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If you’re a driver in Alabama, you need to have auto insurance. Not only can it potentially save you a lot of money if an accident occurs, it’s also the law. According to the Alabama Department of Revenue, drivers are required to be insured for at least $25,000 for property damage or destruction, $25,000 for bodily injury or death of one person, and $50,000 for bodily injury or death of two or more people.

Auto Insurance Statistics in Alabama

If you are a new driver in Alabama or planning to relocate to the area, it helps to have an idea about what the average car insurance premiums are. According to NAIC.org, Alabama’s car insurance premiums have remained below the national average for a considerable amount of time. Alabama drivers will enjoy knowing that they pay less for car insurance than other states across the country.

Average Car Insurance Premiums in Alabama State Vs. National

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Source: NAIC.org

Drunk Driving Fatalities

According to the National Highway Traffic Safety Administration, Alabama ranks steadily below the national average when it comes to drunk driving fatalities. This renders it a relatively safe state to drive in when compared with other states across the country. However, according to data, drunk driving fatalities did appear to increase in the years 2013 and 2014.

Drunk driving fatalities in Alabama from 2010 to 2014

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Source: NHTSA

Teen Drinking and Driving

Alabama ranks higher than the national average when it comes to teen drinking and driving. It’s important to warn teen drivers of the dangers of driving while under the influence. In addition, auto insurance rates usually climb after a car accident where alcohol was involved.

Teen Drinking & Driving in Alabama vs. Nationwide

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Source: www.NHTSA.gov 

Car Theft in Alabama

Reports by the Federal Bureau of Investigation indicate that Alabama remains below the national averages when it comes to vehicle theft.

Vehicle thefts Alabama vs. State by year 2011-2014

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Source: www.FBI.gov

Uninsured motorists in Alabama

Driving with uninsured and underinsured motorist insurance coverage can help to protect you when an uninsured driver does damage to your vehicle or causes you personal injury. Below is data showing the percentage of uninsured motorists in Alabama vs. nationwide in the year 2015.

Percentage of Uninsured Drivers (Top 10 States in 2015)

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Source: Insurance Information Institute

When you’re looking for insurance, it’s also important to get the most bang for your buck. Your insurance rates will depend on a variety of factors, such as your age, driving record, the type of vehicle you drive, and other things. With some companies, you can get a surprisingly good rate on auto insurance, which means you can save more money to spend on things you really want.

cheap auto insurance Alabama

Location Matters

Birmingham, AL

Insurance prices will also depend on which part of Alabama you’re located in. For example, in Birmingham, the state’s biggest city, you might expect rates to be higher. However, you’d be wrong. Birmingham actually has relatively cheap rates relative to the rest of the state. If you’re looking for the cheapest insurance companies in this city, they are:

  • Progressive
  • Infinity
  • National General
  • United Services
  • Accc

Of these companies, Progressive wins out as the cheapest, offering average rates of less than $700 per year. All five of these companies are substantially cheaper than average for this region.

Montgomery, AL

Montgomery is Alabama’s capital, and second biggest city. Auto insurance prices here tend to mirror those in Birmingham, although the average rights are slightly higher. Here are the five cheapest auto insurance companies in this area, in descending order of price:

  • Progressive
  • National General
  • United Services
  • Accc
  • Infinity

As you can see, Progressive finishes on top again. The overall list of companies is the same as in Birmingham, albeit in a slightly different order.

Mobile, AL

Things get a bit pricier in Mobile. In fact, it’s the most expensive city for auto insurance in Alabama. Fortunately, we have a list of companies where you can find cheap auto insurance in Mobile, most of which should be familiar by now:

  • Progressive
  • National General
  • United Services
  • Accc
  • Integon National

Even though the average person in Mobile pays $1,368 per year for auto insurance, you can get it for around $700-900 at most of these companies. Integon is the only company on this list that charges over $1,000 per year for insurance on average (they average $1,074), but it’s still a major discount from the overall city average.

