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

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Non-owner car insurance in Alabama is $364 a year, which is $16 lower than the rest of the country on average, according to a 2023 rate analysis by Insure.com.

Many companies offer these policies in Alabama, 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.

In addition to understanding the various requirements, it’s important to know 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?

Non-owner insurance is usually cheaper than typical car insurance—insurers regard non-owner policyholders as less of a risk because they have limited access to a vehicle.

On average in the U.S., it’s $1,682 per year 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 property damage. This is applicable for those drivers with a good credit score as well as a clean driving record. It is $1,442 in Alabama.

On the other hand, non-owner car insurance costs an average of $380 a year in the United States and $364 in Alabama.

But actual rates are based on which insurer you buy from, your age and driving history and also where in Alabama you live.

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

Alabama’s least expensive non-owner insurance policy is offered by Auto-Owners at $55 a year.

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

To find the best price, compare quotes from different insurance companies. Below is a list of the cheapest non-owner insurance available in the state.

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?

Older drivers have more time behind the wheel than younger, inexperienced drivers and are less likely to be caught up in an accident. Their rates are generally lower than those of younger drivers. Alabama non-owner insurance costs, on average, $362 a year for a 45-year-old, whereas it’s $1,254 for a 16-year-old driver.

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

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

From city to city, there’s a lot of variation in rates. When insurance companies set rates, they consider the frequency of thefts, collisions and vandalism within the area.

Below are the cheapest and most expensive cities for non-owner car insurance in Alabama.

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 auto insurance in Alabama’s 10 biggest cities?

The biggest cities in Alabama can have rates that are significantly different. The non-owner insurance cost in Birmingham is the most expensive at $453, while Decatur has the cheapest rates among the largest cities in the state at $366.

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

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

The rates for non-owner auto insurance will differ between states too. The average non-owner insurance rate in Alabama is $364, which is lower than the national average of $380. South Dakota is the least expensive at $170 annually, followed by Idaho at $190 per year and then Iowa at $193 a year.

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

How to get non-owner auto 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 a car 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

Often, you’ll receive proof of insurance very quickly.

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

“You must pick up the phone to request a non-owner insurance quote. Although the majority of the major auto insurance providers provide non-owner policies, none of them provide online non-owner insurance estimates,” says Bruce Mohr, senior investment advisor and credit consultant at Fair Credit, a consumer-credit service and consulting company.

Here are some insurers with their contact 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.