How Much is Car Insurance for 16 Year Olds in Alabama?

It’s impossible to miss the captivating ads from auto insurance companies like GEICO and The General claiming the cheapest price, so drivers just need to pick the company with the best ad, right?

It’s not quite that easy, unfortunately, as there are a ton of unknown aspects such as if you are married or single, the area you live in, and the annual mileage you drive, that all factor into the price you pay. We will touch on the things that influence insurance rates and will hopefully give you a jump start in finding the best auto insurance in Alabama.

Trying to find cost effective insurance is not easy, and determining which company offers the lowest-priced auto insurance rates for 16 year olds takes even more diligence. Rates will more than likely be significantly higher than the average rate in Alabama because of the potentially higher risk that comes with selling coverage for new drivers, but reasonable coverage should be possible if you shop around.

Each auto insurance company has their own guidelines for setting rates, so let’s take a look at the auto insurance companies with the overall cheapest rates in Alabama. It’s important that readers know that Alabama auto insurance rates are based on many factors which can significantly increase or decrease the cost of a policy. Simply getting older, buying a higher-value vehicle, or getting caught speeding can trigger rate changes that can cause some rates to be more affordable than others.

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Cincinnati Insurance may have some of the most affordable car insurance rates in Alabama at around $804 annually. Travelers, USAA, GEICO, and Country also qualify as some of the best Alabama car insurance companies.

As shown above, if you currently have a policy with Country and switched to Travelers, you may realize yearly savings of about $356. Customers with Auto-Owners might save as much as $367 a year, and Safeway insureds might cut rates by $391 a year.

These estimates are averaged for all drivers and vehicles and do not take into consideration a price surcharge for 16 year olds. So the car insurance company that fits your age and vehicle best may not even be included in the above list. That illustrates why you need to compare rates from multiple companies using your own driver data and vehicle information.

The vehicle model requiring coverage is a significant factor when shopping around for cheap car insurance for 16 year olds in Alabama. Vehicles with average performance, good crash test ratings, or low incidents of liability claims will cost less to insure than adrenaline junky models.

The data below outlines insurance costs for some of the most cost-effective automobiles to buy insurance for.

Data variables include single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alabama minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in vehicle garaging location which can alter auto insurance rates substantially.

Looking at the rates, you can presume that cars like the Honda CR-V, Honda Accord, Ford Escape, and Chevrolet Traverse are most likely to be some of the cheapest vehicles to insure for new drivers. The price for an auto insurance policy will be more expensive because of the fact that there is more claim exposure for 16 year olds, but in general those particular vehicles will have the best insurance prices compared to other vehicles.

Get discount Alabama auto insurance

Auto insurance companies that offer cheap car insurance for 16 year olds in Alabama may also give you policy discounts that can lower rates by as much as 30% if you are eligible for them. Larger auto insurance companies and some of their more popular discounts can be read below.

The illustration below shows the difference between insurance costs with and without policy discounts. The price estimates are based on a male driver, no violations or accidents, Alabama state minimum liability limits, full physical damage coverage, and $100 deductibles.

The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with vehicle safety, good student, continuous coverage, paperless filing, paid-in-full, and anti-theft discounts applied. When these discounts are applied to the policy premium, the the average amount saved on auto insurance for 16 year olds is % or $.

Who is cheaper: Allstate, Geico, State Farm, or Progressive?

When it comes to buying car insurance for new drivers in Alabama, four companies to consider are Allstate, Geico, State Farm, and Progressive. When combined, they have almost 50% of the entire U.S. market share. They all offer your standard coverages, but each one has a little bit different set of discounts and options that may influence which company you choose. The following table illustrates ratings for price, service, and claims, in additional to some of the optional coverages offered by each company.