Alabama Auto Insurance Requirements
Every driver in Alabama is legally required to be covered by a current auto insurance policy. Minimum coverage requirements in Alabama are mandated by the Department of Revenue, Motor Vehicles Division. Motorists are required to have the following minimum coverage on every vehicle:
(Source: Department of Revenue, Motor Vehicles Division)
Driving without the mandatory liability insurance in Alabama will result in a license plate suspension. First offender reinstatement fee is $100, plus proof of current insurance. Civil fines of up to $1,000, plus a 6 month suspension of the driver’s license can be imposed for second and subsequent violations. Court costs may also be levied, depending upon the jurisdiction.
Alternatively, drivers not wishing to carry basic liability insurance in Alabama may either deposit $50,000 with the state treasurer, or obtain a $50,000 liability bond.
Factors Influencing Car Insurance Premiums in Alabama
Finding cheap car insurance in Alabama is an easier task than in many other states, as Alabama ranks 37th in average car insurance costs. While there are a variety of factors that go into underwriting auto insurance, Alabama insurance laws give good drivers the opportunity to qualify for cheap car insurance in comparison to other states. Reasons include:
• Population density, which is concentrated in urban areas.
• PIP / no-fault coverage is not available in Alabama
• Overall accident rates are lower than national averages.
• Auto insurance fraud cases are below national averages.
The average auto insurance premium for residents in Alabama is $1,306 in 2011; the national average is $1,790.
Tips for Obtaining Cheap Car Insurance in Alabama
• Take an AAA-sponsored defensive driving course. Attendees can see a 5 to 10% policy discount after completing such a course.
• Bind multiple policies (homeowners, life, auto) with the same provider
• Maintain a good credit score
• Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
• Discuss affinity discounts with your insurance provider
• Drop comprehensive and collision insurance on older vehicles
Alabama Statistics
• Auto Theft: Perhaps surprisingly, Alabama enjoys one of the lower rates of auto theft in the nation, and the rate has been decreasing consistently over the past 10 years:
(Source: Auto Thiefs)
• Automobile Accidents: Total vehicle miles traveled in Alabama have decreased in recent years, as have the number of fatalities on Alabama roads. 2009 saw a significant decline in the number of deaths in car crashes:
(Source: National Highway Traffic Safety Administration)
Enter your Zip Code below to find Cheap Car Insurance in Alabama.