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
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
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.
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,
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
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:
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:
. 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.
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
, 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.
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.
. 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.)
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.
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.
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
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.
, 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.
MORE: How to build your credit without applying for a credit card
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
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
. 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.
Compare insurance quotes from 50+ insurance companies with Jerry in under 45 seconds
Compare insurance quotes from 50+ insurance companies with Jerry in under 45 seconds