Auto Insurance in Alabama
Alabama's auto insurance rates are on the low side — on average $1,245 per year, compared to the nationwide average of $1,669. That said, how much you’ll pay can vary a lot depending on your car, your coverage, and your address. Use our tool to find your best rates:
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Alabama is only the 30th largest state in the U.S., but it’s geographically diverse for its size. The middle of the state is the most populated, with metropolitan area such as Birmingham and Montgomery. There are also numerous cities and towns throughout the mountain and coastal areas. And every area highlights different considerations you should take when buying car insurance.
Alabama law does not require you to purchase comprehensive insurance, only collision. But drivers in the coastal area, for instance, have to take the higher risk of loss due to hurricane activity into account. This means many drivers would benefit from the additional protection comprehensive coverage provides.
Alabama Minimum Liability
Alabama has minimum liability insurance coverage amounts of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage. However, these figures fall below the 50/100/50 coverage minimums recommended by the insurance industry. Although the 25/50/25 minimum is all that’s required by Alabama law, you may want to consider increasing those amounts.
Claims for property damage averaged $3,231 in 2013, with claims for bodily injury averaging $15,443 in the same year. Although Alabama’s minimum coverage amounts are sufficient for scenarios like this, fifty percent of all claims are, in fact, higher than these amounts. You may end up having to pay out-of-pocket to fully cover the costs. It may be prudent to select a higher level of coverage,such as 100/300/100, for complete protection.
You should get quotes from multiple auto insurers so you can compare premiums and coverage and gain a more comprehensive concept of how much you should be paying. Since car insurance rates are often a matter of an individual insurers’ criteria, the amounts you’re quoted from one company to the next can vary significantly. In the long run this is time well spent to get the coverage you need at the price you want.
Cheapest Car Insurance in Alabama
- $1,381State Farm
These companies provide Alabama drivers the least-expensive insurance premiums. People who are on a budget may find what they’re looking for with these insurers, as they can offer many levels of coverage at a competitive price.
While a lower rate can make your car insurance premiums more affordable, this kind of coverage may lack some of the features of its more costly counterparts. For instance, you may have to give up speedy claims service or 24/7 real-person customer support to enjoy lower rates. However, if these factors are not as important to you as saving money, the above insurers may fit the bill.
Most Popular Companies by Marketshare
- State Farm
These insurance companies represent the most popular insurers in Alabama. Much of their acclaim comes from the fact that they are routinely able to provide drivers in Alabama with coverage that fits their unique needs.
These favored companies may not suit everyone, however. In some cases, these insurers are popular simply because they’re the ones drivers see advertised the most. In other cases, the company is popular, but may not necessarily the cheapest or the one with the right coverage for you. When you’re requesting an auto insurance rate quote from these companies, take the time to compare premium prices, coverage amounts, and any supplemental benefits.
Choosing the Best Car Insurance in Alabama
The criteria to be a top insurance company in Alabama includes many factors, such as what kind of coverage is available, premium amounts, customer services ratings, the speed of claims process, and the company’s overall history.
The durability and integrity of an insurer is one of the most important factors for it to be considered one of the best. You don’t want to trust something as important as car insurance to an unreliable company. The auto insurance companies listed here have excellent reputations and steady records of providing solid coverage. They should be among the first companies you look at when you’re shopping for car insurance.
Where is car insurance most affordable?
Where you live has a lot of bearing on how much you’ll pay for car insurance.
For example, people who live in Birmingham have premiums on the higher end of the state average, while residents in Dothan pay a bit less. However, the overall average for car insurance premiums in Alabama is still lower than the median in the U.S.
These figures are only estimations of the premium you could pay for car insurance, and the numbers can change significantly if you live in one of the smaller towns that surround these larger population centers. You’ll need multiple quotes from a number of insurers to get a more exact idea of how much you’ll actually pay.
Birmingham Auto Insurance
Birmingham is the most populated city in Alabama. It has 212,038 residents, and they generally pay the highest rates in the state for car insurance. Things like higher risk of crime and theft in a city environment make up a large part of this higher-than-average price. Having more people on the road than in rural areas is another. The rate you’ll get from an official quote will also depend on personal information, like your age and driving record.
Montgomery Auto Insurance
Montgomery is the second-largest city in the state with 205,293 residents. The rates here are lower than Birmingham’s, coming in much closer to the average for the state. Although Montgomery Transit, also known as “the M,” provides public buses, most residents choose to use a personal vehicle to get around. This means you’ll definitely need to have adequate car insurance.
Mobile Auto Insurance
Alabama’s third-largest city, Mobile, is home to 194,822 people. The city-wide car insurance premium is just above the median for the state, but still well below the average in the U.S. Mobile is at a slightly higher risk for tornadoes and hurricanes than other places in the state, making these rates just a bit higher.
Huntsville Auto Insurance
With a population of over 183,739, this Alabama city enjoys rates that a less expensive than the state average. Of course, you may end up paying a bit more, or even less, than this estimate, depending on your driving history, the kind of vehicle you own and how much you drive. You can’t get around Huntsville very well without a car, so you need to make sure you have the right insurance coverage.
Tuscaloosa Auto Insurance
Tuscaloosa is the fifth most-populated city in Alabama, with 95,334 residents. As in Huntsville, Tuscaloosa drivers also enjoy lower car insurance premiums than both the state and national averages. However, you must take factors such as your age, driving habits and even whether you park your car in a garage into account when you’re shopping around for quotes.
Hoover Auto Insurance
Hoover is home to 84,126 people. Their average premium amount is pretty close to the state average. Hoover does experience more tornadoes than other cities in Alabama, so you should have a generous amount of coverage to ensure that you’re prepared for this possibility.
Dothan Auto Insurance
Dothan is the last major city in Alabama. It has just over 68,000 residents with average insurance premiums below the state median. This is because beyond the occasional tornado, Dothan doesn’t experience too many natural disasters or other insurance-affecting issues, such as a high rate of car thefts, so premiums can stay below the state median. However, you must still make sure your car insurance covers exactly what you need.
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