Cheapest Car Insurance In Birmingham, AL For May, 2024

After reviewing over 60 quotes from the nation’s top insurance companies, State Farm consistently ranked as the cheapest car insurance company for drivers in Birmingham, Alabama. While State Farm had the lowest rates for minimum coverage, full coverage, and motorists with violations, several other providers also had affordable rates.

For example, Travelers Insurance was the cheapest for young drivers, and Assurance America ranked the most affordable for senior drivers. Likewise, drivers with poor credit can find the best rates with Nationwide. Lastly, USAA remained the best option for active and retired military personnel.

Within the past five years, Birmingham, Alabama, has seen tremendous growth in the private sector. As more people move to the area for work, it’s essential to understand the city’s average auto insurance rates compared to other regions in the state.

For instance, the average monthly premium for a car insurance policy in Birmingham is $169, while the state average is only $144. Even though the city’s average car insurance plan is more expensive than other locations in Alabama, there are plenty of ways to find cheap coverage.

Throughout this guide, we’ll look at the cheapest options for car insurance and explore how different criteria, such as age, driving record, and credit, can play a role in your monthly payment.

Cheapest Overall Rates In Birmingham

Over time, many drivers will, unfortunately, get a minor driving violation, whether for speeding on their way to work or not entirely stopping at a stop sign. These small incidents won’t significantly impact your car insurance rates unless you receive multiple violations in a short period.

However, other events such as DUIs, at-fault accidents, or reckless driving are seen as major offenses and can significantly increase your monthly premium rates. The main reason for the drastic change in car insurance prices is the likelihood of risk.

The more risky a person is behind the wheel, the more likely they are to be involved in an accident.

Cheapest Rates For Motorists With Driving Violations In Birmingham

Many people assume that having the minimum car insurance will cover all the expenses in the event of an accident with another car or personal property. However, minimum coverage typically only covers the other person and their property — it doesn’t protect you or your vehicle.

Purchasing comprehensive coverage can help add protection to your auto insurance policy to cover damage expenses related to your vehicle.

Generally full coverage auto insurance policies will include the four following protections:

• Property damage liability
• Bodily injury liability
• Comprehensive and collision
• Roadside assistance or rental car reimbursement

Cheapest Full Coverage Rates In Birmingham

If you’re planning on purchasing a minimum coverage policy, keeping the state’s legal limits in mind is a good idea. Here’s a closer look at what you’ll want to ensure is included in your plan:

• $25,000 bodily injury liability limit per person
• $50,000 maximum for all bodily injuries to be paid for any one accident
• $25,000 maximum for property damage per accident

Drivers who fail to maintain the minimums listed above could face fines of up to $400 for multiple offenses.

Cheapest Minimum Coverage Rates In Birmingham

As a young driver just starting with a new license, it can be exciting and overwhelming at the same time. While newfound freedom comes with driving, there is also the responsibility to manage a vehicle on the road safely.

Since many young drivers don’t have experience behind the wheel, insurance companies tend to increase rates to hedge against potential accidents.

As younger drivers spend more time driving and keeping their records clean, auto insurance providers can collect more data on the motorist and calculate a more accurate risk assessment. For most drivers, this means as you age, your rates will decrease as long as there haven’t been any driving violations.

Cheapest Rates For Young Drivers In Birmingham

For many senior drivers, accessing account information is one of the biggest challenges. With Assurance America, there are multiple ways to accomplish this, including speaking with a representative. Many policyholders rave about the hospitality and politeness the customer service team provides.

Along with easy access to information, many senior drivers are on fixed incomes, so they need the most affordable coverage. Luckily, many insurance providers offer special discounts that will help keep costs low as motorists age.

Cheapest Rates For Senior Drivers In Birmingham

Average Cost Of Car Insurance In Birmingham, Alabama

Average Cost In Birmingham – By Age

Average Cost In Birmingham – By Gender

Average Cost In Birmingham – Marital Status

Average Cost In Birmingham – By Accident And Violation History

Average Cost In Birmingham – By Credit Tier

Average Cost In Birmingham – By Zip Code

Minimum Car Insurance Requirements In Alabama

Every state has requirements for a driver’s minimum auto insurance to operate a vehicle legally. For Alabama drivers, the minimum car insurance requirements include the following:

• $25,000 bodily injury liability limit per person
• $50,000 maximum for all bodily injuries to be paid for any one accident
• $25,000 maximum for property damage per accident

While most insurance carriers will include these coverage amounts in your typical auto insurance policy, it’s still a good idea to review the terms of your agreement before accepting.

