If you are a resident of Alabama, you have been legally required to have auto insurance for driving any motor vehicle since January 2001. The only alternatives to car insurance in Alabama are to lodge a Motor Vehicle Liability Bond with the Alabama Department of Revenue or make a cash deposit with the State Treasurer – the amount of the bond or cash deposit must be no less than $50,000.
These two alternatives are rarely used as, according to National Highway Traffic Safety Administration, Alabama has some of the safest roads to drive on in the USA and consequently the cost of car insurance in Alabama is much cheaper than the national average.
Alabama Car Insurance Requirements
An Alabama car owner has to have a auto insurance policy which carries the minimum liability requirement. If you have been out of State for a while, these limits changed in August 2008 for new car insurance policies in Alabama (November 2008 for car insurance renewals)
$25,000 for injury/death to one person
$50,000 for injury/death to more than one person
$25,000 for damage to property
Alabama Auto Insurance Laws
You have to show your Alabama issued insurance card, a premium receipt or actual policy when asked to by a law enforcement officer, or you can show the proof of purchase for your motor vehicle if it is within 60 days of purchase and your previous Alabama auto insurance documents have not been modified for your new vehicle. If you have placed a Motor Vehicle Liability Bond or made a cash deposit, evidence of your “financial responsibility” is an adequate substitute for car insurance in Alabama.
You may also be asked to present an identification card from your insurance company and, in certain circumstances, an SR-22 if you have been arrested – not necessarily convicted – for driving under the influence (DUI). Both your car insurance documents (or bond/cash receipt) and any SR-22 you may have acquired have to be carried in your motor vehicle at all times. Failure to produce these documents when requested is counted as a driving violation.
Recommended Alabama Car Insurance Coverage
Inasmuch as the minimum liability insurance requirements (above) are quite high in relation to other States, sometimes they are insufficient to cover medical expenses if you are at fault in a road traffic accident. As you would be personally responsible for any additional costs which are not covered by your Alabama car insurance policy, you may want to discuss increasing the liability limits with your insurance provider. As auto insurance rates in Alabama are comparatively low, getting car insurance with higher liability levels should not cost much more.
It is also recommended that Alabama residents obtain car insurance with collision coverage in the event that you damage your own car in an accident. Comprehensive car insurance is also suggested in case your car is stolen, vandalized or damaged by fire or extreme weather conditions, and uninsured/underinsured motorist bodily injury insurance should also be considered to provide complete financial security if you are involved in a road traffic accident with another driver who is uninsured or underinsured.
Cheap Alabama Car Insurance Quotes
To get the best Alabama car insurance quotes, you have to do a little shopping around. “Best” is not always cheapest, and you could find yourself underinsured or liable for a substantial deductable if you just take the cheapest car insurance in Alabama. Make sure that you know the level of auto insurance coverage that you want before you start looking to ensure your peace of mind.
The easiest way to get the cheapest and best car insurance in Alabama is to do your research online. By using the Internet to compare car insurance quotes, you can do it in your own time (rather than when the insurance providers’ offices are open), in the comfort of your own home and without some irksome car insurance salesman trying to “up-sell” you other types of insurance.
Certain auto insurance companies in Alabama offer residents the option of pay-as-you-drive or special car insurance for drivers with an annual low mileage. In order to qualify for one of these car insurance policies, you have to drive less than 15,000 miles per year and, in most cases, the discount in your car insurance premiums is allocated retrospectively – i.e. when you make your next car insurance renewal.
Alabama Car Insurance Ratings
How much you are quoted for your car insurance in Alabama will depend on a number of different factors. These variables will determine how much your insurance premiums will be and are based on historical values assessed by the car insurance companies. As well as the factors listed below, we have provided a list of the cities in Alabama which suffer the worst from car theft, and also the makes of car which are most commonly stolen.
- Your zip code – If you live outside a major urban area, and the crime rate in that area is low, you will benefit from the cheapest auto insurance rates in Alabama. The opposite will apply if you live in a big city with a high crime rate!
- Your age – Road safety statistics reveal that younger and older drivers are more likely to be involved in a road traffic accident . Alabama car insurance companies will account for this when offering you a car insurance quote
- The years you have driven – Alabama auto insurance companies believe that the more experience you have behind a wheel, the less risky you are for them to insure. Maintaining a clean driving record has its benefits!
