- Alabama government car insurance for low-income drivers
- Alabama minimum car insurance requirements
- Best low income car insurance in Alabama
- Cheap car insurance in Alabama for low-income individuals
- Car insurance discounts in Alabama for low-income drivers
- Methodology
- Low-income car insurance in Alabama: Frequently asked questions
- Compare low-income car insurance rates in Alabama with other states
Alabama government car insurance for low-income drivers
There is no government-run car insurance program for low-income drivers in Alabama. Only a handful of states (California, Hawaii and New Jersey) have such a program.
In Alabama, low-income drivers must still carry the minimum amount of car insurance. The best way to find it on a budget is to shop around.
Alabama minimum car insurance requirements
The minimum car insurance requirements in Alabama are as follows:
| Minimum liability coverage limits | Average annual premium | Other types of insurance required (if any) |
|---|---|---|
| 25/50/25 | $433 | - |
Remember that if you have a loan on your car, you’re required to carry full coverage, which includes collision and comprehensive.
Best low income car insurance in Alabama
Country Financial came out on top as the best pick for low-income car insurance.
People on a tight budget still deserve great service from their car insurance company. We gathered the data on the top car insurance companies in Alabama and compared them on rates for state-minimum coverage, financial stability and customer satisfaction based on J.D. Power and National Association of Insurance Commissioners (NAIC) scores.
These are the best low-income car insurance companies in Alabama.
| Company | Average annual premium | J.D. Power | AM Best | NAIC | Insurance.com score |
|---|---|---|---|---|---|
| Country Financial | $313 | 828 | A+ | 0.34 | 3.69 |
| Auto-Owners | $416 | 859 | A++ | 0.5 | 3.6 |
| State Farm | $340 | 807 | A++ | 0.7 | 3.32 |
| Travelers | $403 | 851 | A++ | 0.49 | 3.18 |
| Geico | $363 | 847 | A++ | 0.91 | 3.11 |
| Progressive | $450 | 828 | A+ | 0.65 | 2.8 |
| Nationwide | $487 | 818 | A+ | 0.64 | 2.71 |
| Allstate | $576 | 816 | A+ | 0.65 | 2.51 |
| Farmers | $667 | 857 | A | 0.8 | 2.15 |
Cheap car insurance in Alabama for low-income individuals
Based on state-minimum coverage, we found that the cheapest car insurance company in Alabama is Country Financial at an average rate of $313 a year.
When you’re working with a tight budget, price is the number one consideration. We gathered rates from car insurance companies in Alabama to find the cheapest options on average.
| Company name | Average annual premium | Average monthly premium |
|---|---|---|
| Country Financial | $313 | $26 |
| State Farm | $340 | $28 |
| Geico | $363 | $30 |
| Travelers | $403 | $34 |
| Auto-Owners | $416 | $35 |
| Progressive | $450 | $38 |
| Nationwide | $487 | $41 |
| Allstate | $576 | $48 |
| Farmers | $667 | $56 |
| USAA | $316 | $26 |
Car insurance discounts in Alabama for low-income drivers
Discounts are the best way to bring down your car insurance rates. There are a number of discounts low-income drivers in Alabama can take advantage of for cheaper insurance. Take a look at some common discounts and how much you can save below.
| Discount type | % Discount |
|---|---|
| Years Licensed | 20% |
| Years Insured | 18% |
| Telematics | 11% |
| Profession | 11% |
| Loyalty - Years Renewal With Company | 11% |
| Marital Status | 10% |
| Payment Type | 9% |
| Primary Use | 8% |
| Multi Policy | 8% |
| Days Advanced Purchase | 6% |
| Education | 5% |
| Daily Commute | 5% |
| Lower Annual Mileage | 5% |
| Days Per Week Driven | 4% |
| Paperless/Electornic Documents | 4% |
| Homeowner | 3% |
| Electronic Funds Transfer | 2% |
| Safety Devices | 2% |
| Anti-Theft Device | 1% |
| Air Bags | 1% |
Methodology
Insurance.com commissioned car insurance rates from Quadrant Data Services in late 2023 for state minimum car insurance policies across all states. Rates are based on a 40-year-old driver with a clean driving record and good credit, driving a Honda Accord LX. We compared rates from 170 companies across 35,488 ZIP codes.
Low-income car insurance in Alabama: Frequently asked questions
What is the cheapest car insurance company for low-income people?
In Alabama, the cheapest car insurance company is Country Financial. However, that’s based on average rates and may differ for you, so it’s important to shop around.
Does Alabama have car insurance for low-income individuals?
No, Alabama doesn’t offer a car insurance program for low-income individuals or families.
Compare low-income car insurance rates in Alabama with other states
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