Alabama Car Insurance Guide

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Looking for an Alabama car insurance quote? Hold on just a second because you’ve come to the right place. You can of course simply enter your zip code above and begin the process.

Yet, you may want to look into the various aspects of Alabama car insurance before deciding on a policy to buy. There many things you should probably know like minimum coverage requirements, insurance laws specific to the state and common rates people pay for coverage. Take note of what others pay to know if you’re quotes are fair.

In this regard, it’s best to look for an Alabama auto insurance quote online. With all the competition among car insurance companies today, more and more are looking for new customers online. It is by far the most efficient way to go about your search. Thus either enter your zip code above or keep reading to learn more.

Minimum Auto Insurance Requirements In Alabama

Alabama has easy and straightforward minimum auto insurance requirements. At the current time you’ll need at least the following liability insurance:

  • $25,000 for death or bodily injury to one person;
  • $50,000 for death or bodily injury to two or more persons; and
  • $25,000 for damage or destruction of property of others.

While most drivers choose to meet their insurance requirements by simply buying an policy from an Alabama licensed insurer. You do actually have two other options to meet your insurance requirements. You can either purchase a motor vehicle liability bond or deposit cash in the amount of no less than $50,000 with the Alabama State Treasurer.

You should keep in mind that minimum insurance requirements are almost never enough for the real world. You are perfectly within your legal right to only purchase liability insurance, but do be aware that you are opening yourself up to potential financial risk down the road. In addition to higher libailty insurance limits you should also consider adding collision and comprehensive coverage to your auto insurance policy.

Alabama State Auto Insurance Laws

The Mandatory Liability Insurance (MLI) Act governs the who, what, when, where, why and how of auto insurance in the state of Alabama. The other important act to know about is the Motor Vehicle Safety-Responsibility Act.

These two acts provide the basis for most car insurance law in the state. The complete texts of each can be found in the The Code of Alabama 1975 in chapters 7A and 7 respectively.

As you have already seen above, you are always required to carry liability insurance or financial equivalent when operating any and all self-propelled motor vehicles in the state of Alabama. This includes all cars, trucks, vans, SUVs, buses and motorcycles. However, there are certain vehicles that are exempt from those insurance requirements.

The following do not need the liability insurance requirements mentioned in the previous section, but may require other types of insurance. Please know your responsibilities before canceling any coverage.:

  • Trailers (any vehicle pulling one will need to have proper coverage);
  • Government vehicles (may include federal, state, county and local government);
  • Self-insured vehicles (available by application only to those with at least 25 motor vehicles);
  • Implements of husbandry (must be used exclusively for agricultural, horticultural or livestock raising operations);
  • Animal powered vehicles;
  • Special mobile equipment (may include road construction and maintenance machinery and other vehicles not designed or used primarily for the transportation of persons or property);
  • Inoperable or stored vehicles (can not have plates and can not ever be used on any public road);
  • Dealer owned vehicles (blanket liability insurance policy or commercial automobile liability insurance policy still required);

Assuming your vehicle is not among those exempted, you’ll have to make sure you purchase and carry proof or evidence of insurance with you at all times when you drive. Failure to show evidence of insurance or worse yet not having insurance altogether will result in stiff fines in Alabama.

At the current time your penalties for not having proper insurance (misdemeanor violations) can include:

First offense:

  • Fine of up to $500;
  • $200 reinstatement fee to get your license plate back immediately;

Second and subsequent offenses:

  • Fine of up to $1,000 and/or six month driver’s license suspension;
  • 4 month mandatory license plate suspension;
  • $400 reinstatement fee to get your license plate back

Even worse if you have a fraudulent insurance card or make fraudulent insurance cards you can be convicted of a class C felony. The penalty for such a conviction will result in fines of between $500 to $5,000 and/or 1-10 years in jail.

Finally, many people worry about their insurance company cancelling their insurance. The good news is that you insurer can’t just unilaterally cancel your insurance policy. They must have grounds for policy cancellation. The most common reason is for you failing to pay your insurance premiums, which requires them to give you 10 days notice. All other reasons require 20 days written notice.

