We first used Quadrant Information Services to obtain current rates for the largest market share carriers in Alabama. This allowed us to begin our search for the lowest auto insurance. We found that the following companies offer low average premiums for Alabama.
Geico
Geico’s low average premiums could be due to its generous discounts. You can save on your premiums for federal employees, military personnel, students, safe drivers, and other good students. Geico policies don’t allow for personalization. You can still consider some endorsements, but not as many than the companies we have on our list.
USAA
USAA does not provide insurance to military personnel and their immediate families. The average premiums for the company are lower than the state’s, but there are many discounts that can help you save more. These include savings on garaging your vehicle at a military base or purchasing a new vehicle. J.D. consistently rates USAA as a top-rated company in customer satisfaction. Power is not eligible for an official ranking due to its eligibility restrictions.
Travelers
If you’re looking for unique and standard discounts, Travelers might be the company for you. Savings can be made for owning an electric or hybrid car, continuous insurance, or being a safe driver. The company’s IntelliDrive program tracks your driving habits via a smartphone app and gives you a personal discount. Travelers offers optional coverages such as ridesharing and accident forgiveness.
Farmers
Although Farmers isn’t the most expensive company on our list its average premiums remain below Alabama’s. The number of optional covers may be the reason for the higher premium. While optional coverages may increase your premium, they can also expand your coverage. Farmers offers a variety of options, including towing and roadside assistance, ridesharing, guaranteed value coverage, and customized equipment and spare parts coverage.
Allstate
Allstate is a good option if you are looking to purchase your policy online. J.D. gave the company a score that was higher than average for its industry. The company received a higher than average score from J.D. in the 2021 U.S. Insurance Digital Experience Study shopping category. This means that customers generally love the company’s online shopping experience. You can also customize your coverage by adding endorsements such as sound system coverage or roadside assistance. You might also save money by using the Drivewise Telematics Program or any of the many discounts offered by the company.
Alabama drivers must have minimum coverage
Alabama’s car insurance law requires that all drivers have at least the minimum level of car insurance. You must have the minimum coverages and limits to drive legally in Alabama.
- $25,000 per person for bodily injury
- $50k bodily injury per accident
- $25,000 Property Damage to Others
These amounts are the legal minimum, but most insurance professionals recommend that you have higher liability limits. Higher limits may be more expensive, but you will have greater financial protection in the event of an accident. You will be responsible for any excess insurance paid if the damage and injuries you cause exceeds the coverage you have.
Alabama’s minimum coverage limits don’t include collision or comprehensive coverages. These coverages provide protection for damages to your vehicle. This coverage is sometimes called ” full cover“. If you have a loan, or lease, you may need full coverage.
Alabama: How to Get Cheap Car Insurance
Alabama’s average car insurance cost is comparable to the national average. However, there are some things you can do in order to get the best coverage. These are some tips to help find the best Alabama car insurance.
- Compare quotes from different providers to find the best auto insurance rates in Alabama. Although insurance companies may consider similar factors when creating a car-insurance quote they don’t weigh the importance in the same way. This is why a quote from one company may be different from another, even though the coverage may be the same.
- Compare discounts: After you’ve compared the offers and narrowed down which companies might suit your needs, you can compare the discounts that may be available to you. You may need to speak with a representative of the company about how much you can save by each discount.
- Your deductibles should be increased: Full coverage policies have two deductibles. One for collision and one for comprehensive. Your deductibles will determine how much you pay out of pocket to repair damage to your vehicle. Your premium can be reduced by increasing your deductibles. You should choose a amount that you can afford to pay in order to avoid financial stress when you have to file a claim.
You can also save money on your car insurance by reconsidering the vehicle you drive, enrolling in a Telematics program (if offered by your company), and driving safely to avoid paying surcharges.
Questions frequently asked
What is the best Alabama car insurance?
Alabama has many different car insurance companies. Every driver is different and has different needs and wants from their car insurance company. Knowing your specific circumstances and what you need from your company, such as a low price, mobile app, or additional coverages, can help you to find the best auto insurer.
What is the average cost for car insurance in the United States?
The average annual cost for full coverage in the United States of America is $1,674 annually. Alabama’s average premium for full coverage is $1,623, which is slightly less than the national average. Alabama’s minimum coverage is significantly cheaper than that of the national average. Alabama’s minimum coverage premium averages $469 per annum, while the national average stands at $565 per annum.
Is Alabama a no-fault state?
Alabama is not a state. No-fault insurance is personal injury protection (PIP), which covers medical bills and related expenses for you and your passengers, regardless of fault. Alabama does not offer PIP, however medical payment coverage can be purchased. This covers your injuries and those of your passengers, regardless of fault. However, it does not cover lost wages or household expenses as PIP does.
Is Alabama home to a large number of uninsured drivers
Yes, Alabama has a high percentage of uninsured motorists. The Insurance Information Institute’s most recent study shows that Alabama ranks seventh among the United States for drivers without insurance. 19.5% of the state’s driving population is currently uninsured.
