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.
Best & CheapestAuto InsuranceHigh-RiskBest 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.
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.
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.
| Allstate | Annual Premium$1,063 |
| GEICO | Annual Premium$1,266 |
| State Farm | Annual Premium$1,338 |
| Travelers | Annual Premium$1,490 |
| Farmers | Annual Premium$1,559 |
| Progressive | Annual Premium$1,947 |
| Nationwide | Annual Premium$2,044 |
| ALFA | Annual Premium$2,094 |
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.
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.
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.
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.
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.
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.
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.
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.
| Allstate | Annual Premium$1,117 |
| State Farm | Annual Premium$1,286 |
| Farmers | Annual Premium$1,584 |
| Travelers | Annual Premium$1,610 |
| GEICO | Annual Premium$1,658 |
| Progressive | Annual Premium$1,767 |
| Nationwide | Annual Premium$2,108 |
| ALFA | Annual Premium$3,120 |
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.
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.
| GEICO | Annual Premium$3,766 |
| Allstate | Annual Premium$3,952 |
| State Farm | Annual Premium$5,249 |
| Nationwide | Annual Premium$6,015 |
| Progressive | Annual Premium$9,343 |
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.
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.
| GEICO | Annual Premium1,196 | Percent Increase36% |
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.
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.
Low-Risk Driver
$1,172High-Risk Driver
$1,600This 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.
MoneyGeeks's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jul 27, 2024
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
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.
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).
Office Hours
Monday–Friday, 8 a.m.–4 p.m. CT
southeast@aipso.com
Phone
(800) 301-6477
Fax
(800) 677-7247
Mailing Address
P.O. Box 6530, Providence, RI 02940-6530
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.
Based on MoneyGeek’s ranking, Allstate is the best car insurance company for high-risk drivers in Alabama. On average, it costs $1,063 per year to get insured by this company.
Based on MoneyGeek’s study, here are the average rates for high-risk drivers in Alabama by category:
Drivers deemed high-risk are those with traffic offenses, speeding tickets and one or several DUIs. Most insurers consider you high-risk if you are a teen or a driver with bad credit.
If insurance providers have refused your application, you can get a residual market plan through Alabama Automobile Insurance Plan (ALAIP). Their offices are open Monday through Friday, 8 a.m. to 4 p.m. CT. You can reach them via phone at (800) 301-6477 or by email at southeast@aipso.com.
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 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.
