June 25, 2021

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Auto Insurance for High-Risk Drivers in Alabama – Bankrate

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Many people considered high-risk drivers are generally those who have a history of speeding tickets or at-fault accidents. However, a high-risk driver can also be a teenage driver or someone who has been convicted of a DUI. A combination of these factors may apply to a single driver, too.

When it comes to drivers seeing the high-risk auto insurance Alabama offers, insurance providers are typically wary. Statistically speaking, high-risk drivers are more likely to file a claim than other drivers. In Alabama, this appears to be especially true. In 2017, the state had the fifth-highest amount of drunk driving-related deaths in the nation.

Normally, needing Alabama high-risk auto insurance means a driver will pay more for car insurance. But sometimes, as is the case with DUI convictions, it can be a lot more than that.

Rates for high-risk car insurance in Alabama

The amount of a premium increase because of a high-risk factor varies on the specific traffic incident. This is because some high-risk events are more dangerous than others. The factors highlighted below include:

  • Speeding tickets
  • At-fault accidents
  • DUIs
  • Teen drivers

Rates after a speeding ticket

After a speeding violation, drivers could expect to see their car insurance rates increase by at least 7%, but the increase could be up to 99%, depending on the provider. The cost of car insurance after a speeding ticket will, of course, vary depending on previous violations as well as the severity of the speeding ticket itself. Speeding in Alabama could also result in anywhere between $190 and $300 in fines or fees. Additionally, two or five points may be added to a driver’s record, depending on their speed.

Car insurance company Alabama average annual premium for full coverage before a speeding ticket Alabama average annual premium for full coverage after a speeding ticket % increase
Progressive $1,573 $2,229 42%
Geico $1,423 $1,701 20%
USAA $1,230 $1,410 15%
Country Financial $1,699 $2,030 19%
State Farm $1,470 $1,800 22%
Alfa $2,138 $2,288 7%
Allstate $1,313 $2,616 99%
American Independent $3,110 $3,447 11%
Travelers $1,071 $1,553 45%
Farmers $1,432 $2,138 49%
MetLife $2,441 $3,405 39%
Donegal $1,606 $1,789 11%

Rates after an at-fault accident

The minimum increase Alabama drivers might expect after an at-fault accident is 26%, but the rate could increase by upwards of 100%. If a driver gets into accidents too frequently, their carrier may decide to cancel the policy altogether. At minimum, you can generally expect an increase with each at-fault accident and claim you file.

Car insurance company Alabama average annual premium for full coverage before an at-fault accident Alabama average annual premium for full coverage after an at-fault accident % increase
Progressive $1,573 $2,820 79%
Geico $1,423 $2,151 51%
USAA $1,230 $1,785 45%
Country Financial $1,699 $2,104 24%
State Farm $1,470 $2,052 40%
Alfa $2,138 $2,400 12%
Allstate $1,313 $2,774 111%
American Independent $3,110 $3,918 26%
Travelers $1,071 $1,544 44%
Farmers $1,432 $3,348 134%
MetLife $2,441 $4,423 81%
Donegal $1,606 $3,268 103%

Rates after a DUI

Based on our data, drivers could see a minimum increase of 11% after a DUI. However, most insurers increase rates by significantly more, potentially up to a 323% increase. Car insurance rates after a DUI arrest will vary depending on personal driving history and whether or not there are any past convictions.

Legally, insurance companies are allowed to cancel a policy after a severe traffic violation, so it is possible a policy may not be renewed. If it is renewed, drivers can typically expect to pay more. However, because policies increase by such a significant margin, drivers may be required to file an SR-22 with the Department of Motor Vehicles (DMV) to prove that they are still carrying the proper levels of insurance.

