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Knowing how to properly estimate how much car insurance you need can help you save money. With MoneyGeek’s easy-to-use car insurance calculator, you can estimate your Alabama car insurance costs and get an instant estimate of costs.
We examined how car insurance rates are determined in Alabama. We then compiled this guide to help you better understand how much your Alabama car insurance will cost so that you can determine which factors are influencing your premium.
Alabama Car Insurance Calculator: How it Gets You an Instant, Free Estimate
Auto insurance quotes in Alabama often take 10-15 minutes to get because of the variety of information that has to be provided.
MoneyGeek’s car insurance calculator provides an instant quote for you based on your information. By entering your age, driving record, vehicle type and coverage levels in our car insurance calculator, you’ll get a personalized estimate of what you might pay for Alabama car insurance coverage.
The factors that have the most influence on car insurance in Alabama, according to our calculator, are adding a teen driver, age of driver and coverage levels. However, based on your individual profile, the most important factor for you may differ.
The cheapest provider in Alabama for you can be determined by a variety of factors, however, our calculator can give you a ballpark figure. Our default driver pays $440 per year for car insurance via GEICO, the most affordable and generally accessible provider.
However, price isn’t everything, and you’ll want to pick a company that has great service and the coverages you need.
To get an idea of what your premiums will be, try using our car insurance calculator or browse our list of model drivers in Alabama with the most affordable car insurance rates.
We compared the average cost of car insurance in Alabama to the rates in other states to see how they compare.
MoneyGeek also rated Alabama's best car insurance providers if you're not only concerned with price.
How Car Insurance Premiums are Calculated in Alabama
Auto insurance providers in Alabama calculate car insurance premiums based on a variety of factors. Adding a teen driver, age of driver and coverage levels are the most critical factors in calculating your car insurance costs. In Alabama, the age of the driver can multiply your car insurance rates by 2.28x.
How Much Adding a Teen Driver Matters in Calculating Car Insurance in Alabama
Adding a teen driver to your policy will result in higher car insurance costs. This is because teen drivers are known for being reckless, causing insurers to charge you extra for adding them to your policy.
In Alabama, adding a teen driver to your policy is the most expensive factor affecting your car insurance rates. It can multiply your car insurance rates by 3.1x.
How Much Coverage Levels Matters in Calculating Car Insurance in Alabama
Premiums are based on coverage levels. Your coverage level is one of the most important factors in calculating how much you pay for car insurance. An insurer needs to know how many miles you drive each year, what type of coverage you need and your deductible in order to determine your quote.
The cheapest policy option is state minimum liability-only, while the most expensive is full coverage with a $500 deductible and 100/300/100 liability. Full coverage can multiply your premiums by 2.4x.
How Much Age of Driver Matters in Calculating Car Insurance in Alabama
The age of the driver is important when calculating car insurance premiums in Alabama. For example, younger drivers make more mistakes than older drivers and are therefore more likely to be involved in an accident. As a result, they pay more for car insurance. If you are between the ages of 19 and 20, your premium will be much higher than if you were 40.
In Alabama, the cheapest car insurance is for a 40-year-old and the most expensive is for a 19- to 20-year-old. The age of the driver can multiply your car insurance costs by 2.28x.
How Much Credit Score Matters in Calculating Car Insurance in Alabama
Maintaining an excellent credit score is required in order to get cheap Alabama car insurance rates. The higher your credit score, particularly when combined with a clean driving record and no accidents, the more likely you are to get cheap Alabama car insurance premiums.
Drivers with excellent credit in Alabama get the cheapest car insurance rates, while drivers with poor credit pay higher car insurance premiums. In Alabama, having a poor credit score can multiply your car insurance prices by 2.2x.
How Much Model of Car Matters in Calculating Car Insurance in Alabama
The type of car you drive has a significant impact on your car insurance rates. Luxury cars are more expensive to repair than regular cars and have a higher replacement value, so they result in higher premiums. In addition, some models carry a higher risk of theft and damage than others, which results in a need for extra protection. The same holds true for sports cars versus SUVs and sedans.
You can pay up to 2x more if you drive a more expensive car model.
How to Calculate How Much Car Insurance You Need in Alabama
Alabama's car insurance costs are significantly influenced by the amount of insurance you purchase. Finding the correct mix between cost and protection is easier when you know how much you need.
According to Alabama law, you are required to have $20,000 in bodily injury liability insurance, $50,000 in bodily injury liability insurance per accident and $25,000 in property damage liability insurance. Depending on your circumstances, you may want to consider purchasing additional comprehensive and collision coverage.
Understand Alabama car insurance requirements
By reviewing Alabama’s minimum car insurance requirements, you can find out how much car insurance you need to buy.
Only $25,000 of bodily injury liability per person with up to $50,000 in bodily injury liability total is covered under the state of Alabama's insurance policy. Comprehensive and collision insurance, which protects against damage to your car, is not required in Alabama.
Consider Purchasing Additional Liability Insurance
Drivers who want to protect themselves financially in case of a severe accident may need to get liability insurance that is higher than the Alabama state minimum.
In Alabama, a policy that covers you for $300,000 in bodily injury liability per accident costs an average of $755.45 a year, compared to $506.64 for the state's minimum liability insurance.
Decide whether or not to buy comprehensive and collision insurance
Comprehensive and collision coverage are optional in Alabama. However, they are often required by lenders. Drivers should consider purchasing full coverage since it may protect you against practically any form of loss or damage to your car.
In Alabama, it costs an average of $407 a year to add comprehensive and collision coverage with a $1,000 deductible. Keep in mind that a car worth only a few thousand dollars may not need hundreds of dollars in annual insurance premiums.
Consider buying additional protection besides these core coverages
In Alabama, uninsured/underinsured motorist coverage is not mandated by law. The uninsured motorist rate in Alabama, at 19.5%, putting it in the top ten states in the United States with the most uninsured drivers. To guard against uninsured and underinsured drivers, we advise drivers to get uninsured/underinsured motorist coverage.
The state of Alabama does not require personal injury protection. Insurance companies in Alabama provide medical payments coverage as an alternative to PIP, which helps pay for medical expenses arising from an auto crash.
Frequently Asked Questions About How Car Insurance is Calculated in Alabama
Here are some frequently asked questions regarding how car insurance is calculated in Alabama. It’s a good idea to know the factors that affect your premium before you pay for coverage, as they will help you to make informed decisions about your car insurance.
Methodology
MoneyGeek partnered with Quadrant Data Services to get car insurance quotes from across Alabama. Our data science team analyzed how personal factors impacted cost and incorporated our findings into our calculator to provide users with an accurate estimate of their expected yearly auto insurance costs. Read more about our methodology here.
About Mark Fitzpatrick