Huntsville, AL

Huntsville is one of the cheapest places to get auto insurance in Alabama. The city average is under $1,200 a year, and you can find companies on our list offering the requisite insurance for as little as $600. Here are the five cheapest insurance companies for Huntsville:

Tuscaloosa, AL

  • Progressive
  • United Services
  • National General
  • Accc
  • Infinity

The average price for auto insurance in Tuscaloosa is almost identical to Birmingham. Unsurprisingly, the list of the five most affordable auto insurance companies in the area includes the same five as Birmingham, though the order is slightly different:

  • Progressive
  • United Services
  • National General
  • Infinity
  • Accc

You may have noticed that Progressive seems to consistently have the cheapest auto insurance in Alabama, regardless of the city. Does that make it the best choice? Possibly, but make sure to do your homework. The terms and conditions of each insurance contract can be different, so it’s important to make sure you get the level of coverage you want. All of the companies listed above offer cheap, affordable auto insurance. Ultimately, it’s up to you to make the final call on which one fits your individual needs the best.    

Types of Auto Insurance Coverage in Alabama:

  • Property Damage Liability Insurance
  • Bodily Injury Liability Insurance
  • Comprehensive Insurance Coverage
  • Uninsured/Underinsured Motorist Bodily Injury Insurance
  • Uninsured Motorist Property Damage Insurance

Minimum Requirements For Car Insurance in Alabama

There are minimum requirements for car insurance in the state of Alabama. Becoming aware of these laws and requirements can help you to learn about how much coverage you need so you will always be protected against any potential calamity. The minimum amount of auto insurance coverage required in Alabama is listed below:

The Minimum Liability Insurance of Alabama policy stipulates that liability coverage is a requirement for all vehicles that are operated in Alabama.

Liability Coverage minimums include:

  • $25,000 for property damage
  • $25,000 for death or bodily injury, per person
  • $50,000 for death or bodily injury, if multiple individuals are involved

If you have neglected to insure a vehicle in Alabama, you could risk being fined up to $500 on the first offense and $1,000 for the second and following offenses. Additionally, if you have registered an uninsured vehicle, you may have to pay fees up to an additional $400 as well as a risk of a four-month registration suspension.

Source: Alabama Department of Revenue Motor Vehicle Division

New Driver Licensing in Alabama

In Alabama, the Alabama Department of Public Safety mandates that every driver that is driving on public roadways needs to have an official driver license. If a new driver or resident has a driver license that has been expired for 3 years or more, they will need to pass a driving test. However, an out of state driver who has a license that isn’t expired over one year can get an Alabama driver’s license without taking a road test.

Age Requirements for Obtaining A Driver’s License in Alabama

New drivers in Alabama need to be 16 years of age or older in order to get a standard Alabama driver license. In the event that the driver is under the age of 19, they will need to demonstrate proof of current enrollment or secondary school graduation.

Drivers Vision Screening

A vision test is required to determine the level of clarity the driver will have while on the road. If they are used to wearing corrective lenses, then the lenses should also be worn during the test taking process. If the vision test isn’t passed, then a mandatory eye exam from an eye specialist will be required.

A written test will also be given which determines the new driver’s knowledge of road rules in keeping with the Alabama Driver License Manual. Once this test is successfully completed, a standard driver license will be issued in the mail within 30 days time. A restricted picture license will be issued to drivers who are applying for a learner’s license.

Cheap Auto Insurance Discounts

At Cheap Auto Insurance, we understand that you are looking for the most affordable auto insurance available in Alabama. That is why we have sourced the most popular car insurance discounts so that you can take advantage of great savings. There are many different types of car insurance discount. Below are some of the ones we have found to provide the highest level of savings.

  • Anti-theft discount
  • Bundling insurance policies discount
  • Car safety features discount
  • Defensive driving discount
  • Good student discount
  • Infrequent usage discount
  • Low-mileage discount
  • Mature driver discount
  • Military or Veteran discount
  • Multi-car auto insurance discount
  • Senior citizen discount