The Cheapest Car Insurance in Alabama for 2022

MoneyGeek broke down the cheapest companies in Alabama by city for those exploring different rates specific to your area. If you're looking for a balance of customer service and affordability, MoneyGeek also checked the overall best car insurance companies in Alabama.

Car insurance prices in Alabama are calculated based on various personalized factors. The most affordable auto insurance in Alabama is minimum liability coverage, which meets the state’s minimum car insurance requirements.

The cheapest providers for minimum liability coverage in Alabama are:

• GEICO: $396 per year
• Country Financial: $522 per year

USAA is the cheapest insurance for former and current military members and their families at an average cost of $321 per year.

These prices are only estimates based on rates for an average Alabama driver and should not be used to compare insurance prices.

Getting a full coverage policy in Alabama grants you access to higher liability limits, as well as collision and comprehensive insurance coverage that protects you against a majority of road accidents and off-road incidents.

Although full coverage rates are significantly higher than the minimum liability coverage costs, the policy also covers damages to your car in case of an accident. By comparing auto insurance quotes from different companies, you can find the best rates within the state.

MoneyGeek discovered that the cheapest providers of full coverage auto insurance in Alabama are:

• GEICO: $874 per year
• Allstate: $894 per year

Alabama’s cheapest full coverage insurer for military members, veterans and their families is USAA at an average of $715 per year.

The company with the highest full coverage premium is Nationwide. Drivers with this policy pay an average of $1,917 per year.

The prices indicated above are estimates of the annual full coverage insurance costs for an average driver. The rates are for comprehensive and collision insurance with $100,000 in bodily injury liability coverage per person, bodily injury liability coverage of $300,000 per accident and $100,000 for property damage per accident.

Most car insurance providers in Alabama have a section on their website where customers can request a quote online.

• While shopping for the best car insurance in Alabama, comparing quotes from different insurers can help you find the best rates for specific limits. For instance, if you request a quote for comprehensive and collision insurance with a $1,000 deductible from one provider, ensure that you use the same numbers when making comparisons with other insurers.
• MoneyGeek has a car insurance calculator you can use to get a quote estimate without providing personal information. For a personalized quote, you’ll have to provide more details.
• USAA, GEICO and Country Financial offer the best car insurance rates in Alabama for a minimum liability coverage policy.

Young drivers tend to have higher car insurance rates since they are considered riskier to insure because of inexperience. In Alabama, a 16-year-old driver pays an average of $3,266 per year. Meanwhile, the average cost to insure a 25-year-old driver is $1,366 per year.

MoneyGeek’s analysis shows that, in Alabama, the cheapest car insurance for young drivers between the ages of 16–20 is GEICO, and this company is also the cheapest for 22-year-olds. For 21-year-olds and those aged 23–25, Allstate is the cheapest car insurer in Alabama.

The table above shows an estimation of what young drivers can expect to pay for car insurance in Alabama.

Young drivers can save on car insurance when they are added to their parent’s policy. There are discounts offered, such as those for good grades and taking driving safety classes. For 16-year-olds, the cheapest car insurance is with GEICO, amounting to an average of $1,721 per year in Alabama. For 25-year-olds, Allstate provides the most affordable option at $993 per year on average.

Car insurance companies in Alabama charge more for seniors than they do for middle-aged drivers. On average, seniors within the state pay $1,322 per year instead of the $1,290 paid by the typical driver.

The cheapest providers in Alabama for senior drivers with full coverage are:

• GEICO: $928 per year
• Allstate: $975 per year

For active duty military members, veterans and their families, USAA is the cheapest car insurance for seniors at an average of $749 per year. The most expensive car insurance in Alabama for seniors is Nationwide at an average of $2,140.

Simply choosing a cheaper insurance company can save an Alabama senior more than $1,200 on annual premiums. Senior drivers can request discounts once they complete driver safety courses, maintain low annual mileage or choose a vehicle with good safety features.

In Alabama, all drivers are required to renew their driver’s licenses in person and pass a vision test every four years.

In Alabama, small violations such as speeding tickets attract higher insurance rates than the $1,290 average paid by residents with a clean driving record. If you have a speeding ticket, you will pay approximately $1,567 on average per year, which is $277 more.

The cheapest auto insurance providers in Alabama for full coverage with a speeding ticket are:

• Allstate: $999 per year
• GEICO: $1,042 per year

The most affordable option for current military members, veterans and their families is USAA at an average cost of $794 per year.

According to the National Highway Traffic Safety Administration’s (NHTSA) 2018 Fatality Analysis Reporting System (FARS), there were 876 crashes in Alabama because of distracted driving. Driving while distracted can cause accidents. Most states, including Alabama, have laws restricting distracted driving.

