If you are an Alabama resident, consider yourself lucky, as the state's car insurance laws are pretty straightforward. But that doesn't mean your current premium is set in stone.
This guide:
• Explains Alabama auto insurance regulations and requirements
• Describes how the state's insurance premiums are decided
• Helps you save money on current rates by comparing multiple quotes
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A brief look at the state's insurance laws
Alabama is considered a tort state, which means that as a resident you're financially responsible for the damage and injury you cause in an auto accident. Liability protection insures you for these costs, and is a required coverage in Alabama.
The state's liability minimums are 20/40/10. (That's $20,000 per person for injuries you cause to the other party, up to $40,000 for all, and $10,000 for damage you cause to the other party's property.)
Of course, these are low minimums, and you should consider higher levels of coverage, particularly if you have assets to protect.
Alabama auto insurance companies will also offer optional coverages such as medical payments, collision, comprehensive, and uninsured and underinsured motorists bodily injury coverage.
Sidebar If you live in Alabama, and have good credit and driving records, you should be able to save on your policy premium by visiting Electric Insurance.
The price of Alabama auto insurance is decided by the behavior of the state's drivers as a whole. Alabama auto insurance companies take the cost of insuring the state's drivers (this includes settlements and legal fees) and divide it up among all insured.
But the cost isn't spread around evenly. Instead, the percentage you pay is decided by things like your driving record, your age, where you live, and the kind of car you drive.
Of course, not all auto insurance providers figure their percentages the same way, charging different rates on the same driver.
What this means for you as a driver, is that you need to shop the different rates (and they'll be very different!) for the best deal. It's the fastest and easiest way to save on an auto insurance policy. And you won't have to change a thing about your car or driving pattern to save.
Fortunately, shopping around is easy to do online because one good service will give you several competing quotes.
Where you can get Alabama auto insurance quotes
The best way to save, is to of course shop as many providers as possible. Most of the services below will let you compare several quotes, instantly and for free, making the "shopping around" a snap. (These links will open in a new window):
• ComparisonMarket is the online insurance shopping service that offers the most quotes from the most top-rated companies.
• Netquote is a great service, because it gets you quotes from local agents who can help you decide what coverage you need, based on where you live.
• Electric Insurance a discount insurance provider for drivers with good credit and driving records. If you qualify, you can save a lot.
• Geico - Like the gecko says: "15 minutes could save you $300 or more on your car insurance".
• Get quotes by ZIP Code: enter your ZIP below to get a quote from a provider right in your neighborhood:
To speed things up, you might wish to have some information required for an online quote ready before you begin.
More AL car insurance advice and help
If you want more help designing your AL auto insurance policy, check out our guide to car insurance options. It contains a lot of money saving advice too.
Then subscribe to our free email course. You'll learn the simple step-by-step process that will help you locate, evaluate, and purchase the best possible auto plan for you and your family. (Or your small business).
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