Cheapest and Best Car Insurance in Montgomery, AL (July 2024)

Finding the right car insurance in Montgomery, Alabama, depends on coverage needs and personal factors. For full coverage, Country Financial offers the lowest rates, while families with teens find better rates with Nationwide.

Cincinnati Insurance is the most affordable for minimum coverage. Cincinnati Insurance also leads in customer service and is the best overall, boasting the best combination of price and service.

Cincinnati Insurance offers the most affordable minimum coverage car insurance in Montgomery.

• Cincinnati Insurance: $255 per year
• Country Financial: $335 per year

Allstate has the priciest minimum policy in the city at $721 annually. That's a difference of $466 when compared with Cincinnati Insurance, emphasizing the value of shopping around to ensure you're getting the best deal on your car insurance.

State Minimum Liability Requirements

In Alabama, including the capital Montgomery, the state law prescribes the minimum car insurance coverage required for drivers. Here's what you need to have at a minimum:

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

Let's say you have the bare minimum coverage, and you're liable for an accident that injures another person. Your insurance would cover up to $25,000 for that individual's injuries, and if multiple people are injured, up to $50,000 total. However, if the total damages exceed your coverage limit, you'd be responsible for the remainder out of pocket, a sobering reminder to consider your insurance options carefully.

Country Financial offers the cheapest full coverage car insurance in Montgomery, ensuring savings for savvy consumers.

• Country Financial: $707 per year
• Cincinnati Insurance: $757 per year

The company with the most expensive policy is Progressive, with an annual rate of $1,435, emphasizing the importance of comparing rates to save money. Full coverage policies are pricier than minimum coverage because they offer more comprehensive protection against a variety of incidents.

Do You Need Full Coverage in Alabama?

A full coverage policy in Montgomery includes coverage for damage to your own vehicle in the form of comprehensive and collision coverages. It usually also includes increased liability limits.

• Collision Insurance: This provides coverage for your vehicle in the event of a collision, whether with another vehicle or or a stationary object like a tree or light pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This coverage insures your vehicle against various types of damage not caused by collisions, including theft, vandalism, fires, natural disasters and being struck by an animal like a deer.

If you have a new vehicle, it's wise to opt for full coverage insurance for more robust financial protection. If you're leasing or have a car loan, you are typically required to carry full coverage insurance.

On the other hand, owners of older vehicles may find that the extra cost — which can amount to several hundred dollars more per year — is not justified by the value of the vehicle. When deciding how much car insurance coverage you need, consider your ideal balance: more extensive coverage comes with higher premiums, but getting less coverage means you may pay more out of pocket if you need to file a claim.

Country Financial is the most affordable option in Montgomery for drivers with a speeding ticket or a DUI, while Cincinnati Insurance offers the lowest rates post-accident.

• Speeding ticket: Country Financial ($950 per year)
• At-fault accident: Cincinnati Insurance ($902 per year)
• DUI: Country Financial ($1,130 per year)

Progressive tends to have the highest rates for these offenses, with the annual premium reaching $2,759 after an at-fault accident. The variance in rates between the least expensive company after a speeding ticket and after a DUI is $180, illustrating how the type of violation can significantly impact car insurance premiums.

In Montgomery and other cities, auto insurance rates typically climb with the severity of a driving offense, reflecting the increased risk to insurers. For instance, drivers with a speeding ticket may see an annual rate of around $1,855, while those with a DUI offense could face about $2,537.

Consequently, individuals with driving infractions should diligently compare insurance rates because finding the most competitive policy becomes important to managing the added financial burden of higher premiums.

Nationwide offers the cheapest car insurance for teens in Montgomery, ensuring cost-effective protection for your family's youngest drivers.

• Nationwide: $1,502 per year for female teens and $1,640 per year for male teens
• GEICO: $2,139 per year for female teens and $2,292 per year for male teens

These rates depict the combined annual premium for a policy covering two parents with a teenage driver. Auto-Owners has the most expensive policy for a family with a female teen, at $3,855 annually. This showcases a considerable $2,353 annual difference from Nationwide, emphasizing why it's important to compare quotes, particularly when teens, considered high-risk drivers, are included in your policy.

