Cheapest and Best Car Insurance in Birmingham, AL (2023)

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.

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.

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.

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.

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.

The most affordable car insurance companies for drivers with a military background are:

• 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).

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.

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.

Cincinnati Insurance is also the best car insurance company in Alabama. You should opt for USAA car insurance if you have a military background. It has a MoneyGeek score of 85 out of 100.

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.

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.

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.

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.