BestAuto InsuranceAlabamaThe Best Car Insurance in Alabama for 2023
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BestAuto InsuranceAlabamaThe Best Car Insurance in Alabama
Best Overall - GEICO
Best for Customer Service - ALFA
Best for Minimum Coverage - GEICO
Best for Young Drivers - GEICO
Best for Seniors - GEICO
Best for Bad Driving Record - GEICO
Best for Military - USAA
Best for New Cars - Allstate
Best for Low-Mileage Drivers - Nationwide
MoneyGeek also ranked Alabama's cheapest auto insurance options without considering service quality.
Best Full Coverage Car Insurance Companies in Alabama: Overall
The best overall auto insurance company in Alabama is GEICO.
MoneyGeek’s research on the top car insurance companies in Alabama looked at several factors like claims processing, financial stability, service quality and average cost.
Based on the above factors, the two best car insurance companies in Alabama are:
- GEICO: MoneyGeek score of 84 out of 100 ($827 per year)
- Allstate: MoneyGeek score of 77 out of 100 ($846 per year)
USAA was not considered in this ranking as its policies are exclusively available to current and former military members. With a MoneyGeek score of 97 out of 100, it is the best option for those who qualify in Alabama.
Insurance buyers looking for the most affordable car insurance may also refer to MoneyGeek’s research of the cheapest full-coverage car insurance in Alabama.
THE TOP CAR INSURANCE COMPANIES IN ALABAMA
1
GEICOBest Overall
Score:84
GEICO provides full coverage auto insurance at $827 on average per year and ranks first for affordability. It is tied in first place for financial stability and claims. It is second for customer satisfaction. GEICO offers mechanical breakdown insurance (MBI).
Average Annual Cost: $827
More About GEICO
GEICO’s mechanical breakdown insurance (MBI) is a rare coverage for new and leased cars at a lower price than the typical dealer’s extended warranty. It also includes parts and systems that dealer warranties may not cover.
GEICO also provides accident forgiveness coverage in Alabama, ensuring your premiums don't go up due to your first at-fault accident. This can be purchased or earned if you are over 21 years old and accident-free for at least five years.
Roadside assistance from GEICO is an excellent add-on if you don't want to worry about possible road mishaps like getting stuck with a flat tire. This coverage pays for the cost of flat tires, towing, jump-starts and lockout services.
2
Allstate
Score:77
At $846 per year, Allstate ranks second for affordability in Alabama. It is tied second for financial stability and claims. It’s tied for third place for customer satisfaction. Allstate provides coverage for custom parts, portable electronics and media.
Average Annual Cost: $846
More About Allstate
For many drivers, customization adds value to a vehicle. If you have a customized vehicle or other equipment modified from its original state, you may consider adding the custom parts coverage from Allstate. This pays for the loss, damage or theft of custom equipment such as special carpeting, bars, height-extending roofs, custom murals, decals and graphics.
Allstate’s portable electronics and media coverage is another coverage for consideration. It pays for the loss of items typically used with an auto sound system. Comprehensive coverage must be in effect to be eligible for this coverage.
For rideshare drivers, rideshare insurance provides coverage for accidents that can occur when transporting passengers.
3
Travelers
Score:75
Travelers ranked third for car insurance affordability in Alabama, with an average cost of around $1,059 per year. It’s tied for first place for stability and claims and third for user satisfaction. It provides rideshare insurance.
Average Annual Cost: $1,059
More About Travelers
Travelers provides gap insurance that protects you if your vehicle is financed or leased. If your car is totaled (deemed a total loss), gap coverage may pay the difference between the actual cash value of the vehicle and the unpaid balance of the auto loan or lease. Suppose you are involved in an accident within a specified time frame after your policy goes into effect. In that case, the insurer’s accident forgiveness coverage helps prevent an increase in your annual insurance costs.
4
State Farm
Score:74
State Farm ranks highest for user satisfaction among all insurers in the state and is tied for first place for claims. The insurer ranked third for stability and came in fourth for affordability, with an average insurance cost of $1,235 per year. It provides rideshare insurance.
