Alabama Car Insurance

Whether you’re heading to Birmingham to see the city sites, Gulf Shores for a day of beach fun, or back to Auburn for school, there are many places to go and things to do in the Heart of Dixie. However, knowing the basics of Alabama auto insurance is crucial before getting behind the wheel for some fun adventures.

Let’s check out what you need to know about the insurance laws in Alabama, how to get a policy from one of the top insurers in the state, how to get the most bang for your buck with your policy, and other essential details about auto insurance in the Heart of Dixie. 

Whether you’re interested in getting the best car insurance rates in Alabama, a policy from one of the state’s top insurers, or need a refresher on the insurance laws in the state, doing your research is the best way to ensure your safety on the roads. To find a policy that best suits your needs, you’ll first have to narrow down what you value most in a policy.

Typically, car insurance policies differ on two fronts: cost and coverage. Those who value cost over coverage will likely opt for a liability-only policy from an insurer that offers low base rates. However, those who value coverage over cost may opt for a full coverage policy from an insurer that offers a wide range of optional coverage types. Those who value cost and coverage equally may opt for a full coverage policy from an insurer that offers low base rates and plenty of discounts. 

There are plenty of ways to stretch your dollar in the Heart of Dixie to get excellent coverage while keeping your bank account nice and cushy. Let’s check out how you can save on your policy in the Yellowhammer State.

On average, auto insurance in Alabama costs about $1,670 annually for a full coverage policy, which is on par with the national average. It’s important to note that this average is just a ballpark, and premiums differ from driver to driver.

Insurers use several factors to determine a policyholder’s rates, from state statistics to driving factors and non-driving factors. From policyholder to policyholder, insurers may use a person’s driving record, insurance history, age, gender, ZIP code, and several other factors when determining their premium.

Insurers use factors subjective to each driver to determine if a driver poses a higher-than-average risk of filing a claim. If a driver is more likely to get into an accident and file a claim, insurers typically translate this risk into higher premiums.

For example, a driver who lives in a densely populated city may pay higher-than-average premiums than a driver who lives in a rural area, even if they have a clean driving record because they’re more at risk of getting into an accident in a city where there are more drivers on the roads.

The best Alabama car insurance is usually subjective to the policyholder’s needs. Still, objectively, the best policy will be a full coverage policy from an insurer that offers plenty of optional coverages, low base rates, and several stackable discounts. A full coverage policy in the Heart of Dixie will typically include liability coverage, medical payments coverage (MedPay), uninsured motorist coverage, collision coverage, and comprehensive coverage. 

Generally, the best policy for one driver may not be the best policy for every driver. It’s important to tailor your policy to best suit your needs, but a full coverage policy will offer the best protection in any accident scenario that may come your way. Being comfortable with your policy’s coverage limits, deductibles, and premiums will make that policy the best choice for you.

Many car insurance companies in Alabama offer excellent coverage at affordable rates. Namely, Nationwide, State Farm, and Travelers tend to offer the lowest base rates in the state for full coverage policies. These top insurers in the Heart of Dixie offer competitive rates of nearly 25% less than the average full coverage premium in the state, a range of optional coverages, and plenty of opportunities to stack discounts.

Many insurers offer discounts to help policyholders lower their premiums. These discounts, paired with lower-than-average base rates and excellent reputations for customer service, help the mentioned insurers stand out from the rest.

The cheapest car insurance in Alabama is a liability-only policy that meets the legal coverage requirements in the state but doesn’t exceed them. On average, the premiums for a liability-only policy will be about half the price of those associated with a full coverage policy. The average full coverage policy in the Heart of Dixie costs about $1,670 annually, meaning the average liability-only policy will probably have premiums in the average range of about $835 annually. 

While the most significant way to lower one’s premiums is to only carry the minimum amount of coverage required by law, that may not be the best way to ensure one’s safety on the road. In Alabama, drivers must 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. Any policy with more than 25/50/25 liability coverage is considered a full coverage policy.

Carrying only the legal minimum liability coverage limit may offer drivers little protection on the road. While it’s about 50% cheaper than a full coverage policy, a liability-only policy only provides protection for other drivers on the road if they’re involved in an accident caused by the policyholder. Even still, the victim of an accident with the policyholder will only be covered up to the policyholder’s liability limit, and any expenses that exceed this limit must come from the policyholder’s pocket. 

There are other ways to lower your premiums than sacrificing your coverage. Let’s take a look at how you may be able to get the cheapest policy in the state while maintaining excellent coverage. 

There are plenty of cheap auto insurance companies in Alabama that offer low base rates and plenty of opportunities for discounts. Namely, Nationwide, State Farm, and Travelers offer the cheapest base rates for full coverage policies, averaging about 25% cheaper than the state average of $1,670 annually. Once you select an insurer that offers base rates in your budget, you can investigate which insurer offers the best discounts for you.

One of the key facets of finding low-cost car insurance in Alabama is utilizing discounts. Many insurers offer a range of enrollment-based and criteria-based discounts policyholders can stack onto their premiums to maximize their savings. 

For example, many insurers offer criteria-based discounts for which policyholders are eligible based on specific characteristics. Some of the most common criteria-based discounts are a good student discount for young drivers who earn good grades in school, a bundling discount for those who bind home and auto insurance with the same insurer, and a multi-car discount for those who insure multiple cars on one policy.

Enrollment-based discounts require policyholders to get more involved with their savings. In recent years, insurers have begun to offer safe driving programs in which drivers may participate to earn a discount based on their performance in the class.

Similarly, some insurers now offer a usage-based program in which policyholders may permit their insurers to track their driving habits using a telematics device to receive a discount based on their good choices behind the wheel. Typically, these enrollment-based discounts offer the most significant savings, some of which may take nearly 20% off one’s premiums. 

Insurers that offer cheap full coverage car insurance in Alabama will likely offer similarly low base rates for liability-only policies. Some of the top insurers in the state are Nationwide, State Farm, and Travelers, with full coverage policies averaging about 25% less than the state average. Liability-only policies from these insurers may average at about $625 annually or somewhere in that ballpark.

While there are many reasons one may decide to bind a liability-only policy rather than a full coverage one, especially for those who require low-income car insurance in Alabama, those with a little wiggle room in their budget may consider investing in a full coverage policy. A full coverage policy costs more in premiums but often carries far less risk than a liability-only policy.

Those with a full coverage policy are protected in a broad range of accident scenarios and typically carry coverage that will directly cover the policyholder rather than the victim in an accident caused by the policyholder. While it’s always crucial to be able to pay one’s premiums, it’s often more cost-effective to pay higher premiums for a full coverage policy than it is to risk one’s safety for a few hundred bucks in savings each year.

In Alabama, insurance requirements state all drivers must maintain at least 25/50/25 liability coverage on their auto insurance policies. Those who lease or finance their vehicles may be legally required to carry collision and comprehensive coverages as a stipulation on their contract.

Alabama auto insurance regulations require all drivers to maintain an active policy. Those caught driving uninsured will face legal consequences such as fines, license and registration suspension, vehicle impoundment, or even jail time. While it can be tempting to forgo coverage in the name of savings, when faced with the penalties for driving uninsured, it’s often much cheaper to pay insurance premiums than cash in on the short-term savings of driving uninsured.

According to Alabama car insurance law, all drivers must have an active policy with at least 25/50/25 liability coverage. While any policy with the minimum limit of liability coverage is considered sufficient in the eyes of the law, a liability-only policy may not be enough in terms of safety.

While it’s important to maintain a legally adequate policy to avoid the penalty for driving without insurance in Alabama, such a policy doesn’t offer much in terms of coverage. Liability coverage only covers the victim’s expenses in an accident caused by the policyholder. So, if the policyholder is injured or totals their vehicle in an accident they cause, they won’t have any coverage to help them pay for their expenses. 

No, Alabama isn’t a no-fault state. Instead, according to Alabama accident laws, it’s a tort state. Tort states require at least one driver to be deemed at fault in the event of an accident and typically mandate all drivers to carry a minimum liability coverage limit since the at-fault party becomes responsible for the victim’s expenses. 

In tort states like Alabama, drivers deemed at fault in an accident are typically liable for the victim’s expenses, both medical bills and vehicle repairs. If the at-fault party lacks liability coverage or their limit doesn’t cover the full amount of the victim’s expenses, they must pay the victim’s expenses out of pocket.

Plus, those who opt for a liability-only policy lack any coverage that directly covers them, whether they’re the at-fault party or not. So, if a policyholder with a liability-only policy is at fault in an accident, not only will they be liable for their victim’s expenses past their policy limits, but they’ll also be responsible for their own. 

An Alabama SR-22 is a form filed by an insurer on behalf of a high-risk driver, verifying with the state that the driver has an active and adequate car insurance policy. SR-22 insurance isn’t actually a type of insurance, nor is it a type of coverage; it’s just a legal document.

Typically, drivers caught driving while intoxicated, without insurance coverage, or otherwise recklessly will require an SR-22. While the form itself doesn’t cost much to file, typically about $25, the existence of it on one’s record causes a significant increase in insurance premiums for several years.

Finding cheap SR-22 insurance in Alabama can be challenging, but all hope isn’t lost for those who need it. Many insurers offer plenty of discounts you can stack onto your policy to lower your premiums.

Drivers aren’t required by law to have coverage for an uninsured motorist in Alabama. However, it’s a great coverage to add to your policy to ensure your safety on the road. Uninsured motorist coverage protects the policyholder should they be a victim in an accident caused by an uninsured driver. While typically, drivers rely on the at-fault party’s liability coverage to help cover their expenses in the event of an accident, an uninsured driver won’t have any coverage to offer a victim.

If you’re looking for affordable Alabama car insurance, looking for your first policy, or simply curious about how the insurance marketplace has changed since the last time you bound a policy, the best way to see what’s out there is to get and compare quotes online. Getting and comparing quotes allows you to tailor a policy precisely to your needs so you’re always comfortable behind the wheel (and when you check your bank account).

Lucky for you, we’re quoting experts here at Clovered. We even have a free quoting tool you can use to access quotes designed uniquely for your needs in just minutes. If you prefer to speak to an agent about your quote, we have those too! You can contact one of our licensed agents at 833-255-4117 or [email protected].