Cheapest Car Insurance in Alabama (June 2024)

Cincinnati Insurance offers the cheapest minimum coverage policy. MoneyGeek also found that Country Financial 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.

MoneyGeek's research found the cheapest auto insurance companies in Alabama for minimum coverage to be:

• Cincinnati Insurance: $226 per year
• Country Financial: $275 per year

With an average yearly premium of $668, Farmers 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 a full coverage policy with comprehensive and collision insurance to have coverage for your car.

In Alabama, the following companies offer full coverage auto insurance at the lowest rates:

• Country Financial: $593 per year
• Cincinnati Insurance: $796 per year

Progressive's annual premium for full coverage in Alabama is around $1,346, the state's highest.

Your annual premium increases when you add comprehensive and collision insurance to your policy. For instance, Country Financial charges $318 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 help damage, theft and vandalism) and on-road collisions (with another vehicle or object, like a tree or light pole).

Your rates will vary substantially depending on how much coverage you require. MoneyGeek’s sample full coverage policy has 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; a higher deductible for comprehensive, collision or both; or forgoing comprehensive and collision insurance. Unfortunately, decreasing the limits puts you at risk of having inadequate coverage in the event of an accident.

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.

Car insurance rates in Alabama are highly affected by the age factor. Depending on the age group, Allstate or Cincinnati Insurance may be the most affordable choice for you and your family.

Alabama parents who want to add their teens to their auto policy will find the following companies to be the cheapest:

• GEICO: $1,879 per year for male teens and $1,764 per year for female teens
• Allstate: $1,862 per year for male teens and $1,765 per year for female teens

Auto-Owners costs the most for teen girls at $3,457 per year, whereas State Farm charges the most for teen boys 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 rates 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, and if a teen is under 18, they cannot legally purchase auto insurance without a parent or guardian's consent. Individual plans for a 16-year-old driver from Alabama June 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.

Although GEICO and Nationwide do not provide distant student discounts, all the Alabama insurers we evaluated offer discounts to students with good grades.

These are the cheapest auto insurance providers for Alabama drivers in their 20s:

• Country Financial: $791 per year
• Cincinnati Insurance: $981 per year

With an average annual premium of $1,915, Progressive offers the most expensive insurance for young individuals. In Alabama, drivers in their 20s pay an average of $278 more per year for auto insurance from Country Financial than people in their 30s to 50s.

The following insurers provide the cheapest full coverage policies for senior drivers in Alabama:

• Country Financial: $549 per year
• Cincinnati Insurance: $644 per year

At around $1,383 per year, Progressive is the costliest for seniors in the state.

Compared with drivers in their 40s and 50s, senior drivers in Alabama pay an average of $38 less per year for car insurance from Country Financial. However, when drivers approach their 70s and 80s, rates often rise due to an increase in accident frequency.

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.

In Alabama, Country Financial has the lowest rates for drivers with DUIs, an accident history, and speeding tickets. Travelers is the most affordable for sports car owners. Rates generally go up with violations.

Country Financial is the cheapest for people with poor credit.

Most Alabama drivers who receive a speeding ticket can find the most affordable full coverage policy with the following insurers:

• Country Financial: $794 per year
• Cincinnati Insurance: $946 per year

At around $1,923 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 $248 on average.

The cheapest full coverage auto insurance providers for Alabama motorists with an at-fault collision on their records are:

• Country Financial: $812 per year
• State Farm: $1,093 per year

Progressive, the most expensive, costs around $2,582 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 $535, on average.

If you have a DUI on your record, the least costly options for full coverage auto insurance in Alabama are:

• Country Financial: $942 per year
• State Farm: $966 per year

GEICO has the highest annual premium for drivers with a DUI, at about $2,313. With a DUI on your record, you can expect a $701 increase in your annual rate in Alabama.

Alabama's least expensive car insurance providers for people with bad credit are:

• Country Financial: $868 per year
• Cincinnati Insurance: $1,280 per year

State Farm charges more than any other insurer, around $2,999 per year if you have a poor credit score.

Insurers use a driver's credit history to create a proprietary credit-based insurance score when determining premiums. In Alabama, you may pay about $885 more for car insurance for having a credit score of under 580 compared with someone with a credit score above 750.

Statistically, drivers with a poor credit history file more claims than drivers with good credit, and Alabama allows insurance companies to consider credit history 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.

The cheapest auto insurance providers in Alabama for owners of sports cars are:

• Travelers: $837 per year
• Auto-Owners: $1,026 per year

Progressive's average annual premium of $1,947 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 $218 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.

In Alabama, active duty military officers or those with a military background will find Country Financial offers the cheapest average full coverage insurance policy, costing approximately $593 per year.

Alternatively, USAA offers quality car insurance coverage to active-duty military, veterans and their qualifying family members in all 50 states and Washington, D.C. It offers an average annual cost of $833.

You can also get military-focused coverage and a potentially substantial policy discount through GEICO.

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 full coverage car insurance in Alabama, with Country Financial offering it for around $797 per year. An annual full coverage policy from Cincinnati Insurance costs $884 per year in Montgomery.

The following list will give you an idea of how much car insurance costs in different Alabama cities.

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 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.

MoneyGeek recommends purchasing liability insurance with at least $100,000 in bodily injury per person and $300,000 per accident and property damage liability coverage of $100,000.

If your vehicle is financed or leased, it's best to carry comprehensive and collision coverage, and they may be required. Your comprehensive coverage will pay for any non-collision-related damages to your car, such as from animals, theft, vandalism and weather events.

If your car is damaged by another vehicle or a stationary object — such as a tree — in an at-fault collision, collision coverage will pay to repair or replace it. Having comprehensive and collision coverage on an expensive vehicle is a good idea, even if you did not finance or lease it.

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.

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.