The cheapest insurance company for you might differ depending on your needs and background. Cincinnati Insurance is the best car insurance company for minimum coverage after a driving violation and for the best customer service. Nationwide is the ideal insurance for full coverage, and GEICO is recommended for teens on family policies. If you have a military background, consider USAA.
Cheapest and Best Car Insurance in Birmingham
Cheapest Minimum Liability Car Insurance in Birmingham
The cheapest car insurance companies offering minimum coverage policies in Birmingham are:
- Cincinnati Insurance: $232 per year
- Nationwide: $298 per year
Farmers is the most expensive car insurance company, charging an average of $565 annually.
Cincinnati Insurance is also the most affordable car insurance in Alabama. The company charges even lower rates, only $201 per year, to insure drivers in Alabama as of October 2022.
Based on Alabama law, a minimum coverage policy only covers bodily injury liability and property damage with the following limits:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Liability coverage protects you against expenses if you injure someone in an accident or damage their property. If you have $50,000 in bodily injury per accident, that’s the maximum amount the insurance company will cover. You must pay the remaining amount if the injured individual’s medical bills cost $60,000.
Cheapest Full Coverage Car Insurance in Birmingham
MoneyGeek found that the following companies will suit you best if you’re looking for full coverage in Birmingham:
- Nationwide: $700 per year
- Allstate: $802 per year
Progressive offers the most expensive policies, costing an average of $1,493 annually.
Cincinnati Insurance is the cheapest full coverage car insurance company in Alabama. The cost of your policy will also depend on your location.
Comprehensive and collision insurance are two components of a full coverage policy in Birmingham.
- Comprehensive Insurance: If your vehicle gets damaged due to a non-accident incident, such as weather-related damage, this component will pay for its repair or replacement.
- Collision Insurance: If there’s vehicle damage due to an at-fault accident with another vehicle or object, this coverage will cover your vehicle’s repair or replacement cost.
In some circumstances, getting a full coverage policy with an older vehicle is not recommended, as it’s likely that the policy cost could outweigh the value of your vehicle.
Cheapest Car Insurance in Birmingham After a Driving Offense
The following insurance companies are ideal if you have driving violations on your record:
- Speeding ticket: Nationwide ($855 per year)
- At-fault accident: Cincinnati Insurance ($1,440 per year)
- DUI: Country Financial ($1,360 per year)
Progressive charges the most expensive rates for those with a speeding ticket ($1,959 per year) or an at-fault accident ($2,682 per year). Auto-Owners Insurance Co is the most costly insurer with a DUI ($2,304 annually).
Poor driving records can significantly impact rates, meaning even the cheapest rates will exceed those available to someone with a clean record.
In most cases, you will pay significantly higher car insurance rates if you have severe driving violations on your record. For instance, your annual premium after a speeding ticket increases to $1,219 yearly. With a DUI, you must pay $1,651 annually, $662 more than for someone with a clean record. Shopping around allows you to get the cheapest car insurance for a poor driving record.
Cheapest Car Insurance in Birmingham for Teens and Their Families
MoneyGeek found that the following companies will suit you best if you’re a teen driver on a family policy:
- 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
The most expensive company for male teens is State Farm, charging $4,564 per year. Auto-Owners Insurance Co offers the highest rates for female teens, costing an average of $4,118 annually.
Men generally pay higher rates in their teens because they are considered riskier to insure.
Your insurance rates will greatly increase if you purchase an individual policy. A 16-year-old male driver buying an individual policy will have to pay an average of $5,869 annually. The same driver will only pay $2,769 per year on a family policy. Before choosing a policy, compare rates to find the cheapest car insurance for teens.
Cheapest Car Insurance in Birmingham for Military Drivers
- USAA: $656 per year
- Nationwide: $700 per year
The cheapest companies for minimum coverage are Cincinnati Insurance ($232 per year) and USAA ($281 per year).
How to Compare Cheap Birmingham Car Insurance Quotes Online
Getting an online quote for car insurance in Birmingham can take 15 minutes or more and involves providing extensive personal information.
To make this process easier, consider using MoneyGeek’s car insurance calculator. It doesn’t require personal information, but you must enter your age, vehicle type, coverage level and driving record. Based on your profile, the calculator will let you know how much it will cost for car insurance.
Auto Insurance Calculator
See how the Average Annual Auto Insurance Rates vary with the options chosen.
Best Car Insurance in Birmingham: Summary
The best car insurance will depend on your needs and how much importance you give to service quality, cost and other factors.
