How to Find Low-Income Car Insurance in Alabama

Comparing car insurance quotes and qualifying for discounts could save low-income drivers hundreds of dollars on car insurance in Alabama.
Written by Bonnie Stinson
Edited by Jessica Barrett
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Since there’s no state-run program, you can save on car insurance costs in the Cotton State by maintaining a clean driving record, choosing a higher deductible, unlocking discounts, and
shopping for quotes
every six months. 
  • There is no government-run assistance program to help reduce the cost of
    car insurance in Alabama
    for low-income drivers.
  • GEICO, Nationwide, and Travelers may offer cheaper-than-average car insurance rates depending on your driver profile. 
  • Most insurance companies offer discounts, including good driver and good student discounts.
  • Nearly 20% of all Alabama drivers are uninsured, and penalties for driving uninsured include fines and license suspension. 

Alabama does not offer auto insurance for low-income individuals and families

Unfortunately, Alabama doesn’t offer a car insurance assistance program for
low-income individuals or families
. This makes finding a great deal harder—though Alabama car insurance average costs are lower than the national average. 

The cheapest car insurance company in Alabama depends on your driver profile

How much you pay for
car insurance is calculated
based on several factors, including your insurance company, age, and driving history. The auto insurance companies that may give you the best all-around deals on auto insurance rates in Alabama include
GEICO
,
Nationwide
, and
Travelers
.
Of course, your rate will be different from your friends and neighbors, so take some time to shop around to find the best cheap auto insurance option for you. 
Your driving record affects how much you’ll pay for insurance, so based on your particular situation, you might decide a different insurer is your #1 pick—perhaps Country Financial,
State Farm
,
Allstate
, or USAA if you’re eligible.

Cheap car insurance for low-income students in Alabama

If you’re a young driver or a parent with a
teen driver
, you’ll pay some of the highest average rates of all. Insurance companies charge more because new drivers have less experience with
Alabama traffic laws
, which tends to increase their risk of accidents. 
But if your teen has good grades, you can often take advantage of good student discounts to shave a few dollars off your car insurance premiums.
Car Insurance CompaniesFull-coverage Annual RateMinimum-coverage Annual Rate
Aspire Advantage$2,103$1,733
Progressive$3,502$1,518
National General$3,148$1,809
Clearcover
$2,656$1,399
Anchor General$1,767$1,663
Allstate$2,822$1,319
Bristol West$2,513$1,929
Dairyland$2,185$1,704
Infinity$1,955$1,786
Travelers$764$2,967
Nationwide$2,985$1,367
Mapfre$2,343$1,011
Safeco$3,215$2,839
Mercury$2,514$1,066
Kemper$2,451$1,364
Encompass$4,376$3,366
Plymouth Rock$4,290$3,300
Electric
$4,542$3,494
The General$2,976$2,289
AAA$1,742$1,340

Cheap car insurance for low-income seniors in Alabama

Insurance rates for seniors
tend to be low until the age of 65. You can expect your rates to start going up right around retirement thanks to the average retiree’s worsening vision and slowing response times. 
You can avoid a major spike in your rate if you maintain good driving habits. Most insurance providers offer
safe driver discounts
and low-mileage plans if you don’t drive a lot. See the table below for an idea of how your premium might change as you start adding more candles to your birthday cake:
Car Insurance CompaniesFull-coverage Annual RateMinimum-coverage Annual Rate
Aspire Advantage$1,228$1,100
National General$948$1,182
Allstate$982$1,478
Anchor General$1,375$1,263
Progressive$2,457$1,487
Bristol West$1,795$1,334
Travelers$2,079$1,599
Clearcover
$2,496$1,576
Infinity$1,335$1,304
Dairyland$2,524$1,381
Nationwide$879$2,253
Encompass$2,444$1,880
Mapfre$1,959$1,507
Safeco$2,915$2,242
Kemper$2,330$1,792

