The Cheapest Car Insurance in Alabama for 2022

GEICO has the cheapest average rate in Alabama. But actual costs of auto insurance depend on various factors, such as age, coverage amounts, credit score and driving history.

For example, GEICO offers the cheapest rate for drivers with bad credit and those who want more coverage, but Allstate is the most affordable option for drivers with at-fault accidents. USAA is the top option for military families as it offers the cheapest rates.

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: $375 per year
• Country Financial: $494 per year

USAA is the cheapest insurance for former and current military members and their families at an average cost of $304 per year. Conversely, MetLife is the most costly insurer in the state for minimum liability coverage, with an average premium of $971 per year.

Cheapest Minimum Car Insurance in Alabama

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: $827 per year
• Allstate: $846 per year

Alabama’s cheapest full coverage insurer for military members, veterans and their families is USAA at an average of $677 per year.

The company with the highest full coverage premium is Nationwide. Drivers with this policy pay an average of $1,814 per year. .

Cheapest Full Coverage Car Insurance in Alabama

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.

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. On average, the cost of 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: $1,150 per year
• State Farm: $1,345 per year

USAA is the second-cheapest option at roughly $1,290 per year, but it is only available to military families.

While GEICO ranks as the second-cheapest full coverage provider for drivers with a clean record, Allstate often offers better rates for drivers with a DUI.

Average Car Insurance Rates With a DUI

According to the Centers for Disease Control and Prevention, 2,608 people were killed in crashes involving a drunk driver in Alabama from 2009–2018. The percentage of adults who reported driving after drinking too much (in the 30 days prior to being surveyed) was 1.5% in Alabama, according to 2018 CDC data.

The financial repercussions of getting a DUI are costly and can range from court and legal fees to alcohol education treatment programs. Additionally, car insurance rates after a DUI tend to be higher. Consider the following auto insurance rates for drivers who receive a DUI in Alabama.

While each insurance company calculates premiums differently, the costs of a DUI can set you back for years to come. You can expect to pay an additional $40,000 over the course of 13 years in increased auto insurance premiums. Exactly how much your rate would go up depends on your insurance company, your location and your driving record. With a DUI, you’ll likely pay higher rates for up to a decade or longer.

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 $1,572 per year.

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

• Allstate: $1,181 per year
• GEICO: $1,239 per year

For active duty military, veterans and their families, USAA is the cheapest option in the state. It has an average rate of $943 annually.

Cheapest Car Insurance With an At-Fault Accident

In Alabama, small violations such as speeding tickets attract higher insurance rates than the $1,221 average paid by residents with a clean driving record. If you have a speeding ticket, you will pay approximately $1,483 on average per year, which is $262 more.

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

• Allstate: $945 per year
• GEICO: $986 per year

Allstate provides the best rates for non-military drivers in Alabama, but GEICO is close behind, at an average of $986 per year on average. The most affordable option for current military members, veterans and their families is USAA at an average cost of $752 per year.

Average Car Insurance Rates With a Ticket

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 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 $1,221 per year, while the cost for drivers with bad credit is $2,183 per year.

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

• GEICO: $1,208 per year
• Allstate: $1,408 per year

The cheapest car insurance for former and current military members and their families is USAA, averaging at $1,126 per year. MetLife is the most expensive car insurance for drivers with bad credit at an average cost of $3,965 per year.

Average Car Insurance Rates for Drivers With Bad Credit

According to Experian, the average FICO Score in the United States hit a record high of 703 in 2019, which is higher than the Alabama average FICO Score of 680. Many insurance providers use credit scores to determine premiums and predict insurance losses. If you have subprime credit (credit scores below 670), you’ll likely have to shop around to secure affordable car insurance in Alabama. While you may have to compare rates more thoroughly, you can still find affordable car insurance with poor credit.

While you may have to pay more for car insurance now if your credit is poor, improving your credit score can help lower your rates in the long run.

Car insurance companies in Alabama charge more for seniors than they do for middle-aged drivers and young adults. On average, seniors within the state get charged $1,260 per year instead of the $1,221 paid by other drivers.