In Montgomery and comparable cities, obtaining teen car insurance can be a financial challenge, especially when a policy is purchased independently. On average, an individual annual premium for a teenager is approximately $6,161, more than double the cost of adding a teen to a family policy, which averages at $2,957 annually.

The difference in rates stems from insurers viewing teens as high-risk drivers due to their inexperience. Consequently, teens may face difficulties securing an individual policy because underwriters often require a demonstrated driving record, richer for those under a joint family coverage. Therefore, it is typically more economical for families to include their teenage drivers in their existing auto insurance plans.

Country Financial is the cheapest option in Montgomery for those seeking the cheapest car insurance for military backgrounds.

• Country Financial: $707 per year
• Cincinnati Insurance: $757 per year

Although USAA did not emerge as the cheapest, with an annual premium of $841, it does uniquely cater to the needs of active-duty military members and is known for its excellent service. While other providers may offer lower rates, USAA’s tailored services for military personnel may make it a valuable choice for many.

In Montgomery, comparing car insurance rates is a key strategy for cost savings. However, the process is often cumbersome, potentially requiring over an hour to examine rates from three or more companies.

MoneyGeek's car insurance calculator can help you streamline this process. By inputting details like age, driving history, credit score and preferred coverage, you can instantly receive rate estimates.

Choosing the best auto insurance depends on individual preferences such as the value placed on service, cost, coverage, and other factors. MoneyGeek's scoring system evaluates these elements distinctly across different categories to identify top providers in Montgomery.

• 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 superior choice in Montgomery for overall value, top-tier service and affordability.

Cincinnati Insurance offers the best option for car insurance in Montgomery.

• Cincinnati Insurance: MoneyGeek score of 96 out of 100 ($757 per year)
• Auto-Owners: MoneyGeek score of 80 out of 100 ($1,063 per year)

Cincinnati Insurance shines largely because of its superior satisfaction and affordability. With a MoneyGeek score for a full coverage policy that is significantly higher than its competitors, Cincinnati Insurance ensures comprehensive coverage at a cost-effective price for drivers in Montgomery.

Cincinnati Insurance is the best option in Montgomery for car insurance as regards customer service. This is evaluated by considering customer satisfaction, claims handling and coverage options, without taking rates into account.

• Cincinnati Insurance: MoneyGeek score of 97 out of 100 ($757 per year)
• Auto-Owners: MoneyGeek score of 87 out of 100 ($1,063 per year)

Cincinnati Insurance distinguishes itself its high satisfaction score and a strong claims handling performance. Its commitment to comprehensive coverage options further contributes to its top position.

Cincinnati Insurance is the best option in Montgomery for drivers looking for cheap car insurance without sacrificing quality service. This finding prioritizes affordability, yet it includes factors such as claims handling and customer satisfaction.

• Cincinnati Insurance: MoneyGeek score of 98 out of 100 ($255 per year)
• Auto-Owners: MoneyGeek score of 78 out of 100 ($503 per year)

Cincinnati Insurance distinguishes itself with a combination of affordable rates and top-tier service, resulting in its almost perfect MoneyGeek score.

In Montgomery, Alabama, the average car insurance cost is $1,059. This rate is slightly higher than the average car insurance cost in Alabama, which is $1,044. When compared with the national average, Alabama's car insurance is significantly less expensive, with the national average at $1,781, marking a $737 difference from the state's average.

Car insurance premiums are influenced by various factors, including but not limited to the driver's location. Location matters because it can affect factors like accident rates, thefts and the cost of repairs. For example, traffic density often drives up the risk of collisions and thefts. Huntsville has the cheapest premium at $838, whereas Birmingham holds the position as the most expensive city with a premium of $989. This illustrates a noticeable range within the state, underscoring the significance of location in determining insurance rates, and not surprisingly, rates in non-city areas may be lower still.