Are you just about to start searching for auto insurance quotes online in Alabama? There are loads of things you need to know if you are a new driver or just moved to Birmingham. From the providers to the minimum and recommended coverage, get familiar with the facts before you look for cheap car insurance in Birmingham, Alabama, online.
Car Insurance Requirements in Alabama
The state’s law sets the minimum auto insurance limits, and you cannot legally drive a car without obtaining this level of coverage. In Alabama, the minimum liability coverage limits are set at:
- Bodily injury of $25,000 per person.
- Bodily injury of 50,000 per accident.
- Property damage liability coverage of $25,000 per incident.
Bear in mind that this limit will not protect your own vehicle and you might need to obtain further coverage for every situation you might encounter during driving.
Average Car Insurance Costs in Birmingham, Alabama
The cost of obtaining a car insurance policy in Birmingham, Alabama, is higher than the national average, and higher than the state average. In Birmingham, you can get coverage for $1648 per year compared with $1450, which is what the average person in Alabama pays. The national average is $1548 per year.
However, the cost depends on your personal circumstances, and your price is calculated on an individual basis by the car insurance company.
Cheapest Auto Insurance Providers in Alabama
If you would like to get the best value for money, you might want to check out USAA, which offers the lowest cost per year at $1008. The runner-up is GEICO, costing you $1086, and the most expensive auto insurance provider is Safeway, at an average cost of $1826.
If you only want to obtain the minimum coverage, and you don’t want anything extra, the cheapest coverage available is from USAA, at $369 per year. The second cheapest is State Farm, and the most expensive is GEICO.
If you would like to go for full coverage, the cheapest car insurance provider in Birmingham, Alabama, according to Money Geek, is USAA, charging you $1155 a year. The second cheapest is Nationwide, and the most expensive one is GEICO, at $2677.
What Affects Your Car Insurance Rates
There are several risk factors insurance companies consider before they provide you with a personalized quote. Generally, these factors are assessed:
- Your age.
- Your gender.
- Your marital status.
- Where you live.
- Your previous driving history.
- Your credit rating.
- The car you drive.
Here’s how each of the factors will affect your rates across all Alabama car insurance providers.
If you have driving violations, your annual premium is likely to go up following the incident.
According to ValuePenguin, people with DUI or DWI pay on average $2699 a year. Reckless driving will make your premiums go up to $2661. If you are involved in an at-fault accident, depending on the damages, you will pay between $2234 and $2392. A speeding ticket will hike up your price to $1915, if you drove 15-20 miles over the speed limit.
To get cheap car insurance after a speeding ticket, you might want to check out USAA, which will cost you only $111 per month.
Your credit rating is also a risk factor insurers consider. People with a very poor credit rating pay $3631 on average, compared with $1309 for drivers with an exceptional credit rating.
Who Gets the Best Rates on Car Insurance in Alabama
It’s good news for drivers over 50 in Alabama: They pay the lowest premiums on car insurance in Birmingham. The average cost for over-50s is $1473 per year. Over-60s pay $1503 annually.
Married people are also assigned lower risk by insurance companies, and they pay less than single drivers. The savings for being married is about $126 per year.
Female drivers are also likely to pay slightly less than males, according to The Zebra.
Of course, safe drivers are always getting a better price. If you have a clean driving record and you are in your 20s, you can pay as little as $2033 per year with Travelers.
Who Pays the Most For Auto Insurance in Alabama
As in most states, the highest-risk category of drivers is teenagers, and they pay much more than those who have a long and clean driving history.
Teenagers pay $6893 a year. The cost of insurance drops significantly for people in their 20s, costing $2369 a year.
People with bad credit will pay more for their car insurance, too. There are, however, still some providers that will accommodate this group of people and offer good deals. Check out Safeway that offers the minimum coverage at an average cost of $973 per year for those with bad credit.
Drivers who have had an accident prior to arranging a new car insurance will also see their costs rise. The best companies to approach for a good deal are Travelers and Country Financial, both costing less than $1000 a year.
A DUI will put you in a high-risk category with insurance providers and you will have to pay more. Try Travelers, which will cost you $964 per year on average, or Allstate at $978.
How to find Cheap Car Insurance in Birmingham, Alabama
It is important that you check your requirements and make sure that you only apply for the coverage you need. Shopping around for the best deal online is easy, and only takes a couple of minutes of your time.
If you are worried about your credit history, make sure you get a report and work on your rating. Improving your rating can save you money. If you can improve your credit from very poor to fair, you can save about $1500 per year.
Take advantage of company discounts. If you are a military personnel or veteran, or have a family member who is, USAA will give you special deals that are not currently available for others.
Getting a cheap car insurance is not as difficult as it seems. You can shop around online and compare quotes from multiple companies for the coverage you need.
Check this out if you need additional information, resources, or guidance on car insurance.
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