October 22, 2009

Alabama Updates Minimal Auto Insurance Rates

As in most states, auto insurance premiums vary widely in Alabama. Drivers who have no accidents on their records may receive significant discounts on their auto insurance rates. Those who live in certain neighborhoods may pay less than those who live in communities with higher crime rates. As motorists must do in any state, drivers looking for auto insurance in Alabama need to shop around to find the lowest possible premiums. Drivers who don't make this effort might find themselves paying too much for their auto insurance.

Each state sets its own minimum limits for the amount of auto insurance motorists are required to purchase to drive legally. In Alabama, due to a recent change in policy requirements, motorists must buy insurance for a minimum bodily injury liability of $25,000 per injured person up to a total of $50,000 per accident. Drivers here must also buy property damage liability coverage with a minimum limit of $25,000. This coverage is usually known as 25/50/25 coverage.

The amount of money motorists pay for this minimum auto insurance can vary widely. Alabama drivers who want to save on their auto insurance premiums can make sure to maintain a driving record free of speeding tickets, moving violations or accidents. Each of these infractions will increase the premiums that motorists pay. Drivers also can save money on their auto insurance by taking out several policies with the same insurer. Some insurance companies will offer discounts to customers who take out both auto insurance and homeowner's insurance policies with them. These discounts can often be significant. Motorists who drive their cars fewer miles each year will also pay lower auto insurance rates. Insurers figure that drivers that aren't on the road as much are less likely to get into serious accidents. Therefore, these drivers are not as risky, and are rewarded with lower rates. In Alabama as in other states, some factors contributing to the rates they pay are out of drivers' control. Motorists will generally pay less as they get older. That's because insurers view younger drivers as more likely to speed or drive distracted. They, again, are riskier, something that forces insurers to charge them more for their monthly auto insurance premiums.

Finally, motorists shouldn't disregard the value of safety measures. Drivers in Alabama will generally pay less each month if they buy a car alarm or if they park their vehicles in indoor garages at night. They'll also pay less depending on whether their home zip code has a reputation as a low- or a high-crime area.

Finding the lowest auto insurance rates in Alabama does require research, but those consumers who do this research will find that they are rewarded with the lowest premiums.