Cincinnati Insurance offers the cheapest full and minimum coverage policy. MoneyGeek also found that State Farm, Nationwide and Travelers were the most affordable for certain types of drivers in Alabama.
The companies providing the best car insurance in Alabama have been ranked based on their balance of quality service and affordability.
Table of Contents
Cheapest Minimum Liability Car Insurance in Alabama (September 2023)
MoneyGeek's research found the cheapest auto insurance companies in Alabama for minimum coverage to be:
- Cincinnati Insurance: $252 per year
- State Farm: $275 per year
With an average yearly premium of $529, Allstate offers the costliest minimum coverage insurance in Alabama.
Alabama's minimum insurance policies only include property damage liability (PDL) and bodily injury liability (BIL) coverage.
A minimum coverage policy covers only the expense for damage or injury you cause to others, not your own vehicle. Consider purchasing comprehensive and collision insurance, also known as a full coverage policy, which expands coverage to your car.
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Cheapest Full Coverage Car Insurance in Alabama (September 2023)
In Alabama, the following companies offer full coverage auto insurance at the lowest rates:
- State Farm: $751 per year
- Cincinnati Insurance: $805 per year
Progressive's annual premium for full coverage in Alabama is around $1,264, the state's highest.
Your annual premium increases when you add comprehensive and collision insurance to your policy. For instance, State Farm charges $499 more for full coverage than minimum coverage.
Full coverage auto insurance affords you better financial protection. It covers losses from off-road occurrences (like storm damage and flooding) and on-road collisions (with another vehicle or object).
Your rates will vary substantially depending on how much coverage you require. MoneyGeek’s sample full coverage policy offers the following:
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
Alabama's drivers can save by selecting lower liability limits and higher deductibles or forgoing comprehensive and collision insurance. Unfortunately, decreasing the limits puts you at risk of having inadequate coverage in the event of an accident.
How to Compare Cheap Alabama Car Insurance Quotes Online
Many providers offer online auto insurance quote estimates, which generally take up to 15 minutes and often require you to disclose sensitive information. If you’re researching numerous insurers, this can be a time-consuming hassle.
Instead of submitting your personal information to several insurers, use MoneyGeek's car insurance calculator to get a quick estimate of how much your car insurance costs in Alabama. Enter your age, gender and driving history from the options below to get started.
Auto Insurance Calculator
See how the Average Annual Auto Insurance Rates vary with the options chosen.
Cheapest Car Insurance in Alabama by Age (September 2023)
Car insurance rates in Alabama are highly affected by the age factor. Depending on the age group of you and your family, Allstate, State Farm or Cincinnati Insurance on average are the most affordable.
Cheapest Car Insurance in Alabama for Teens and Their Families (September 2023)
Alabama's parents who want to add their teens to their auto policy will find the following companies to be the cheapest:
- Allstate: $1,862 per year for male teens and $1,765 per year for female teens
- GEICO: $1,879 per year for male teens and $1,764 per year for female teens
Auto-Owners Insurance costs the most for teen females at $3,457 per year, whereas State Farm charges the most for teen males at $3,900 yearly on average.
In Alabama and everywhere else in the U.S., teens' car insurance rates diminish with age, leaving a significant premium difference between 16- and 19-year-old drivers' premiums. GEICO ($1,429 per year) offers the most affordable car insurance rate for 19-year-old male drivers in this state.
These charges apply to a 16-year-old insured under a parent's plan. Adding a teen to your insurance typically costs much less than purchasing a separate policy. Individual plans for a 16-year-old driver from Alabama may cost roughly $5,869 per year compared with $2,769 when added to a parent's car insurance. That’s a $3,100 premium difference.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens. This rate difference is not as notable when drivers reach their 20s and beyond.
Although GEICO and Nationwide do not provide distant student discounts, all the Alabama insurers we evaluated offer discounts to students with good grades.
Cheapest Car Insurance in Alabama for Young Adults (September 2023)
These are the cheapest auto insurance providers for Alabama drivers in their 20s:
- State Farm: $973 per year
- Cincinnati Insurance: $994 per year
With an average annual premium of $1,779, Progressive offers the most expensive insurance for young individuals.
