How to Find the Most Affordable Car Insurance in Alabama

Fran
Lucy Lazarony
June 30, 2020

Looking for affordable car insurance in Alabama? You won’t have to look very far. Car insurance rates in Alabama are lower than the national average. So drivers in Alabama pay a little bit less for their car insurance. But there are always ways to get those car insurance rates even lower. We’ll look at several ways to save money on car insurance a little bit later on. But first let’s take a closer look at car insurance rates in Alabama.

Low Insurance Rates

The average annual car insurance premium in Alabama is $1,358, which is slightly lower than the national average of $1,427.

And if you live in the more populated cities in Alabama you are going to be paying more for your auto insurance than those folks living and driving in less populated areas.

State Minimum Insurance Requirements

Liability coverage helps pay for the other person’s expenses if you are at fault in an accident. All states have minimum liability requirements for drivers in their state. In Alabama, the state minimum liability requirement is $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $25,000 property damage liability coverage per accident.

For this required minimum coverage in Alabama a driver can expect to pay $611 per year. A more complete policy, with collision and comprehensive coverages and deductibles of $1,000, would cost $1,219.

Collision insurance is coverage that helps to repair or replace your car if it’s damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events that are not covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hailstorm or a tornado.

If you are still financing your vehicle(s), many auto lenders require you to carry comprehensive and collision coverages. These coverages also require deductibles. A deductible is the amount you pay out of your own pocket when making a claim. Liability insurance does not come with a deductible so there is nothing for you to pay when it is time to make a claim with liability insurance.

Alabama Is an At-fault State

When it comes to insurance, Alabama is an at-fault state. This means Alabama drivers are responsible for any damage they cause to another vehicle. Who is at fault in an accident is determined by an insurance adjuster.

Cheapest and Most Expensive to Insure

The cheapest vehicles to insure in Alabama are the Honda Fit, Acura RDX, Honda CR-V, Nissan Frontier and Honda Odyssey.

The most expensive vehicles to insure in Alabama are the Mercedes-Benz S-Class, Mercedes Benz E-Class CLS-Class, Mercedes-Benz GLE-Class M-Class, Nissan Titan and Toyota Sienna.

Cheapest and Most Expensive Cities for Insurance

The cheapest car insurance in a city in Alabama is in Enterprise where the average annual rate is $1,292. And the most expensive city for auto insurance is Birmingham where the average annual rate is $1,648. Birmingham is located in north central Alabama and Enterprise is located in the southeast portion of the state.

How to Save Money on Car Insurance

Looking for ways to save money on car insurance in Alabama? You’re in luck. There are a number of factors affecting car insurance rates. So there’s plenty you can do to qualify for lower rates. Let’s take a look at these money-saving factors.

Age. Just simply being over the age of 25 will save you money on car insurance. Drivers under the age of 25 pay more for car insurance because they are more likely to be involved in accidents.

Gender. Being a woman saves you money on car insurance. Men pay more than women on car insurance because men are more likely to make claims on their insurance policies. Higher claims means higher auto premiums for men.

Marital status. Being married saves you money on your car insurance premium. There is a correlation between being married and exhibiting safe driving behavior. So married couples get a break on their auto insurance policies.

Where you live. Your neighborhood plays a role in your car insurance policy. If you live in a neighborhood with high accident claims and a high number of auto thefts, you’ll pay more on your auto insurance. If you live in a low-crime neighborhood with few accident claims, you’ll pay less on your auto insurance.

Owning your home. Owning your home gives you a break on your car insurance. Statistics show people who own their homes drive more safely. So own your home and save on auto insurance.

Your credit score. Your credit rating affects your insurance premium. In Alabama, insurance companies use credit-based insurance scores to assign customers to risk pools and to determine the premium rate. So the better your credit the lower your insurance rate.

Your driving record. Having a clean driving record will save you money on your car insurance. So having no speeding tickets, no moving violations, no at-fault accidents and no DUIs and you will pay lower car insurance premiums in Alabama. Be at-fault in an accident and your auto insurance rate will rise 31 percent. Get a speeding ticket and your auto insurance rates in Alabama will rise 16 percent. Get a DUI and your auto insurance rates will go up 39 percent.

Being a low-mileage driver. If you are a heavy commuter, you will pay more for car insurance. But if you keep your mileage low, you will get a break on your auto insurance.

Check for discounts. Students, veterans and good drivers all may be eligible for discounts on auto insurance. So ask your car insurance company if you qualify.

Maintain your insurance coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So hang on to your auto insurance coverage and save money.

Choose a high deductible. Both comprehensive and collision coverages come with deductibles. Choosing a high deductible will save you money on your auto insurance premium. Just make sure to put the money for the deductible into a checking or saving account so it will be there should you need it.

Bundle your insurance policies. Bundle your auto insurance policy with other insurance policies such as homeowners or renters insurance and save money.

Insure more than one car. Insure more than one car with the same insurance company. Doing so will save you money on your premium.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or a six-month amount. Your premium is lower when you pay just once or twice a year.

Anti-theft and safety features. Having certain anti-theft or safety features on your car will lower your car insurance. So be sure to check with your insurance company about safety and anti-theft features.

Shop around. The best way to save money on car insurance is to shop around. You’ll want to check rates from several insurance companies. SmartFinancial makes it easy to do.

Just enter the type of insurance you are looking for and a zip code to get started. Answer a few quick questions and you’ll be comparing auto insurance rates in Alabama in no time. SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and the price that you want. So now that you know all the ways you can save money on car insurance in Alabama you can go ahead and do it. Saving money is easy when you know what to do. So take those money-saving steps and enjoy cheaper car insurance rates in Alabama.

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