AIG offers the lowest rates in Alabama at $22 monthly for minimum coverage and $71 for full coverage. Drivers save $35 monthly (43%) compared to state averages. Get quotes from Cincinnati, Auto-Owners, Travelers and GEICO too.
Cheapest Car Insurance in Alabama
Updated: August 13, 2025
Advertising & Editorial Disclosure
Key Takeaways
AIG, Cincinnati Insurance and Auto Owners are the cheapest car insurance companies in Alabama, offering average savings of up to 43%.
Car insurance costs can be as low as $13 monthly for minimum coverage and $40 for full coverage policies on average in Alabama.
To get the cheapest car insurance in Alabama, research average costs and top companies, take advantage of discounts and compare multiple provider quotes.
Who Has the Cheapest Car Insurance in Alabama?
| AIG | $22 | $71 | -43% |
| Cincinnati Insurance | $26 | $89 | -29% |
| Auto Owners | $44 | $89 | -18% |
| Travelers | $47 | $86 | -18% |
| Geico | $42 | $92 | -17% |
*These rates are for a 40-year-old with good credit, a clean driving record and a 2012 Toyota Camry across all ZIP codes in the state.
LEARN MORE ABOUT THE BEST CHEAP CAR INSURANCE IN ALABAMA
We've created additional guides below to help you in your search for the best and cheapest car insurance in Alabama:
Best Car Insurance Rates by Category in Alabama
AIG offers the cheapest rates for seven out of our 10 driver categories in Alabama, including young drivers, seniors and those with driving violations. Cincinnati stands out with the lowest rates in two categories, particularly for drivers with bad credit and low income. Find your specific rates in the table:
| Young Drivers | AIG | $53 |
| Adult Drivers | AIG | $22 |
| Senior Drivers | AIG | $33 |
| Drivers With An Accident | AIG | $27 |
| Drivers With A DUI | AIG | $23 |
| Drivers With A Speeding Ticket | AIG | $23 |
| Drivers With Bad Credit | Cincinnati Insurance | $56 |
| Drivers With Low Income | Cincinnati Insurance | $41 |
| Drivers With Newer Cars | Travelers | $46 |
| Drivers With Old Cars | AIG | $16 |
*Rates for the categories above are based on a profile of a 40-year-old with good credit, a clean driving record and a 2012 Toyota Camry across all ZIP codes in the state. Young drivers refer to 16 to 25-year-olds, adults 26 to 64-year-olds and seniors 65+ years of age.
Compare the Cheapest Car Insurance in Alabama for You
The tables above show overall winners, but your cheapest option depends on your specific situation. For example, Country Financial offers the lowest rates at $160 monthly for adult drivers with poor credit and an accident record who want 100/300/100 full coverage. Filter the table to match your exact situation:
Data filtered by:Results filtered by:
Select
Age Group:Adult Drivers
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Gender:Female
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
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Credit Alignment:Below Fair
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Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| Country Financial | $160 | $1,924 | -47% |
| Cincinnati Insurance | $187 | $2,249 | -38% |
| Safeway Insurance | $198 | $2,381 | -35% |
| Travelers | $256 | $3,075 | -16% |
| AIG | $289 | $3,466 | -5% |
*Young drivers refer to 16 to 25-year-olds, adults 26 to 64-year-olds and seniors 65+ years of age.
Cheapest Car Insurance in Alabama by City
Where you live in Alabama affects your insurance costs based on local crime, accidents and traffic density. AIG charges as little as $13 in Albertville but Cincinnati costs $33 in Chunchula. Here are the cheapest providers for every Alabama city:
Data filtered by:Results filtered by:
Select
City:Abbeville
| Abbeville | AIG | $19 | -49% |
*The lowest rate referenced is for a minimum coverage policy for a 40-year-old with good credit and no driving violations.
How to Get the Cheapest Car Insurance in Alabama
Finding affordable insurance companies is just one part of getting the best car insurance rates in Alabama. Here are proven ways to save the most on auto insurance.
- 1
Compare Multiple Insurance Providers
Get quotes from at least three different insurance companies through websites, agents and comparison tools. Insurance rates can vary significantly between providers, even for identical coverage.
- 2
Determine Your Coverage Needs
Know what coverage you need before shopping to avoid paying for unnecessary add-ons while ensuring adequate financial protection. Consider your state's requirements, vehicle value and personal assets when choosing coverage levels.
- 3
Consider Lower Coverage Amounts
If cost is a major concern, you can reduce coverage levels to lower your premium. Just be sure to evaluate your financial situation and driving risks before making this decision.
- 4
Research Costs and Discounts
Look up average auto insurance costs for drivers like you to set realistic expectations. Check for available discounts and consider bundling home and auto insurance for extra savings.
- 5
Look Into Alternative Insurance Options
Consider pay-per-mile car insurance if you don't drive much, or try telematics programs that track driving habits for potential discounts. Some car manufacturers also offer their own insurance programs with competitive rates.
- 6
Work on Your Risk Profile
Improve your credit score and maintain safe driving habits to qualify for lower rates. Insurance companies often reward responsible behavior with better premiums.
- 7
Choose a Cost-Effective Vehicle
If you're shopping for a car, pick a cheaper car to insure to save money long-term. Older, reliable vehicles typically cost less to insure and maintain.
