Car Insurance in Montgomery, AL

Experts break down auto insurance costs, coverages, companies, and more.

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Even the most careful drivers can be involved in accidents. That is why vehicle owners in Montgomery are required by state law to carry car insurance. From fender-benders on Union Street to multi-car collisions on I-85, a reliable auto insurance policy can shield you from incurring large financial losses.

Shopping for coverage is easy when you work with an independent agent. These agents aren’t tied to a single insurance provider so they can help you compare customized quotes from some of the best car insurance companies in Montgomery. Find an independent insurance agent near you to get started.

How Much Does Car Insurance Cost in Montgomery, AL?

The average cost of car insurance in Alabama is almost identical to the national average rate. Shopping around for the best price lets you be certain that you are not overpaying for your policy.

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

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

  • Your vehicle’s make, model, and year
  • Your age, occupation, and driving history
  • Details about the other licensed drivers in your household
  • The amount of liability coverage you want to purchase
  • The coverage options you want to include in your policy
  • Whether you own or rent your home
  • The size of your deductible

You can often earn rate reductions by bundling your auto insurance with other policies like homeowners insurance or renters insurance, by having a long, safe driving record, or even by having a teen driver who gets good grades. Be sure to ask about all potential car insurance discounts when requesting personalized car insurance rates.

What  the Minimum Car Insurance Requirements in Montgomery, AL?

In Alabama, all drivers are required to have liability coverage. Car liability insurance is designed to cover other people’s property damage and medical bills if you cause a collision. Your car insurance policy must meet or exceed the following coverage levels:

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

These required amounts might seem pretty high, but if you cause a serious collision that includes multiple vehicles and injuries, you might find yourself owing far more than what your policy can cover. If this happens, you will be expected to make up the difference out of pocket.

That is why many Montgomery drivers choose to purchase car insurance that has much higher liability limits than the state requires. Supplementing with umbrella insurance can boost your liability coverage even higher.

What Else Can Montgomery, AL Car Insurance Cover?

In addition to the mandatory liability coverage mentioned above, your car insurance provider is likely to offer a variety of coverage options. You may want to include some or all of them in your Montgomery auto insurance policy.

Optional coverage you can choose from may include:

  • Full coverage: This covers loss or damage to your own vehicle. It is usually required by lenders if you are still paying for your car and by dealerships if you have it on a lease. Full coverage includes:
    • Collision insurance: This covers the cost to repair or replace your vehicle if is it damaged or totaled in a collision, regardless of fault.
    • Comprehensive insurance: This covers the cost to repair or replace your vehicle if it is damaged or totaled by a non-collision event, such as theft or a flood.
  • Uninsured motorist coverage: This can pay for property damage and medical treatments for you and your passengers if you are in a collision caused by an uninsured driver.
  • Medical payments coverage: This can help to cover the cost of medical treatments if you or your passengers are injured in a collision, regardless of fault.
  • Towing and roadside assistance coverage: This covers the cost of assistance if your car becomes disabled while you’re out on the road.
  • Rental car reimbursement: This covers the cost to rent a car while yours is being repaired following a covered event.
  • Gap insurance: This bridges the gap between what your car is worth and what you still owe for it so that if it is totaled in a covered event, you are not left making payments on a car you no longer own. This is typically beneficial during the first year or two of new car ownership when car values depreciate the fastest.

Reviewing coverage details and costs can help you decide 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 Montgomery, AL?

Driving without insurance is a misdemeanor in Alabama. It can result in some tough consequences, especially if you are a repeat offender. If you are caught driving without insurance in this state, you can be penalized with:

  • A fine of up to $500 for a first offense, up to $1,000 for a second offense, and up to $3,000 for subsequent offenses.
  • The suspension of your vehicle registration for 45 days to 4 months
  • The loss of your driver’s license for 6 months if you are a repeat offender
  • Reinstatement fees ranging from $200 to $400
  • Vehicle impoundment
  • Possible imprisonment for up to 6 months
  • Higher car insurance rates

Still, nearly one-fifth of all drivers in this state are operating uninsured vehicles.

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

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

Uninsured motorist insurance was created to ensure that you can receive the compensation you deserve quickly and without the need to go through lengthy legal channels.

What Is the Auto Theft Rate in Montgomery, AL?

The auto theft rate in the state of Alabama a bit higher than the national rate. And in Montgomery, the risk is even higher. Residents of this city report around 900 stolen vehicles a year.

  • National auto theft rate per 1,000 vehicles: 2.29
  • Alabama auto theft rate per 1,000 vehicles: 2.69
  • Montgomery auto theft rate per 1,000 vehicles: 4.89

It is important to be aware that 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 a variety of other non-collision hazards like windstorms and floods.

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

How Can an Independent Insurance Agent in Montgomery, AL Help You Find the Best Policy?

When you are searching for the best auto insurance to meet your coverage and budgetary needs, an independent agent in Montgomery can help. These agents work for you, not for a particular insurance company, so they can shop around to find you the coverage you want at the most competitive price.

Contact 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 Montgomery, Alabama.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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