Margaret Huntley Last Updated On: February 12, 2024

A Comprehensive Guide to Car Insurance in Alabama

The state of Alabama takes pride in its history, geography, and Lynyrd Skynyrd lyrics, but it also has its own regulations surrounding automobile insurance.

Whether you call Alabama your sweet home or you’re just passing through, here’s everything that you should know about Alabama car insurance coverage.

Table of Contents

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Minimum Alabama Car Insurance Coverage Requirements

As is the case with all auto insurance policies, there is a state-mandated minimum coverage amount.

The Mandatory Liability Insurance Act (MLI) of Alabama requires that your car insurance policy include:

  • Bodily injury liability coverage of at least $25,000 per person, and $50,000 per accident
  • Property damage liability coverage of at least $25,000 per person
  • Unlike in other states, Alabama does not require uninsured/underinsured motorist coverage

If you drive without carrying the legal minimum insurance in Alabama, there can be significant penalties. They may include:

  • Fines ($500-$1,000)
  • License suspension
  • Vehicle registration suspension
    • If you allow your coverage to lapse more than once, your vehicle registration may be suspended for four months
  • Impounded vehicle
  • Increased car insurance rates

Beyond the legal ramifications, you are left extremely vulnerable in the event of an accident if you don’t maintain adequate car insurance.

Remember that the minimum coverage is just that: the minimum that you need to have in order to drive. Most insurance companies in Alabama will offer comprehensive plans that offer more extensive coverage, which can better protect you should something happen.

It’s also important to note that if your vehicle is leased or financed, you may be required to maintain more than the minimum amount of coverage, such as comprehensive and collision coverage. In this case, you might also want to consider getting gap coverage, which helps cover the cost of what you owe on your leased/financed vehicle if it’s stolen or totaled and you owe more than what it’s now worth with depreciation.

Alabama Car Insurance Rates & How They Are Calculated

The cost of car insurance depends on a variety of factors. Your individual driving record, age, gender, vehicle make, location, and more are considered to come up with your individualized quote. But each insurance provider also has their own algorithm for calculating insurance quotes, so you will get different insurance quotes per provider (even though your information is the same for each quote).

In Alabama, you can expect to see relatively low rates compared to other states.  In fact, as of 2022, the average costs of car insurance in Alabama are:

  • $469 annually for minimum coverage
  • $1,623 annually for comprehensive coverage

These numbers provide a baseline for what to expect in terms of insurance rates in Alabama. But you’ll have to be proactive if you want to save money on car insurance. Get in touch with an insurance agent who can help you to find the best policy for the best price or start browsing quotes online to get an idea of what you’ll pay.

Or turn to ConsumerCoverage for access to free Alabama car insurance quotes, fast.

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What Else Should You Know About Alabama Car Insurance Coverage?

Knowing the Alabama laws around driving is the best way to ensure that you’re not breaking them, which can hike your car insurance rates.  Here are some vehicle laws unique to the Cotton State that you should be aware of if you want to maintain affordable car insurance: 
  • Teen drivers have three steps to obtaining their license in Alabama:
    • At 15, they must pass a written exam for their learner’s permit
    • At 16, they must pass a road skills exam to obtain a restricted license
    • After six months with a restricted license (or if the driver is over 18), another road skills exam is required to obtain a full license in the state of Alabama
  • Vehicle owners have 20 calendar days from the date of purchase or acquisition to register their vehicle
  • DUIs are taken especially seriously in Alabama, with the minimum legal fine being $600
It’s crucial that you adhere to all the state and federal driving laws while on the road. This keeps you safe, not only from accidents but also from increased insurance premiums. 

How to Save on Car Insurance Coverage In Alabama

Although car insurance rates in the state are lower compared to other states, that doesn’t mean the savings train has to come to a stop! There are plenty of ways to find more savings on your car insurance rates in Alabama, including:
  • Ask for discounts. Every insurance provider offers some discounts, and depending on your eligibility, it could save you hundreds of dollars a year on your car insurance. Discounts might include:
    • Multi-policy discount (from having multiple insurance policies with the same provider)
    • Membership/employee discount 
    • Good driver discount
    • Discount for safety features like an anti-theft system
    • Discount for taking a safe driving course
    • Veterans discount
    • Student Discount
    • And more
  • If possible, remove high-risk drivers like teenagers or anyone with a DUI on their record from the policy’s main drivers.
  • Look into raising your deductible (the amount you’d have to pay for your insurance to kick in) to lower your premiums.
  • Maintain a clean driving record.
  • Choose a safer make and model of the vehicle if you’re getting a new car.
  • Review your coverage and remove anything you don’t need (eg. removing comprehensive coverage if the vehicle is old/not worth repairing).
  • Compare quotes. Never take the first quote you’re offered without checking to make sure it’s the best deal.
There are always ways to save on car insurance rates in Alabama. Every time your insurance policy is set to renew, always review your coverage and check for better quotes—the more you save on car insurance, the more money you have for time at the lake or whatever floats your boat!

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Final Thoughts on the Best Car Insurance in Alabama

Whether you’re new to the state or are a seasoned local, residents can take comfort in the fact that affordable car insurance in Alabama is more than possible and just a few clicks away. You can also help keep your rates low by maintaining a clean driving record and following state driving regulations. You might not be able to control the heat and humidity in Alabama, but you can control your car insurance costs and that’s no small feat!

Keep in mind that there’s no best car insurance for everyone because the best can mean different things to everyone. Some care more about getting the cheapest insurance possible, while others care more about excellent customer service or ease in getting claims paid. The best auto insurance in Alabama for you might be a variety of factors, which is why reviewing your options, quotes, and coverage is so important.

ConsumerCoverage has your back. Reach out today for access to free quotes and start saving on your auto insurance in Alabama right away.


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