Alabama Car Insurance Companies

There are so many insurance companies to choose from in Alabama that it can seem a bit overwhelming at times. If you take a look at the Alabama Department of Insurance’s Company Search Look-up you’ll see that there are dozens of companies to choose from.

Given all this choice you have two practical options. First, use our free quote form to get quotes from a few of the leading insurers in the state. The second is to visit the following websites of the state’s largest insurance companies who provide private passenger auto coverage. Or you can do both and see which one works out best for you.

Alfa Mutual Insurance Company

Allstate

Encompass Insurance

Farmers Insurance

Nationwide Mutual Insurance Company

Progressive Casualty Insurance Company

State Farm

Travelers Insurance

USAA

If you have any issue with our insurance company that can not be resolved by you contacting them, then you may wish to file a complaint with the Alabama Department of Insurance.

Average Alabama Auto Insurance Rates

By most common measures Alabama auto insurance rates are lower than the rest of the country. According to the most complete statistics from the Insurance Information Institute, annual premiums in 2008 were $667 for Alabama drivers compared to the US national average of $789.

More recent numbers from CarInsurance.com have again found the state to be below average when it comes to the price paid for auto insurance. According to them average premiums for 2011 are $1,264 for Alabama compared to $1,441 for the US overall.

Nonetheless, the thing that is most important is the price you pay. To get a better idea of what companies are likely to charge you based on your age, location, driving history, car and more, you should visit the Automobile Premium Comparisons offered by the Department of Insurance.

They have information for rates under all sorts of different scenarios. These will give you a much better idea of what you should be paying compared to the simple averages above.

Alabama Car Accident Statistics

Alabama is among the more dangerous states to drive in. In 2009 the National Highway Traffic Safety Administration (NHTSA) reported that there were 848 traffic fatalities in the state. This is down significantly from 2005 when there were 1,148 but is still much too high.

To put the numbers in perspective, the US averaged 1.14 traffic fatalities per 100 million vehicle miles traveled in 2009. Yet, even after it’s improved performance Alabama still had 1.51 fatalities per 100 million vehicle miles traveled. Essentially, you have a 30% higher probability of being killed on an Alabama road compared to an average US one.

The worst counties to live in 2009 in terms of road fatalities according to the NHTSA were the following: Jefferson County, Mobile County, Madison County, Tuscaloosa County and Baldwin County. Worse yet some such as Jefferson County have actually seen their fatality rate rise over the last 5 years.

So please pay special attention when driving, especially if you find yourself frequently driving in these counties.

Why You Should Get Alabama Car Insurance Quotes Online

In the past if you wanted to get multiple Alabama car insurance quotes you had spend a lot of time going to the insurance company or insurance agent in person. Perhaps you could phone them but it still took a lot of time. Now you can get all the same quotes quickly and easily from websites like ours.

There is never any obligation to buy when you get quotes from us. Moreover, with the internet you don’t have to endure high pressure sales talk from agents who try to get you to buy a policy from them.

It’s not just that ease of getting the quote online that has made the Internet such a popular avenue for car owners. Its advantage also lies on what is presented to you.

Rather than going from company to company asking for the advantages and discounts that they provide, you are provided with all the information that you need through their websites. You can imagine how easier life can be if you don’t have to leave the comforts of your home just to get that quote that you need. And once you’ve picked the quote that you want, the next step is to just answer a few questions and that’s it!

You get that instant Alabama car insurance quote from your chosen insurance company. No need for long talks and other such agendas; you instantly get the service that you want. The great thing about this is that they provide a twenty-four hour service everyday, meaning whatever situation you may be in, you can get that car quote with almost no hassle at all!

So wherever you are in the state of Alabama, you can assure yourself of that much valuable car quote anytime of the day. All you need is a computer and an Internet connection and you’re good to go.

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Alabama City Insurance Guides

Birmingham

Huntsville

Mobile

Montgomery

More Information

Alabama Department of Insurance Home Page

Alabama Motor Vehicle Division

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