Auto Insurance

Automobile Insurance in Alabama

People buy automobile insurance under the idea that they will, at some point, become involved or be the reason for certain accidents and injuries on the road. Automobile insurance in Alabama will allow you to pay for the costly expenses of vehicular accidents without having to spend too much out of your own wallet or bank account.

When you apply for an insurance policy from, your application will be assessed by the company to compute how much you should pay in the form of your monthly premium. Depending on the risk they see surrounding your situation, you will be placed in a certain category that identifies the level of risk for your particular case.

Three Basic Risk Categories for Automobile Insurance in Alabama

  1. Preferred – If your insurance company sees that you are low risk or better risk, they will place you under their preferred category. This means you are a safe driver and you might not be involved in any accidents or other car-related losses during your contract. These people are usually given the lowest premium rates because of the fact that they’re not identified as poor investments. To qualify as a preferred individual, you should possess a good driving record without prior history of accident involvement, and you should reside in an area that isn’t known as an accident prone location.
  2. Standard – If you’ve been involved in an accident in the past but aren’t significantly dangerous on the road, you can be included in the standard category. This means you are neither a better risk, nor are you a risky candidate. Expect to be charged a fairly higher premium rate than preferred candidates.
  3. Nonstandard – Those who have an extensive history of road accidents, car crashes, thefts, and other car related incidents are likely to be grouped in the non standard category. These people are considered high risk and are often seen by insurance companies as liabilities. Because these people are more often involved in car accidents, insurance companies require that they pay the highest possible premium. This is so that they will be able to answer for any of the accident and injuries these people might become involved in during the term of the contract.

When buying automobile insurance in Alabama, make sure you’ve got a copy of your driving record on hand as this will greatly affect the premium you have to pay. Remember to keep yourself safe on the road so you can enjoy the benefits of a cheaper insurance rate.