Alabama Car Insurance Guide
One good thing about living in Alabama is that things don’t cost a lot. The cost of living is low, houses are pretty affordable, and (this is the part we love) car insurance is cheap!
Here’s our detailed guide to finding affordable Alabama car insurance. But if you don’t have time to read all this, you can just go ahead and get your own personalized quotes on Compare.com. We make it easy to compare auto insurance prices and get the best rates you can.
What are Alabama’s auto insurance requirements?
To drive legally in Alabama, you need:
- $25,000 in bodily injury liability per person and $50,000 per accident. If someone gets hurt in an accident you’re legally liable for, bodily injury liability pays for their medical treatment and damages. It also can cover your legal expenses if you get sued
- $25,000 in property damage liability, which pays for damage to other people’s property (like their cars) in an accident you’re responsible for
How do I find the cheapest auto insurance in Alabama?
It shouldn’t be too hard! Of all 50 states, Alabama ranks 37th for how much the average person spends on auto insurance each year. In 2014, the average annual expenditure was $695. Of course, that’s just an average. Your insurance premiums could be much higher or lower, depending on your age, your driving history, the kind of car you drive and where you live. If you want to find the cheapest Alabama auto insurance, the best way to do it is to compare quotes side by side.
Compare.com makes it easy to comparison-shop. To get started, enter some basic information about yourself and your vehicle. We promise to keep your info secure, and we’ll never ask for anything sensitive, like your social security or credit card number.
Then, select one of four levels of coverage: State Minimum, Basic, Plus or Premium. If you just want the absolute cheapest Alabama car insurance, start with state minimum coverage. This will give you quotes for a rock-bottom policy that meets Alabama’s state minimum requirements (25/50/25). Then, we’ll show you personalized quotes from multiple insurers for minimum coverage, and you can pick the cheapest.
Should I carry more than the Alabama state minimum insurance?
The short answer: Yes. While Alabama’s state minimum requirements aren’t super-low, they’re still not enough to protect you in a serious accident. Unless you have a low income and very few assets to protect, you should have at least $100,000 per person and $300,000 per accident in bodily injury liability, CNN Money says. As for property damage liability, $25,000 will be enough if you hit a Honda. But if you total someone’s Tesla, that’s gonna hurt your bank account.
Don’t forget about collision and comprehensive coverage too, which pays to fix your own car if it gets damaged in a wreck you cause, or by hail, hurricanes, falling trees or other hazards.
Do I need uninsured/underinsured motorist coverage in Alabama?
It’s not required, but it’s a really good idea. Alabama has a higher than average number of uninsured motorists — 18.4% of drivers aren’t insured. That means there’s a pretty good chance that if a driver hits you, you won’t be able to get any restitution from their insurance company.
If you have uninsured/underinsured motorist bodily injury coverage (also called UIM or UMBI), then you can turn to your own insurer for help in crashes where a driver without sufficient insurance is at fault, or in a hit-and-run.
Should I add medical payments coverage to my Alabama car insurance?
Medical payments (MedPay) coverage is a small but useful part of your insurance. It pays medical bills, deductibles and copays for you and your passengers if you’re hurt in an accident. Limits are usually low, but they refer to the amount available to each individual covered. For example, if your limit is $2,000, and your family of three suffers injuries in an accident, they can collect benefits up to $2,000 per person.
How do I find the cheapest Alabama insurance that gives me enough protection?
Not everyone can afford top-tier insurance, and that’s OK! Compare.com can help you find the middle ground: cheap Alabama auto insurance that will give you enough coverage for most situations.
Once you’ve gotten your super-cheap quotes for State Minimum coverage, see what happens when you upgrade to the Basic level, which adds comprehensive and collision as well as $25,000/$50,000 in UMBI coverage. Then, you can compare those quotes to the next highest levels. Plus Coverage gives you much higher coverage limits: 50/100/50 for bodily injury and property damage, 50/100 for UMBI, and $2,000 in medical payments. You also get lower deductibles for collision/comprehensive and rental car/towing benefits. Premium Coverage raises the bodily injury liability limits even more, to 100/300/100.
We ran the numbers for a 27-year-old woman with a clean driving record, and her lowest quotes for Alabama auto insurance (when she opted to pay up front) were:
- $65 per month for state minimum coverage
- $129 per month for Basic coverage
- $167 per month for Plus coverage
- $178 per month for Premium coverage
You can also customize your coverage by adjusting your deductibles, adding or deleting towing and rental car coverage, and choosing specific limits for different aspects of your coverage.
I can’t afford Alabama car insurance. What happens if I drive without insurance?
You could get in a lot of trouble. Alabama recently tightened its enforcement efforts for uninsured drivers. If you’re convicted of driving without insurance, you’ll be fined up to $500 for your first offense, and up to $1,000 for each offense after that. Your vehicle registration will also be suspended, and you’ll have to pay $200 to reinstate it the first time. Drive uninsured a second time, and you’ll have to pay a $400 reinstatement fee after a mandatory four-month suspension.