Alabama, like most states, requires car insurance for all drivers. Understanding the specific requirements will help you avoid violations and penalties, stay safe on the road, and find the right car insurance for you. Here is everything you need to know about Alabama car insurance and driving safety.
Average cost of car insurance in Alabama
The National Association of Insurance Commissioners (NAIC) stated that the average expenditure for Alabama car insurance is $673.51 per person per year.
They broke this figure down to:
$372.44 is the average annual liability insurance expenditure.
$292.40 is the average annual collision insurance expenditure.
$146.91 is the average annual comprehensive insurance expenditure.
Young Drivers in Alabama
Alabama insurance premiums for young drivers depend greatly on the level of coverage. We have found that a young driver can expect to pay an average of:
- $1264 for state minimum coverage1,
- $2936 for basic full coverage2 and
- $3894 for premium full coverage3.
Premiums also vary from city to city and large cities tend to have higher insurance costs. Surprisingly, Huntsville while being the fourth-largest city in Alabama also features one of the lowest rates for basic and premium full coverage insurance plans.
Female Drivers in Alabama
Our case study has found that a 35-year-old female driver can expect to pay roughly half of what a young driver would pay. On average, women can expect to pay around:
- $666 for state minimum coverage,
- $1442 for basic full coverage and
- $2030 for premium full coverage.
Of course, your individual quotes will depend on where exactly you are located, your driving record and a range of other factors.
Senior Drivers in Alabama
In Alabama, senior drivers with a long driving experience can expect to pay an average of:
- $719 for state minimum coverage,
- $1316 for basic full coverage and
- $1852 for premium full coverage.
Our methodology4 used a 68-year-old male driver profile with 45 years of driving experience.
Minimum car insurance requirements
Alabama’s “Mandatory Liability Insurance Law” requires all drivers licensed in the state to carry liability insurance for each registered vehicle.
The minimum requirement for this liability insurance is $25,000/$50,000 for bodily injury/death and $25,000 for property damage.
Most car insurance companies in Alabama also offer optional additional coverage. The options include collision coverage, comprehensive coverage, medical and funeral coverage, and uninsured motorist’s coverage.
It’s important to note that Alabama isn’t one of the 12 “no fault” states. Like most states, they use a “fault” system for car insurance. This simply means that your insurance company pays out based on each party’s degree of fault.
Violations and penalties
The penalties for driving without car insurance in Alabama are harsh.
Your first violation results in a $500 fine. Your driver’s license will also be suspended for 6 months.
Each subsequent violation results in a $1,000 fine. Your car registration will also be suspended for 4 months in addition to another 6-month driver’s license suspension.
On top of these fines, you’ll have to pay $200 to reinstate your vehicle registration the first time it’s suspended. The fee goes up to $400 for each subsequent violation.
Alabama also requires many of those looking to reinstate a license suspended due to driving without insurance to file a SR22 certificate. The form acts as further proof that you have the minimum car insurance required to operate a vehicle in the state.
Driving safety in Alabama
A recent study from the Centers for Disease Control and Prevention states that approximately 90% of the state’s drivers and front-seat passengers wear their seatbelts compared to the 86% national average.
A large portion of Alabama driving fatalities are caused by alcohol impaired driving. Out of 848 total driving fatalities, the National Highway Safety Administration estimates that 247 of these, or 29% of the total, are caused by alcohol impaired driving.
Another study from the CDC suggests that the total vehicle occupant death date in Alabama is 13.7 per 100,000 residents.
You should not risk yourself or your finances just because you think you will not get involved in an accident. Instead, consider an extensive car insurance policy as an investment that will protect you from legal liabilities and even cover your medical expenses in the event of such an unfortunate incident.
|1||State minimum coverage includes the minimum liability insurance limits required in your state but excludes the following:
|2||Basic full coverage includes:
|3||Premium full coverage includes:
|4||Methodology: To achieve accurate results we obtained estimates for 10 cities in the state: 5 of the largest cities and 5 randomly picked smaller cities. For each city, we collected premiums for 3 levels of coverage: state minimum coverage, basic full coverage and premium full coverage. We used 3 different driver profiles for the case studies. For the young driver profile we used a 20-year-old single male or female with 1 year driving experience. Second, the profile fit that of a 35-year-old married female with 12 years of driving experience. The last profile we used in our studies is a male senior driver who was 68-year-old with 45 years of driving experience. The vehicle we used for all three driver profiles was a 2012 Honda Accord EX.|