Risks of Getting the Cheapest Car Insurance in Alabama
Alabama requires drivers to carry liability insurance with minimum coverage of 25/50/25. This means you need $25,000 for injuries to one person, $50,000 total for injuries in one accident and $25,000 for property damage coverage. But minimum coverage leaves you exposed to major financial risks:
Vehicle damage if you're at fault won't be covered
Without collision coverage, you'll pay all repair costs if you cause an accident. In Alabama, average property damage claims hit $4,711 in 2023, according to the Insurance Information Institute. That money comes straight from your pocket with minimum coverage. Add collision coverage to protect against expensive repairs.
Weather risks make damage to your car more likely and aren't covered
Alabama gets hit with severe weather that damages cars regularly. Weather-related property damage averaged $3,890 per incident. Basic coverage won't pay for weather damage. Add comprehensive coverage to protect against tornadoes and severe storms that frequently hit Alabama.
Bodily injury damage is more likely to be higher than the minimum limits
Alabama's minimum bodily injury coverage of $25,000 per person often isn't enough for serious accidents. Average bodily injury claims in Alabama reached $22,340 in 2023. With rising medical costs, consider increasing coverage to 50/100/50 for better financial protection against lawsuits.
Not having uninsured motorist coverage opens you up to unexpected costs
Alabama has a serious uninsured driver problem, with 12% of drivers lacking insurance according to the Insurance Information Institute. If an uninsured driver hits you, you'll face steep out-of-pocket costs without uninsured motorist coverage. Legal action against uninsured drivers rarely recovers damages. Add uninsured motorist coverage to protect yourself financially in these situations.
Vehicle theft damage is more likely and uncovered
Car theft is a real problem in Alabama, according to the National Insurance Crime Bureau, with rates 20% above the national average. Without comprehensive coverage, you get nothing if your car's stolen or damaged during a theft. The average stolen car claim tops $9,000, so adding comprehensive coverage is worth it in high-risk areas.
Cheap Car Insurance in Alabama: Bottom Line
AIG offers the lowest car insurance rates in Alabama for most drivers and coverage types, according to our analysis. While the cheapest option is tempting, don't make price your only factor. Get as much coverage as you can afford to protect your finances when accidents happen.
Cheap Car Insurance in Alabama: FAQ
Below, we answer common questions about car insurance to help you find the right coverage at affordable rates.
What are the cheapest car insurance companies in Alabama?
AIG provides the most affordable car insurance in Alabama, with average annual rates of $262 for minimum coverage and $848 for full coverage. Cincinnati, Auto-Owners, Travelers and GEICO also offer competitive rates.
Who has the cheapest car insurance rates for young drivers in Alabama?
AIG provides the most affordable rates for young drivers in Alabama, with monthly premiums starting at $53 for minimum coverage.
Who offers the cheapest car insurance rates for seniors in Alabama?
Senior drivers in Alabama can find the most competitive rates with AIG, offering policies for those 65 and older at an average of $33 per month for minimum coverage.
Who has the cheapest car insurance in Alabama for bad credit?
Cincinnati provides the most affordable rates for bad-credit drivers in Alabama, with monthly premiums averaging $56 for minimum coverage and $149 for full coverage.
Who has the cheapest car insurance in Alabama with an accident?
AIG offers the most affordable car insurance rates for Alabama drivers with an accident history, starting at $27 per month for minimum coverage.
Who has the cheapest car insurance in Alabama with a DUI?
AIG provides the cheapest car insurance after a DUI in Alabama, with rates of $23 monthly for minimum coverage and $76 monthly for full coverage.
Who has the cheapest car insurance in Alabama for those with a speeding ticket?
Alabama drivers with a speeding ticket can find the lowest insurance rates with AIG, charging $23 monthly for minimum coverage and $76 for full coverage.
Should you buy the cheapest car insurance in Alabama?
Buying the cheapest insurance saves money upfront, but you need enough coverage to protect against major losses. AIG balances low prices with solid coverage options in Alabama.
How We Found the Most Affordable Car Insurance in Alabama
MoneyGeek collected auto insurance data from the Alabama Department of Insurance and Quadrant Information Services. We analyzed quotes from 12 major insurers and reviewed more than 200 million rate comparisons across every residential ZIP code in Alabama.
Alabama Driver Profile
Our analysis started with a standard driver profile to find the cheapest rates:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
- Good credit
- Valid license
- Currently insured
- No claims history
We adjusted this sample profile, as specified, to find the cheapest option for various driver backgrounds.
Standard Coverage Levels in Alabama
We compared car insurance companies in Alabama that offer minimum and full coverage policies. We set the limits of the minimum coverage car insurance policy to the minimum amount required by law in Alabama.
The minimum coverage liability limits in Alabama are:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 per accident for property damage
For full coverage policy rates, we used the following liability limits:
- $100,000 for bodily injury liability per person
- $300,000 for bodily injury liability per accident
- $100,000 for property damage liability
- Comprehensive and collision coverage with a $1,000 deductible
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Insurance Information Institute. "Facts + Statistics: Auto Insurance." Accessed August 17, 2025.
- Insurance Information Institute. "Facts + Statistics: Uninsured Motorists." Accessed August 17, 2025.
- National Centers for Environmental Information. "Climate at a Glance." Accessed August 17, 2025.
- National Insurance Crime Bureau. "Vehicle Thefts Surge Nationwide in 2023." Accessed August 17, 2025.