What is the Average Cost of Car Insurance in Huntsville?

Huntsville, AL is a mid-sized city with a total population of around 190,000 people, of which 92,000 are considered employees. The city is on the younger side, with a median age of 37 which might be attributed to the fact that the city supports University of Alabama-Huntsville as well as Alabama A&M University.

Since Huntsville is somewhat isolated, even as the largest city in north-central Alabama, the area’s roads aren’t particularly clogged with suburban commuters. The average commute for a Huntsville employee is only 18 minutes, an enviable number compared to much of the nation, for which the average commute is 26.7 minutes. Though low commute times often help lower car insurance rates, Huntsville drivers still have to contend with the town’s auto theft rate, which can increase insurance costs.

Huntsville ranks as the nation’s 114th worst city for auto theft. There were 1,200 thefts in 2018, which translates into an overall theft rate of 260. Though the gross numbers don’t seem particularly alarming, when considering Huntsville’s smaller population and relative isolation, it’s possible that theft rates might impact costs when you look to purchase an Alabama auto policy. Minimum, liability-only policies also don’t cover loss or damage due to theft.

What are the Insurance Requirements in Huntsville?

Alabama drivers must carry a minimum amount of car insurance to be considered legal able to register and drive a vehicle in the state. Drivers must at least have a liability policy that covers each person’s property up to a minimum of $25,000 and bodily injuries up to $25,000 per person and $50,000 per accident. However, these liability-only policies are not necessarily recommended, despite their relative value and low-cost.

That’s because these policies don’t allow motorists to claim damages due to weather, hit-and-run drivers, or auto theft. Liability-only means that any damages of these types to a policyholder’s vehicle will need to be covered with out-of-pocket funds. It’s thus recommended that drivers carry a more robust policy if they can, such as a collision or comprehensive policy.

A collision or comprehensive policy can also come in handy even when a driver is not at fault in an accident. With more coverage, they can immediately file a claim with their own insurer while the other driver’s company settles the claim. They can receive their payout right away and then the companies can settle the finances between themselves.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Huntsville by Insurer

The following chart details the cheapest car insurance in Alabama, sorted by company. While every household strives to reduce those budget-killing recurring costs, you’ll want to consider that low-cost isn’t everything when it comes to auto insurance. Drivers should consider what a company has to offer in terms of other bundled policies, as well as their reputation for customer service. You don’t want to have trouble getting a response if you ever need to make a claim.

Use this guide to compare auto insurance quotes from the best companies.

Low Cost Auto Insurance for Bad Credit in Huntsville

Alabama, like 46 other states in the nation, allows insurance companies to raise rates for customers with poor credit by taking their credit scores into account when they decide what their premium will cost. The difference can be extraordinary, as a driver with poor credit can pay as much as $1,500 more than a driver with excellent credit. In fact, a driver with excellent credit and a DWI can pay more than $1,000 less than their credit-challenged peers. However, these figures are for new customers and so longstanding customers with solid payment histories and clean driving records might be able to pay less. Either way, you’ll want to find a company that gives you a good deal no matter what your credit history looks like.

Our bad credit guide can help you find low cost auto insurance rates close by.

Full Coverage Vs. Liability Coverage

What is Liability Only Insurance Coverage?

Liability-only coverage is the cheapest option for automobile insurance. This coverage level only covers vehicles that are not at fault in an accident. Thus, if you carry liability-only coverage and cause an accident, the other driver will be covered by your policy. Any damage done to your car must be covered out of pocket, if at all.

Another way to think of liability insurance is that it protects you from claims made by another driver. Without the protection of insurance, you might be sued if you were to collide with another vehicle.

What does Full Coverage Insurance Cover?

Full Coverage is a commonly used term which covers more than just the damage you might cause in an accident, or the coverage you are liable for. If your policy covers your liability to another vehicle, the damage done to your vehicle (collision insurance), and any incidental damage done to your car by any non-auto elements (comprehensive coverage), then you have a policy that is indeed full coverage. If you have a new car, you may wish to cover it with such a policy, as you might want the peace of mind that any damage will be covered by insurance.

What are the Major Differences Between Full Coverage and Liability?

The main difference between liability and full coverage insurance is that full coverage will cost more than liability insurance and this is because it protects you against many more possible risks that liability doesn’t cover.

In addition, liability insurance only covers other people’s injury claims and damages to other vehicles where full coverage will cover other’s injuries and vehicle damages as well as your injuries and damage to your own vehicle.

Average Annual Car Insurance Rates in Alabama by City

Additional cities in Alabama you can check out.

How to Lower Your Insurance Rates Policy

The following auto insurance discounts can be used to help lower your premiums in Huntsville:

  • Raise your deductible

    If you are willing to pay more money for a deductible, in the event of an accident, then you can lower your insurance rates substantially. You can lower your premium to around 10% just by raising your deductible to around $1,000.

  • Drop Collision Coverage on Old Cars

    Dropping collision coverage on older cars can really help save you a lot, especially for cars that are more than ten years old and only worth four or five thousand dollars. Think about it, if you have an accident while driving an older car, are you really going to pay to repair it or just buy a new car?

  • Check Insurance Rates for Your Car’s Make and Model

    The make and model of your car can make a big difference in how much you pay for auto insurance. Therefore, before purchasing a new car, be sure and check the insurance rates for it as some can be much higher than others.

  • Shop Around to Check Rates from Numerous Insurance Companies

    The chart in this article should be enough proof to know that there can be a big difference in what various insurance companies charge for auto insurance. That is why it is a good idea to check rates from a number of insurance companies before deciding which plan to choose.

  • Drive Fewer Miles

    One of the questions asked when applying for auto insurance rates, is how many miles you drive regularly. This is because the more miles you drive, the more risk you are to the insurance company and the higher your insurance cost will be. Try to drive fewer miles, if possible, to save more money on your premiums.

  • Maintain a Good driving record

    Being a safe driver can not only save your life, but it can also save you a lot of money, too. There is a big difference in how much people with accidents on their record have to pay, and what those without any accidents pay. Therefore, always drive safely.

  • Live in a less populated area

    Your location matters when it comes to auto insurance rates. If you live in a highly populated area, your rates will be higher than if you live in a lower-population area. The Jefferson and New Orleans areas have some of the highest rates in Louisiana, but if you live just 30 minutes outside of the city, you can expect your rates to go down.

To learn more about the common and uncommon driver discounts, click here.

Reasons that Affect Your Automobile Insurance Rates in Huntsville AL

Insurance companies factor in many variables when determining your automobile insurance rate. They look at your age, type of car, marital status, gender, and driving record, among other factors. Age is a factor because actuaries have found that older drivers tend to be safer drivers, whether due to experience or caution.

Your type of car is also important. For instance, cherry red convertible sports cars in particular might have the highest insurance rates. On this note, be aware that you might pay a lower premium for driving the sedan version of a sporty, high-horsepower vehicle. Still, what matters most is how you drive your hot-hatch or family wagon.

That’s because your driving record is perhaps the biggest single factor in your insurance rate. It is certainly the one that you have the most control over. That is, the longer you can maintain an incident-free driving record, the lower your rates are sure to be. Incidents can be anything from a minor speeding ticket to a reckless driving charge to being at-fault in a major automobile accident.

Learn how citations can affect your insurance premiums here.

Helpful Huntsville, Alabama Vehicle Resources:

Live Traffic and Accidents

DMV (Find Locations, Vehicle Registration, Titles and Insurance Info)


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