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The impact of accidents on auto insurance rates in Alabama

Alabama is the 12th most expensive state to buy auto insurance in the United States. As of January 2014, the average annual insurance rate in Alabama is $1667. Average insurance rates range between $1265 and $1518 in Alabama. Huntsville, Florence, and Dothan are the cities where auto insurance rates are affordable, at $1265, $1286, and $1294, respectively. Decatur, Tuscaloosa, Madison, Auburn, and Hoover have average insurance rates between $1300 and $1400. Montgomery and Birmingham are expensive cities to buy auto insurance, with average insurance rates at $1442 and $1518, respectively.

An accident on your record increases your insurance rates to an average insurance rate of $2053. If you have two accidents on your record, your insurance rate will be increased to $3063. In Huntsville, if you have been involved in an accident that caused extensive property damage or medical injuries, your insurance rate would be increased to an amount between $1898 and $2530.

The table below shows the increase in insurance rates after one or two accidents in the different cities of Alabama.

City Zip code Average Annual Insurance Rate ($) Average Annual Insurance Rate after One Accident ($) Average Annual Insurance Rate after Two Accidents ($)
Huntsville 35801 1,265 1,558 2,324
Florence 35630 1,286 1,584 2,363
Dothan 36301 1,294 1,594 2,377
Decatur 35601 1,319 1,624 2,423
Tuscaloosa 35401 1,337 1,647 2,456
Madison 35756 1,340 1,650 2,462
Auburn 36830 1,344 1,655 2,469
Hoover 35216 1,379 1,698 2,534
Montgomery 36104 1,442 1,776 2,649
Birmingham 35203 1,518 1,870 2,789

Insurance companies also follow the Insurance Services Office’s (ISO) surcharge policy. The table below shows how this policy affects your insurance rates in the different cities of Alabama.

City Zip code Average Annual Insurance Rate ($) Increased Rate for Multi-car Policy ($) Increased Rate for Single-car policy ($)
Huntsville 35801 1,265 1,518 1,771
Florence 35630 1,286 1,543 1,800
Dothan 36301 1,294 1,553 1,812
Decatur 35601 1,319 1,583 1,847
Tuscaloosa 35401 1,337 1,604 1,872
Madison 35756 1,340 1,608 1,876
Auburn 36830 1,344 1,613 1,882
Hoover 35216 1,379 1,655 1,931
Montgomery 36104 1,442 1,730 2,019
Birmingham 35203 1,518 1,822 2,125

Drunk Driving in Alabama

Drunk driving poses a serious threat of accidents, not just to those who have consumed alcohol but also for those who might become innocent victims (such as pedestrians) of the accident. As per the U.S. Department of Transportation, National Highway Traffic Safety Administration (NHTSA), the maximum percentages killed in accidents are those in passenger vehicles followed by motorcycles and pedestrians.

Based on information from the NHTSA, the total fatalities due to road accidents in Alabama were 895 in 2011 and 865 in 2012, in which alcohol impaired fatalities were 261 in 2011. Alcohol impaired fatalities contributed 29% to the total number of accidents. In 2012 the number is 257, and it contributes to 30% of total accidents.

Even if you survive the accident, you will have to face the financial implications, such as a fine up to $2100 (for the first conviction). The amount of fine will be even higher for subsequent offences. As per Alabama Department of Public Safety, driving under the influence is also a criminal offense that could land you in jail for up to 1 year in a municipal or county jail.

One of the major repercussions of a drunk driving conviction is that it is bound to drive your auto insurance premiums through the roof. In the state of Alabama the average premium for auto insurance is $1667, which can increase up to $3101 in the first year of the DUI. This can go further up in some cases for the next seven years after conviction and also for repeat offenders.

In Alabama as per the Insurance Research Council, 22% of the population does not carry insurance, which makes Alabama the 5th worst in the country in this regard. Those who are caught driving without insurance are fined up to $500.

Most car insurance companies follow the Insurance Services Office's (ISO) standard of increasing premiums. In Alabama as per the ISO, for multicar policies the surcharge is $2000 of the base rate for the first two vehicles on the policy, and $2334 for a single-car policy.

If you're involved in an accident that causes serious injuries or major property damage, your insurance premiums could increase by between $2501 and $3334 after your next policy renewal.

The best way to keep the insurance premiums low is to be safe and avoid alcohol when you are driving back home. However, drivers who have been convicted can bring down the insurance premiums to $2636 by taking defensive driving courses.

To avoid these consequences it is best to either avoid being drunk while driving or to plan ahead and arrange an alternative mode of transport.

Alabama Auto Insurance Rates

Below are the minimum, average and maximum insurance rate estimates for neighbourhoods in and around Alabama, AL.

Lowest Rate:$1200
Average Rate:$1700
Highest Rate:$2700

Recent Savings From Top Providers in Alabama

Rank Customer Zipcode Amount Saved
1 35007 $564
2 36600 $557
3 35004 $555
4 35005 $553

Compare Auto Insurance Companies in Alabama

Company A.M Best Rating on
Financial Strength
Year Founded
Progressive A+ 1937
State Farm A++ 1922
Allstate A+ 1931
GEICO A++ 1936
Nationwide A+ 1925
Liberty Mutual A 1912

Alabama Auto Insurance Requirements

Minimum limits of liability for auto insurance in Alabama as per AL State Laws

Bodily Injury Liability

  • $25,000 for death/injury of any one person, per accident.
  • $50,000 for all persons per accident.

Property Damage Liability

  • $25,000 per accident.

Alabama Car Insurance Average Rates by Make

In addition to the location, one key factor that contributes to the insurance rates in Alabama is the vehicle's make and model. Especially the vehicle's theft rates in Alabama

MakeInsurance Average PremiumView Details
MakeInsurance Average PremiumView Details

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