Average Annual Cost: $1,235
More About State Farm
State Farm’s Alabama rideshare insurance ensures that medical, emergency roadside assistance and rental car reimbursement coverages in your auto policy remain in effect when working for a ridesharing company. The insurance extends all coverages from your personal auto policy when the app is on, and you are available for hire. After you match with a rider or are transporting a rider, all coverages except liability insurance remain.
5
Progressive
Score:65
At $1,288 per year, Progressive ranked fifth for affordability and is tied second for financial stability and claims. It’s third for customer satisfaction. The company provides custom parts coverage.
Average Annual Cost: $1,288
More About Progressive
Progressive provides its Alabama policyholders with custom parts coverage. That coverage can repair or replace items you add to your car, like a stereo, navigation system, custom wheels or a paint job. If the original manufacturer did not install it, it's considered an after-market accessory you want to insure. The coverage typically has a $5,000 limit.
HOW WE DETERMINED THE BEST INSURANCE IN ALABAMA
MoneyGeek found Alabama’s best full-coverage car insurance using quotes for a full-coverage policy of a sample driver across multiple providers along with user satisfaction and claims scores from both the NAIC and J.D. Power.
However, your background and coverage requirements can greatly impact how much you pay with the top car insurance companies in Alabama. For more details on sample drivers, policies and assumptions, you can read MoneyGeek’s methodology.
MoneyGeek's Alabama Car Insurance Resources:
Best Car Insurance in Alabama for Customer Service
Based solely on claims scores and user satisfaction, Alfa Insurance offers the best customer service in Alabama.
Considering the above two factors and not cost, the best insurers in Alabama for customer service are:
- Alfa Insurance: MoneyGeek score of 89 out of 100
- Auto-Owners Insurance Co: MoneyGeek score of 87 out of 100
THE TOP TWO CAR INSURANCE COMPANIES IN ALABAMA FOR SERVICE QUALITY
1
ALFABest for Customer Service
Score:89
Alfa Insurance has a claims score of 4.5, the highest among all insurers analyzed by MoneyGeek; it tied for first at 4.5 on satisfaction. Excellent customer service is crucial as you will contact the provider during emergencies.
More About ALFA
Alfa Insurance policyholders in Alabama can include the accident forgiveness clause at no extra cost. That means that your first at-fault accident won’t affect your insurance rate. Alabama is one of only two states (the other one being Mississippi) where Alfa provides this coverage.
Alfa’s loss of use coverage may also help you get back on the road should your vehicle need repairs. With this coverage, rental car expenses up to policy limits are paid if your car is out of commission due to a covered accident. Rental coverage can be purchased in increments of up to $100 per day, depending on your vehicle type.
Remember that looking for an insurer with good customer service is always the best practice. Discounts for good driving behavior or outstanding grades as a student are more accessible when you have the right provider to help you.
2
Auto-Owners Insurance
Score:NaN
Auto-Owners Insurance Co has the best stability rating of 5 out of 5. The company has a user satisfaction rating of 4.5 out of 5, and a claims rating of 4 out of 5. The company provides diminished value coverage.
More About Auto-Owners Insurance
Auto-Owners Insurance Co offers diminished value coverage and gap insurance. Under the umbrella of "diminished value," even if the value of your car decreases after an accident (and subsequent repairs), Auto-Owners Insurance Co compensates you for the reduction in value.
Note that a vehicle starts losing value when it leaves the dealer’s lot. If you are involved in a total-loss accident, you’re liable for the difference between the current value of your vehicle and the amount owed on your lease or loan. Gap insurance covers this difference.
The new car replacement coverage from Auto-Owners Insurance Co will help you replace your vehicle with a comparable new one if it is stolen or damaged beyond repair. You can drive with peace of mind, knowing that if something were to happen to your newly-bought vehicle, you would not be left without transportation.
Best Car Insurance in Alabama for Minimum Coverage
GEICO offers the cheapest car insurance policy that meets Alabama’s minimum coverage requirements.
Balancing both affordability and quality service, the best and most affordable auto insurers in Alabama are:
- GEICO: MoneyGeek score of 85 out of 100 ($375 per year)
- State Farm: MoneyGeek score of 75 out of 100 ($604 per year)
If affordability is your sole priority, MoneyGeek looked into the car insurance companies offering the cheapest insurance in Alabama.
MoneyGeek’s Pick: GEICO
pros
Affordable minimum coverage rate of $375 per year
Offers bundling discounts for combining car insurance with condos, renters or mobile home insurance
Offers discounts if you have installed an anti-theft system in your car
MoneyGeek claims rating of 4 out of 5
MoneyGeek user satisfaction rating of 4 out of 5
cons
Does not offer a paperless billing discount
Does not offer a discount for paying in full
COMPANY HIGHLIGHTS
Insurance companies want to keep their customers safe and secure, which is why they offer discounts for safe driving and security measures. For example, GEICO policyholders can also get discounts for taking a defensive driving class and installing an anti-theft system in their cars.
Policyholders can also save on their premiums with GEICO’s discounts, including bundling and insuring multiple cars. Bundling your policies with one company gives you more value and better coverage at a lower price. You can save money on all your insurance needs if you have existing policies with GEICO.
Insuring multiple cars with one provider is another way to save on premiums. By having more than one vehicle insured with GEICO, each car will qualify for a discount on its premium based on the number of vehicles insured at once.
Best Car Insurance in Alabama for Young Drivers and Students
GEICO offers the best auto insurance in Alabama for young drivers and students.
To account for new drivers, student drivers and young drivers, MoneyGeek ranked the best insurance providers in Alabama considering cost and customer service.
Based on these factors, the top insurers in Alabama for students and young drivers are:
- GEICO: MoneyGeek score of 88 out of 100 ($1,402 per year)
- Allstate: MoneyGeek score of 69 out of 100 ($2,498 per year)
For this category, MoneyGeek’s ratings encompass drivers in their late teens and early 20s. MoneyGeek also ranked the cheapest car insurance in Alabama for young drivers and students without considering service quality.
MoneyGeek’s Pick: GEICO
pros
Cost-effective policy for young drivers at $1,402 on average per year
Offers a good student discount and a driver’s education course discount
Claims score of 4.4 out of 5
User satisfaction score of 3.4 out of 5
cons
Does not offer a distant student discount
COMPANY HIGHLIGHTS
Adding a young driver to an insurance policy can be expensive, but GEICO provides a reasonable rate and great service. Getting good service from an insurer and timely support is important for a young family member during an emergency.
GEICO also offers discounts for students. Students who maintain a B average or better and those who complete a driver’s education course are eligible for discounts. The good student discount can save you up to 15% on specific coverages. It pays to keep your grades up.
Students can also save money if they have no driving violations or accidents on their record within five years. The discount can reach up to 22% for most policies.
Best Car Insurance in Alabama for Seniors
As you get older, car insurance requirements change. Age can affect an individual’s responses behind the wheel. Lessened mileage and retirement may also be additional reasons for an individual to reconsider how much they spend on auto insurance.
MoneyGeek scored the best providers in Alabama for seniors. They are as follows:
- GEICO: MoneyGeek score of 88 out of 100 ($878 per year)
- Allstate: MoneyGeek score of 80 out of 100 ($923 per year)
The providers above were evaluated based on the cost of car insurance for seniors and customer service feedback. Buyers who prioritize affordability can view the Alabama cheap car insurance for seniors guide to learn more.
MoneyGeek’s Pick: GEICO
pros
One of the most affordable companies for seniors at $878 per year
Offers roadside assistance, MBI and accident forgiveness
Offers defensive driving and senior driver discounts
Claims score of 4 out of 5
User satisfaction score of 4 out of 5
cons
Doesn’t offer paperless and pay-in-full payment discounts
Doesn’t offer many unique coverages
COMPANY HIGHLIGHTS
Although insurance rates are higher for seniors than other age groups, GEICO's affordable rates and quality service make the company a good investment for seniors.
Many of the best car insurance companies offer emergency road service coverage, and GEICO is no exception. This valuable coverage can help seniors if they’re stranded on the side of the road or lock their keys in the car. They’ll be reimbursed up to $100 for towing, fuel delivery, repair and labor charges.
GEICO also offers benefits for seniors, such as the defensive driving discount. This applies after they complete a state-approved defensive driving course.
Best Car Insurance in Alabama for Bad Driving Records
GEICO is the best insurer in Alabama for drivers with poor driving records or an at-fault accident on their record.
Based on a combination of affordability and quality service, the top insurers for drivers after an accident are:
- GEICO: MoneyGeek score of 84 out of 100 ($1,239 per year)
- State Farm: MoneyGeek score of 74 out of 100 ($1,511 per year)
Interested insurance buyers whose priority is affordability, regardless of service quality, should check out Alabama's cheap car insurance for drivers with DUIs.
MoneyGeek’s Pick: GEICO
pros
After an at-fault accident, the cost of a policy averages $1,239 per year
Claims score of 4 out of 5
Customer satisfaction score of 4 out of 5
Provides roadside assistance, rental car reimbursement and accident forgiveness coverage
cons
Does not provide new car replacement or gap insurance coverage
COMPANY HIGHLIGHTS
With an average cost of $1,239 per year, GEICO is the best option for Alabama drivers with a bad record. It has a claims score of 4 out of 5 and a user satisfaction score of 4 out of 5.
GEICO offers the following coverages that may help during or after an accident:
- Roadside Assistance: It covers flat tires, towing, jump-starts and lockout services.
- Rental Reimbursement: Policyholders can get reimbursed for the cost of a rental car if their vehicle isn't drivable for more than 24 hours due to a covered accident.
- Accident Forgiveness: This coverage prevents your insurance rate from increasing due to your first at-fault accident. It can be bought or earned if the individual is over 21 and accident-free for at least five years. Subsequent accidents may affect premiums.
Best Car Insurance in Alabama for a Military Background
USAA is the best option for car insurance in Alabama if you have a military background.
Per MoneyGeek’s analysis, USAA has an overall score of 100 out of 100 in Alabama. It charges, on average, $304 per year for a minimum liability car insurance policy and $943 per year for active military or veteran drivers with an at-fault accident on their record.
MoneyGeek’s Pick: USAA
pros
An affordable full coverage policy of $677 on average per year
Claims score of 5 out of 5
User satisfaction score of 4.5 out of 5
Accident forgiveness coverage
Vehicle storage discount
cons
Only military families are eligible for insurance through USAA
COMPANY HIGHLIGHTS
USAA offers the cheapest full coverage policy and the best service for policyholders in Alabama. Across the U.S., it has an excellent reputation.
Some of the coverages and discounts you can get with USAA include:
- Accident Forgiveness Coverage: Policyholders who remain accident-free for at least five years before being involved in an at-fault accident are not charged an additional premium on their car insurance.
- Rental Car Reimbursement: This perk covers rental car costs while your car is in the shop for repairs after a covered loss.
- New Vehicle Discount: You can get a discount if your car is not more than three years old.
- Military Discount: Save your comprehensive insurance premium when you park your vehicle on base.
Best Car Insurance in Alabama for Those With New Cars
The company with the best rating for drivers with new cars in Alabama is Allstate, with a MoneyGeek score of 77 out of 100 ($846 per year).
MoneyGeek evaluated the best insurers in Alabama for drivers looking for new car replacement coverage. This coverage pays for the cost of replacing your new car with a similar model if you experience an accident and your vehicle is considered a total loss. Covered accidents must be within a stipulated time frame. If your insurer offers better car replacement coverage, you can get a newer model of your damaged car.
