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Alabama Car Insurance & Minimum Coverage Amounts

If you plan to drive a car in the state of Alabama, you’re going to need to know about the insurance requirements. Alabamians who have moved from another state may be pleasantly surprised to learn about mandatory coverages.

Ready to get your vehicle insured and on the road? Here’s what you need to know about Alabama car insurance.

Alabama Car Insurance Minimum Coverage

In most states, you’ll need to meet minimum requirements for several types of liability coverage. In Alabama, these minimums are lower than many other places.

In order to legally drive your vehicle in the state of Alabama, you will need, at a minimum, the following:

  • $25,000 bodily injury coverage per person
  • $50,000 bodily injury coverage per accident
  • $25,000 property damage coverage per accident

These coverages are what’s required by the state. However, if you are leasing your car or the bank owns the title, you may have higher requirements. Your lienholder may ask that you carry comprehensive coverage.

What is the Average Cost of Car Insurance in Alabama?

On average, you can expect to pay around $113 per month for Alabama car insurance. That equates to around $1,358 per year, which is about 5% less than the national average,

Keep in mind while you shop for insurance that your rates may vary depending upon a number of factors. Your marital status, credit, driving history, age, and even your sex may cause your premiums to be higher or lower. Of course, if you’ve been in accidents before this will cause higher premiums, too.

The amount of coverage you choose will affect your premiums, also. For instance, if you choose comprehensive or collision coverage, your premiums will be higher. Similarly, your rate will be higher if you choose rental car coverage or roadside assistance. Talk to your car insurance agent about what options are available to you.

Why is Car Insurance so Cheap in Alabama?

Because the minimum requirements are so low in the state, Alabama car insurance does tend to be cheaper than many other states. Be sure to keep your driving record clean and free from tickets and accidents to ensure your premiums stay low.

With that said, there are more and more uninsured drivers on the road in Alabama. Rates have gone up a bit over the past few years because of the state’s high accident rate.

Best Car Insurance in Alabama

According to J.D. Power customer satisfaction scores, there are five insurance companies that continually offer great service and value in Alabama. These are:

  • Allstate
  • Farmers
  • Progressive
  • State Farm

This list of the best insurance companies does not consider private institutions such as USAA. Be sure to shop around for the best rate based on your affiliations with organizations.

Auto Insurance Lapses in Alabama

Driving without auto insurance in Alabama is serious business. If you get pulled by the police for any reason, they can run your plates and determine that you don’t have coverage.

Should they determine that you don’t have insurance, you can be charged a hefty fine, which could be anywhere from $500 to $1,000. Additionally, your driver’s license and registration can be suspended for up to 180 days. Not your first offense? You could actually serve jail time.

Be sure you keep your insurance up to date. Regularly check with your carrier to ensure that your policy is paid up and that it meets the Alabama state requirements.

Alabama Car Insurance Facts

Interested in learning a few fun facts about Alabama car insurance? Here are some facts you may be interested to know.

  • Alabama’s vehicle fatality rate is double the national average. That’s why your premiums may seem high for the amount of coverage required.
  • In 2015, as many as 18% of Alabama drivers did not have minimum insurance coverage.
  • Alabama experiences a great deal of severe weather, such as hurricanes, which makes premiums a bit more expensive.
  • Teens can apply for a driving learner’s permit at the age of 15 in Alabama. Be careful – there are many inexperienced drivers on the road! Teens must be insured.
  • You may be eligible for discounts on your car insurance if you’re affiliated with certain groups or universities.

Conclusion: Auto Insurance in Alabama

If you plan to operate a vehicle in Alabama, you must be insured. Failure to insure your car can lead to fines, suspension of your license, and even jail time. Be sure your policy is up to date and covers you for Alabama required minimums to avoid trouble with the DMV or law enforcement!