Cheap Car Insurance in Alabama

From Birmingham to Tuscaloosa, Montgomery to Gulf Shores, there are plenty of places and things to see in the Heart of Dixie, but these excursions can add up fast. Life can be expensive in the most unlikely places, but your car insurance doesn’t have to take a toll on your wallet.

When it comes to finding cheap car insurance, Alabama residents may need to do a bit of research, but the savings are waiting. Keep reading to learn how to save on your Alabama auto insurance policy without sacrificing excellent coverage. 

The cost of Alabama auto insurance will vary from driver to driver, as premiums are subjective based on the policyholder, insurer, and policy. The cheapest policy will take a bit of digging to find and may only be available to those who know what to look for.

When figuring out how to find the cheapest Alabama car insurance, you’ll first need to figure out what type of policy best fits your needs. Typically, this comes down to a compromise between two key factors: cost and coverage. If you value cost over coverage, the cheapest policy for you will likely be a minimum coverage policy from an insurer with low base rates.

If you value coverage over cost but still like the sound of savings, the cheapest policy for you would be a full coverage policy from an insurer with lower-than-average base rates and several discounts added to your premiums.

Auto insurance laws in the Heart of Dixie require all drivers to have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident, or 25/50/25 liability coverage. If you’re interested in a minimum coverage policy, this is the only coverage your policy will include. These types of policies cost, on average, about half the cost of the average full coverage policy in the state.

Alabama’s average full coverage policy costs about $1,670 annually, which is on par with the national average. This means the average minimum coverage policy in the state will cost about $835 annually or somewhere in that ballpark. It’s important to remember that premiums are subjective from driver to driver, so while one policyholder may be eligible for an average rate, that rate may not be available to other drivers for various reasons.

Insurers use several factors when determining a policyholder’s premiums. Typically, these factors can be categorized as driving or non-driving factors. For example, one’s driving record or insurance history are considered driving factors.

Some non-driving factors insurers may use to determine one’s premiums are age, gender, and ZIP code, among several other factors. Insurers use these factors to assess a policyholder’s risk of filing a claim. If a driver is considered high-risk, insurers translate this risk into higher premiums. 

While some of your unique characteristics may raise your premiums, like if you live in a densely populated ZIP code, all hope for cheap insurance in Alabama isn’t lost just yet. There are still several ways you can lower your premiums as long as you do your research.

The cheapest full coverage car insurance in Alabama will be a policy with an insurer that offers lower-than-average base rates and plenty of opportunities for discounts. Many of the state’s top insurers offer base rates well below the state’s average premium and provide policyholders ample opportunities to stack criteria-based and enrollment-based discounts. 

Some of the best auto insurance rates in Alabama are available to those who know how to use their insurer’s discounts wisely. Many insurers offer two categories of discounts: enrollment-based and criteria-based. An enrollment-based discount typically requires the policyholder to participate in a program, whereas a criteria-based discount will be awarded to policyholders who meet certain criteria. 

For example, many insurers offer good driving discounts to those who pass a course on safe driving habits. Other insurers may offer a usage-based program in which policyholders opt to use a telematics device to track their driving data for their insurer to analyze and award a discount based on their safe choices behind the wheel. Typically, these programs offer the most significant savings, sometimes up to 20% off one’s premiums. 

Many insurers offer criteria-based discounts, like those for policyholders that insure multiple cars on one policy, young drivers who earn good grades in school, or bundling discounts for those who bind home and auto insurance with the same insurer.

Whether you’re looking for low-income car insurance in Alabama or are simply after the best deal, the most significant way to lower your premiums is to bind a liability-only policy. The cheapest liability insurance in the Heart of Dixie will likely come from an insurer like Nationwide, Travelers, or Progressive, as these companies offer lower-than-average base rates and plenty of opportunities to add stackable discounts to premiums. 

Since the average full coverage premium in the state costs about $1,670 annually, and a liability-only policy offers about half the coverage, it typically comes in at about $835 annually or half the cost of a full coverage policy.  While a nearly 50% reduction in premiums sounds enticing, drivers must remember a liability-only policy doesn’t offer much protection. In the Heart of Dixie, a minimum coverage policy only offers 25/50/25 in liability coverage, which may not be enough coverage for some drivers to feel protected behind the wheel.

Say you’re driving back to Mobile after a long day on the beaches of Gulf Shores when one of your friends moves the beach umbrella, which then smacks you in the face, causing you to lose your grip on the wheel and collide with another driver. 

In this case, your liability coverage will only cover the other driver’s medical expenses and vehicle repairs up to your policy limit of 25/50/25 once you reach your deductible. Any expenses that exceed your liability limit will have to come out of your own pocket, including your own medical expenses or vehicle repairs, as liability coverage only covers the victim in an accident caused by the policyholder. 

While a liability-only policy may boast the best prices for cheap auto insurance in Alabama, sacrificing coverage in the name of savings may not always be the most financially-sound decision. Drivers are often better off investing in a full coverage policy with coverages like medical payments coverage (MedPay), uninsured or underinsured motorist coverage, collision coverage, and comprehensive coverage to ensure they’re protected in a broader range of accident scenarios. 

Cheap insurance in Alabama can be tough to find, but it’s out there if you know where to look. The best way to find the cheapest policy that meets your needs is to determine what you value in a policy: cost, coverage, or both equally. If you value cost over coverage, the cheapest car insurance for you will likely be a minimum coverage policy from an insurer that offers low base rates. If you value coverage over cost but are still interested in cashing in on some savings, the cheapest policy for you will likely be a full coverage policy from an insurer that offers lower-than-average base rates and plenty of opportunities for stackable discounts.  

Low-cost auto insurance in Alabama may be tough to find for some drivers, especially those considered high-risk or who have an active or recent SR-22 on file, but there are great deals out there for many drivers. However, it’s crucial to always get a policy that makes sense for you, with coverage limits within a budget that won’t put you at risk of financial downfall if you exceed them.

The insurers with the most affordable car insurance in Alabama are Nationwide, Travelers, and State Farm, with full coverage policies averaging nearly 25% less than the state average of $1,670. Each of these insurers offers low base rates, an expansive range of optional coverages, and plenty of opportunities for stackable discounts. 

While there are many cheap insurance companies in Alabama, it’s essential to remember that the best insurers in the state won’t offer every driver the same low premiums. While one insurer may be great for one driver, they may not be the best option for others. It’s essential to first figure out what you value in a policy before selecting an insurer so you can tailor a policy to best suit your needs. 

First and foremost, the best place to find cheap auto insurance in Alabama is online. Shopping online allows potential policyholders to compare and contrast dozens of policies in minutes to ensure they get the most bang for their buck. Getting and comparing quotes is the best way to see what policies insurers offer, so you can ensure you’re getting the best policy for your needs.

Luckily, you’ve come to the right place to compare quotes. Here at Clovered, we have a free quoting tool you can use to find the best policy for you in minutes. If you prefer to chat with an agent about your quote, one of our licensed agents will be happy to help you at 833-255-4117 or [email protected].