Who Has the Cheapest Car Insurance Rates in Montgomery?

Montgomery is a mid-sized city in the United States, with a population of over 198,000 as of 2019. The population in Montgomery actually experienced a decline between 2010 and 2019, with the population decreasing 3.4% compared to the national average of 6.3% growth over the same period. The percentage of people between the ages of 18-65, the typical age range for the majority of drivers, is 62% and only one percent less of the population above age 16 was in the civilian labor force between 2014-2018.

The mean travel time to work for workers above the age of 16 was short, at 19.7 minutes between 2014-2018. If you compare that to the national average of around 27 minutes commute each way, it’s obvious that those in Montgomery are spending less time on the road than those in many other cities. Additionally, in 2019, Montgomery had 972 total cases of reported vehicle theft, averaging out to 489.3 cases per 100,000 people, which is higher than the Alabama average of 256.5 and the national average of 219.9.

Since these statistics are often taken into account when insurance companies decide premium costs, the lower commute but higher theft rate may simply even out and leave you paying an average cost for the state.

What are the Insurance Requirements in Montgomery?

According to the Alabama Department of Motor Vehicles, the minimum auto insurance requirements in the state include a commonly stated 25/50/25 policy. This translates to coverage of $25,000 for bodily injury liability per person, a $50,000 maximum to be paid for all bodily damages caused per accident, and a $25,000 maximum for property damage caused in each accident. In cases where a driver is involved in an automobile accident and the other party was at fault, but the driver’s own insurance company does not want to pursue costs for the policy holder’s deductible or loss of use on the policy holder’s behalf, the state recommends that the driver file a claim in Small Claims Court or by calling the at-fault party’s insurance policy.

However, it’s not typically recommended that drivers purchase only the minimum requirements for car insurance in Alabama, which will not be enough to cover the costs in a more severe accident. In particular, the $25,000 property damage maximum for these policies will be unlikely to cover the costs of totaling an expensive car. Additionally, the $25,000 bodily injury liability per person limit may not be enough to cover medical expenses and other compensation in the advent of a severe accident causing debilitation or death.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Montgomery by Insurer

Many companies provide affordable car insurance in Alabama. However, when choosing a car insurance company, it’s important to consider more than just the costs of the minimum coverage plan and instead choose a plan that best suits your financial and personal goals, with plenty of coverage. Also, be sure to check out each company’s customer service ratings in your location to ensure that you are choosing the best company for your needs.

Compare all car insurance company rates near you here.

Low Cost Auto Insurance for Bad Credit in Montgomery

Drivers with bad credit will still be able to purchase relatively affordable auto insurance in Alabama. However, it’s important to shop around between insurance companies before purchasing a policy, as these numbers are not always easily available. Requesting quotes is the best way to find insurance that will be inexpensive based on your credit rating and your personal history.

Learn how a bankruptcy affects your credit and auto insurance rates.

Full Coverage Vs. Liability Coverage

What is Liability-Only?

Liability insurance covers the possible cost of damage you cause to others while driving. This could mean the cost of medical care for those injured in an accident or repair costs of the damage you have caused to other vehicles.

With liability insurance, there are 3 key numbers: injury coverage per person, coverage for total injury per accident, and property damage coverage per accident. Each state has different requirements for car insurance minimums. In a policy that has coverage for 15/30/25 means $15,000 per injured person, with a maximum of $30,000 for all the people who are injured in an accident, and $25,000 in coverage for property damage.

What is Full Coverage Car Insurance?

While liability insurance covers other people and vehicles in an accident where you were the one considered at fault, full coverage insurance can also cover you and your vehicle as well. Full coverage includes two different types of coverage combined into one insurance plan; comprehensive insurance and collision.

Comprehensive coverage is for the damage of other vehicles that are outside of driving situations such as weather damage, fire, or theft.

Collision coverage is basically to pay for damage that you caused while driving such as an accident with another vehicle, hitting an object, or driving off the road.

The difference between collision and comprehensive is, if a tree were to fall on your car and damage it, comprehensive insurance would cover it, however, if you were driving and hit a tree causing damage to your car, then it would be covered by collision.

Difference Between the Two Types of Coverage

So, liability-only insurance coverage will pay for what you did to the neighbor’s bumper when you backed into it while rushing to work. It will pay for the hospital visit by a bicyclist you hit who has a broken leg. Liability-only only insurance will pay for the utility panel you hit at the RV resort when you had trouble backing in.

Collision will pay for any damage you did to your own vehicle when you backed into that utility panel at the RV resort. Comprehensive will pay for the damage your vehicle suffered when a tree fell on it in intense rains that weakened the soil.

The difference between liability and full coverage insurance policies is that liability only covers other people and their vehicle if an accident should occur where you are at fault, but, with a full coverage insurance plan, you and your vehicle would also be covered along with other’s and their vehicle as well.

Another difference between the two is that a deductible is associated with full-coverage insurance, but not with liability. There is also a difference in price, where full coverage will cost more than liability insurance.

Average Annual Car Insurance Rates in Alabama by City

Additional cities in Alabama you can check out.

Utilize These Auto Insurance Discounts to Get a Lower Rate

There are many ways that you can save on auto insurance in Montgomery:

  • 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.

What are the Factors that Affect Your Auto Insurance Premiums?

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.

Use this guide to find low cost rates with accidents from the top insurance companies.

Helpful Montgomery, Alabama Vehicle Resources:

Live Traffic and Accidents

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


Get a quote1.855.283.2631