The following are the best car insurers in Birmingham:
- Best overall: Cincinnati Insurance (MoneyGeek score of 83 out of 100)
- Best service: Cincinnati Insurance (MoneyGeek score of 74 out of 100)
- Best cheap: Cincinnati Insurance (MoneyGeek score of 88 out of 100)
MoneyGeek’s overall score may change because weightings are different in each category.
Best Overall Car Insurance in Birmingham
MoneyGeek found that the following companies offer the best car insurance in Birmingham:
- Cincinnati Insurance: MoneyGeek score of 83 out of 100 ($833 per year)
- Country Financial: MoneyGeek score of 75 out of 100 ($864 per year)
Cincinnati Insurance scored well for affordability and had the highest score for customer satisfaction. It shows that the company will promptly resolve your complaints.
We found USAA car insurance the most suitable option for drivers with a military background. It earned a MoneyGeek score of 85 out of 100.
Scored the highest for customer satisfaction among other insurance providers in Birmingham
Ranked well for affordability
Provides various rare coverages like lock replacement, new car replacement and glass deductible modification
Doesn’t offer accident forgiveness coverage
Besides having the highest customer satisfaction score, Cincinnati Insurance offers affordable rates and many rare coverages with its policies.
The insurance provider offers glass deductible modification coverage that waives your deductible if you have to get your car’s windows or glass replaced due to a covered loss. With the lock replacement coverage, the company will pay up to $1,500 to replace your door locks if someone steals your car keys. With the new car replacement coverage, you will get a brand new car of the same make and model if your car is totaled.
Cincinnati Insurance also ranked the highest for customer satisfaction, showing that it provides exceptional customer support and will resolve your complaints promptly.
Best Car Insurance in Birmingham for Customer Service
MoneyGeek found the following insurance providers for drivers looking for the best customer service regardless of the policy cost:
- Cincinnati Insurance: MoneyGeek score of 74 out of 100 ($833 per year)
- Auto-Owners Insurance Co: MoneyGeek score of 66 out of 100 ($1,097 per year)
Cincinnati Insurance scored well for customer satisfaction and available coverages. This company came third for affordability among other insurers, which means it doesn’t charge high rates for good service.
Ranked high for customer satisfaction and available coverage add-ons
Offers unique coverages like airbag reinstallation, child safety seat replacement and safety restraint benefit
Accident forgiveness coverage isn’t available
Cincinnati Insurance offers various rare coverages to the policyholder and ranks well for customer satisfaction.
The company provides airbag reinstallation coverage which helps you replace your airbag that deploys without an accident. You won’t pay any deductible with this coverage. The child safety seat replacement coverage covers your installed child seat against loss.
With the safety restraint benefit, the company will increase your medical payments if you or a passenger in your car gets injured while wearing a manufacturer-installed seat belt.
Besides these coverages, the company also offers many other standard and unique coverages, which is why it ranked high in that category. It has a high customer satisfaction score, showing few customer complaints about its service.
Best Cheap Car Insurance Companies in Birmingham
MoneyGeek researched and analyzed various companies offering minimum coverage policies based on cost and service quality. We found the following companies will be the most suitable options:
- Cincinnati Insurance: MoneyGeek score of 89 out of 100 ($232 per year)
- Country Financial: MoneyGeek score of 71 out of 100 ($326 per year)
Purchasing the cheapest minimum coverage policy won’t cost you much, but such a policy won’t have enough liability coverage. It will not protect you against the cost of damages to your car.
An affordable minimum coverage policy costs an average of $232 per year
Offers bundling, multiple car and anti-lock brakes discounts
Ranked the highest for affordability among other insurance providers
Scored well for customer service
Doesn’t offer a distant student discount
Cincinnati Insurance has perfect scores for affordability, which means it charges the least rates compared to other insurance companies in Birmingham. It ranked well for customer satisfaction based on J.D. Power reports and customer complaints level, showing that customers have fewer complaints about its service.
You can save on your premiums with this company in many ways, as it offers various common and rare discounts. Standard discounts include a discount on bundling different types of policies and insuring multiple cars.
The company will also give you a discount if you install and maintain safety equipment in your vehicle. Other discounts for installing an anti-theft system or safe driving are available.
Average Cost of Car Insurance in Birmingham
The average cost of car insurance in Birmingham for a full coverage policy is $989 per year, $276 less than the national average of $1,265 and $79 more than Alabama's average as of October 2022. Your location within the state will affect your insurance rates.
The above rates are for a full coverage policy with $100,000 bodily injury liability per person, $300,000 in bodily injury liability per accident and $100,000 in property damage liability per accident.
About Mark Fitzpatrick