Cheap Alabama Low-Income Car Insurance for Families and Individuals

There is no government car insurance program in Alabama to assist low-income families or individuals. MoneyGeek compiled rates from auto insurers in Alabama to find the most affordable premiums and found GEICO offers the cheapest car insurance for low-income families and individuals in Alabama.

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Last Updated: 11/8/2022
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Insurance companies don’t use income to determine car insurance costs in Alabama. The level of coverage purchased and adding a teen driver to a policy are the biggest factors affecting low-income car insurance in Alabama.

MoneyGeek uncovered the cheapest rates for low-income individuals and families with poor and good credit scores.

Is There Car Insurance for Low-Income Families and Individuals in Alabama?

Alabama does not have a government-supported low-income car insurance program. Up to 19.5% of drivers in Alabama are uninsured, some of whom may be avoiding buying a policy because it’s expensive.

In Alabama, the cheapest type of car insurance is a state minimum policy. Pay-per-mile insurance may be an affordable option for low-income drivers if it becomes available in Alabama in the future.

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Does Alabama Have a Government Program to Support Low-Income Drivers with Insurance?

There is no government car insurance program in Alabama to assist low-income families and individuals. But it’s still possible to get cheap car insurance in Alabama with a low income by comparing auto insurance quotes from different companies.

MoneyGeek researched car insurance companies’ rates to find cheap car insurance for low-income individuals in Alabama who want to save money.

The Cheapest Alabama Car Insurance Companies for Low-Income Drivers

Car insurance companies in Alabama cannot use income as a factor when calculating car insurance costs. However, factors like age and credit score, which tend to relate to income, impact costs. A state minimum coverage policy is the most affordable option in Alabama for drivers looking for low-cost car insurance.

MoneyGeek found that GEICO offers the best low-income car insurance in Alabama for various driver types. MoneyGeek also analyzed rates by age to find the cheapest car insurance for low-income families and individuals.

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The Cheapest Alabama Car Insurance Companies for Low-Income Families

Income does not impact car insurance rates in Alabama, but low-income families should be aware that their credit score could greatly affect their insurance rates. MoneyGeek’s sample rates for single parent drivers in Alabama differed by about $1,498 per year for a poor credit score versus a good credit score. For couples in Alabama with a child, rates differed by roughly $2,052 per year if they had a poor credit score versus a good credit score.

On average, the cheapest insurers in Alabama for a single parent with a poor credit score are:

  • GEICO: $2,309 per year
  • Country Financial: $2,700 per year

USAA is the cheapest option in Alabama for single parents with a military background who have a poor credit score at roughly $1,670 per year.

The most affordable insurers for a couple with a poor credit score and a child in Alabama are:

  • GEICO: $2,252 on average per year
  • Country Financial: $3,844 on average per year

USAA is second cheapest for a couple with a child in Alabama with poor credit at around $2,362 per year, but only those with a military background qualify for this policy.

Not all low-income families have poor credit. You can toggle the table below to find the cheapest options based on your profile.

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Single parent w/ a kid

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  • Company
    Annual Rates
  • USAA
    $917
  • GEICO
    $1,268
  • Country Financial
    $1,483
  • Allstate
    $1,556
  • Travelers
    $1,621
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The Cheapest Alabama Car Insurance Companies for Low-Income Individuals

For MoneyGeek’s sample 40-year-old driver, rates in Alabama differed by around $495 per year if they had a poor credit score versus a good credit score.

On average, the cheapest insurance companies in Alabama for a 40-year-old driver with a poor credit score are:

  • GEICO: $704 per year
  • Country Financial: $927 per year

For a 40-year-old driver in Alabama with an eligible military background and poor credit score, USAA is the cheapest option at roughly $570 per year.

Just because you have a low income doesn’t mean you have a poor credit score. A 40-year-old driver with a good credit score pays around $386 per year with GEICO, about $509 per year through Country Financial, and USAA costs roughly $313 per year.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $313
  • GEICO
    $386
  • Country Financial
    $509
  • Allstate
    $513
  • Travelers
    $579

The Cheapest Alabama Car Insurance Companies for Low-Income Students

Car insurance rates for student drivers in Alabama are typically high due to inexperience. A college student’s low income does not affect their auto insurance rate, but car insurance can take up a big share of their income since they are more likely to have less.

In Alabama, the cheapest auto insurers for student drivers with poor credit scores are:

  • GEICO: $1,601 on average per year
  • Country Financial: $2,109 on average per year

Student drivers from military families who qualify can opt for a USAA policy — the cheapest option in Alabama at around $1,296 per year.

Low-income students in Alabama with good credit scores can get car insurance at around $879 per year from GEICO, roughly $1,158 per year from Country Financial, or pay around $712 through USAA if eligible.

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  • Company
    Annual Rates
  • USAA
    $712
  • GEICO
    $879
  • Country Financial
    $1,158
  • Allstate
    $1,167
  • Travelers
    $1,316

The Cheapest Alabama Car Insurance Companies for Low-Income Seniors

Age is a significant factor in the cost of car insurance in Alabama, with seniors typically paying more than middle-aged drivers. Credit scores also impact the cost of car insurance for senior drivers. For MoneyGeek’s sample 70-year-old driver, rates in Alabama differed by $532 per year with a poor credit score versus a good credit score.

On average, the most affordable insurers in Alabama for low-income senior drivers with poor credit scores are:

  • GEICO: $826 per year
  • Country Financial: $904 per year

USAA at around $641 per year is the cheapest option for senior drivers in Alabama with poor credit scores that have an eligible military background.

You may be a low-income senior, but that doesn’t mean you have a poor credit score. For seniors with a good credit score, a GEICO policy costs around $453 per year, Country Financial about $496 yearly, and USAA roughly $352 per year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $352
  • GEICO
    $453
  • Country Financial
    $496
  • Allstate
    $574
  • ALFA
    $613

Does Income Affect Car Insurance Rates in Alabama?

Insurance companies can’t use income as a factor in the cost of your car insurance premium in Alabama. However, there are factors related to income that affect your rates. For instance, people with low income may make more claims since they can’t afford to pay for repairs out of pocket. That affects their claims history, which is a rating factor that insurers use to calculate car insurance rates.

MoneyGeek analyzed many factors related to low income and their impact on auto insurance rates in Alabama, including:

  • Adding a teen driver.
  • Coverage levels.
  • Age of driver.

Factors such as credit score and the model of your car also impact your car insurance rates in Alabama.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    The addition of a young/teen driver to your policy in Alabama makes rates 3.1x as expensive.

  • Coverage Levels

    Buying a full coverage policy is 2.4x more expensive than the state minimum.

  • Age of Driver

    In Alabama, rates can be higher by 2.3x for young drivers compared to middle-aged drivers.

  • Credit Score

    A driver with a poor credit score may pay 2.2x more than a driver with excellent credit.

  • Car Model

    Depending on the model of your car, insurance could be twice as expensive.

Frequently Asked Questions About Low-Income Car Insurance in Alabama

There’s a lot to learn about low-income car insurance for individuals and families in Alabama. To help, MoneyGeek has the answers to frequently asked questions about low-income car insurance in Alabama.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Alabama using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Alabama.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.