Cheapest Car Insurance for Low-Income Drivers in Alabama (2024)


The cheapest car insurance for individual drivers with low-income and poor credit history in Alabama is offered by Cincinnati Insurance at $31 per month. For families with low-income, GEICO provides the most affordable rate at $56 per month.

Alabama does not offer state-backed car insurance programs for low-income families and individuals. Therefore, finding the provider with the most affordable rate is one option to manage costs. There are also ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, there are downsides. For example, in an at-fault accident, minimum coverage may not fully cover the damages, leaving you with out-of-pocket expenses.

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Cheapest for Individuals With Low Income

Cincinnati Insurance is the cheapest car insurance provider for individual drivers with low-income and poor credit history in Alabama with an average minimum coverage premium of $31 per month or $372 per year.

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Cheapest for Families With Low Income

GEICO is the cheapest car insurance provider for families with low-income in Alabama with an average minimum coverage premium of $56 per month or $668 per year.

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Cheapest for Senior Drivers With Low Income

Cincinnati Insurance is the cheapest car insurance provider for seniors with low-income and poor credit score in Alabama with an average minimum coverage premium of $27 per month or $322 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the Alabama Department of Insurance to get the cheapest average costs for low-income drivers of Alabama.

31,680Quotes Analyzed
 
11Companies Compared
 
45ZIP Codes

Does Alabama Offer Low-Income Insurance?

Car insurance companies in Alabama do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history, and the type of car you drive. At-fault accidents and moving violations can increase your rates significantly.

To find the cheapest rates, it's best to compare quotes from several insurance companies. This allows you to see the different options available and choose the most affordable one.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. For drivers who rarely drive, pay-per-mile insurance can be a great way to save money. MoneyGeek rounded up the cheapest insurers for low-income drivers in Alabama to help you save.

Minimum Car Insurance Requirements in Alabama

To legally drive in Alabama, you're required to have car insurance that meets the state's minimum car insurance requirements. Your policy must include at least the following liability insurance coverage:

  • $25,000 for bodily injury liability per person
  • $50,000 for bodily injury liability per accident
  • $25,000 for property damage liability per accident

While Alabama law mandates these minimum coverages, you may find yourself in a financial bind and opt for a liability-only car insurance policy. This covers the other driver's expenses in an accident you cause, but not damages to your own vehicle. For broader protection, including your vehicle's damages, consider a full coverage car insurance policy. This includes collision and comprehensive coverages, safeguarding against theft, vandalism, or natural disasters.

In Alabama, where severe weather can be a concern, full coverage is advisable. Imagine a tornado damaging your vehicle; without comprehensive coverage, you'd face hefty out-of-pocket costs for repairs or replacement. Assessing the benefits and risks of various policies ensures you select the right coverage for your needs.

Cheapest Car Insurance for Individuals With Low Income in Alabama

Credit history is crucial for low-income drivers in Alabama as it directly affects car insurance premiums. Insurers view a poor credit record as a higher risk, leading to higher premiums. Therefore, maintaining a good credit history can result in more affordable car insurance rates in Alabama.

The cheapest car insurance companies for drivers with low-income and poor credit record in Alabama are:

  • Cincinnati Insurance: $372 per year, $31 per month
  • Travelers: $632 per year, $53 per month

Drivers with low income but good credit can get the cheapest car insurance in Alabama from:

  • Cincinnati Insurance: $226 per year, $19 per month
  • Travelers: $384 per year, $32 per month

Getting state minimum coverage is essential as driving without insurance is illegal. In Alabama, driving without insurance is considered a misdemeanor and can lead to suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Cincinnati Insurance$372$31
Travelers$632$53
Country Financial$636$53
GEICO$740$62
Progressive$782$65
Nationwide$861$72
Farmers$954$80
Allstate$1,155$96
Auto-Owners Insurance Co$1,163$97
State Farm$1,331$111
Compare Auto Insurance Rates

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

Cheapest Car Insurance for Families With Low Income in Alabama

While your income doesn't dictate car insurance rates, your family status can. In Alabama, single parents with a teen face an average annual premium of $789 more than married couples with a teen, who enjoy a more affordable rate by the same amount each year.

