Alabama Car Insurance

Before drivers can operate motor vehicles within the state of Alabama, they must first obtain adequate liability insurance coverage. Liability insurance operates as a financial protection for drivers if they are found to be at fault for a collision. It prevents drivers from having to cover the cost of damages and injuries, and also keeps drivers from losing money when getting sued by the other party by helping to provide legal representation. It does not, however, actually prevent others from suing the insured. According to the state’s Mandatory Liability Insurance Manual, drivers must have the following car insurance in Alabama:

Required Coverages in Alabama:

  • Bodily Injury Liability Per Person: $25,000
  • Bodily Injury Liability Per Accident: $50,000
  • Property Damage Liability: $25,000

Drivers must carry proof of auto insurance in Alabama in their vehicles at all times, and must furnish that proof when requested by a police officer. Uninsured drivers will receive citations, according to the Mandatory Liability Insurance Manual. Driving uninsured can also lead to a license suspension. Drivers are strongly recommended to maintain consistent coverage.

Determining Your Rate in Alabama

To determine insurance rates, car insurance companies in Alabama look at the driver’s age, gender, and marital status, and collect information about the vehicle, such as how it’s used and how much mileage it accrues on a regular basis. Insurance companies also look at the driver’s credit history and driving record as part of determining how much of a risk the driver is to insure. If the driver is determined to be a high risk, he or she will pay a higher premium. For example, drivers under the age of 25 and who have poor driving records will be considered higher risks to insure, so they’ll have costlier insurance rates.

The Insurance Information Institute reports that car insurance quotes in Alabama average $652, while the national average is $785. Drivers are encouraged to speak with their insurance companies to determine if they qualify for any discounts. Auto insurance companies in Alabama may offer discounts for good grades, safe driving, and driver’s education classes.