Remember, this coverage is not part of a standard policy; it’s available at an additional cost.
MoneyGeek’s Pick: Allstate
pros
The annual cost of a full-coverage policy is $846
Offers new car replacement coverage
cons
Does not provide better car replacement coverage to its customers
MoneyGeek user satisfaction score of 3.5 out of 5
MoneyGeek claims score of 3.5 out of 5
COMPANY HIGHLIGHTS
Allstate is a good choice for new drivers or people with a new car because it offers an added layer of protection with its new car replacement coverage. The policy lets buyers replace new cars with the same make and model if their vehicle is totaled.
Your car starts losing value after purchase, and in the event of an accident, you can mitigate the risks of loss by getting a new car with this coverage. It’s a way to safeguard against depreciation should your new car be totaled.
As per Allstate’s new car replacement coverage policy, if your car is two model years old or newer, your car is eligible for this coverage. Buyers can leverage this window if they are the vehicle's original owner.
Best Car Insurance in Alabama for Low-Mileage Drivers
Regarding pay-per-mile coverage, Nationwide’s SmartRide® in Alabama is the best option. This type of insurance only charges you the number of miles you drive per month, but for SmartRide® in particular, you get a discount if you drive less and avoid habits that could make you more likely to have an accident.
MoneyGeek’s Pick: Nationwide
pros
Provides a discount to safe drivers based on hard braking, miles driven, idle time and nighttime driving
Rates do not go up if your driving meets standards for a discount
No additional cost to enroll
cons
Does not offer a discount for low-mileage directly
COMPANY HIGHLIGHTS
Nationwide’s SmartRide created a solution for drivers who don’t often drive. It works by evaluating an individual’s driving behavior and mileage and applying discounts based on these factors. Nationwide evaluates the number of miles driven, hard braking and acceleration, idle time and nighttime driving before applying any discounts. The provider collects driving data by using a small device for convenient miles tracking and using this information to calculate premiums. It’s incredibly beneficial to those who work from home, commute only on the weekends or for other reasons.
SmartRide monitors an individual’s driving habits from four to six months. The discount is updated weekly based on the buyer’s mileage. The final discount is calculated and applied to the renewed policy. Average savings can total up to 10% upon first renewal and safe driving can help auto owners get up to 40%.
How to Find the Best Car Insurance in Alabama For You
Auto insurers in Alabama must meet expectations on critical factors such as cost, service quality and stability to be considered among the best. But, it is important for you to understand which policy suits you best as all drivers have different needs. MoneyGeek has collected this information for you, but it can help to gather information for yourself.
1
Research customer service reputations in Alabama
MoneyGeek has collected information from J.D. Power satisfaction scores and NAIC complaints in Alabama to evaluate insurers. You can perform research using the scores on J.D. Power and the NAIC, too. You can also check with the Alabama Department of Insurance for more details on car insurance companies.
2
Compare quotes for yourself
MoneyGeek’s analysis included quotes for a sample driver from multiple locations in Alabama. But it does not cover the entire state. You can get quotes from the city of your residence to get a better idea of how much you should pay for auto insurance. As a best practice, it is recommended to compare quotes from at least three insurers before you decide on the best option.
3
Make sure the company has coverages you want in Alabama
Insurers advertise multiple coverages and discounts that they offer. Before you make your final decision, check whether the insurance company provides the coverages and discounts that you need in Alabama, as some coverages are state-specific.
4
Double-check financial stability ratings
Another important thing to consider is the financial stability of your insurer. Typically, large insurance companies with a national presence are more stable and more likely to pay out on claims. If you choose a regional insurer that is not financially stable, they might not pay out on genuine claims or take longer to do it.
FAQs About the Best Car Insurance in Alabama
The cost of auto insurance in Alabama depends on the type of coverage you want. Some of the most frequently asked questions about car insurance in Alabama are as follows:
About Mark Fitzpatrick
sources
- Alabama Department of Insurance. "Auto Insurance in Alabama." Accessed September 22, 2021.