Alabama Auto Insurance with Bad Credit

The Zebra
March 12, 2019

Finding cheap auto insurance can be tough when you have bad credit. Car insurance companies use credit as a rating factor, setting policy prices based partially on clients' credit histories. Because auto insurers use historical data showing drivers with bad credit histories have a greater likelihood of filing car insurance claims, they compensate for the additional risk by assigning expensive rates.

Car insurance rates with bad credit depends on which company you choose, where you live, and a few other rating factors. We've gathered on this page typical car insurance rates for drivers with bad credit in major Alabama cities and rates from a few of the most popular car insurance companies, plus a few tips on saving on auto insurance with bad credit in Alabama.


Auto insurance with bad credit in Alabama:

  1. Average premiums
  2. Prices by city
  3. Costs by company

Car insurance rates with bad credit in Alabama

Drivers in Alabama face an average penalty of $1,595 per year for having a credit score in the “worst” tier. Drivers in either the “poor” or “below fair to poor” credit tier will also pay more than average for a car insurance policy.


ALABAMA CAR INSURANCE RATES WITH BAD CREDIT

Credit TierAverage Annual Rate in Alabama
Worst$2,952
Poor$2,583
Below Fair to Poor$2,315
Average — All Credit Tiers$1,358

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Car insurance rates with bad credit in Alabama cities

Car insurance costs also depend on the precise area in which you drive. Insurers use your address to better understand your odds of filing a claim: the denser and claim-prone your immediate area is, the more expensive your rates.

See below major Alabama cities and their average car insurance costs for drivers with low credit scores.


BAD CREDIT CAR INSURANCE RATES IN ALABAMA CITIES

CityAverage Annual Rate — Worst CreditAverage Annual Rate — Poor CreditAverage Annual Rate — Below Fair to Poor Credit
Birmingham$3,348$2,929$2,624
Montgomery$3,081$2,696$2,416
Mobile$3,241$2,837$2,547
Huntsville$2,876$2,515$2,254
Tuscaloosa$3,033$2,654$2,381

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Cheap car insurance companies for bad credit in Alabama

Another contributing factor to how much you pay for auto insurance is the company you choose. Each car insurance company rates its policies differently, giving rating factors varying weights in their pricing calculations. Credit history can be a significant differentiator in price between otherwise-similar car insurance companies. In Alabama, the most affordable insurance company for a driver with bad credit is GEICO, which offers average savings of $216 per year in comparison to the second-cheapest company, USAA.

See rates from major car insurance companies in Alabama for drivers with bad credit.


ALABAMA CAR INSURANCE PREMIUMS WITH BAD CREDIT — POPULAR COMPANIES

CompanyAverage Annual Rate — Worst Credit Tier
GEICO$1,490
USAA$1,706
ALFA$2,086
Allstate$2,454
Mid-Century$2,557

If you're dealing with the difficulty of purchasing car insurance with a low credit score, consider these tips:

  1. See car insurance quotes
  2. Be smart with your claims
  3. Know what determines auto insurance rates

Compare rates from top car insurance companies.