Cheapest Car Insurance in Alabama

Here's a quick breakdown of the cheapest car insurance providers in Alabama by coverage type, driver profile, and location:

By Coverage Type:

• Minimum Coverage: AIG at $22/month
• Full Coverage: AIG at $71/month

By Age Group:

• Young Drivers (16-25): AIG at $53/month
• Adult Drivers (26-64): AIG at $22/month
• Senior Drivers (65+): AIG at $33/month

By Violation Type:

• After an Accident: AIG at $27/month
• With a Speeding Ticket: AIG at $24/month
• With a DUI: AIG at $24/month

For Drivers With Bad Credit:

• Cincinnati Insurance at $54/month

By Major City:

• Birmingham: AIG at $23/month
• Mobile: Cincinnati Insurance at $24/month
• Montgomery: Cincinnati Insurance at $25/month

AIG has the cheapest minimum coverage car insurance in Alabama at $22 per month, saving drivers $395 annually compared to the state average. Cincinnati Insurance ($26/month) and Auto Owners ($44/month) also have low cost rates if you prefer a regional insurer.

Alabama requires minimum liability coverage of 25/50/25: $25,000 per person for bodily injury, $50,000 per accident for bodily injury and $25,000 for property damage. Cheap liability-only insurance meets these legal requirements but may not provide enough protection in serious accidents and won't protect YOUR car. With 12% of Alabama drivers uninsured and frequent severe weather, consider whether minimum coverage adequately protects your finances.

AIG is the cheapest full coverage car insurance at $71 monthly. Travelers, Auto Owners and Cincinnati Insurance are cheap alternatives between $86 and $89 monthly.

Full coverage adds comprehensive and collision protection to your liability policy. Comprehensive covers damage from Alabama's tornadoes, Gulf Coast hurricanes and hail storms. Collision covers you for theft, which runs above the national average in the state and covers damage to your vehicle when you're at fault in an accident.

Car insurance rates vary across Alabama cities based on local accident rates, crime statistics and population density. AIG offers the cheapest rates in Birmingham at $23 monthly. Cincinnati Insurance provides the lowest premiums in Mobile at $27 monthly and Montgomery at $25 monthly.

AIG offers the cheapest rates for young drivers between the ages of 16 and 25 at $53 monthly and saves you 60% compared to Alabamas average cost for this age group. Cincinnati Insurance and Travelers provide alternatives at $64 and $88 monthly.

Young drivers pay higher rates in Alabama due to inexperience and higher accident rates. Adding a teen to a parent's policy costs less than separate coverage. Good student discounts (requiring a B average) can reduce premiums by 10-25%.

AIG provides the lowest rates for seniors at $33 monthly for minimum coverage, a 57% savings compared to the state average in Alabama. Cincinnati Insurance and GEICO are affordable alternatives at $45 and $61 monthly.

Seniors benefit from lower rates due to driving experience. Alabama drivers 55 and older can qualify for defensive driving course discounts through many insurers by completing approved six-hour courses from the National Safety Council, AAA or AARP.

Cincinnati Insurance has the cheapest rates for drivers with bad credit at $54 monthly. While bad credit often costs 2x compared to those with excellent credit, Cincinnati insurance saves you 57% compared to the Alabamas average cost for drivers with bad credit. Country Financial and GEICO are the next lowest cost providers at $103 and $105 monthly.

Alabama insurers use credit scores when calculating rates. Drivers with poor credit pay nearly double compared to those with good credit. Improving your credit score will significantly reduce your insurance costs.

AIG offers the cheapest coverage at $27 monthly, 65% below the state average for drivers with accidents. Cincinnati Insurance at $39 monthly and Travelers at $59 monthly also provide savings of 50% and 23% compared to state averages.

At-fault accidents increase Alabama rates by about 23%, but rates get cheaper 3 years after the accident.  Travelers does offer accident forgiveness in Alabama which means cheaper rates after and accident.

AIG provides the lowest rates with a speeding ticket at $24 monthly. Cincinnati Insurance has the next lowest pricing at $28 monthly.

Speeding tickets typically remain on your Alabama driving record for three years. The rate impact usually decreases over time if you maintain a clean record.

AIG offers the most affordable coverage with a DUI at $24 monthly. Cincinnati Insurance and Travelers are second and third cheapest at $50 and $62 monthly.

DUIs create the largest rate increases and come with additional requirements in Alabama. Alabama requires SR-22 insurance for license reinstatement after a DUI. If standard insurers won't cover you, the Alabama Automobile Insurance Plan (ALAIP) provides assigned-risk liability coverage.

MoneyGeek is here to help you get the most affordable car insurance. Here's how to save the most on auto insurance in Alabama:

Related Alabama Car Insurance Guides:

• Best Car Insurance Companies in Alabama - Compare top-rated insurers for customer service and coverage options
• Average Car Insurance Cost in Alabama - See how your rates compare to state averages
• Best Home and Auto Bundle Insurance in Alabama - Compare bundling vs. separate policies
• SR-22 Insurance in Alabama - Find affordable rates after license suspension
• Non-Owner Car Insurance in Alabama - Coverage if you don't own a vehicle
• Low-Income Car Insurance in Alabama - Affordable options for budget-conscious drivers
• Alabama Minimum Coverage Requirements - Understand state insurance laws

We answer common questions about car insurance to help you find the right coverage at affordable rates:

Alabama drivers need accurate rate comparisons to find affordable coverage. We analyzed quotes from 12 major insurers and reviewed more than 200 million rate comparisons across every residential ZIP code in Alabama to identify which providers offer the best value.

Our analysis used a standard driver profile: 40-year-old male, 2012 Toyota Camry LE, clean driving record, 12,000 annual miles, good credit and no claims history. We adjusted this profile to find the cheapest options for various driver backgrounds.

We compared minimum coverage (Alabama's required 25/50/25 liability limits) against full coverage (100/300/100 liability limits plus comprehensive and collision with $1,000 deductibles). Learn more about how we analyze car insurance rates.