Alabama Car Insurance (2024)

FAQs

Who is the cheapest car insurance in Alabama? ›

State Farm is the cheapest insurance company in Alabama for minimum car insurance, at only $26 per month.

In Alabama, the average monthly cost for a minimum coverage car insurance policy is $38, while a full coverage policy averages $84 per month. Affordable options are available if you seek basic or comprehensive coverage. Free. Simple.

Alabama law only requires liability coverage in order to be legal. However, consider these additional coverage options to expand your insurance coverage and gain more protection. Comprehensive: This coverage protects your vehicle from non-collision perils such as theft, weather damage, and even hitting an animal.

Minimum insurance limits are: $25,000 bodily injury/person/accident. $50,000 combined bodily injury/accident. $25,000 property damage/accident or a combined single limit of $75,000/accident.

In Alabama, the monthly average cost of car insurance is $40 for minimum coverage and $166 for full coverage. In Alabama, drivers with a single at-fault accident pay 50 percent more than the average cost of full coverage car insurance.

Alabama requires every driver to have car insurance — and driving without it is a misdemeanor. If caught, the state may charge a fine of $500–$1,000 and suspend your driver's license and registration. Misdemeanors also have potential punishments, like vehicle impoundment and jail time.

No, Alabama is not a state that has a no-fault insurance system. Alabama is a fault state. Motorists who are found at fault for a collision may be held financially accountable for the medical bills and other losses they have caused others to sustain.

The short answer is no. There is no direct affect between car insurance and your credit, paying your insurance bill late or not at all could lead to debt collection reports. Debt collection reports do appear on your credit report (often for 7-10 years) and can be read by future lenders.

In Alabama, the insurance generally follows the car, not the driver. This means that the owner's car insurance – including bodily injury liability, collision coverage, and comprehensive coverage – follows the car no matter who's driving.

Can I have out of state car insurance in Alabama? ›

Every Alabama registered motor vehicle must be covered by an Alabama liability insurance policy. A registrant may contact their insurance company to convert the OOS policy to an Alabama policy.

Motor Vehicles and Traffic § 32-7-34. (a) Any person in whose name more than 25 motor vehicles are registered may qualify as a self-insurer by obtaining a certificate of self-insurance issued by the director as provided in subsection (b) of this section.

There shall be a provision that the insured is entitled to a grace period of four weeks within which the payment of any premiums after the first may be made; except, that in policies the premiums for which are payable monthly, the period of grace shall be one month, but not less than 30 days, and that during the period ...

So it's important to understand insurance groups – after all, there are 50 of them in total. Cars in group 1 are the least risky from an underwriter's perspective and the cheapest to insure. Those in group 50 are the riskiest and most expensive – usually higher performance models and luxury SUVs.

Esurance typically offers cheaper car insurance quotes than Allstate. Average auto insurance rates at Esurance are $1,372 per year, or $144 per month, for full-coverage insurance , compared to Allstate's premiums of $1,892 per year, or $158 per month. Currently insured? It's free, simple and secure.

The minimum amount of car insurance you'll typically need is state-required liability coverage. This allows you to pay for some, if not all, injuries and damages you're liable for in an accident. The most commonly required liability limits are $25,000/$50,000/$25,000, which mean: $25,000 in bodily injury per person.

According to our rate averages, the most expensive car insurance often comes from The Hanover Insurance Group. The company's average rates for both liability and full-coverage insurance can be more than 400% higher than the national average.