Your auto insurance rate is likely to go up if you get a ticket for speeding or for distracted driving. According to the Insurance Information Association, your driving record is taken into account when you secure your auto policy, so being riskier to insure means paying higher premiums. Your insurer can also re-evaluate your rate if you get a moving violation (i.e., a speeding ticket).

Alabama drivers with a history of violations like a DUI are considered high-risk by insurance companies and pay more than drivers with a clean record. These drivers may also need to file an SR-22.

On average, the cost of full coverage car insurance for a driver with a clean record is about $1,221 per year, while a driver with a DUI pays roughly $2,064 for the same coverage.

The cheapest providers of full coverage car insurance for drivers with a DUI in the state are:

• Allstate: $1,215 per year
• State Farm: $1,421 per year

USAA is the second-cheapest option at roughly $1,363 per year, but it is only available to military families.

Getting a DUI can yield financial repercussions that range from court and legal fees to alcohol education treatment programs. Plus, car insurance rates after a DUI increase. Aside from higher premiums, you can also face jail time.

In Alabama, choosing a company like Allstate to provide your DUI insurance could save you an average of $2,224 compared to the rates charged by ALFA.

Alabama drivers with an at-fault accident on their driving record will have more expensive car insurance premiums than those with a clean record. The average cost of insurance for drivers with at-fault accidents is $1,728 per year.

Based on average rates, the most affordable car insurance in Alabama for drivers with at-fault accidents are:

• Allstate: $1,248 per year
• GEICO: $1,309 per year

For active duty military, veterans and their families, USAA is the cheapest option in the state. It has an average rate of $997 annually.

Alabama drivers with bad credit scores pay almost twice as much for auto insurance as drivers with strong credit. The average cost of car insurance for drivers with good credit is $1,290 per year, while the cost for drivers with bad credit is $2,260 per year.

The top two auto insurance companies in Alabama offering the best full coverage rates for drivers with poor credit are:

• GEICO: $1,276 per year
• Allstate: $1,488 per year

The cheapest car insurance for former and current military members and their families is USAA, averaging $1,191 per year.

Alabama drivers with bad credit may still find affordable car insurance. Simply shopping around between different insurers can save you as much as $2,912 per year, as this is the average difference between State Farm and GEICO’s rates.

Remember to also inquire with different insurers to know how you can improve your credit score. It will help lower your rates in the long run.

USAA is the most affordable auto insurer in Alabama, charging an average of $321 annually. This is $75 cheaper than the runner-up, GEICO. USAA’s policies are exclusively for military members and their families and offer specific benefits and coverages for these groups.

• Average rate per year: $321
• Ranks cheapest out of 10 insurers

In Alabama, your place of residency can also affect your car insurance rate. For instance, drivers who live in Montgomery typically pay $1,181 annually. This is the cheapest average for full coverage auto insurance by city. On the other hand, Mobile residents pay the most expensive premiums for a similar policy at $1,236 per year on average.

Learn how car insurance costs vary across cities and locations in Alabama and see how your city scores compared to others in the state.

Alabama’s minimum auto insurance requirements dictate that any registered vehicle must have liability insurance (or other proof of financial responsibility). Some vehicles that are exempt from the law include trailers, government-owned vehicles and vehicles covered under a commercial automobile liability insurance policy.

Proof of Insurance

Alabama drivers must carry their insurance cards at all times. It’s highly recommended to leave it in your car.

Cards must have this information:

• Car’s make, model, year and vehicle ID number
• Name of insured
• Insurance company name and its National Association of Insurance Commissioners code
• Policy number (except for temporary cards) with its validity date

Alabama drivers must show evidence of insurance on at least three occasions:

• Police ask for your license at a traffic stop
• State registration
• When involved in an accident and you need to share your information with the other party

Digital IDs are also accepted.

Minimum Liability Requirement

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

Keep in mind that this is the bare minimum coverage required by law, and most drivers will need more insurance to be adequately protected.

Alternatives to Insurance

The first alternative is a motor vehicle liability bond for at least $50,000, filed with the Department of Revenue through a surety company. The second is a cash deposit with the state treasurer for the same amount.

Drivers who opt for the former will receive a motor vehicle liability bond certificate, while those who get the latter will receive a cash bond certificate. Copies of these certificates must be carried in the car, just like proof of insurance.

How Much Coverage Do You Need?

While the state has a 25/50/25 policy minimum, industry experts generally recommend getting at least 100/300/100 worth of coverage. Experts also advise that getting collision and comprehensive coverage is a good idea for all cars worth more than $1,000.

Given Alabama's high rate of uninsured drivers, people should also consider purchasing uninsured motorist coverage, which covers them when the other driver doesn't have enough insurance to cover the cost of an accident (or if they're the victim of a hit-and-run accident).

Most of the questions asked about car insurance in Alabama are related to the rates and coverage options. Here are some of them: