Non-owner auto insurance in Alabama: Which company has the cheapest rates?

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Non-owner car insurance in Alabama costs $364 a year, which is $11 more than the rest of the nation on average, according to a 2023 rate analysis by Insure.com.

In Alabama, non-owner policies are available from companies such as USAA, Travelers and Nationwide.

Non-owner car insurance is a policy for people who don’t own a car but often borrow or rent a vehicle. It provides liability coverage for bodily injury and property damage in case you get in an accident while driving a car owned by someone else.

“Non-owner policies provide the minimum coverage required by the state, as well as some optional add-ons, but there are specific requirements by the insurance carriers to provide this coverage in lieu of a traditional auto insurance policy,” says Patti Clement, senior vice president of private client services at HUB International, a leading personal insurance brokerage.

Learn more about the various requirements, what non-owner insurance is, which companies offer it and how much it costs in Alabama.

How much does non-owner auto insurance cost in Alabama?

Insurers view non-owner policyholders as less of a risk due to their limited access to a car, and therefore, it’s usually less expensive to buy a non-owner insurance policy than full coverage car insurance.

On average in the U.S., it costs a driver with a clean driving record and good credit score $1,682 annually for a 100/300/100 full coverage insurance policy—$100,000 for injuries you cause in an accident, up to $300,000 per accident, and $100,000 for any damages to property. In Alabama, full coverage car insurance costs $1,442.

Meanwhile, non-owner auto insurance costs $353 a year on average in the United States and $364 in Alabama.

But various factors affect individual rates, such as where in Alabama you live, your age and driving history and other factors.

Which insurer offers the cheapest non-owner insurance rates in Alabama?

With an average annual cost of $55, Auto-Owners’ non-owner insurance policy is Alabama’s most affordable.

At $1,023 a year, State Farm charges the highest rate for non-owner insurance in the state.

You should compare quotes from multiple insurers to find the best price. The cheapest non-owner policies available in Alabama are listed below.

Cheapest non-owner insurance rates in Alabama

Note that USAA only offers coverage to military members, veterans and their families.

How much is non-owner car insurance in Alabama by age?

Age plays an important role in pricing because young people who haven’t been driving for a long time are seen as higher risk and are more likely to cause an accident. So older and more experienced drivers usually have lower rates. On average, non-owner insurance costs $1,254 a year for a 16-year-old and $362 for a 45-year-old in Alabama.

Average non-owner auto insurance rates in Alabama by age and gender

Which Alabama cities have the cheapest non-owner car insurance?

Rates differ from city to city. When insurance companies set rates, they consider the frequency of thefts, collisions and vandalism in an area.

The tables below display the cities in Alabama that have the least and most expensive non-owner auto insurance rates.

The 20 Alabama cities with the lowest non-owner auto insurance rates

The 20 Alabama cities with the highest non-owner car insurance rates

How much is non-owner car insurance in Alabama’s 10 biggest cities?

The largest cities in Alabama have varying non-owner insurance rates. The cost of non-owner insurance in Hoover is the most expensive at $449. Beaverton has the least expensive rates of the largest cities in the state at $281.

Non-owner auto rates in Alabama’s 10 largest cities

How non-owner insurance rates in Alabama compare to rates in other states

Non-owner car insurance rates also differ from state to state. The average non-owner insurance rate in Alabama is $364 a year, which is more than the national average of $353. South Dakota is the cheapest at $170 annually, followed by Idaho at $190 a year and Iowa at $193 per year.

Non-owner auto insurance rates in the 10 most populous states

How to get non-ownercar insurance in Alabama

Getting a non-owner insurance policy is as simple as providing your driver’s license and a credit or debit card.

To purchase a policy, follow these steps:

1. Contact an auto insurance agent about the coverage
2. Supply your basic driving history
3. Review the information you receive on the insurers and rates
4. Choose the policy that best meets your needs
5. Put down a payment to begin coverage

In many cases, you’ll get proof of insurance almost immediately.

For a non-owner insurance policy, you’ll need to call your insurer rather than go online for a quote.

“Before you buy, phone several insurers and request free car insurance quotes to make sure you pay the lowest price,” says Bruce Mohr, senior investment advisor and credit consultant at Fair Credit, a consumer-credit service and consulting company.

Below are a few insurance companies with their phone numbers to call for a non-owner insurance quote.

• State Farm: 800-782-8332
• Geico: 800-207-7847
• Progressive: 888-671-4405
• Allstate: 800-726-6033
• USAA: 800-531-8722

Methodology

Insure.com in 2023 compiled non-owner insurance rates from Quadrant Information Services for a 40-year-old male with a good driving record looking for a state minimum, liability-only policy.

Leslie Kasperowicz

Managing Editor

 

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at Insurance.com.