The average Alabama car insurance costs are below the national average for liability only and full coverage policies. However, state minimum coverage is relatively cheaper and 3.8 million licensed drivers need to pay over 4 times if they want to upgrade a basic liability only policy to full coverage. While the premium difference might seem substantial, it is not unusual when compared to rates in other states. A large number of uninsured drivers at 19.5% raises concerns here as it is 55% higher than the US average and one of the highest in the country.
Alabama Automobile Insurance Laws
Every car registered must carry at least liability coverage and drivers must be included before they are allowed to operate a vehicle. Alabama laws require that you must have coverage in place for possible damages and injuries you may cause while operating a vehicle. This mandatory policy must include the following components:
- $25,000 for bodily injury per person.
- $50,000 total for bodily injury per accident.
- $25,000 for property damage.
Penalties for driving without insurance are as follows:
An owner or driver convicted of mandatory liability insurance violations may face fines and penalties as outlined below:
- First offense: Up to $500 fine.
- Second or subsequent offenses: Up to $1,000 fine and/or a six-month driver’s license suspension.
Operating a vehicle without liability insurance can lead to vehicle registration suspension and the following consequences:
- First offense: $200 reinstatement fee.
- Second or subsequent offenses: $400 reinstatement fee.
Proof of current insurance is necessary for reinstating vehicle registration.
Drivers may be required to obtain an SR22 certificate to get their suspended licenses back. SR22 is a proof to show that you carry at least the state minimum liability limits. Motorists can check the rules and most things about owning a vehicle here.
Average Vehicle Insurance Premiums in Alabama
High numbers of uninsured motorists and traffic related deaths are the two main factors that can affect car insurance costs negatively in the Yellowhammer State. Unfortunately, AL has one of the highest rates of vehicular accident deaths in the country, likely due to its rural characteristics. Rural areas suffer higher fatalities due to delayed response times and limited medical facilities. Higher collision speeds on rural roads also contribute to the increased fatality rate compared to urban roads.
The average premium for a minimum liability vehicle insurance is $441 and that is $181 less than the national average. On the other hand, the average cost of a full coverage policy is $1,843 and it is $171 cheaper than the US median figure. The price difference between a minimum coverage and full coverage is pretty wide and this may encourage motorists to go for a basic policy.
The Cheapest Car Insurers in Alabama
Premiums are quite similar to each other in the cities of AL. Tuscaloosa, Montgomery, Mobile, Huntsville and Birmingham are all huddled up closely to the state average. This shouldn’t confuse you because figures are smoothed out. While certain individuals may encounter exceedingly high or exceptionally low rates, the median figure effectively evens out these disparities.
- State Farm
- Allstate
- Travelers
- Cincinnati Insurance
- Nationwide
The above most competitive auto insurers are likely to help you out in your search for affordable premiums. However, they are bound to change at some stage and be replaced by other firms. That is why you should periodically get multiple automobile insurance quotes and compare.
Alabama Automobile Insurance and Driving Facts
- Alabama is one of the states with the highest vehicle ownerships as there are more than one car per resident in the state. When you have more than one car in your household, you should check to see if you can save money by arranging a multi-car insurance policy.
- This state has one of the highest ratios of fatalities due to weather-related accidents and the rain is the main culprit in most of those accidents.
- In this state, vehicle insurers must offer a minimum Uninsured Motorist Bodily Injury coverage of $25,000 per person and $50,000 per accident. However, policyholders have the option to reject this coverage. This coverage pays if you are injured by a hit-and-run driver or a driver without auto insurance. Essentially, this coverage serves as a substitute for the insurance that the responsible driver should have obtained but failed to do so.
- On average, Alabamians drive 17,817 miles a year and it is one of the highest averages in the nation. If you travel much less than this average, you may benefit from usage or mileage based car insurance policies.
- According to Experian, Alabamians have one of the lowest average credit scores in the country with 691. Credit score is very influential in vehicle insurance premium calculations and according to Consumer Federation of America, bad credit can potentially double your premiums.
- As per information from The Hartford, several prominent automobile manufacturers such as Mercedes-Benz, Honda, Hyundai, and Toyota have established manufacturing plants in Alabama. Collectively, these leading automotive companies contribute to the production of over a million cars and light trucks annually. This achievement positions Alabama as one of the top five vehicle manufacturing states in the United States. Today, vehicles are the number one export from the Heart of Dixie.
- Given the limited availability of public transportation across much of Alabama, personal vehicle ownership is imperative for efficient mobility. This necessity is reflected in the fact that nearly 95 percent of the state’s residents rely on cars for their daily commutes, even in the larger urban centers.
There are several ways of exploring your options when it comes to shopping for auto insurance. These range from utilizing comparison websites to directly approaching vehicle insurers or enlisting the services of an independent agent. However, it’s ill-advised to simply procure a single quote and make a decision based on it alone. Opting for such a course of action disregards the various opportunities at your disposal. By doing so, you’re essentially banking on chance that the single company you’ve approached will present you with a reasonable car insurance premium.