Cheapest and Best Car Insurance in Birmingham, AL (June 2024)

In Birmingham, the cheapest insurance varies by coverage and driver profile. For full coverage, Travelers offers the best rates, while families with teens find Nationwide most economical, both differing from the minimum coverage leader Cincinnati Insurance. The best-rated insurer for customer service, Cincinnati Insurance, also takes the title for overall value, blending price and service, making it the top choice depending on your individual coverage needs and preferences.

MoneyGeek found that Cincinnati Insurance offers the cheapest car insurance in Birmingham for minimum coverage.

• Cincinnati Insurance: $285 per year
• Country Financial: $394 per year

Farmers has the most expensive minimum coverage policy in Birmingham at $710 annually. The difference is significant, with Farmers costing $425 more per year than Cincinnati Insurance.

In Alabama, from Birmingham and beyond, state law has minimum coverage that is mandatory for drivers. This covers:

• $25,000 bodily injury per person
  
• $50,000 bodily injury per accident
  
• $25,000 property damage liability per accident
  

With a minimum coverage policy, your insurer will cushion up to $25,000 for an individual's injuries in an accident. But if the total accident injury tab runs higher, say $70,000, you'll have to pay the $20,000 above your $50,000 per-accident limit.

MoneyGeek found that Travelers is the cheapest option in Birmingham for those seeking the cheapest full coverage car insurance. Below are the top two lowest-priced providers:

• Travelers: $922 per year
• Cincinnati Insurance: $946 per year

Progressive offers the most expensive full coverage policy, with annual rates $473 higher than Travelers'. This highlights the importance of comparing policies because full coverage, which includes comprehensive and collision insurance, generally costs more than minimum coverage due to the broader protection it offers.

When opting for a comprehensive, full coverage policy through MoneyGeek in Birmingham, coverage limits are notably higher in comparison to basic coverage plans. Such a policy escalates the bodily injury liability to $100,000 per individual, with a cap of $300,000 per mishap and property damage liability is also raised to $100,000 for each incident. This is succinctly referred to as a 100/300/100 plan.

Full coverage policies surpass basic liability limits by also encompassing both comprehensive and collision coverage, which are crucial for overall protection.

• Collision Insurance: This insurance aspect is designed to cover the costs of repairing your vehicle if it collides with another vehicle or object, like a tree or light pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This offers reimbursement for damages to your vehicle not caused by collisions but by other incidents like theft or natural disasters and being struck by an animal like a deer.

For a new car, full coverage insurance is a wise choice, but for older models, the added costs of such extended protection may not equate to the value of the vehicle, potentially leading to unnecessary extra expenses. You need to determine the optimal amount of car insurance required for your situation.

MoneyGeek found that for Birmingham drivers with a full coverage policy, the cheapest car insurance for driving violations varies based on the driving incident. Here are the most affordable providers for each situation:

• Speeding Ticket: Cincinnati Insurance ($1,124 per year)
• At-fault accident: Travelers ($1,367 per year)
• DUI: State Farm ($1,214 per year)

Comparatively, GEICO tends to have the highest rates for these incidents, with premiums soaring up to $2,730 annually for a DUI. Notably, the difference between the cheapest company after a speeding ticket and the cheapest after a DUI is $90, highlighting how different infractions impact rates.

Insurance rates in Birmingham and other cities typically increase with the severity of driving offenses, reflecting the heightened risk perceived by insurers. For example, drivers with a speeding ticket may face an average annual premium of about $1,990, while those with a DUI could see rates soar to roughly $2,737— a significant difference of $747.

MoneyGeek found that Nationwide offers the most affordable full coverage car insurance for both female and male teens in Birmingham. Discover the cheapest car insurance for teens to ensure you're getting the best deal for your family.

• Nationwide: $1,527 per year for female teens and $1,667 per year for male teens
• Allstate: $1,976 per year for female teens and $2,085 per year for male teens

These rates reflect a policy covering a combination of two parents and a teenage driver. Farmers has the most expensive policy for teen family coverage in Birmingham, at a staggering $3,278 per year for male teens and $3,083 for female teens. The difference between the least and most costly options for a female teen can be as much as $1,556 annually.

In Birmingham, as in many cities, teen drivers face high insurance premiums, with the average individual annual premium for a teen driver reaching $6,686. In contrast, adding a teen to a family car insurance plan results in a much lower average annual premium of $3,216. This significant rate difference is due to the elevated risks associated with insuring teenage drivers, who are statistically more likely to be involved in accidents. Consequently, insurers are often reluctant to approve individual policies for teens, guiding families towards joint plans, which present a lower risk through pooled driving experience and parents’ typically more stable driving records.

MoneyGeek found that USAA is the cheapest option in Birmingham for those with military backgrounds seeking full coverage car insurance. Military members and veterans considering coverage, can often find significant savings with providers that acknowledge their service. Here are the two most affordable options:

• USAA: $857 per year
• Travelers: $922 per year

USAA also uniquely caters to the needs of active-duty military members with tailored services.

You can use MoneyGeek's car insurance calculator to search for rates. Simply input your age, driving history, credit score, desired coverage level and a few additional details to obtain an immediate rate estimate tailored to Birmingham's specific insurance factors.

Finding the best auto insurance for you requires weighing the importance of factors such as service, cost, coverage and other individual preferences. MoneyGeek has determined the top providers:

• Best overall: Cincinnati Insurance (MoneyGeek score 96 out of 100)
• Best for service: Cincinnati Insurance (MoneyGeek score 97 out of 100)
• Best cheap: Cincinnati Insurance (MoneyGeek score 98 out of 100)

Cincinnati Insurance is the top provider in Birmingham for overall value, delivering service and offering affordability. As the winner across all categories, it demonstrates a balance that caters to various consumer priorities, from service excellence to cost efficiency.

MoneyGeek found that Cincinnati Insurance provides the best car insurance in Birmingham, offering premier protection and financial peace of mind. Consider two of the top insurers:

• Cincinnati Insurance: MoneyGeek score of 96 out of 100 ($946 per year)
• Auto-Owners: MoneyGeek score of 80 out of 100 ($1,162 per year)

Cincinnati Insurance balances customer satisfaction and affordability, leading to its top placement for a full coverage policy.

MoneyGeek found that Cincinnati Insurance is the best option in Birmingham for customer service in car insurance, without regard to rates. The following are the top providers:

• Cincinnati Insurance: MoneyGeek score of 97 out of 100 ($946 per year)
• Auto-Owners: MoneyGeek score of 87 out of 100 ($1,162 per year)

Cincinnati Insurance has good satisfaction and claims handling scores.

Cincinnati Insurance is the best option for affordable car insurance in Birmingham. This top rank underscores a well-balanced mix of cost-efficiency, customer satisfaction and reliable claims handling.

• Cincinnati Insurance: MoneyGeek score of 98 out of 100 ($285 per year)
• Auto-Owners: MoneyGeek score of 82 out of 100 ($459 per year)

Cincinnati Insurance has high affordability and customer satisfaction ratings.

In Birmingham, Alabama, the average car insurance premium stands at $1,133. This rate is notably higher than the average cost across the state of Alabama, which is $1,061. When compared to the national average cost of car insurance, Alabama's state average is substantially less, with the national average being $1,720.

Car insurance premiums are influenced by location. The cost of car insurance in different locations can vary due to factors such as traffic density, crime rates and the likelihood of accidents. For instance, in Alabama, MoneyGeek's analysis revealed Huntsville as the city with the cheapest premium at $977, while Birmingham is tagged as the most expensive at $1,133. Insurance rates may be even lower in rural and non-urban areas within the state due to reduced traffic density.