Best Cheap Car Insurance for Low Credit Scores in Alabama

When shopping for the cheapest car insurance for bad credit, one of the many factors that car insurance companies use when figuring the price of your policy is where you keep your car in Alabama. Larger areas like Birmingham, Prichard, and Montgomery will most likely have higher rates, whereas areas that are not as densely populated have the luxury of lower rates.

The next table displays the most expensive places in Alabama for low credit scores to purchase auto insurance in.

Rate information is comparative as the specific geographic location can affect coverage rates significantly.

Establishing which companies offer the lowest-priced auto insurance rates for low credit scores will involve a bit more effort in order to find a policy that fits your budget. Every insurance company has a different process to establish rates, so let’s take a look at the lowest cost auto insurance companies in Alabama.

It’s a good idea to be aware that Alabama auto insurance rates are impacted by many factors that may substantially change the price of your policy. Simply having another birthday, buying a home, or having an at-fault accident may prompt premium changes that can make some companies cheaper in comparison to the competition.

Cheap Insurance Rates in Alabama

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Cincinnati Insurance may offer some of the lowest car insurance rates in Alabama at around $812 each year. Travelers, USAA, GEICO, and Country are also some of the cheaper Alabama insurance companies.

As shown above, if you currently buy coverage from USAA and switched to Cincinnati Insurance, you may see annual savings of in the vicinity of $119. Alabama drivers with GEICO could save as much as $249 a year, and Country insureds might realize rate reductions of up to $347 a year.

Be aware that those prices are averages across all drivers and vehicles and and are not figured with a rate discount for low credit scores. So the car insurance company that has the lowest price for you may not even be in the above rate chart. That underscores the importance of why you need to get quotes using your own specific driver and vehicle information.

Careless Alabama drivers pay higher rates

The ideal way to enjoy cheap auto insurance premiums for bad credit is to pay attention while driving and avoid accidents and violations. The diagram below highlights how traffic violations and accident claims can influence insurance costs for different age categories. The rate quotes are based on a married male driver, full physical damage coverage, $100 deductibles, and no additional discounts are factored in.

The chart shows that the average cost of an auto insurance policy per year with a clean driving record and no accidents is $2,250. Receive two speeding tickets and the average cost hikes up to $3,116, an increase of $866 each year. Then add one accident along with the two speeding tickets and the yearly cost of auto insurance for low credit scores jumps again to an average of $3,992. That’s an increase of $1,743, or $145 per month, just for not being more responsible behind the wheel!

Is the best company State Farm, Geico, Allstate, or Progressive?

When it comes to buying auto insurance for bad credit, the companies with the most market share are State Farm, Geico, Allstate, and Progressive. They all have slightly different options that shoppers can select from. The data below shows ratings and policy coverage options that may be available in Alabama.