Best Cheap Car Insurance Companies for High-Risk Drivers in Alabama


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Updated: May 20, 2024

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High-risk drivers in Alabama typically pay double or even triple the amount for insurance coverage than a safe driver. The best way to save on car insurance is to shop around and compare available auto insurance for individuals with poor driving records.

Having the highest MoneyGeek score of 90 out of 100, Allstate offers the best blend of affordability and customer service for high-risk drivers in Alabama. At $1,063 per year, it also ranked the cheapest in the state.

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2024

Best Companies for High-Risk Drivers in 2023

You are considered high-risk if your driving history includes at-fault accidents, speeding tickets, a DUI conviction or other traffic offenses.

Insurance for high-risk drivers naturally is more costly because of higher perceived risk. High-risk drivers in Alabama can expect to pay roughly $1,600 per year. This is about 26% more than what a driver with a clean record would pay at $1,172 per year.

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WHAT EXACTLY IS A HIGH-RISK DRIVER?

A record of traffic offenses and reckless driving are just a few examples of high-risk driving. Most insurers may consider you a high-risk driver if you fall into one or more of these categories.

  • Drivers with a history of traffic violations or at-fault accidents
  • Drivers with a DUI conviction
  • Drivers caught driving with a suspended or revoked license
  • Young drivers with a lack of driving experience
  • Drivers who drive sports cars or participate in drag racing
  • Drivers with bad credit or lapses in insurance coverage

Cheapest Car Insurance in Alabama for High-Risk Drivers

On average, Allstate policies cost $1,063 per year. Based on MoneyGeek’s comparison of different insurers, this is considered the cheapest insurance for high-risk drivers in Alabama.

MoneyGeek’s Allstate Auto Insurance Review explores the coverages, discounts and other information about this insurer that may be helpful to shoppers.

AllstateAnnual Premium$1,063
GEICOAnnual Premium$1,266
State FarmAnnual Premium$1,338
TravelersAnnual Premium$1,490
FarmersAnnual Premium$1,559
ProgressiveAnnual Premium$1,947
NationwideAnnual Premium$2,044
ALFAAnnual Premium$2,094
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SR-22 INSURANCE

Driving without insurance or getting your license suspended because of a violation will require you to obtain SR-22 Insurance in Alabama.

SR-22 should not be used as a substitute for insurance. Rather, it is a form that states you meet your state's minimum liability coverage requirements.

Best Car Insurance in Alabama for High-Risk Drivers

In Alabama, the best car insurance company for high-risk drivers is Allstate, which costs $1,063 per year on average. This insurer scored 90 out of 100 — the highest among insurers in Alabama. The second-best insurer is GEICO, which costs around $1,266 per year.

MoneyGeek’s reviews of Allstate Auto Insurance and GEICO Auto Insurance help shoppers determine the coverage and provider suitable for their needs.


1
GEICOBest for High-Risk Drivers
Score:51

0.8/5

Affordability Rating

5/5

Satisfaction Rating

5/5

Claims Rating

5/5

Financial Stability Rating

Geek Quick Take
Geek Quick Take

Earning a MoneyGeek score of 83 out of 100, GEICO ranked as the second-best insurer selling policies at an average of $1,266 per year.

More About GEICO

GEICO offers competitive rates to a variety of drivers. One of its unique coverages is mechanical breakdown insurance (MBI), provided at a lower price than the typical dealer's extended warranty. GEICO also has several unique discounts for installing safe vehicle equipment, such as daytime running lights, anti-theft systems and anti-lock brakes.

2
Allstate
Score:49

0.8/5

Affordability Rating

4.5/5

Satisfaction Rating

5/5

Claims Rating

4.5/5

Financial Stability Rating

Geek Quick Take
Geek Quick Take

High-risk auto insurance from Allstate costs $1,063 per year on average. Allstate scored the highest among insurers in Alabama with 90 out of 100.

More About Allstate

Allstate is available in all 50 states and Washington, D.C. It scored well in customer satisfaction ratings and received fewer complaints compared to its competitors. It offers various common coverages like roadside assistance, new car replacement, rideshare insurance and other add-ons.

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MONEYGEEK EXPERT TIP

Auto insurance gets more expensive as you increase your coverage. But that doesn’t mean you have to sacrifice quality for savings.

As Alabama doesn’t have a government-backed program for low-income drivers, there are alternatives for obtaining affordable insurance. Take a look at MoneyGeek’s car insurance in Alabama for low-income drivers.

Cheapest Car Insurance in Alabama for Drivers With a DUI

After a DUI, drivers will notice a rate increase in their auto insurance policy. That’s why finding an insurer that can offer affordable policies even if you have a DUI on your record is important. Allstate offers the cheapest insurance policy after a DUI at roughly $1,117 annually in Alabama.

MoneyGeek’s review of Allstate Auto Insurance can help shoppers learn more about this particular provider.

Another top-rated insurance option for those who qualify is USAA Auto Insurance, exclusively available to military members and their families.

