Alabama Car Insurance

Last Updated on August 14, 2020

As the 23rd most populated state in the U.S., Alabama still has plenty of rural areas for driving and lots of destinations. Head to one of the major cities, Montgomery or Birmingham, for a look at some historical structures and modern-day culture. Or, head to the coast and soak up the sun on one of many beaches with clear, calm water. Alabama is a diverse state with many kinds of drivers, so always pay attention to the road. Where there are good drivers, there are also bad drivers, and then sometimes, accidents happen to the best drivers. Always be prepared with an active auto insurance policy.

Wondering where to get the best policy? It can be hard to find an insurance company that really understands your needs. Here at Insurance Panda, we’ll help you locate the right price and policy that works for you. An active Alabama auto insurance policy is a very important part of protecting your financial assets. You never know when an accident could occur and insurance is your only weapon when combating property damage and medical expenses. Otherwise, the costs come out of your own pocket.

Average Auto Insurance Prices in Alabama


Alabama Insurance Guide From (image source – FLICKR)

Some people believe that by skipping insurance altogether, it saves money. Besides, it’s just one more monthly bill, right? Wrong! While that monthly premium might hurt, there are ways to save money. Raise your deductible limit and ask your insurance agent about a possible discount, but whatever you do, don’t drive without car insurance. 22% of Alabama drivers are uninsured and this raises premiums for everyone.

If you’re in an accident with an uninsured driver, your insurance coverage picks up the costs the other driver’s insurance would normally pay for. There are other factors that contribute to your premiums. You may be tempted to set low coverage limits in exchange for lower premiums, but if you’re in an accident, your out of pocket costs could be extreme. The best way to save money on your car insurance is to drive safely. Some insurance companies even offer rewards specifically to safe drivers because they help reduce the overall cost of insurance.

Current average annual auto insurance premiums in the United States: $1666.62

Current average annual auto insurance premiums in Alabama: $1306.00

Most Expensive Alabama Insurance Rates

1. Maytown Sylvan Springs (35130): $1614

2. Fort Deposit (36032): $1580

3. Linden (36782): $1574

4. Faunsdale (36738): $1574

Least Expensive Alabama Insurance Rates

1. Daphne (36532): $1217

2. Daphne (36527): $1235

3. Elberta (36549): $1235

4. Foley (36561): $1236

Alabama Minimum Auto Insurance Requirements

With such a high percentage of uninsured drivers, make sure you set the appropriate coverage limits. Don’t know what the right amount is? Your insurance agent can help analyze your needs and set the right coverage amounts. This applies to liability insurance as well. It’s typically recommended you purchase much more than the minimum legal limit, which likely won’t protect you during a serious accident. If the bodily injury cost exceeds $50,000, you’re responsible for the rest of the medical bills. The same principle applies to property damage.

Liability won’t even cover your injuries or property damage. This is why it’s so important to have a comprehensive insurance policy. Even the recommended amounts below may not be enough for you. If you have a high financial worth, you may need extra liability insurance, which is known as umbrella insurance. Ask your insurance agent if this is something worth adding to your policy.

  • Bodily Injury Liability per person: $25,000
  • Bodily Injury Liability per accident: $50,000
  • Property Damage Liability: $25,000

The following amounts and policies are recommended.

  • Bodily Injury Liability per person: $100,000
  • Bodily Injury Liability per accident: $300,000
  • Property Damage Liability: $50,000
  • Uninsured/Underinsured Motorist Bodily Injury per person: $20,000
  • Uninsured/Underinsured Motorist Bodily Injury per accident: $40,000
  • Medical Payments: $2,000
  • Collision: $500 deductible
  • Comprehensive: $0 deductible

Penalties for Driving Without Insurance in Alabama

State law requires that you show proof of insurance if it’s requested. There are several things that can prove you meet the financial responsibility requirements. Documents such as:

  • An insurance card
  • A copy of your liability policy
  • Vehicle proof of purchase and old insurance card (only valid for 60 days)
  • Copy of rental agreement
  • Copy of Motor Vehicle Liability Bond
  • Copy of Certificate of Cash Bond

If you cannot provide any of these documents, Alabama has developed a tiered offense system. If you get caught without insurance for the first time, you’re required to obtain insurance pay a license reinstatement fee of $100. If you’re caught driving without insurance again, your registration is suspended for four months, you must still obtain insurance, and pay a reinstatement fee of $200. It’s important to also consider that if you’ve had a lapse in insurance, it places you in a higher risk pool. That means you pay a higher premium.

It’s always better to have insurance.

How to Get Auto Insurance in Alabama

In such a large state, insurance options can seem endless. Sometimes, the more choices you have, the harder it is to make a decision. Let a professional guide you to the right insurance policy. When you use our quote comparison tool, we’ll provide you with several quotes from local, reliable insurance agencies. With that information, you have the ability to compare policies and quotes and find an insurer that meets your needs. The quote comparison tool only requires a little bit of basic information to get started.

Additional Alabama Auto Insurance Resources

The information above is for reference material only and Insurance Panda cannot legally be held responsible for anything written above. For official information, visit these websites:

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