In Alabama, drivers in their 20s pay an average of $222 more per year for auto insurance than people in their 40s with their respective cheapest providers.
Cheapest Car Insurance in Alabama for Seniors (September 2023)
The following insurers provide the lowest rates for senior drivers in Alabama:
- Cincinnati Insurance: $654 per year
- State Farm: $689 per year
At around $1,290 per year, Progressive is the costliest for seniors in the state.
Compared with drivers in their 40s and 50s, senior drivers in Alabama pay around $97 less annually on average for car insurance with the cheapest providers. However, when drivers approach their 70s and 80s, rates often rise.
MoneyGeek found that Allstate, GEICO and Farmers are among the insurers in Alabama that provide discounts to seniors. Insurance companies consider age when calculating premiums, so it's wise to compare quotes from different providers to obtain the best offer.
Cheapest Car Insurance for Higher Risk Drivers (September 2023)
In Alabama, State Farm has the lowest rates for drivers with DUIs, those with an accident history, and people with tickets. Nartionwide is the cheapest for people with poor credit. Travelers is most affordable for sports car owners.
Drivers who have accrued moving offenses may find that their insurance premiums increase. It is possible to improve your driving history over time and access cheaper insurance alternatives by enrolling in a state-approved driver's education program and maintaining safe driving practices.
Cheapest after a ticket: State Farm ($828 per year)
Cheapest after an accident: State Farm ($935 per year)
Cheapest after a DUI: State Farm ($828 per year)
Cheapest for poor credit: Nationwide ($1,254 per year)
Cheapest for sports cars: Travelers ($854 per year)
Cheapest Car Insurance in Alabama After a Ticket
Most Alabama drivers who receive a speeding ticket can find the most affordable full coverage policy with the following insurers:
- State Farm: $828 per year
- Cincinnati Insurance: $957 per year
At around $1,791 a year, Progressive is the most expensive provider. If you get a speeding ticket in Alabama, your insurance premiums might increase by as much as $236, on average.
Cheapest Car Insurance in Alabama After an Accident
The cheapest full coverage auto insurance providers for Alabama motorists with an at-fault collision on their records are:
- State Farm: $935 per year
- Country Financial: $1,178 per year
Progressive, the most expensive, costs around $2,416 annually for drivers with at-fault accidents. MoneyGeek found that being at fault in a car accident in Alabama can boost your annual premium by $500, on average.
Cheapest Car Insurance in Alabama After a DUI
If you have a DUI on your record, the least costly options for full coverage auto insurance in Alabama are:
- State Farm: $828 per year
- Farmers: $1,364 per year
GEICO has the highest annual premium for drivers with a DUI, at about $2,271. With a DUI on your record, you can expect a $677 increase in your annual rate in Alabama.
Cheapest Car Insurance in Alabama for Drivers With Poor Credit (September 2023)
Alabama's least expensive car insurance providers for people with bad credit are:
- Nationwide: $1,254 per year
- Country Financial: $1,269 per year
Auto-Owners charges more than any other insurer, around $3,021 per year if you have a poor credit score.
Insurers use credit scores when determining premiums. In Alabama, you may pay about $835 more for car insurance for having a credit score of under 580 compared with someone with a credit score above 750.
Drivers with low credit scores are more inclined to file claims, and Alabama allows insurance companies to consider credit scores when deciding premiums.
Your insurance premiums may decrease when your credit situation improves. However, insurers give discounts, which can help you counteract the higher rates associated with poor credit.
Cheapest Car Insurance in Alabama for Sports Cars (September 2023)
The cheapest auto insurance providers in Alabama for owners of sports cars are:
- Travelers: $854 per year
- Farmers: $919 per year
Progressive's average annual premium of $1,774 is the state's most expensive.
Sports car insurance is typically, but not always, more expensive than a policy for a standard car because sports car repair and replacement costs are higher. However, sports car owners in Alabama pay around $157 more for auto insurance than those who drive a Toyota Camry LE.
MoneyGeek obtained the quotes above using a Ford Mustang, but auto insurance premiums can vary significantly based on the car model. Sports, electric and luxury cars often cost more to insure than other vehicle models.