AllstateAnnual Premium$1,117
State FarmAnnual Premium$1,286
FarmersAnnual Premium$1,584
TravelersAnnual Premium$1,610
GEICOAnnual Premium$1,658
ProgressiveAnnual Premium$1,767
NationwideAnnual Premium$2,108
ALFAAnnual Premium$3,120
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LOOK-BACK PERIODS

As long as you have a DUI on your record, auto insurance rates are guaranteed to be pricey. And, you will have to wait for the look-back period to lapse before you can negotiate for a lower rate.

The look-back period lasts for years to accommodate sentencing for repeat offenders. In Alabama, the look-back period is 10 years.

Cheapest Car Insurance in Alabama for Teenage Drivers

GEICO is the cheapest high-risk auto insurance option for teen drivers in Alabama at an average of $3,766 per year.

Find out how teen drivers can save with GEICO by referring to MoneyGeek’s GEICO Auto Insurance review.

GEICOAnnual Premium$3,766
AllstateAnnual Premium$3,952
State FarmAnnual Premium$5,249
NationwideAnnual Premium$6,015
ProgressiveAnnual Premium$9,343
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MONEYGEEK EXPERT TIP

Teen drivers often pay twice as much as the average driver for auto insurance, if not more. However, don’t be tempted to opt for minimum coverage to save money. Teens need full coverage more than the average driver due to inexperience and possibly reckless driving.

Compare the best and cheapest car insurance rates for students and teens.

Cheapest Car Insurance in Alabama for Drivers With Bad Credit

Drivers with poor credit are frequently viewed as high-risk by most insurance companies. Your credit score is often a good indicator of how likely you are to file claims, thus affecting your insurance costs. Drivers who want to save on insurance should consider GEICO. Their policies cost around $1,196 per year for those with bad credit.

GEICOAnnual Premium1,196Percent Increase36%
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MONEYGEEK EXPERT TIP

Finding affordable car insurance can be challenging for high-risk drivers with bad credit. MoneyGeek’s guide ranked different insurers based on their affordability for drivers with poor credit.

How Much Does Car Insurance Cost for High-Risk Drivers in Alabama?

Insurance companies in Alabama determine your risk factors to calculate your premiums. Due to higher chances of more filed claims, auto insurance for a high-risk driver typically costs more than for a driver with a clean record.

In Alabama, the average cost of a policy for a high-risk driver is $1,600 per year. For a driver with a clean record, a policy averages $1,172 per year.

Annual Car Insurance Cost in AL for Low-Risk vs. High-Risk Drivers

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Annual Premium

Low-Risk Driver

$1,172
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Annual Premium

High-Risk Driver

$1,600
In Alabama, high-risk drivers pay:$428 more

This is 37% more expensive.

Rates vary for different drivers as individual risk factors matter in calculating premiums. Other factors such as age, vehicle information and level of coverage are just as important when determining the cost of your insurance. You can use MoneyGeek’s Alabama insurance calculator, which estimates costs based on your personal details.

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Rates updated:

Jul 12, 2024

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Can You Still Get Car Insurance in Alabama if Insurers Refuse to Insure You?

Auto insurance is a voluntary market, which means some insurers may reject your application for coverage. If you have done some shopping and have been repeatedly rejected by insurers in your state, you may consider an alternate market plan.

An American non-profit organization called Automobile Insurance Plan Service Office (AIPSO) offers auto insurance residual market services. AIPSO provides insurance for high-risk drivers who are having trouble finding coverage.

Alabama Automobile Insurance Plan

AIPSO has a state-by-state database to help you find a residual market plan based on your location. In Alabama, the residual market plan is called the Alabama Automobile Insurance Plan (ALAIP).

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    Office Hours

    Monday–Friday, 8 a.m.–4 p.m. CT

    subscribe icon

    Email

    southeast@aipso.com

    smartphone icon

    Phone

    (800) 301-6477

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    Fax

    (800) 677-7247

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    Mailing Address

    P.O. Box 6530, Providence, RI 02940-6530

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Frequently Asked Questions

Being a high-risk driver can make it challenging to find affordable insurance. MoneyGeek answered frequently asked questions about high-risk auto insurance in Alabama.

Which car insurance company is best for high-risk drivers in Alabama?
How much does car insurance in Alabama cost for high-risk drivers?
Who do insurers classify as a high-risk driver?
Where do I get car insurance coverage in Alabama if insurers reject my application?

Methodology

MoneyGeek calculated average rates using full coverage car insurance policies with 100/300/100 liability insurance and comprehensive and collision coverage with a $1,000 deductible. Minimum coverage car insurance policy rates were calculated based on each state’s minimum car insurance requirement.

To calculate rates for high-risk drivers, MoneyGeek averaged the premiums insurance companies charge for three of the most common driving violations: speeding, at-fault accident and DUI.

To determine the best car insurance company for high-risk drivers, MoneyGeek scored companies based on affordability, customer satisfaction and complaints — obtained from J.D. Power surveys and NAIC complaint scores — and financial strength ratings as calculated by AM Best. Affordability received the greatest weighting in our calculations.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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