Car Insurance in Huntsville, AL

Experts break down auto insurance costs, coverages, companies, and more for drivers in Huntsville.

Written by Meg Stefanac
Written by Meg Stefanac

Financial blogger and business owner, Meg Stefanac, has more than 15 years experience working in the financial services industry and enjoys helping individuals make solid financial decisions. Meg has extensive experience writing about insurance and finances and is a key contributor to

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Woman standing by car and looking away. Find Huntsville, Alabama car insurance.

Even the best drivers can find themselves in collisions. That is why vehicle owners in Huntsville are required to have car insurance. From fender-benders on Governors Drive to multi-car collisions on I-565, a good auto insurance policy can shield you from facing significant financial losses as a result.

Finding the best and most affordable auto insurance is easy when you work with a local independent agent. These agents can help you obtain and compare customized quotes from some of the area’s most highly rated car insurance companies. Contact an independent insurance agent near you to get started.

How Much Does Car Insurance Cost in Huntsville, AL?

The average cost of car insurance in Alabama is similar to the national average, but rates tend to run a bit higher in Huntsville. Shopping around for the best rate has the potential to save you hundreds of dollars a year.

  • National average annual car insurance cost: $1,311
  • Alabama average annual car insurance cost: $1,320
  • Huntsville average annual car insurance cost: $1,518

Of course, average rates can only give you a general idea of what you might be expected to pay. Car insurance costs can vary from one driver to the next because they are based on several factors such as:

  • The make, model, year, and condition of the vehicle(s) you are insuring
  • Your age, occupation, and driving record
  • Information about the other licensed drivers in your household
  • Whether you own or rent your home
  • The amount of liability coverage you are purchasing
  • The coverage options you want to include in your policy
  • The size of your deductible

Most insurance companies offer significant rate reductions if you bundle your car insurance with other policies such as home insurance or renters insurance. There are usually other discounts available, such as lower rates for safe drivers or good students.

Independent agents can ensure that you receive all available car insurance discounts you qualify for and that you get your policy at a competitive price.

What Are the Best Car Insurance Companies in Huntsville, AL?

Qualities that make an insurance company stand out above the others include a long history of responsive customer service, reliable coverage, and affordable rates.

Independent insurance agents have teamed up with some of the best car insurance companies in Alabama. This lets you be sure that any policies your agent recommends are offered by companies you can count on if you need to file a claim.

Is Car Insurance Required in Huntsville, Alabama?

No matter where you live in Alabama, if you own a vehicle, you are required to carry a car insurance policy that includes liability insurance.

Liability car insurance is designed to cover other people’s property damage and medical bills if you are at fault for a collision. Your policy must include coverage of at least:

  • $25,000 in bodily injury liability per person
  • $50,000 in bodily injury liability per accident
  • $25,000 in property damage liability per accident

The minimum liability coverage amounts may seem pretty high, but they are unlikely to be high enough if you are at fault for a major collision that includes serious injuries. If the costs you are responsible for exceed what your policy can cover, you will need to make up the difference out of pocket.

That is why many Huntsville drivers opt to purchase car insurance with higher liability limits than the state requires. Umbrella insurance can boost your liability coverage even higher.

What Else Can Huntsville, AL Car Insurance Cover?

In addition to the mandatory liability coverage mentioned above, your car insurance provider will offer various coverage options. You may want to include some or all of them in your Huntsville auto insurance policy.

Coverage options are you likely to encounter include:

  • Physical damage coverage: This covers damage to your own vehicle. Though not required by law, it will probably be required by your lender if you are still paying for your car or by the dealership if you are renting it. Physical damage coverage includes:
    • Collision coverage: This covers the cost to repair or replace your vehicle if it is damaged or totaled in a collision, regardless of fault.
    • Comprehensive coverage: This covers the cost to repair or replace your vehicle if it is damaged or totaled by a non-collision event such as a hailstorm or theft.
  • Uninsured motorist insurance: This can cover medical treatments for you and your passengers if you are injured in a collision caused by an uninsured, underinsured, or hit-and-run driver.
  • Medical payments: This helps to cover the cost of medical treatments if you or your passengers are injured in a collision, regardless of fault. It is mainly designed to cover the things your health insurance may not, like ambulance rides and copays.
  • Roadside assistance and towing: This covers service costs if your car breaks down, such as if your engine overheats or you get a flat tire.
  • Gap insurance: This can pay off your car loan in full if your vehicle is totaled in a covered event. It is usually only beneficial during the first year or two of new car ownership when your vehicle’s assessed value depreciates the fastest.

Reviewing coverage details and costs can help you determine which, if any, of the coverage options available to you are a good fit for you and your family.


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What Is the Penalty for Driving without Insurance in Huntsville, AL?

In Alabama, driving without insurance is a Class C misdemeanor for a first offense and a Class B misdemeanor for second and subsequent offenses. It can result in consequences including:

  • Fines ranging from $500 to $3,000
  • The suspension of your vehicle registration and driving privileges for up to 6 months
  • Possible vehicle impoundment
  • Possible jail time for up to 6 months
  • Higher car insurance rates

Despite these penalties, many motorists in this state are driving without insurance.

  • Percentage of US drivers who are uninsured: 13.0%
  • Percentage of Alabama drivers who are uninsured: 18.4%

If you are in a collision caused by an uninsured driver, that person is responsible for compensating you and your passengers for any property damage and injuries you may sustain. However, this money can often be challenging to collect.

Uninsured motorist insurance was created to ensure that you can quickly receive coverage for the treatment of your injuries without the need to go through lengthy legal channels.

Does Huntsville, AL Car Insurance Cover against Auto Theft?

The auto theft rate in Alabama is higher than the national rate, and in Huntsville, the risk is even greater. Residents of this city reported more than 1,000 stolen vehicles in a recent year.

  • National auto theft rate per 1,000 people: 2.29
  • Alabama auto theft rate per 1,000 people: 2.68
  • Huntsville auto theft rate per 1,000 people: 5.36

You can only be compensated for a stolen vehicle if your car insurance policy includes comprehensive coverage. Comprehensive insurance covers more than just car theft. It also covers loss or damage caused by many other non-collision hazards like tornadoes and floods.

If you are financing or leasing your vehicle, chances are good you have comprehensive coverage already. If not, you may want to look into how much it would cost to include this optional coverage in your car insurance policy.

How Can a Local Independent Agent Help Me Find the Best Car Insurance in Huntsville, AL?

When you are looking for the best auto insurance to meet your coverage and budgetary needs, an independent agent in Huntsville can help. These agents work for you, not for a particular insurance company. This means they are free to shop around to find you a suitable policy at a competitive price.

Contact an independent insurance agent near you to get more information and to start comparing customized car insurance quotes from some of the best auto insurance companies in Alabama.

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