The Best Car Insurance in Alabama for 2022
The top car insurance companies have a great balance between customer satisfaction, affordability and financial stability. In Alabama, the best car insurance company is GEICO, which ranks number one for affordability and is tied in the first position for stability and claims.
Compare Auto Insurance Rates
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
MoneyGeek evaluated the best options for car insurance based on the cost of coverage, customer service and other factors. While GEICO is the best car insurance company in Alabama overall, you may find a better option that suits your specific needs.
MoneyGeek also ranked the cheapest auto insurance options in Alabama without considering service quality.
The Best Car Insurance in Alabama
Best Car Insurance Companies in Alabama: Overall
MoneyGeek’s research on the top car insurance companies in Alabama used several factors like claims processing, service quality and average cost.
Based on the above factors, the two best car insurance companies in Alabama are:
- GEICO: MoneyGeek score of 4.2 out of 5
- Allstate: MoneyGeek score of 3.8 out of 5
USAA, being available only for current and former military members, was not considered. But with a MoneyGeek score of 4.9 out of 5, it is the best option for military families in Alabama.
The Top 5 Car Insurance Companies in Alabama
GEICO provides full coverage auto insurance at $827 on average per year and ranks first for affordability. It is tied in first place for stability and claims and is tied in the second position for customer satisfaction. GEICO offers mechanical breakdown insurance.
GEICO’s mechanical breakdown insurance provides coverage for new and leased cars. It offers a cheaper warranty than the dealer and includes parts and systems that dealer warranties may not cover. GEICO also provides accident forgiveness coverage in Alabama. That coverage ensures your insurance rate doesn’t go up as a result of your first at-fault accident.Read MoneyGeek's GEICO auto Insurance Review
With an auto policy costing approximately $846 annually, Allstate ranks second for affordability in Alabama. It is tied in the second position for stability and claims and tied in third for customer satisfaction. Allstate provides coverage for custom parts, portable electronics and media.
The custom parts coverage from Allstate pays for the loss of custom equipment such as special carpeting, bars, height-extending roofs, custom murals, decals and graphics that are stolen or damaged. Allstate’s portable electronics and media coverage pays for the loss of items that are typically used with an auto sound system. Comprehensive coverage must be in effect to be eligible for this coverage.Read MoneyGeek's Allstate auto Insurance Review
Travelers ranked third for car insurance affordability in Alabama, with an average cost of around $1,059 per year. It is tied in the first position for stability and claims and the third position for user satisfaction. It provides rideshare insurance.
Travelers provides gap insurance that protects you if your vehicle is financed or leased. If your vehicle 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. If you are involved in an accident within a specified time frame after your policy comes into effect, the insurer’s accident forgiveness coverage helps prevent an increase in your annual insurance costs.Read MoneyGeek's Travelers auto Insurance Review
State Farm ranks highest for user satisfaction among all insurers in the state and is tied in the first position 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.
State Farm’s Alabama rideshare insurance makes sure 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 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.Read MoneyGeek's State Farm auto Insurance Review
At $1,288 per year, Progressive ranked fifth for affordability and is tied in the second position for stability and claims, third for satisfaction. It is tied in the third position for user satisfaction. The company provides custom parts coverage.
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.Read MoneyGeek's Progressive auto Insurance Review
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:
Compare the Best Insurance Options in Alabama
Financial stability, quality of service and cost are some of the important aspects that determine the cost of car insurance in Alabama. It is also important to consider the best policy that fits your specific requirements and whether a particular insurer offers the coverage that meets your needs.
You can find the best car insurance companies in Alabama with MoneyGeek’s comparison that considers in-depth customer reviews.
Car Insurance Comparison Tool
Best Car Insurance in Alabama for Customer Service
MoneyGeek rated the best car insurance companies in Alabama based only on claims scores and user satisfaction to find the best customer service.
Considering only the above two factors without cost, the best insurers in Alabama for customer service are:
- Alfa Insurance: MoneyGeek score of 4.4 out of 5
- Auto-Owners Insurance Co: MoneyGeek score of 4.3 out of 5
The Top 2 Car Insurance Companies in Alabama for Service Quality
Alfa Insurance has a claims score of 4.5, which is the highest among all insurers analyzed by MoneyGeek; it tied for first at 4.5 on satisfaction. Having great customer service is a crucial factor to consider as you will be approaching the insurer during an emergency.
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 where insurers provide this coverage. Alfa Insurance also offers rental car or travel reimbursement that can help get you back on the road if your car needs a repair.
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.
Auto-Owners Insurance Co offers diminished value coverage and gap insurance. Under 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. A vehicle starts losing value the moment it leaves the dealer’s lot, and 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.Read MoneyGeek's Auto-Owners Insurance Co auto Insurance Review
Best Car Insurance in Alabama for Drivers on a Budget
If you are looking for the cheapest car insurance policy in Alabama that only meets the minimum liability requirements, you can get the best rates using MoneyGeek’s scores. The insurers with the highest ratings combine affordability with quality service.