Cheap car insurance for low-income drivers with bad credit in Alabama

If you have a poor credit score, it may affect your Alabama auto insurance costs. This is because statistics show an increase in insurance claims for drivers with bad credit.
Paying off your debts can help you in multiple ways. Not only will it improve your credit score, but it can also help you lower the cost of car insurance. Check out the table below to see how your credit can affect insurance costs:
Car Insurance CompaniesGreat(750-850)Good(600-750)Fair(500-600)Poor(300-500)
Progressive$1,990$2,097$2,217$2,463
Allstate$2,143$2,259$2,387$2,652
Clearcover
$1,839$1,938$2,048$2,275
National General$1,900$2,002$2,116$2,351
Safeco$2,693$2,839$3,001$3,333
Travelers$2,005$2,113$2,233$2,481
Bristol West$3,016$3,180$3,361$3,733
Nationwide$2,292$2,416$2,554$2,837
State Auto$2,189$2,307$2,438$2,709
Encompass$2,663$2,807$2,967$3,296
Mapfre$1,302$1,372$1,451$1,611
Kemper$1,382$1,457$1,540$1,711
Plymouth Rock$1,871$1,972$2,084$2,315
Oregon Mutual
$1,854$1,954$2,066$2,295
Mercury$1,388$1,463$1,546$1,718
Electric
$1,088$1,147$1,212$1,347

Cheap car insurance for low-income drivers with violations in Alabama

Your insurance can go up based on traffic violations, such as a
DUI
, texting and driving, or multiple speeding tickets. This is especially true of states that use a point system for driver’s licenses. The more points you have, the higher the risk you pose to your insurance company.
Some high-risk drivers in Alabama must file for
SR-22 insurance
with the state’s Department of Motor Vehicles. An SR-22 proves that you carry insurance that meets
Alabama’s car insurance laws
—but it also flags you as a high-risk driver, so you’ll have a more difficult time finding a reasonable insurance rate with any provider.
Car Insurance CompaniesReckless DrivingSpeedingDUIFailure to Obey Traffic SignImproper Passing
Aspire Advantage$1,326$1,674$1,213$1,537$1,512
National General$1,357$1,428$1,137$1,360$1,208
Bristol West$2,036$1,946$1,492$1,794$2,206
Progressive$1,669$1,290$1,116$1,410$2,712
Anchor General$1,252$1,862$1,446$1,996$1,812
Allstate$1,444$1,149$914$1,541$1,383
Clearcover
$1,488$1,268$1,331$1,363$1,488
Dairyland$1,634$1,616$1,171$1,971$1,634
Infinity$1,682$1,518$1,206$1,719$1,691
Nationwide$1,198$1,484$947$1,238$1,198
Mapfre$1,003$1,107$1,003$1,808$1,003
Mercury$1,637$1,531$1,637$1,637$1,637
Travelers$1,362$1,160$1,362$1,362$1,362
Safeco$1,534$1,534$1,534$1,376$1,534

State minimum car insurance in Alabama is 25/50/25 liability coverage

If you live in Alabama, you’ll need a policy with the following minimum liability coverage: 
You’ll need to meet those minimum car insurance requirements and get a valid Alabama driver’s license to drive on the roads legally.

Liability insurance vs. full coverage

Drivers in Alabama are only required to have liability coverage. With this coverage in place, your insurer will only pay for repairs and medical bills for other drivers when you cause an accident. It doesn’t pay for any of your medical bills or car repair costs.
If you want help with your bills, you’ll need additional insurance. Consider adding
collision coverage
and
comprehensive coverage
to your policy. 
  • A collision policy helps with repairs from a fender bender or other collision
  • Comprehensive insurance covers damage from non-collision events like severe weather, vandalism, or theft
These add-ons constitute what’s often called a “full-coverage car insurance policy.” If you want to go all in, you can add
uninsured/underinsured motorist coverage
, Medical Payments, and/or
personal injury protection (PIP)
, too.
One potential downside is that
full coverage
costs more, so it can be difficult to afford if you are a low-income driver. Even so, if you’re financing a vehicle with a
car loan
, you won’t have much of a choice but to pay for it.