- Driving violations – Drivers who have a history of traffic violations are presumed to be re-offenders. Alabama car insurance companies will add a premium to your auto insurance rates if you fall into this category
- Marital status – Married drivers are perceived to be safer drivers and less likely to vilate driving regulations. Being married is a positive factor when you are looking for cheap car insurance in Alabama
- Type of Vehicle – The type and make of vehicle that you drive will affect your car insurance quote when you want to add collision cover and comprehensive car insurance to your basic liability cover.
Most Stolen Cars and Vehicles in Alabama
Each year the National Insurance Crime Bureau (NICB) publishes a list of the top ten most stolen cars and vehicles. Nicknamed “Hot Wheels”, these were the top ten most stolen cars and vehicles stolen in Alabama in 2009.
1. Chevrolet Pick-Up
2. Honda Accord
3. Ford F150 Pick-Up
4. Chevrolet Caprice
5. Chevrolet Impala
6. Ford Explorer
7. Dodge Ram
8. Toyota Camry
9. Ford Taurus
10. Ford Crown Victoria
Where Your Car Will Get Stolen in Alabama
The NICB also publishes a list of the metropolitan areas in which your car is most likely to get stolen. The list below is of the most “popular” locations in Alabama for car theft, with the figures in brackets indicating that area’s national position. Alabama auto insurance quotes are heavily influenced by these statistics.
1. Columbus (15)
2. Mobile (33)
3. Birmingham/Hoover (60)
4. Aniston (85)
5. Montgomery (91)
6. Huntsville (133)
7. Tuscaloosa (160)
8. Decatur (208)
9. Gadsden (217)
10. Dothan (227)
As you can see, only two locations within the State of Alabama made it into the top 50 nationally. This is a further reason why the cost of car insurance in Alabama is below the national average and, in case you were wondering, California is the State in which your car is most likely to get stolen, while the city of Laredo in Texas rates number one in the national list.
Typical Alabama Car Insurance Rates
With safer roads to drive on and less incidence of theft, car insurance rates in Alabama are lower than the national average of $1,441 per vehicle. Although your personal insurance rating, the car you drive and the level of car insurance coverage you require will affect your final auto insurance premium in Alabama, the list below reflects the average car insurance premium paid in select cities in Alabama in 2009.
Car Insurance in Dothan – $1,244
Car Insurance in Huntsville – $1,278
Car Insurance in Auburn – $1,330
Car Insurance in Tuscaloosa – $1,344
Car Insurance in Birmingham – $1,385
Car Insurance in Montgomery – $1,412
Car Insurance in Gadsden – $1,479
Car Insurance in Decatur – $1,484
Car Insurance in Hoover – $1,493
Car Insurance in Mobile – $1,559
Alabama Car Insurance Companies
The following is a complete list of auto insurance providers in the State of Alabama. We have reviewed those which are underlined, and by clicking on the links you will be able to read why we consider them to be the best insurance companies in Alabama.
The best auto insurance company in Alabama may not always be the best for your particular requirements, so please enter your zip code in the box at the top of the page to get an immediate free car insurance quote and see how much money you could be saving!
|American Bankers||GEICO||Southern Insurance Company of|
|American Family||Hartford||Southern United Fire|
|American International||Horace Mann||Standard Fire|
|American Modern||IDS||State Auto|
|American National||Illinois National||State Farm|
|Armed Forces Insurance||Liberty Mutual||Travelers|
|Audubon||Markel||Twin City Fire|
|Automobile Club InterInsurance||MeraStar||USAgencies|
|Automobile Insurance Company||MIC Insurance||Vigilant|
|California Casualty||National General||Yosemite|
|Cincinnati||National Security Fire & Casualty|
|Commerce & Industry||National Union Fire|
|Cotton States Mutual||Nationwide|
|EMC Property & Casualty||Pacific Indemnity|
|Encompass||Property & Casualty Insurance|
|Farm Bureau Insurance||Company of Hartford|
With cheaper car insurance rates in Alabama than in many other States in America, you can save money with your car insurance premiums or increase your coverage for your financial security and peace of mind.
The best advice when looking for auto insurance quotes in Alabama is to decide what level of coverage you want, shop around online for the best car insurance deals and ask what further discounts are available to you and your family.