Who Has Cheap Auto Insurance for Teenagers in Alabama?

The type of vehicle that is being insured is probably the largest consideration when comparing quotes for cheap auto insurance for teenagers in Alabama. Vehicles with limited speed and performance, good safety features, or a low likelihood of liability claims will cost less to insure than high performance models.

The table below features auto insurance costs for some of the most cost-effective automobiles to buy coverage for.

Data rating is based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alabama minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in the specific area where the vehicle is garaged which can revise rates considerably.

Based on these rates, we can assume that vehicles like the Honda Accord, Honda CR-V, Ford Escape, Chevrolet Traverse, and Toyota Prius should be some of the less-costly vehicles to insure for teen drivers. Prices will be more expensive just due to the fact that there is more liability exposure for teenagers, but in general those makes and models will probably have the best insurance prices available.

One of the many considerations that play a part in determining rate quotes is your zip code in Alabama. Urban areas that are densely populated like Birmingham, Mobile, and Homewood tend to have higher rates, whereas areas with less people or fewer weather incidents tend to receive cheaper rates.

The following table illustrates the more expensive cities in Alabama for teenagers to purchase auto insurance in.

Rate information is approximated as specific Alabama zip code can decrease or increase price quotes considerably.

Finding out which company has the best insurance rates for teenagers will involve a bit more work in order to find the lowest price.

Every car insurance company uses a different method to set premium rates, so let’s examine the insurance companies with the most affordable rates in Alabama.

Best Cheap Insurance Rates for Teens

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Travelers has some of the best car insurance rates in Alabama at around $815 each year. Cincinnati Insurance, USAA, GEICO, and Safeway would also make the list of some of the cheapest Alabama car insurance companies.

As the rates illustrate above, if you currently have a policy with USAA and switched to Travelers, you might achieve an annual premium reduction of about $116. Drivers with GEICO could save as much as $246 a year, and Safeway policyholders might reduce prices by as much as $355 a year.

To find out how your current rates compare, click here to get quotes or visit several of the following companies.

It’s important to note that these policy prices are averages across all types of drivers and the different vehicles they drive and and are not figured with a price increase for teenagers. So the company that has the lowest price for you may not even be in the list of companies shown earlier. That is why you need to compare rates from as many companies as possible using your own personal information and vehicle type.

Safe drivers pay cheaper rates

The easiest method to obtain the best insurance rates in Alabama for teen drivers is to be an attentive driver and avoid traffic citations and accidents. The diagram below demonstrates how citations and at-fault accidents can increase insurance costs for different age groups. Data assumes a married female driver, comp and collision included, $250 deductibles, and no additional discounts are factored in.

The data charted above shows the average cost of car insurance in Alabama per year with no accidents or violations is $1,368. Add in one speeding ticket and the average cost jumps to $1,592, an increase of $224 each year. Then throw in one accident along with the one speeding ticket and the yearly cost of insurance for teenagers goes up to an average of $2,217. That’s an increase of $850, or $71 per month, just for not keeping your driving record clean!

Best cheap insurance quotes for teen drivers

Thanks to the internet, there are a lot of ways to get affordable insurance quotes in Alabama, but the three most common are through an independent insurance agent, an exclusive insurance agent such as State Farm or Liberty Mutual, or direct either online or via phone. Each way has the same basic steps, but it’s important to point out the distinctions in how they work.

Independent insurance agents have contracts with multiple insurance companies and can compare rates with all of them. Agents of this type are not employed by one specific company and can give you more rate choices, which can give you the best shot at cutting your rates. If the agent locates a cheaper price, they can switch companies in-house which requires no work on your part.

A captive, or exclusive, agent is restricted to one insurance company, a couple examples are an Auto-Owners or State Farm agent. Exclusive agents cannot provide prices from multiple companies, so if the price isn’t competitive there isn’t much they can do.

Buying from a direct company means forego the middleman (the agent) and instead shop from a direct company like Geico. This option is a good choice for people who do not need advice for risk management and know more than average about the exclusions of a policy.

Which method is best to buy cheap auto insurance for teenagers in Alabama? We’d like to say buying from a direct company saves money since there is no need to pay agent commissions, but unfortunately, it’s not that cut and dried. A good argument could also be made that buying insurance from an independent agent results in the cheapest rates since they can provide multiple quotes, but that assumption is not true either. In the right set of circumstances, exclusive agencies have very competitive rates that independents and direct companies can’t touch.

Because of the variability of insurance rates, the only true way to get the lowest rate is to get rate quotes and compare. To cover all the bases, get rate quotes from independent agents, exclusive agents, and direct companies in order to be able to find the lowest price. For a list of insurance companies with low rates, click here to view.

How to find cheap auto insurance for teenagers in Alabama

The list below summarizes some of the recommended thrifty ideas that can help drivers locate cheaper auto insurance.

• Higher credit scores can equal lower rates
• Too many claims can make car insurance unaffordable
• Buy a car with high safety ratings
• Accident-free drivers may qualify for discounts
• Violations like speeding or DUI increase rates
• Shop around for cheaper rates regularly

The last item on the list is especially critical, as we pointed out in the prior information. Car insurance rates fluctuate constantly, so drivers shouldn’t be resistant to buy from a different company if a more affordable price is available. Staying with the same car insurance company is fine, but it’s not a good idea if that loyalty results in overpaying a fortune every year. In just a few minutes you could shop around and find cheaper insurance for teenagers.