Consequences of driving without insurance in Alabama include fines and license suspension

Alabama has one of the highest rates of uninsured drivers in the country, with 19.5% of all drivers going without the legal minimum. That means almost 1 in 5 drivers don’t have coverage.
Driving without insurance
is bad for multiple reasons. Yes, you have one less monthly bill to pay, but you’ll also risk the following consequences:
  • You’ll get stuck paying completely out of pocket if you get into an accident and you don’t have insurance. Hospitalization costs after a major car accident average $60,000 while replacing a vehicle averages $48,000. 
  • The other driver could sue you for damages if you don’t have insurance. You’ll be saddled with damages, court fees, and more.
  • Since insurance is a legal requirement, you’ll also get in trouble with the law. It can cost between $500 to $1,000 for the fines and you can be jailed for 3-6 months. You can also lose your driver’s license and the state can impound your vehicle.
Remember: You’ll need to show
proof of insurance
any time you get pulled over. And if you have even a small
insurance lapse
on your driving record, your insurance costs will go up. 
You have options if you’re struggling to pay for the minimum coverage required by law. Check for
car insurance discounts
with your current insurer, raise your deductible, look for a new and cheaper policy, or find alternative transportation.

10 easy ways to get low-income auto insurance in Alabama

Luckily, there are lots of
easy hacks to save money on your car insurance
. Let’s look at some options to find affordable car insurance down below.

1. Drive less

You can cut back on insurance costs if you cut back on driving. Since your rate is partially based on your average mileage, you will pay less if you don’t spend a lot of time on the road. (Just make sure your insurance company is up-to-date with your current mileage.)
You can look for pay-per-mile insurance if you don’t rack up major miles every week. Plus, you’ll save on gas and help the environment! 

2. Install a telematics device

If you’ve got safe driving habits, you can benefit in more ways than one. You could earn a discount if you participate in a
telematics program
.
If you’re wondering what that is, it’s when you install a device in your vehicle that keeps track of how you drive. You can earn a discount for showing safe driving practices, like avoiding harsh braking and staying within the speed limit.
Not every company offers a telematics program, so you’ll have to find a company that uses this option.
State Farm’s Drive Safe and Save program
or
Nationwide’s SmartRide
are a few options.

3. Combine policies or reduce coverage on older cars

If you have several vehicles to insure, make sure they’re all on one
multi-car insurance policy
. You can also get a discount by bundling different types of insurance, like home and auto insurance, with the same company. 
Another option is to reconsider your coverage if you have an older car. Consider whether you want to
keep or drop full coverage
on an older ride. If the cost to make repairs on your car is more than the actual value of the car, it’s probably not worth it to have anything beyond liability coverage on it.

4. Pay in full

While most people pay their insurance premiums in installments throughout the year, you can also make one lump-sum annual payment. If you can cover the bill in one go, you could get a discounted rate from your insurer. 
Of course, paying that much at once can be difficult, so monthly payments may still be your best option. While you won’t get a discount, monthly payments can be easier to handle if you’re on a limited budget.

6. Park in a garage

If you live in a big city, like
Huntsville
or
Birmingham
, park in a garage if possible. Metro areas have higher crime rates and more traffic, which increases your risk of accidents, theft, and vandalism. You’ll have to pay more for a full-coverage policy if you don’t have a secure parking location.

7. Build your credit

As your credit score affects your rates, improving your credit will help reduce your insurance premium. Plus, you’ll benefit in many other ways from a good credit score.

8. Raise your deductible 

An insurance policy with collision or comprehensive coverage includes a deductible, which is the money you agree to pay after an incident before an insurance company steps in to cover the rest of the bills. Ask your insurer about
raising your deductible
to help lower your premium. 
Remember: You will need to pay the deductible if you file a claim, so be sure that you can pay the amount if needed.

9. Pick lower coverage limits

Full coverage is a great way to protect yourself financially, but it can add up. If you need to cut costs, one option is to get the minimum state-required coverage only. You’ll still comply with the law and enjoy a lower monthly rate, but your insurance will not pay for any repairs to your vehicle if you cause an accident.

10. Compare multiple car insurance quotes

When looking for a new car insurance policy, just going with the first offer you find isn’t a good idea. Each company has different prices, even if the coverage is the same. 
Since each insurer uses a different formula to calculate your rate, look around to get the best deal. Get
auto insurance quotes
from multiple insurance companies before you commit to a specific policy.
"I’ve shaved off at least $50 a month using
Jerry
. For now, I chose only to pay for Alabama state minimums, but I am confident that with Jerry, I can upgrade or change my coverage at any time. The AI-integrated process is really intuitive, too!” —Fred D.
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