Affordable Alabama Car Insurance Policies

It sticks to middle ground in many ways, as it is the 30th in size, 24th in population and 27th in density of population. Alabama auto insurance rates are close to national average as well. 3.5 million licensed drivers should have no problem finding affordable policies. There are two concerns and they are large number of uninsured drivers (22%) which is probably the result of relatively lower household incomes. It is one of the poorest states in terms of earnings that may force people to prioritize spending.

Unfortunately, the Yellowhammer State has one of the highest vehicular accident deaths in the country. According to CDC, accident related deaths are twice more than the national average and that is probably because of the more rural nature of the region. There are a lot more accidents in large cities or more densely populated places but they don’t result in deaths for several reasons. First of all, injured people get much faster medical attention and taken to hospital quickly in a town setting. It takes much longer to get to a crash scene in a rural area and fully equipped hospitals are far and fewer. The second reason for high number of deaths is the speed of collisions. People travel faster in country roads and therefore collisions are more impactful and therefore fatal in comparison to city roads where speed limits are much lower.

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, just like the rest of the United States of America. Actually, this is a basic requirement in most developed countries.

You must have at least a basic provision to pay for injuries and damages you cause in a traffic accident. This provision comes in the form of liability coverage. Many people may get policies because it is a legal requirement. However, buying vehicle insurance is a condition of being a decent human being and caring driver. Most people know that it helps them in many ways other than complying with the laws?

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 have the following components.

Alabama Auto Insurance

  • $25,000 for bodily injury or death per person.
  • $50,000 total for bodily injury or death per accident.
  • $25,000 for property damage.

Penalties for driving with coverage are as follows;

  • A fine of $500 upon first violation and $1,000 upon second or subsequent violation.
  • 6-month license suspension.
  • Suspension of car registration.
  • For a second or subsequent violation, the registration will be suspended for a mandatory 4 months.

Following fees have to be paid to reinstate a suspended vehicle registration after violation of automobile insurance rules.

  • $200 for a first offense.
  • $400 for a second and subsequent offenses.

SR22 Requirements in AL

Drivers may be required SR22 certificate to get back their suspended licenses. SR22 is filed with the DMV and it is a proof to show that you carry at least the state minimum liability limits.

You can find further information on rules and most things about owning a vehicle here.

Unfortunately, auto owners aren’t keen to buy even the basic third party policy in Alabama and that is a serious problem. So, it is advisable to make sure that you have Uninsured Motorists Coverage. It is scary to know that nearly 1/4 of drivers don’t have any type of provision and they are still happy to get behind the steering wheel. It is a wonder how those people propose to pay for damages and injuries they may cause to third parties.

On the plus side, living costs are reasonable and premiums appear to be not too expensive. This should puzzle an observant person who would ask why then so many people choose not to comply with the laws. Shouldn’t low rates and living costs make it easier for people to buy policies? Perhaps it is more to do with education than affordability, as people spend twice more in many regions and still choose to have it.

How Much Are Average Premiums in Alabama?

High number of motorists with no coverage and traffic related deaths are the two main factors that can affect car insurance costs negatively in the Cotton State. On the other hand, relatively rural living and low population density should work to reduce number of accidents and claims, and cost as a result. You would think so but statistics show that it has the opposite effect because open roads encourage people to step on the gas.

Average premium expenditure is $673 and that is $168 less than the country. This figure shows how much is spent on a typical vehicle but doesn’t specify what is bought. On the other hand, average full cover quotes is $1,337 and only $12 higher than the US. This is probably because many owners choose to buy a variation of liability only vehicle insurance that keeps the expenditure away from average full coverage cost.

The Cheapest Car Insurance Carriers in Alabama

You really need to choose it well here. Otherwise, you can end up paying 5 times more to an expensive company. Premiums are quite similar to each other in the cities. 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. Some people have extremely high or pretty low rates but the median number even things out.

  1. Travelers, $799
  2. Cincinnati Ins., $820
  3. GEICO, $1,040

The above most economical auto insurers are likely to help you out in your search for cheap premiums. However, they are bound to change at some stage and replaced by other firms. That is why you should periodically get quotes and compare.

If this is all getting confusing you can ask a broker to explain more about the requirements and possible penalties as well as recommending companies and policy types. You can most certainly arrange coverage on your own as well if you choose to do so. More and more people are choosing this route thanks to vast amount of information available on the Internet. Also, you can get a few quotes online until you find the most affordable deal for your circumstances and needs.

Share on Pinterest