Car insurance company Alabama average annual premium for full coverage before a DUI Alabama average annual premium for full coverage after a DUI % increase
Progressive $1,573 $2,100 34%
Geico $1,423 $3,032 113%
USAA $1,230 $2,619 113%
Country Financial $1,699 $2,511 48%
State Farm $1,470 $2,359 60%
Alfa $2,138 $4,214 97%
Allstate $1,313 $2,967 126%
American Independent $3,110 $3,447 11%
Travelers $1,071 $1,682 57%
Farmers $1,432 $2,843 99%
MetLife $2,441 $6,663 173%
Donegal $1,606 $6,792 323%

Rate for teen drivers

Teen drivers are more likely to get into an at-fault car accident or speed compared to other drivers. As a result, teenage drivers usually pay more for car insurance and continue to pay more until they reach 25. By the time they reach 25, most drivers should begin seeing a drop in their premiums, assuming their driving record has remained clean.

The table below shows the average cost to insure a teen with each listed provider.

Car insurance company Average annual premium for full coverage
Progressive $1,935
Geico $2,461
USAA $2,608
Country Financial $1,953
State Farm $2,250
Alfa $2,469
Allstate $2,051
American Independent $7,354
Travelers $1,461
Farmers $2,136
MetLife $6,557
Donegal $1,353

*16 year old on their parent’s policy

Who is a high-risk driver?

A high-risk driver is anyone an insurance company considers to be at risk of filing claims more frequently than the average driver. However, this definition is rather broad. Specifically, the things that tend to make a driver be considered high risk include such things as:

  • Previous accidents
  • Age
  • DUI/DWI conviction
  • Low credit score
  • Numerous speeding tickets
  • History of driving violations
  • Living in an area with a high crime rate or accident rate

To provide rates for high-risk behaviors, Bankrate’s sample driver profile was quoted rates based on having at least one at-fault accident, speeding violation, DUI conviction and lapse in coverage applied on the driving record.

How to lower your rate if you’re a high risk driver

To lower the cost of high-risk auto insurance in Alabama, you may use several strategies. To lower your premium, consider doing as many of the following as possible:

  • Increase your deductible: By increasing your deductible, you will receive less money after a claim, but you will also pay less money each month. It comes with pros and cons, but it may be important to consider whether you can afford the higher out-of-pocket expense for a claim before decreasing your deductible.
  • Increase your credit score: Statistically, drivers with low credit scores file more claims. As a result, many insurance companies charge drivers more money if they have a low credit score. Therefore, increasing credit score often leads to lower premiums.
  • Drive an older car: New cars may cost more to insure because they cost more to replace. Consider the benefits of maximizing your savings by driving an older car with a high safety rating that you could also pair up with discounts (such as dual airbags and daytime lights).
  • Compare discounts: Most national providers in Alabama offer multiple discounts, but the amount each provider offers varies. While rate shopping, consider comparing discounts you could take advantage of as well as the amount you could save with each.
  • Shop around: Different companies charge differently for the same or similar kinds of policies. For example, some companies weigh the importance of your credit score more heavily than others. Therefore, it may be possible to pay less simply by changing to a provider that does not charge as much. However, if you utilize several of the above strategies, you could save even more.

Frequently asked questions

Will my insurance policy be canceled after a DUI?

It is possible, although it is also possible your provider may just charge you more. A DUI on your driving record suggests to an insurance provider that you will likely engage in risky behavior again one day, which might result in a big claim. Continue to keep your record clean by obeying all traffic laws and not speeding to help reduce the likelihood that your policy will be canceled.

Which companies insure high-risk drivers?

Most insurance companies work with high-risk drivers, but every company has the right to deny coverage based on a driver’s driving history. Therefore, to find high-risk car insurance in Alabama, it often helps to shop around for car insurance as you normally would.

Does needing an SR-22 raise car insurance premiums?

The SR-22 by itself is not what raises car insurance. Rather, it is the violation that causes the need for an SR-22 that can increase rates. Multiple speeding violations or a DUI conviction, for example, are considered high-risk activities that may increase your car insurance premium. However, there will likely be a small fee to get the forms submitted to the DMV.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually. These are sample rates and should only be used for comparative purposes.

High-risk drivers
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

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