How Much are Auto Insurance Quotes for Drivers Under 25 in Alabama?

The words “low-priced” and “auto insurance” really should not be used together, in particular when looking for the lowest insurance rates for drivers under 25. Because of the high cost, let’s learn about some of the factors that have an effect on insurance prices, and find some ways to take the sting out of the next policy you buy.

One of the more important things that auto insurance companies use when figuring the annual cost of car insurance is the neighborhood you call home in Alabama. Regions with larger populations or more claims like Birmingham, Bessemer, and Vestavia Hills tend to have higher auto insurance costs, whereas areas with fewer weather claims and lower vehicle theft rates generally pay lower auto insurance rates.

The table below shows the most expensive cities in Alabama for drivers under 25 to purchase a policy in.

Annual rates are approximated as the garaging address in Alabama can alter prices significantly.

Figuring out which companies offer the cheapest car insurance rates for drivers under 25 will involve more time in order to find the lowest price. Every auto insurer has a proprietary method to set policy rates, so let’s take a look at the most budget-friendly car insurance companies in Alabama.

Best Auto Insurance Prices for Young Drivers

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Travelers offers some of the best car insurance rates in Alabama at around $815 a year. Cincinnati Insurance, USAA, GEICO, and Country would also make the list of some of the most economical Alabama auto insurance companies.

As the example above demonstrates, if you are a customer of Country and switched to Cincinnati Insurance, you could realize yearly savings of upwards of $331. Policyholders with Safeway could save as much as $390 a year, and Auto-Owners customers might see rate reductions of $390 a year.

To see if you’re overpaying, click here to begin a quote or visit several of the following companies.

It’s important to note that these policy prices are averaged for all types of insureds and vehicles and do not factor in a price increase for drivers under 25. So the auto insurance company that has the cheapest rates for you may not even be included in the above list. That helps illustrate why you need to get car insurance quotes using your own driver and vehicle profiles.

The make and model of vehicle you are buying coverage for is probably the most important factor that determines the availablility of affordable coverage for drivers under 25. Vehicles with economical engines, good safety features, or a low likelihood of liability claims will cost less to insure than adrenaline junky models.

The next table showcases coverage premiums for a number of the most economical vehicles to buy insurance for.

Data based on single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alabama minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate information does not factor in specific garaging location which can raise or lower premium rates considerably.

Based on these rates, makes and models like the Honda CR-V, Honda Accord, Ford Escape, and Volkswagen Jetta are most likely to be a few of the most budget-friendly vehicles to insure for drivers age 25 and younger. The cost of auto insurance will tend to be more expensive because there is more exposure for drivers under 25, but generally speaking those makes and models will most likely have the least expensive rates that you are likely to find.

Discounts on Alabama insurance rates

Insurance companies that offer cheap auto insurance for drivers under 25 in Alabama could also offer rate discounts that may potentially lower prices by 40% or more if you meet certain criteria. Popular car insurance companies and some of the discounts are:

The illustration below illustrates the comparison of car insurance rates with and without discounts being applied to the rates. The data is based on a male driver, a clean driving record, no claims, Alabama state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with good student, passive restraint, continuous coverage, anti-theft, vehicle safety, and paid-in-full discounts applied. In this example, the average amount saved each year on car insurance for drivers under 25 is 16% or $246.

Best rates: Allstate, Progressive, Geico, or State Farm

If you are looking for the best auto insurance for drivers age 25 and younger, the first places to look would be Allstate, Progressive, Geico, and State Farm. The table below breaks down some of the different options and features shoppers can expect to find with each one.

How to find low-cost auto insurance for drivers under 25

It’s not impossible to find cheaper rates, and here are some of the recommended money-saving ideas that can help Alabama drivers buy lower-cost coverage.

• Choose a safer vehicle and pay lower rates
• Do not pay for comprehensive and collision coverage on older vehicles
• Better credit scores save money
• Avoid preventable accidents
• Avoid getting tickets or violations
• Raise your deductibles
• Shop around for lower rates once a year

That final tip is remarkably crucial, as was emphasized in this article. Coverage prices can be adjusted at any time, so drivers shouldn’t hesitate to buy from a different company if a cheaper price is available. Staying with the same car insurance company is fine, but it’s not recommended if that loyalty results in overpaying several hundred dollars every year. Take a couple minutes and compare prices and find cheaper auto insurance for drivers under 25.

Cheap insurance quotes for drivers age 25 and younger

You have many ways to find lower-cost car insurance in Alabama, but the most popular ways are from an independent or non-exclusive agent, an exlusive agent like Allstate or Auto-Owners, or buying direct from a company like Geico or Progressive.

You can use whichever method you prefer, but buyers should know the differences in how they provide price quotes.

Independent agencies can place your business with multiple companies and can compare rates with all of them. Independent agents do not sell for just one brand and can give you more rates, which can help you get a better chance of saving money. If cheaper coverage is found, the business is moved internally and you can remain with the same agent.

A captive or exclusive agent is only able to write with one insurance company, two examples are a State Farm or Allstate agent. Exclusive agents are unable to quote rates from more than one company, so if the price isn’t competitive there isn’t much they can do.

The final way is buying direct, which means you do not use an exlusive or independent agent and instead buy direct online or over the phone from a company like Esurance or Progressive. Buying direct can be good for families who do not have complex finances and have an above average understanding of what coverages they need.

So what is the best way to find cheap auto insurance for drivers under 25 in Alabama? It would be premature to say buying direct results in the cheapest rates because there isn’t an agent involved, but that generally is not the case. It could also be said buying car insurance from an independent agent guarantees the lowest rates due to more options, but that is not accurate either. For the right applicant, exclusive agencies have really good rates that cannot be met by either independent or direct companies.

Due to the fact that car insurance rates vary so much, really the only way to get the cheapest rates is to get as many comparison quotes as possible. The best approach is to get prices from all three types to have a good selection of rates to choose from. For a list of companies offering online discounts in Alabama, click here to view.