The topic of Alabama auto insurance may not be as exciting as riding the Rampage at Magic City USA Theme Park. But insurance is essential and if you are involved in an accident without insurance in the Land of Dixie you'll feel as dizzy as you would after a five minute stint on the Vertigo. Take a look at a few things that form insurance policy and then shop around to find the best coverage with the most competitive Alabama auto insurance rates.

An Abstract on Auto Insurance
The average cost for auto insurance in 2007 in Alabama was $684, more than $100 below the U.S. average of $795, according to the Insurance Information Institute. Take into account that some areas of The Yellowhammer State are more economically healthy than others, and premiums are adjusted to suit each policyholder's needs and personal and demographical characteristics. New car owners are likely to have higher Alabama auto insurance rates seeing as car loan institutions usually require collision and comprehensive coverage on their policies. Additionally, urban population, traffic density and per capita income have a significant impact on premiums, the National Association of Insurance Commissioners (NAIC) notes.

Responsible Driving
Alabama drivers are required by law to purchase minimum liability insurance in the amounts of $25,000 for injury liability for one person in an accident, $50,000 for all injuries in an accident, and $25,000 for property damage, but the insurance industry recommends drivers increase their liability insurance to cover a minimum of $100,000 for bodily protection per person and $300,000 per accident. Purchasing additional liability insurance is especially important in the Cotton State seeing as 24 percent of all Alabama drivers were uninsured in 2007, according to a 2009 Insurance Research Council study. Check with your Alabama auto insurance agent to see how much more you'd pay if you increased your liability insurance.

Know Your Needs
According to 2007 data, the NAIC surmised 72 percent of insured drivers bought collision insurance and 76 percent purchased comprehensive coverage along with their liability coverage. These coverages are paramount for those who need compensation for repairs in the event their car is damaged by potholes, animals or other people, or for those who are concerned about theft and vandalism. But collision and comprehensive coverages are not needed by all drivers. If a car is worth less than $1,000 it could cost more for these supplementary coverages than to replace the vehicle. Find your car's Kelley Blue Book value by visiting www.kbb.com or ask a local auto dealer to assess its market value.

Take a Free Ride
Your Alabama auto insurance rates are determined by factors like your driving record, credit score and the type of vehicle you drive. Most companies offer discounts to policyholders whose cars have integrated safety features like anti-lock brakes, airbags and automatic seatbelts. You might also see some savings if you are a senior citizen or have taken a driver's safety course. Use LocalInsurance's free service to locate the top insurers in your area who want to offer you the best Alabama auto insurance rates in town. Enter your zip code, fill out a short form and then sit back while representatives gather competing quotes with the best auto insurance coverages.

To find more information on the auto insurance requirements in Alabama, visit these useful links: