Best Cheap Auto Insurance for Unemployed Drivers in Alabama

Wouldn’t it be awesome if we could wave our magic wand and tell you the single best car insurance company that has the cheapest rates for unemployed drivers? Regrettably, it’s not quite that easy, as there are a whole bunch of unknown factors such as the safety features built into your vehicle, the neighborhood you live in, and whether you are married or single, that all go into determining the rate you pay. Car insurance is kind of a dry topic, but this article will explain the types of things that cause high car insurance rates and will hopefully give the reader a good start in finding the cheapest car insurance.

When buying auto insurance for the unemployed, one of the key criteria that is used by auto insurance companies to calculate the policy price is where your residence is in Alabama. Areas that are more densely populated like Birmingham, Prichard, and Vestavia Hills are more likely to pay higher prices, whereas areas with lower vehicle theft rates and fewer weather claims benefit from having to pay less for coverage.

The illustration below rates the more expensive cities in Alabama for unemployed drivers in which to buy car insurance.

Rate quotes are estimated as vehicle location can lower or raise coverage rates considerably.

Comparing quotes for budget insurance is difficult, and determining which company has the lowest-priced car insurance rates for unemployed drivers will require even more perseverance.

Every insurance provider uses their own calculation for setting rates, so let’s take a look at the overall cheapest car insurance companies in Alabama. It’s a good idea to know that Alabama car insurance rates are impacted by many factors that will increase or decrease the cost of your policy. This is why consumers need to take the time to shop around when trying to find the most economical car insurance rates for unemployed drivers. Insurance prices are calculated by many different factors and can change without notice, so the lowest-price company three years ago may now be one of the higher cost companies.

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Travelers generally has some of the lowest car insurance rates in Alabama at around $807 per year. Cincinnati Insurance, USAA, GEICO, and Country also qualify as some of the cheapest Alabama insurance companies.

In the above example, if you are a customer of USAA and switched to Travelers, you could see a yearly price reduction of in the vicinity of $124. Alabama drivers with GEICO could save as much as $223 a year, and Country policyholders might see rate reductions of $364 a year.

To compare your rates to other Alabama insurance companies, click here to begin a quote or click through to the companies below.

Be aware that those rates are averages for all types of drivers and the different vehicles they drive and are not factoring in a rate discount for unemployed drivers. So the auto insurance company that has the cheapest price for you may not even be featured in the list above. That points out the importance of why you need to compare rates from as many companies as possible using your own personal information and vehicle type.

The vehicle model requiring insurance is one of the largest factors when shopping for the best cheap auto insurance for unemployed drivers in Alabama. Vehicles with higher performance, poor safety ratings, or a history of substantial liability claims will cost more to insure than safer models. The list below estimates insurance prices for some of the most economical automobiles to buy coverage for.

Data variables include single male driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and Alabama minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-policy, and multi-vehicle. Rate quotes do not factor in specific location information which can alter insurance rates substantially.

Based upon these rates, vehicles like the Hyundai Tucson, Kia Forte, Ford Explorer, Ford Escape, and Honda CR-V are going to be the less-costly vehicles to insure for the unemployed.

Liability rates compared to full coverage

Finding the best cheap auto insurance for unemployed drivers in Alabama should be important to most drivers, and an effective way to buy cheaper insurance is to not insure for full coverage. The example below shows the difference between premium costs when comparing full coverage to liability only. The rate quotes are based on no driving violations, no at-fault accidents, $1,000 deductibles, drivers are not married, and no discounts are applied.

Averaged for all ages 20 through 70, physical damage insurance costs $1,915 per year over and above liability coverage. That is a large expense and it proposes the question when is it a good idea to stop buying full coverage. There is no clear-cut formula to stop buying full coverage, but there is a guideline you can use. If the yearly cost for physical damage coverage is 10% or more of the settlement you would receive from your company, then you might consider buying liability only.

There are some cases where dropping physical damage coverage is not advised. If you still owe a portion of the original loan, you are required to maintain full coverage to protect the lienholder’s interest. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should not drop full coverage.