Looking for Cheap Car Insurance in Alabama?
Good news for Alabama drivers: you're below the national average for car insurance costs! Whether you're comparing plans or getting a quote for Alabama car insurance, Carlay wants to be your first stop in finding cheap car insurance rates.
Alabama residents could find that the low cost of automobile insurance premiums offered by the state is not reflected in their city's rates. Drivers who live in cities like Huntsville or Birmingham could find that their car insurance rates are higher than those living in rural areas due to higher auto-theft rates and riskier economic situations within these cities.
While the location is an important consideration when you're getting car insurance quotes, it's not the only factor. Your age and driving record will play a role in how much you pay, so it pays to shop around for the best rates.
And Carlay makes getting insurance covered easier than ever. You can sign-up in minutes and get the best rates from over 50 top providers, who will compete for your business. And then, Carlay takes care of all the paperwork, including helping to cancel your old plan and making sure you get every penny you're owed back!
Want proof? Check out these quotes from Carlay customers in Alabama:
How Much Does Car Insurance Cost in Alabama?
The average annual cost of liability-only auto insurance in Alabama is $1,763. If you purchase full coverage auto insurance in Alabama, you can expect to pay an average of $2,154 a year for your premiums.
By comparison, the national average for basic liability car insurance is $1,783 per year, and the average price for full coverage car insurance is $2,485 per year.
What contributes to the insurance rates in Alabama?
The following factors may influence the cost of car insurance in Alabama.
- Rural areas
Did you know that Alabama is home to some of the most rural roads in the United States? Compared to their metropolitan counterparts, rural roads offer drivers a lesser volume of activity. There are fewer drivers to contend with and reduced vehicle speeds make for safer trips.
- Extreme weather
Extreme weather doesn't just blow through the state once a year. It's a way of life in Alabama, which means you need Alabama car insurance that's been designed to help you weather the storm. In fact, Alabama is ranked among the top 5 states with the most tornadoes on average per year.
- High crime rates
Car insurance rates in Alabama are higher than they are in many other states, because of the state's high crime rates.
See how Alabama's insurance savings compare to the national average:
|All Coverage Before Carlay||All Coverage After Carlay||Minimum Coverage Before Carlay||Minimum Coverage After Carlay||Full Coverage Before Carlay||Full Coverage After Carlay|
|AL||National Average||National Average|
|All Coverage Before Carlay||$2,266||$2,490||$2,490|
|All Coverage After Carlay||$1,458||$1,672||$1,672|
|Minimum Coverage Before Carlay||$1,923||$2,360||$2,360|
|Minimum Coverage After Carlay||$1,085||$1,391||$1,391|
|Full Coverage Before Carlay||$5,039||$2,762||$2,762|
|Full Coverage After Carlay||$1,795||$1,964||$1,964|
Top auto insurance providers in Alabama
There are a number of top insurance providers who serve the residents of Alabama. Travelers, MetLife, and Progressive are three famous insurance companies that operate in this state. The reason they are so popular is that they offer some of the best rates in the industry.
Insurance companies all have their own way of calculating your premium, so you can wind up with different quotes from each company – even if you're getting the same coverage. Carriers in Alabama base your rates on the following factors: your age, driving record, location, and type of vehicle.
Different cars will impact the cost of your insurance in different ways. For example, a BMW 328 XI Sulev is going to cost more to insure than a Toyota Camry. This is because more expensive vehicles are always going to cost more to replace.
Carlay customers in Alabama can save a lot of money on their car insurance. Just check out these discounts:
What Car Insurance Do You Need in Alabama?
Alabama, like most states, requires that you have certain types of insurance if you want to drive. In this state, you need at least the following:
|Bodily injury liability||$25,000 per person / $50,000 per accident||Covers the costs associated with injuries you cause to others|
|Property damage liability||$25,000 per accident||Covers the costs associated with the damage you cause to other people's vehicles or property|
|Underinsured/uninsured motorist||$25,000||Protects you and your vehicle if you are in an accident with an uninsured motorist|
If you let your auto insurance coverage lapse, you can risk losing your driving privileges, paying a hefty fine, and even having your car impounded.
- A fine of up to $500 for your first offense
- Vehicle registration suspension for 45 days
- Possible jail time up to 3 months
- Vehicle impoundment
We recommend that Alabamians purchase more than the minimum amount of liability insurance. While liability coverage protects others when you cause an accident, it does not protect you or your vehicle. Consider coverages like:
|Collision insurance||Covers damages that are the result of a collision with a vehicle or stationary object|
|Comprehensive insurance||Covers damages that aren't the result of a collision, such as vandalism, theft, or a natural disaster|
|Roadside assistance||Covers the costs associated with a breakdown|
Carlay Insurance can help you find coverage that meets your needs and fits within your budget. Not only do they help you find the best rate, but if your current policy comes up for renewal, Carlay will send you a new quote to help you save more money. On average, Carlay customers save $879 per year!
Given that you now know what insurance you'll need in Alabama, let's talk about what might impact the costs.
How is Your Cost of Car Insurance Determined in Alabama?
When you're shopping online for car insurance, the price you pay depends on your age, driving record, zip code, and the type of vehicle driven.
- Cost to insure your car in Alabama by age
Young drivers tend to pay more for auto insurance, because they are more likely to be involved in accidents.
What young drivers in Alabama need to know
- Half of all preventable deaths of Alabama residents under age 18 are caused by fatal car accidents, which is higher than the national average.
- If you are young and just got your driver's license, don't forget to take certain defensive driving courses to get lower car insurance premiums.