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

• GEICO: $878 per year
• Allstate: $923 per year

For active duty military members, veterans and their families, USAA is the cheapest car insurance for seniors at an average of $709 per year. The most expensive car insurance in Alabama for seniors is Nationwide at an average of $2,025.

Average Car Insurance Rates for Seniors

According to 2017 National Highway Traffic Safety Administration data, there were 168 people aged 65 and older killed in motor vehicle traffic crashes in Alabama, with older people making up 13.5% of all traffic fatalities during the year. When shopping for car insurance, seniors in Alabama should ask for discounts for completing driver safety courses, discounts for driving infrequently and discounts for choosing a vehicle that has 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.

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 $3,090 per year. Meanwhile, the average cost to insure a 25-year-old driver is $1,292 per year.

MoneyGeek’s analysis shows that in Alabama, the cheapest car insurance for young drivers between ages 16-25 is GEICO.

Annual Car Insurance In Alabama for Young Drivers

The above table illustrates an estimation of what young drivers can expect to pay for car insurance in Alabama. In 2016, there were 2,288 motor vehicle traffic fatalities in crashes that involved teen drivers ages 15–18 years old, according to the Alabama Department of Public Health. Young drivers can save on car insurance when they are added to their parent's policy. Discounts may also be applicable, such as those offered for good grades and for taking driving safety classes.

Veterans and the more than 11,900 active-duty military personnel living in the state can expect discounts on car insurance exclusively for them and typically for their spouses as well. Although non-residents are not required to register their vehicles while stationed in Alabama, they must still carry the state's required minimum coverage, so it’s worth it to shop around for a military discount.

Many companies licensed to sell auto insurance in Alabama also offer discounts for buying two or more policies, such as auto and homeowners, so veterans and active members of the military can save even more for bundling policies. One such company is USAA, which offers services exclusively to members of the military, veterans and their family members. Visit the Alabama Department of Insurance for benefits available to military personnel and veterans.

Disabled Alabama veterans who own a vehicle that was financed through the Veterans Administration are exempt from registration and taxes on the vehicle, though insurance is still mandatory. The following table showcases estimates for veterans in Alabama who are looking for auto insurance.

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 in Alabama

Alabama drivers must carry some proof of insurance, usually an insurance card, that must stay in the car at all times.

Cards should have the following information:

• The car's make, model, year and vehicle identification number
• The name of the insured person
• The insurance company name and its National Association of Insurance Commissioners code
• The policy number (except for temporary cards) and the dates for which it is active

Drivers have to show evidence of Alabama auto insurance on at least three occasions:

• If a law enforcement officer asks to see a license during a traffic stop (not doing so is a misdemeanor)
• When the state registers your vehicle (they will not renew the registration without proof of liability insurance)
• If you’re in an accident, you'll need to share your information with the other party

If you're not carrying your insurance card, the Alabama Administrative Code allows you to show the same proof digitally.

Minimum Liability Insurance Requirements in Alabama

Alabama requires this level of liability insurance for all drivers:

• $25,000 for death or bodily injury to one person
• $50,000 for death or bodily injury to two or more persons
• $25,000 for damage or destruction of property

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 in Alabama

There are only two legal alternatives to auto insurance in Alabama, and neither one is cheap. The first 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.

The advantage of surety bonds is that holders only need to put down a portion of the total, anywhere from 1–15%, depending on their credit. The disadvantage is that they are still responsible for paying the full amount if they are at fault in an accident. Meanwhile, drivers holding a cash bond that does not meet the full cost of an accident have just 30 days to come up with the remainder.

How Much Coverage Do You Need in Alabama?

While the state has a $25,000/$50,000 policy minimum, industry experts generally recommend getting at least $100,000/$300,000 worth of coverage. In other words, it's wise to stay away from the cheapest car insurance option.

Experts also advise that getting collision and comprehensive coverage is a good idea for all cars worth more than $1,000. Collision coverage will pay to repair or replace your car if you're in a crash (provided it's worth more than the deductible), and comprehensive insurance will cover non-traffic disasters like fire, robbery, floods and hurricanes.

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: