As most drivers know, buying auto insurance is far from optional if you own a car. So here’s the latest statistical report on car insurance laws and premiums in the state of Alabama. This valuable info can help Alabama drivers customize auto insurance plans most suitable to their individual needs.
Alabama Minimum Liability Coverage
The minimum amount of auto insurance coverage required by law in the state of Alabama is $25,000 in Bodily or Personal Injury Protection (better known as PIP), $50,000 in multiple injury protection (for injury to others), and $25,000 in protection against property damage. Insurance agents refer to this minimum coverage amount as 25/50/25. However, most car insurance minimums do not cover the actual cost of an accident. Experts recommend 100/300 coverage for all vehicle owners. Uninsured Motorist Insurance (UMI) is also recommended. Unfortunately, most drivers feel strongly that car insurance premiums are high enough already.
Penalties for Driving Without Insurance in Alabama
Getting caught driving an uninsured vehicle can result in fines of up to $500 and/or imprisonment, along with a suspended license, which costs another $200 to reinstate. The penalties increase with each subsequent offense. Fines can be as high as $3,000.
Auto Insurance Rates in Alabama
When Alabama car insurance agents calculate premiums, they account for local climate, topographical features, economic conditions, rate of uninsured vehicles and population density, among other factors. They also consider the driver’s age, gender, marital status, health, driving history and type of vehicle owned.
The average annual auto insurance premium for drivers in the state of Alabama was $1,337 in 2016. This is right around the national average, which was about $1,347 at that time. This is despite the fact that there is a relatively high percentage of uninsured vehicles on the road. Alabama, Mississippi, Tennessee and Florida rank highest among states in terms of uninsured motorists.
Low Cost Car Insurance Programs in Alabama
Auto insurance companies offer numerous discount programs. Depending on your provider, low cost auto insurance programs in Alabama include Accident-Free Discounts and Good Driver Discounts for those who follow the rules and drive safely. Also available are Good Student Discounts for school-age drivers who get good grades, Multiple Automobiles Discounts for owners of more than one car, Multiple Line Discounts for holders of more than one policy, and Vehicle Safety Discounts for certain types of cars. Check with your local auto insurance agent for complete details. Always ask about discounts when receiving a quote.
Obtaining Auto Insurance Quotes in Alabama
Based on 2017 online customer satisfaction ratings, the top five publicly available auto insurance companies in the United States are Allstate, Auto Owners Insurance, The Hartford, State Farm and 21st Century. At the same time, many Alabama car owners opt for local carriers. Indeed, the state of Alabama has dozens of auto insurance carriers to choose from, all of them offering competitive rates for you to compare. Call several car insurance agents near you for quotes, comparisons and further assistance.