For those on a budget, the top car insurance companies in Alabama are:
- GEICO: MoneyGeek score of 4.2 out of 5
- State Farm: MoneyGeek score of 3.8 out of 5
MoneyGeek’s Pick: GEICO
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
Does not offer discounts on paperless billing
Does not offer a discount if you pay your premium in full
Policyholders can save on their premiums with GEICO’s discounts that include bundling, insuring multiple cars and safe driving.
GEICO policyholders can also get discounts for taking a defensive driving class and installing an anti-theft system in their cars. GEICO values these safety and security measures, allowing for discount opportunities for policyholders.
Best Car Insurance in Alabama for Poor Driving Records
If you have an at-fault accident on your record, you can still find affordable insurance in Alabama based on MoneyGeek’s analysis. The top insurers that provide fairly affordable policies and quality service for drivers after an accident are:
- GEICO: MoneyGeek score of 4.1 out of 5
- State Farm: MoneyGeek score of 3.9 out of 5
MoneyGeek’s Pick: GEICO
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
Does not provide new car replacement or gap insurance coverage
With an average cost of $1,239 per year, GEICO is the best option for drivers with a bad record in Alabama. 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 if you have a problem with your vehicle
- Rental reimbursement: Policyholders can get reimbursed for the cost of a rental vehicle if their vehicle isn't drivable for more than 24 hours because of a covered accident
- Accident forgiveness: The accident forgiveness coverage prevents your insurance rate from going up as a result of your first at-fault accident
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 4.8 out of 5 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
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
Only military families are eligible for insurance through USAA
USAA offers the cheapest full coverage policy as well as the best service for policyholders in Alabama. Across the United States, it has a great 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: Covers rental car cost 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 on your comprehensive insurance premium when you garage your vehicle on base.
Best Car Insurance in Alabama for Young Drivers and Students
MoneyGeek ranked the best insurance providers in Alabama for young drivers and students, considering cost and customer service. The top insurers in Alabama for students and young drivers are:
GEICO: MoneyGeek score of 4.4 out of 5 Allstate: MoneyGeek score of 3.4 out of 5
MoneyGeek’s Pick: GEICO
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 out of 5
User satisfaction score of 4 out of 5
Does not offer a distant student discount
It could be expensive to add a young driver to an insurance policy, 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. They can get a discount with a good academic record and for completing a driver’s education course.
Best Car Insurance in Alabama for Those With New Cars
MoneyGeek evaluated the best insurers in Alabama for drivers looking for new car replacement coverage. The coverage pays for the cost of replacing your new car with a similar model if it is damaged within the 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; you will need to pay more for it. The company with the best rating for drivers with new cars in Alabama is Allstate, with a MoneyGeek score of 3.8 out of 5.
MoneyGeek’s Pick: Allstate
The annual cost of a full-coverage policy is $846
Offers new car replacement coverage
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
Allstate is a good choice for new drivers or people with a new car because it offers new car replacement coverage. Your car starts losing value after purchase, and in the event of an accident, you can get a new car with this coverage and not lose any money because the value of your car has lessened.
As per Allstate’s new car replacement coverage policy, if your car is two model years old or less, you are eligible for a replacement of the car with a new model.
Best Car Insurance in Alabama for Low-Mileage Drivers
Many insurers offer pay-per-mile coverage for drivers. It means that the cost of your car insurance depends on the number of miles you drive per month. Nationwide SmartRide® in Alabama doesn’t charge you based on the miles you drive, but it offers a discount if you drive less and avoid habits that could make you more likely to have an accident.
MoneyGeek’s Pick: Nationwide
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 is below standards for a discount
No additional cost to enroll
Does not offer a discount for low-mileage directly
Nationwide’s SmartRide discounts your premium by tracking your driving behavior and mileage. Nationwide evaluates the number of miles driven, hard braking and acceleration, idle time and nighttime driving before applying a discount monthly.
How to Find the Best Car Insurance in Alabama in 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.
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.
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.
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.
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 common questions asked about car insurance in Alabama are as follows:
MoneyGeek collected car insurance rates in Alabama in partnership with Quadrant Information Services. These calculations were based on the driver and policies as described on MoneyGeek’s methodology page unless otherwise noted.
Customer satisfaction, financial strength and claims satisfaction scores were derived from AM Best, J.D. Power and the National Association of Insurance Commissioners (NAIC). The list of discounts and coverages was collected from each insurer’s website.
About the Author
- Alabama Department of Insurance. "Auto Insurance in Alabama." Accessed September 22, 2021.