The most budget-friendly car insurance companies for married couples with a teen in Alabama are:

  • GEICO: $668 per year; $56 per month
  • Nationwide: $746 per year; $62 per month

For single parents with a teen, the cheapest options are:

  • GEICO: $1,457 per year; $121 per month
  • Nationwide: $1,604 per year; $134 per month

Married couples with a teen can save on car insurance compared to single parents, largely due to insurers viewing them as a lower risk. Keeping a solid credit history is key to qualifying for the most affordable car insurance rates.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
GEICO$668$56
Nationwide$746$62
Allstate$821$68
Travelers$872$73
Progressive$1,141$95
Auto-Owners Insurance Co$1,149$96
Farmers$1,271$106
State Farm$1,273$106

Cheapest Car Insurance for Seniors With Low Income in Alabama

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially if you have a clean driving record.

The two cheapest car insurance for senior drivers with low income and poor credit history are:

  • Cincinnati Insurance: $27 per month, $322 per year
  • Country Financial: $37 per month, $445 per year

After the age of 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Alabama, there are specific laws and guidelines for seniors getting car insurance.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Cincinnati Insurance$322$27
Country Financial$445$37
Travelers$666$56
Progressive$732$61
GEICO$785$65
Nationwide$843$70
Farmers$994$83
Auto-Owners Insurance Co$1,187$99
Allstate$1,228$102
State Farm$1,252$104
Compare Auto Insurance Rates

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

What Factors Affect Car Insurance Rates in Alabama?

Income doesn't directly affect car insurance rates in Alabama. However, if low income results in a poor credit record, it can lead to higher rates. Conversely, a good credit score can help you get lower rates. Other factors like your driving history and the type of car you drive also play a role.

Understanding the factors that contribute to car insurance rates in the Heart of Dixie can help you make informed decisions in choosing the best car insurance for you.

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    Driving record

    A clean driving history with no at-fault accidents or moving violations usually results in lower rates.

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    Age and gender

    Younger drivers, especially boys, typically pay more due to higher risk than more experienced drivers.

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    Credit history

    Your credit history can affect your rates, with lower insurance scores often leading to higher premiums.

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    Location

    Where you live plays a role, with urban areas often having higher rates than rural areas due to more congested roadways, higher accident rates and incidents of vehicle theft and vandalism.

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    Vehicle type

    The make, model and year of your car impact insurance costs. Sportier or more expensive cars generally cost more to insure.

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    Coverage levels

    The higher your level of coverage, the higher your premiums.

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    Insurance company

    Different insurers have different underwriting methodologies and discounts, so it's important to compare quotes.

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    Claims history

    A history of filing claims can lead to higher rates. If you can afford to pay for your own repairs, it might behoove you not to file a claim.

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    Extreme weather events

    Texas is prone to severe weather events like hailstorms, tornadoes, hurricanes and ice storms, which can increase insurance claims and, in turn, rates.

How to Save on Car Insurance in Alabama

You don't need a state-sponsored program to cut costs — finding affordable car insurance in Alabama is possible with the right strategies. Here are some tips to lower your premiums:

  1. 1
    Choose minimum coverage

    Opting for state-mandated minimum coverage can help you save while still meeting legal requirements to drive. This is a cost-effective solution for budgeting and staying compliant with state laws.

  2. 2
    Comparison shop

    Get quotes from multiple insurers to compare rates and discounts. Shopping locally might lead to the lowest rates. Exploring different options ensures you get the best deal available in the state.

  3. 3
    Look for discounts

    Many insurance companies offer discounts for factors such as having a safe driving record, being a good student, being a military member, or bundling your auto insurance with other policies.

  4. 4
    Increase your deductible

    If you choose to get collision or comprehensive coverage, opting for a higher car insurance deductible can significantly reduce your monthly premium. Ensure you can afford the deductible in case of an accident.

  5. 5
    Consider pay-per-mile insurance

    If available in the state, pay-per-mile insurance is a great option for low-mileage drivers. You pay a base rate plus a per-mile fee, meaning you only pay for the miles you drive.

  6. 6
    Bundle your policies

    If you have other insurance needs, such as homeowners or renters insurance, bundling them with your auto policy can often lead to discounts. The best home and auto bundles can save you around $496 each year.

  7. 7
    Drive a cheaper car

    Your car’s make, model, and year significantly impact your insurance costs. Driving the cheapest cars to insure can save you hundreds of dollars in insurance expenses each year.

FAQ: Low-Income Car Insurance in Alabama

Finding affordable car insurance in Alabama can be tough for drivers with low incomes. Here are answers to some of your most common questions on how to save.

Does Alabama have a state-backed low-income car insurance program?

How can low-income families get affordable car insurance in Alabama?

Does your income affect the cost of car insurance in Alabama?

What are the benefits of usage-based telematics programs for drivers with low-income in Alabama?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He 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.