- Young drivers who maintain good grades may also qualify for a discount.
As a teenager, you might not be able to get the lowest car insurance rates. But if you shop around and keep your driving record clean, you can still find affordable car insurance.
Carlay provides the best deals on auto insurance. Here are the average rates for drivers by age:
|Age Group||Average Cost||Annual Savings with Carlay|
- Cost to insure your car in Alabama with a poor driving record
Insurance companies consider your driving record when setting rates for your Alabama car insurance. If you've been in any accidents, gotten any speeding tickets, had any major offenses like DUIs, you will have higher rates for your Alabama car insurance.
If you violate the law, your insurance company considers you a greater risk for insurance, which means that you will have higher premiums for an extended period. Although you may not get the best rates if you have a bad driving history, you can still save money with Carlay.
Here are just a few of the rates that drivers with good records can get after switching to Carlay:
|Driving Violation||Average Cost||Annual Savings with Carlay|
|Failure to Obey Traffic Sign||$3,592||$1,178|
|Speeding over 15||$2,757||$923|
|Speeding under 15||$3,029||$902|
|Driving on Sus. License||$2,304||$394|
- Cost to insure your car in Alabama based on where you live
The good news is that on average, Alabama's car insurance rates tend to be lower than the national average. The bad news is that those rates can vary depending upon the area of the state where you live.
You might be paying more for car insurance if you live in one of Alabama's cities, since crime rates there are higher than other areas and those drive up your insurance premiums. However, you probably don't have to worry about paying more in rural areas in Alabama as a result of high driving fatality rates or fast speeds.
And that's not all: Alabama ranks as 1 of the top 10 states for uninsured drivers. 19.5% of Alabamians drive without insurance, while another 8.5% are underinsured. Here are some of the reasons customers like Carlay receive the best rates for car insurance:
- Cost to insure your car in Alabama based on the type of car you drive
The type of car you drive will have a big impact on your insurance costs. If you're driving a Nissan Altima, for example, your premiums will be reasonable. An Altima is popular, has excellent crash test results, and is cheaper to repair than some other models.
Generally, the less expensive a car is to buy and repair, the less expensive it will be to insure. Driving fewer miles per year will reduce your rates even more since you'll be less likely to get in an accident. But if you're driving around in a luxury car like the Mercedes-AMG G63 or Audi A8 Quattro, you can expect to pay more for car insurance each month.
Here are the costs associated with insuring some popular makes and models with and without Carlay:
How to Save Money On Car Insurance in Alabama?
If you are over the age of 18, with a valid driver's license, and currently own or lease a motor vehicle, there is always room to save money on car insurance.
- Shop around for quotes
Compare quotes from several different companies to get the best deal on your car insurance policy. Carlay will help you sort through insurance issues so you'll have more time to focus on your work.
Carlay uses an instant auto insurance quote system to make it easy to compare car insurance quotes from the comfort of your own home. Simply enter a few bits of information, and you'll be connected to 50+ providers by email or phone in under a minute!
Besides keeping track of your renewals and letting you know if there's a better deal, Carlay will notify you by email of any changes in policy, to help ensure that you're always getting the lowest rates.
- Look for discounts
Discounts can save you a lot of money on car insurance. Almost all companies offer them, but they aren't listed in their advertisements, so it's important to check with your agent when you're purchasing your policy if you think you qualify for any discounts.
Here are some of the most popular discounts in Alabama:
|Discount||Who is eligible?|
|Good driver discounts||Alabama drivers are eligible for good driver discounts if they have a valid driver's license for the past three consecutive years, have no more than one point on their driving record, and have no serious driving-related convictions. This discount is mandated by state law and saves drivers 20% on their car insurance premium.|
|Bundling discounts||Bundling multiple insurance products (like auto and home) with the same company is an easy way to get a discount—which can net savings of around 18%.|
|Defensive driver discounts||Most insurance companies offer discounts to drivers who complete a state-approved defensive driving course. Young drivers who face higher premiums can benefit from this discount.|
|Payment and billing discounts||Many companies offer discounts for customers who pay their premium in full, sign up for autopay, or enroll in paperless billing. You could get a discount of up to 25% off your annual premium.|
|Good student discounts||Another discount young drivers may want to consider is a good student discount. Full-time students who maintain a B average may qualify for savings up to 25% through their insurer.|
|Continuous coverage discounts||Companies reward loyalty. Many insurance companies offer discounted rates—often 5% to 25%—to policyholders who have been continuously insured for 6 months or more.|
Most Alabama residents are insured by a private company, and those companies charge varying rates. If you are married, own a home, or work for an affiliated institution or company, you may be eligible for a discount.
- Increase your deductible
When the price of a policy is high, increasing the deductible could bring premiums down. But it's not necessarily a good idea in every case. Think about how likely it is that you will make a claim if you sign up for a policy with a lower deductible payment. Of course, if the payment is too high and you think it's unlikely you will make a claim, then you may find it hard to afford paying the entire deductible if you do have to file a claim.
Registering Your Car in Alabama
When you purchase a vehicle in Alabam, the following paperwork is required:
- A driver's license or ID card
- A car title or signed lease agreement
- Proof of insurance
- Proof of sales tax payment
- Proof of safety inspection
- Odometer reading (if the car is used)
- Smog test
Once you obtain all the necessary paperwork, make an appointment with the DMV to register your car. You'll have to fill out the necessary documents, including some personal information, and details about your vehicle.
Alabama drivers must renew their vehicle registrations annually.