Car Insurance in Mobile, AL
Experts break down auto insurance costs, coverages, companies, and more.
Even the best drivers can get into accidents. That is why vehicle owners in Mobile are required by Alabama law to carry car insurance. From fender benders on Airport Boulevard to multi-car collisions on I-65, a reliable auto insurance policy can shield you from facing large financial losses as a result.
Finding the best and most affordable car insurance policy is easy when you work with a local independent agent. These agents can help you obtain and compare customized quotes from a variety of the best car insurance companies in Mobile, AL. Contact an independent insurance agent near you to learn more.
How Much Does Car Insurance Cost in Mobile, AL?
The average cost of car insurance in Alabama is only slightly higher than the national average. Looking at quotes from several different insurance providers enables you to purchase the coverage that is offered at the best price.
- National average annual car insurance cost: $1,311
- Alabama average annual car insurance cost: $1,320
An average rate can only give you a general idea of what you might actually be expected to pay. Car insurance premiums often vary significantly from one driver to the next because they are based on several factors including:
- Details about your vehicle(s), like their make, model, and year
- Your age, gender, occupation, and driving record
- Information about the other licensed drivers in your household
- Whether you are a homeowner or a renter
- The amount of liability coverage you want
- Which, if any, coverage options you are including in your policy
- The size of your deductible
Many insurance companies will give you reduced rates if you bundle your car insurance with other policies like home insurance or renters insurance.
Other car insurance discounts you might qualify for include lower rates for having a good driving record, being a student with good grades, or having membership in certain driving associations.
What Does Mobile, Alabama Car Insurance Cover?
Car insurance is a mixture of required and optional coverage. To meet Alabama’s minimum coverage requirements, your policy must include liability coverage.
Car liability insurance is designed to cover injuries and property damage incurred by other people if you are at fault for a collision. Your policy must include the following amounts of coverage:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
In addition to liability coverage, your car insurance company is likely to offer a variety of coverage options. These can include:
- Collision insurance: This covers the cost to repair or replace your vehicle if is it damaged or totaled in a collision, regardless of fault. This coverage is typically required by lenders if you are financing your vehicle and by dealerships, if you are leasing it.
- Comprehensive insurance: This covers the cost to repair or replace your vehicle if it is damaged or totaled in a non-collision event, such as a flood or fire.
- Medical payments insurance: This provides limited coverage for medical treatment needed by you or your passengers if you are injured in a collision, regardless of fault. It can cover the things that your health insurance may not, like ambulance rides and copays.
- Uninsured motorist insurance: This can compensate you for your losses if you are in an accident caused by an uninsured driver and your collision coverage and medical payments coverage are not high enough to cover your incurred costs.
- Roadside assistance and towing: This covers the costs of assistance if your car becomes disabled, such as if you run out of gas, get a flat tire, or your alternator fails.
- Gap insurance: This can pay off your car loan if your vehicle is totaled in a covered event. It is usually a good idea during the first year or two of new car ownership when the vehicle’s assessed value is most likely to be lower than the amount you still owe for it.
- Rental car reimbursement insurance: This covers the cost to rent a vehicle while your own is being repaired for damage caused by a covered event.
Reviewing the coverage details and costs associated with each of the coverage options available to you can help you decide which, if any, are a good fit for you and your family.
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Is a Minimum Coverage Policy Enough for Me?
A minimum-coverage policy is your least expensive choice, but it isn’t necessarily the most cost-effective one.
For one thing, a policy that only includes liability coverage will not provide you with compensation if something happens to your own vehicle, such as if you accidentally hit a tree or if your car is damaged in a storm.
Also, although Alabama’s required liability coverage amounts might seem pretty high, they are unlikely to be high enough to fully cover you if you cause a serious collision that includes multiple vehicles and serious injuries.
If the costs of an accident you caused exceed what your policy can cover, you will be expected to make up the difference out of pocket.
That is why many Mobile drivers opt to purchase car insurance that has higher liability limits than the state requires. Umbrella insurance can boost your liability coverage even higher.
What Is the Penalty for Driving without Insurance in Mobile, AL?
Driving without insurance is illegal in Alabama. It comes with some pretty tough penalties, especially if you are a repeat offender.
If caught driving without insurance, you can face penalties such as:
- Fines ranging from $500 to $3,000
- The suspension of your vehicle registration for 45 days to 4 months
- A $200 to $400 reinstatement fee to get your registration back
- Vehicle impoundment
- A Class C misdemeanor conviction on your record for a first offense, or a Class B misdemeanor conviction for second and subsequent offenses
- Possible imprisonment for up to six months
- Higher car insurance rates
Despite these many penalties, around one out of every six drivers in this state is operating an uninsured vehicle. This is much higher than the national rate of uninsured driving:
- 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 resulting property damage and injuries. However, this money can often be difficult to collect, especially if the at-fault driver has no money or assets to go after.
Uninsured motorist insurance was created to ensure that you can you receive the compensation you deserve without the need to go through lengthy legal channels. Your insurance company will pay you immediately and will then take on the burden of trying to get compensation from the uninsured driver.
Does Mobile, AL Car Insurance Cover Auto Theft?
The auto theft rate in the state of is Alabama higher than the national average, and the risk is nearly doubled in Mobile. Residents of this city report around 1,000 vehicle thefts a year.
- National auto theft rate per 1,000 vehicles: 2.29
- Alabama auto theft rate per 1,000 vehicles: 2.68
- Mobile auto theft rate per 1,000 vehicles: 4.42
Your car insurance policy can reimburse you for a stolen vehicle, but only if the policy includes comprehensive coverage. This optional insurance covers more than just auto thefts. It also covers against loss or damage caused by a variety of other non-collision hazards like tornadoes and hailstorms.
If you are still paying for your vehicle or if you are leasing it, chances are good you have comprehensive coverage already. If not, you may want to look into how much it would cost for you to include it in your Mobile car insurance policy so you can determine if it is a good value for you and your family.
Why Work with an Independent Insurance Agent in Mobile, AL?
Local independent agents are available to answer your insurance-related questions, offer guidance and advice, and help you find the best and most affordable policy to meet your coverage needs. Best of all, it doesn’t cost anything to talk to one of these experienced insurance professionals.
Arrange an obligation-free consultation with an independent insurance agent near you to get more information and to start comparing customized quotes from some of the best car insurance companies in Mobile, Alabama.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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