How To Buy Car Insurance In Birmingham

Many consumers assume purchasing car insurance is a complex and lengthy process. However, most drivers can find a policy within minutes when utilizing websites like Insuranceopedia to compare free auto coverage quotes.

Below are some essential steps when buying car insurance in Birmingham.

Step 1: Gather Information

Even though you can complete the information step when purchasing auto insurance, it’s often easier to gather it beforehand. The most common types of information you’ll need include:

• Driving history for all drivers on the plan
• Information about your vehicle — annual mileage, safety features, current odometer reading, VIN, make, model, and year of the vehicle
• Driver’s license numbers for all policy members
• Name and birthdate of all policy members
• Information on the current insurer, if you’re switching carriers

Step 2: Understand Your Coverage Needs

For drivers in Birmingham, the state requires that each motorist carry an insurance policy that has the following minimums:

• $25,000 bodily injury liability limit per person
• $50,000 maximum for all bodily injuries to be paid for any one accident
• $25,000 maximum for property damage per accident

Keep these numbers in mind as you move into the remaining steps of purchasing a plan. The state could force you to pay a fine for driving without proper insurance and minimum coverage.

Step 3: Select A Purchasing Method

Most people prefer to shop online for their car insurance policy. This path is often the easiest, and many shoppers feel they have more time to compare offers without the added pressure of working with an insurance agent. However, there are still some benefits to going through the traditional route of an insurance agency.

For instance, working with a licensed insurance agent allows you to ask questions and receive instant answers. While many online carriers have a chat feature, you may have to wait for the information you need to proceed with a policy.

Regardless of which path you choose, online or in-person, selecting the policy that makes the most sense for your current situation is important.

Step 4: Compare Auto Insurance Policies

It’s often easy to simply select the first quote you receive from an insurance agency. However, collecting at least three samples from different providers is always a good idea. With additional quotes, you can compare rates and review the types of discounts you qualify for from each insurance company.

Step 5: Purchase Your New Auto Insurance Policy

The final step in purchasing an auto insurance policy is buying the coverage. You’ll need to purchase your new policy and close any open ends at this stage.

For example, if you’re replacing coverage, you’ll want to contact your former insurer and have them cancel your car insurance policy after the new plan is active.

Factors That Impact Cost Of Your Car Insurance Policy In Birmingham

Regarding the car insurance rates you’ll pay in Birmingham, many factors will play a role in determining your monthly premium. For instance, location is often a criterion that can affect your rates.

The insurance company could deem your location high-risk depending on which zip code you live in or where you park your car. In these zones, car theft and vandalism are often more likely to occur, so auto insurance rates are generally a little higher.

Along with location, several other factors impact the cost of car insurance, including:

• Age
• Gender
• State Insurance Requirements
• Driving Record
• Vehicle Type
• Average Annual Mileage
• Credit History
• Marital Status

Alabama Car Insurance Laws To Know

The most important car insurance law for Alabama drivers is the minimum liability coverage of 25/50/25. Motorists must carry an auto insurance plan with a minimum of $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident.

While these plans are a great way to protect other drivers, a minimum liability coverage policy won’t cover you or your vehicle. You’ll need to add another type of insurance product, like comprehensive or collision coverage, for additional protection.

In The News

• Auto insurance experts predict auto insurance rates to increase by 7 percent throughout Alabama affecting cities like Birmingham.
• State Farm could stop offering coverage for certain Kia and Hyundai vehicles due to high likelihood of theft in the area.

Information About Birmingham

Birmingham is the largest city in Alabama, with more than 200,000 citizens. Since its foundation in 1871, Birmingham has served as an important cultural and economic hub for the state. Many historians and experts refer to the city as “the Pittsburgh of the South” due to its important role in the steel and iron industries.

Birmingham, AL, was also one of the most important cities during the Civil Rights Movement in the 1960s. Today, a Civil Rights Institute in the area chronicles the city’s role in the battle against segregation in the United States.

Car Insurance Discounts In Birmingham

Along with searching for affordable premium rates, drivers can also use discounts to decrease the amount of money they spend on car insurance. Here are a few discounts to review when purchasing your next auto insurance policy:

• Safe driver
• Low mileage
• Accident-free
• Defensive driving
• Good student
• Student away
• Senior
• Military
• Multi-policy
• Multi-vehicle
• Paid in full

Looking For Car Insurance In Other Alabama Cities?

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