Alabama car insurance rates are among the lowest in the nation. The average annual premium for auto insurance in Alabama for 2011 is $1,323, which is over 100 dollars lower than the national average.
Nevertheless, premiums in Alabama did rise 7% between 2011 and 2010, following a 12% increase between 2009 and 2010. There is no fixed premium structure in Alabama and insurers which operate there are free to set their own rates. Therefore, especially because rates can even change during the course of a single year, drivers are advised to check Alabama car insurance rates on our site in order to obtain and maintain the best possible price.
In fact, between November 2010 and December 2010, average annual car insurance premiums in Alabama rose from $1172 to $1327, while premiums fell from $1301 to $1203 between April and May of 2010. These seasonal fluctuations are typical for Alabama, which is why it pays to shop around and to monitor rates.
Minimum insurance requirements for the state of Alabama call for personal liability coverage of $25,000 per person/$50,000 limit per accident and a $25,000 property damage liability limit. However, Alabama works under a tort system, where one party must be judged responsible for any accident and that party is then held liable for the entire cost of the accident. Higher limits are therefore recommended to protect assets in the event of a lawsuit. Coverage to protect against damage caused by an uninsured or under-insured driver is available in Alabama and it is usually recommended, especially because the minimum state requirements are so low.
Advice for Getting the Best Deals
Alabama car insurance providers include both major national insurers and regional insurers. Since each company uses different criteria to determine their premiums for each driver, it is not possible to determine which companies offer the lowest rates. Experts recommend obtaining multiple quotes from reliable insurance companies which are rated A or higher by A. M. Best, and it is also advised to check the J. D. Power ratings for consumer service related information.
Using our site to monitor rates and periodically obtain new quotes is the best way to get the lowest rates for car insurance in Alabama.