Cheapest Car Insurance in Alabama for Military Drivers (September 2023)
State Farm is the most affordable auto insurer for veterans and active military personnel, costing an average of $751 per year.
Alternatively, USAA offers quality car insurance coverage to current and former military members in all 50 states and has an average annual cost of $774.
- $751 per year
- Ranks cheapest among 11 insurers in affordability
In addition to its low price, State Farm provides various discounts, including good student, multiple car, and safe driving.
Cheapest Car Insurance in Alabama by City
Where you live in Alabama will affect the amount you pay for auto insurance. Drivers residing in areas where theft, vandalism or accidents occur more frequently are more likely to file insurance claims. Hence, they pay higher premiums.
MoneyGeek found that Huntsville residents have the most affordable car insurance in Alabama, with Cincinnati Insurance offering it for around $889 per year. An annual full coverage policy from Nationwide costs $1,029 per year in Birmingham, the most expensive city in the state.
The following list will give you an idea of how much car insurance costs in different Alabama cities.
Car Insurance in Alabama: What You Need to Know
Alabama mandates that motorists have bodily injury and property damage liability coverage. The state does not require coverage for personal injury protection or uninsured/underinsured motorists.
Alabama Car Insurance Requirements
Alabama law demands carrying auto insurance that meets the minimum limits for bodily injury and property damage liability coverage. Although economical, a minimum coverage policy provides less protection. For added security, MoneyGeek advises obtaining the highest liability coverage you can afford.
Most significant driving infractions, including reckless driving, driving without insurance and driving while your license is suspended, also call for SR-22 insurance in Alabama, which could increase your coverage requirements.
Bodily Injury Liability
Bodily injury liability insurance pays for injuries you inflict on another driver in a collision for which you are responsible. In Alabama, minimum bodily liability coverage requirements are $25,000 per person and $50,000 per accident. You are responsible for the remaining balance if the medical costs exceed this cap.
Property Damage Liability
Alabama mandates that motorists carry a minimum of $25,000 in property damage liability coverage. If you're at fault in an accident that causes damage to another person's property, your insurance will pay up to $25,000 per accident, but you'll be responsible for any damages over this amount.
MoneyGeek recommends purchasing liability insurance with at least $100,000 in bodily injury per person and $300,000 per accident and property damage coverage of $100,000.
If your vehicle is financed, it's best to carry comprehensive and collision insurance. Your comprehensive insurance policy will pay for any off-road-related damages to your car from animals, theft, vandalism and weather.
If your car is damaged by another vehicle or a stationary object, such as a tree, collision insurance will pay to repair or replace it. Having comprehensive and collision insurance on an expensive vehicle is a good idea, even if you did not finance or lease it.
Car Insurance Alternatives in Alabama
Alabama provides alternatives to carrying the state’s minimum liability insurance. For example, drivers can submit a motor vehicle liability bond with the Department of Revenue via a surety company for at least $50,000. Another option is to make a cash deposit of the same amount with the state treasurer.
Those who choose the former will be issued a certificate for a motor vehicle liability bond, whereas those who choose the latter will be issued a certificate for a cash bond. You should always have copies of these certifications in your vehicle, just like you would with insurance.
FAQs About Car Insurance in Alabama
Cost and quality concerns regarding auto insurance are universal. To help you better comprehend auto insurance in Alabama, we've answered a few common questions.
Expert Advice on Finding Cheap Car Insurance in Alabama
To help you find reliable and accurate information on car insurance in Alabama, MoneyGeek collected expert advice from trusted professionals. The views and opinions expressed are those of the individual contributor.
- What are the key factors drivers in Alabama should look for when searching for reliable and affordable coverage?
- What natural or environmental factors should drivers in Alabama consider when shopping for the best car insurance coverage?
- How do regulations and rules in Alabama impact insurance pricing and how consumers might shop for coverage?
- What steps can drivers in Alabama take to find affordable car insurance?
Program Champion Department of Finance, Harbert College of Business at Auburn University
Assistant Professor, Brimmer College of Business and Information Science at Tuskegee University
Lowder Eminent Scholar in Finance at Auburn University
About Mark Fitzpatrick