Car insurance for a new driver in Alabama costs an average of $79 to $289 per month or $944 to $3,470 annually. Auto insurance premiums for new drivers in Alabama vary widely depending on a driver’s age and whether they are being added to an existing policy or purchasing their own. For example, the premium increase from adding a teenager to a parent’s policy is significantly less than the cost of a teenager getting their own policy.
Average Cost of Car Insurance for New Drivers in Alabama
Note: Premiums are representative of a 16-year-old good driver with a minimum coverage policy; individual premiums will vary.
New drivers aren’t only teens and those in their early 20’s. A new driver could be an adult who got their license later in life, a recent immigrant, or anyone who has a long gap in their driving or insurance history. For these types of new drivers in Alabama, insurance rates will still likely be higher than the average of $58 per month for an experienced adult.
A new driver’s lack of experience can classify them as high risk. Once new drivers get a bit more practice and have a proven track record of safe driving, however, they’ll begin to see their rates decrease. To learn more about minimizing the cost of car insurance in Alabama, check out WalletHub’s picks for the cheapest Alabama car insurance companies.
You can get car insurance discounts in Alabama based on how you drive, the car you own, and your relationship with your insurance company. In Alabama, car insurance companies are allowed to consider factors like employment, residential, and marital status when setting premiums. That means there are also discounts available for being married, owning a home, or being affiliated with certain employers or educational institutions.… read full answer
Almost anyone can get a discount on car insurance in Alabama because most insurance companies make it easy to qualify for a variety of savings. Alabama insurers typically offer discounts that fall into one of three categories—policy discounts, driver discounts, and vehicle discounts.
Policy discounts typically reward customer behavior that is desirable to the insurance company. For example, most Alabama drivers can save by registering for paperless billing or getting both home and auto policies from the same company. Driver discounts are available to Alabama residents who are lower-risk to insure, like those with clean driving records. And vehicle discounts help drivers save if their car has certain safety features or anti-theft systems.
Car Insurance Discounts in Alabama
How It Works
Insurance companies reward long-term customers with lower rates.
Up to 10%
Drivers with a clean record and no claims history save on insurance.
10% to 30%
Insurance companies are required by state law to provide a discount to older drivers who complete an approved defensive driving course. Drivers must be 50 years of age or older to qualify.
5% to 10%
Drivers who have been insured for 6 months or more save on insurance.
5% to 25%
Billing and Payments
If you pay for your policy in full, set up automatic payments, pay online, or go paperless, you can save.
2% to 25%
Insure multiple vehicles or get different policy types (like home and auto) from the same company can earn a discount.
1% to 12%
Young drivers with a “B” average or higher are eligible for discounts.
5% to 20%
Some insurance companies offer discounts for drivers who are willing to have their driving habits monitored by an electronic device attached to your car and/or your smartphone.
1% to 30%
Cars featuring multiple airbags, anti-lock brakes, daytime running lights, and other safety add-ons can save on car insurance.
2% to 30%
Car alarms, LoJack, steering wheel locks, or other anti-theft features can make comprehensive coverage more affordable.
5% to 25%
Remember, discounts vary among different insurance companies, so it’s always best to contact the provider directly to determine which discounts you qualify for.
In Alabama, drivers need $25,000 of bodily injury liability insurance per person, up to $50,000 per accident, and $25,000 of property damage liability insurance. Alabama does not require uninsured motorist protection, which replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits. Coverage like MedPay or personal injury protection pays for medical expenses for you and your passengers, and MedPay is optional in Alabama. PIP is not available.… read full answer
Here’s How Much Car Insurance Drivers Need in Alabama:
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Alabama law. Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. You might also have to get gap insurance, which covers the difference between what you owe on your loan and what the vehicle is worth at the time of a total loss.
Car insurance is likely to cost more than $5,500 annually for a new driver who is 17 years old to get a stand-alone policy. On the other hand, auto insurance will cost about $2,750 extra per year when adding a 17-year-old new driver to a parent’s policy. But insurance costs for new drivers vary widely.… read full answer
Age is a major factor in how much insurance costs for a new driver. Not everyone gets their first license at 16 or 17 years old. A new driver could be 25 or 40 or even 60 years old. Insurance companies set different prices for insuring a newly licensed teenager and someone getting their driver’s license later in life. They also factor in gender, state of residence and coverage amounts. Insuring any new driver, however, is more expensive than covering an experienced driver with good driving and insurance records.
Statistics show that new drivers tend to be high-risk drivers who are more likely to get into accidents and file claims. That’s why insurance companies charge more to insure them. You can’t fight statistics, but sometimes, you can make them work for you in order to get the best possible price. A look at car insurance statistics yields the following findings.
Adding a teen to a parent’s policy is cheaper. If you are a teen driver living at home or in a dorm, ask your parents to add you to their policy. It will be about half as costly as having your own policy.
Luxury cars are expensive to repair, and sports cars are likely to be driven too fast. Driving a cheaper, practical car with good safety and anti-theft features will lower your rates.
Students with good grades are better drivers. Insurance companies give discounts to students with a B average or better.
Driving courses improve drivers’ skills. Many insurance companies offer discounts for attending driver’s ed or online defensive driving schools.
Teachers, physicians, police officers, and other well-educated professionals file fewer claims. Some insurance companies offer discounts based on occupation.
If you are a new driver of any age, it’s worthwhile to comparison shop rates and discounts carefully. The cheapest way to do this is by getting free online quotes from multiple auto insurance companies.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.