Here's what you need to know when driving in Alabama
Our team has compiled data from all over Alabama, done the analysis and presented it below to help you find the perfect car insurance for your needs. We’ve made shopping for cheap car insurance in Alabama fun and easy, so you can quickly make an expert decision and get back to the things you enjoy in life.
The average annual car insurance premium in Alabama is $1,358, slightly lower than the national average of $1,427. We’ve done the research to help you find the cheapest rates — read on for details!
The cheapest car insurance in Alabama is Travelers, at $799 per year — or about $67 per month. Travelers' user satisfaction rating is A++, the highest rating an insurance company can receive. Travelers also offers discounts for driving a hybrid or electric vehicle, and for maintaining a clean driving record.
Second is Cincinnati Insurance at $820 annually — or just over $68 per month. Cincinnati Insurance has a Superior financial strength rating, but its J.D. Power rating — how well the insurer handles claims — is Not Rated. The company's Not Rated standing is worth noting, but it does hold a user satisfaction rating of A+.
USAA rounds out the top three at $913 annually ($76 monthly). USAA might be slightly more expensive than the top two, but it offers major benefits. USAA’s financial strength rating is Superior, meaning the company can keep your assets safe. Like Travelers, USAA's user satisfaction rating is A++. USAA has the highest J.D. Power rating of the top three, with a score of 5 out of 5.
A high J.D. Power rating means the insurance carrier’s customers rated their overall insurance claims experiences well. For a more in-depth analysis of Alabama insurance company ratings, reference J.D. Power’s claims satisfaction study.
Here’s the bottom line: if you live in or near the most populated cities in Alabama, you’re going to pay more for car insurance than you would in other areas of Alabama.
Drivers in Opp can rest assured their car insurance rates are among the lowest in Alabama. At $1,200 a year, Opp's average rates are $150 less than the state average and more than $350 less than the average rates faced by drivers in Fairfield. Drivers in each of the 10 cheapest Alabama car insurance cities pay less than $1,222 a year for insurance. View the graph above to see which Alabamans pay the least in car insurance premiums each year.
Fairfield wins the award for most expensive car insurance in Alabama with an annual premium of $1,579 compared to the state average of $1,358. Close behind are Dolomite and Mulga, each with higher premiums than the larger Birmingham. The top 10 most expensive Alabama cities for car insurance have annual premiums of at least $200 more than the state average. Alabama’s capital, Montgomery, doesn’t even make the list. Check out the graph above to see which cities topped the list.
Using a vehicle for business will cost you the most with insurance providers at an average annual price of about $1,430. The cheapest use for your vehicle is on a farm, with an annual average of $1,265, but you must be able to legally define yourself as a farmer before you can register your vehicle as a farm vehicle.
Using your vehicle for pleasure or a 15-mile work commute will cost you relatively the same — about $1,347 per year. If your commute is longer than 15 miles, your rates will jump to an average of $1,358. These numbers show you only pay slightly more, about $11 more per year, for a longer commute.
Coverage Requirements and Laws
Alabama requires liability coverage, at a minimum. Liability insurance covers injury costs and lost wages that you cause to another driver, their vehicle, or any of their passengers. Liability coverage will not cover bodily injury to yourself or the cost of your own property damage in the event you are at fault in an accident.
The liability coverage limit in Alabama is $25,000 for bodily injury per person, $50,000 bodily injury coverage per accident and $25,000 property damage per accident. These rates mean if the costs are greater than the numbers listed, you will be required to pay the difference out of pocket. Liability coverage is the state minimum, but you have the opportunity to purchase a more comprehensive policy through most companies.
Most Expensive Alabama Cities for Insurance for Teen Drivers
If you are a teen or parent of a teen looking to get car insurance, you’re going to pay over $7,000 annually if you live in Mulga, Dolomite, or Fairfield.
Here is a list of the top ten most expensive cities for insurance for teen drivers:
|Alabama||Bayou La Batre||$6,890.75|
For more information on teen driver rates, check out our cheap car insurance for teens guide.
Average Insurance Costs Per Mileage by City
The average American drives 12,000 miles per year, putting them in the 10,000–to-15,000-mile window for car insurers. If you’re an Alabamian driving the average mileage per year, you’ll pay between $1,200 and $1,600 annually. The most expensive cities for the cost per mileage are:
- Fairfield — $1,592 (10,001 to 15,000 miles)
- Dolomite — $1,582 (10,001 to 15,000 miles)
- Mulga — $1,582 (10,001 to 15,000 miles)
The cheapest cities for annual cost per mileage are:
- Opp — $1,211 (10,001 to 15,000 miles)
- Skipperville — $1,211 (10,001 to 15,000 miles)
- Ozark — $1,212 (10,001 to 15,000 miles)
If you own a Honda Fit, you can rest easy knowing it is the cheapest car to insure in Alabama! Below are the cheapest vehicles to insure in Alabama:
- Cheapest car: Honda Fit
- Cheapest luxury vehicle: Acura RDX
- Cheapest SUV: Honda CR-V
- Cheapest truck: Nissan Frontier
- Cheapest van: Honda Odyssey
This probably won’t come as a surprise, but Mercedes-Benz is the most expensive vehicle manufacturer for which to purchase insurance in Alabama. Below are the most expensive vehicles to insure in Alabama:
- Most expensive car: Mercedes-Benz S-Class
- Most expensive luxury vehicle: Mercedes-Benz E-Class CLS-Class
- Most expensive SUV: Mercedes-Benz GLE-Class M-Class
- Most expensive truck: Nissan Titan
- Most expensive van: Toyota Sienna
Finding car cheap car insurance in Alabama that fits your needs can be easy! Before making your final decision on your insurance provider, consider your vehicle use and what you’re looking for in a provider. Many car insurance companies offer discounts for eco-friendly vehicles, safe drivers, shared family policies, and more. Look into services like roadside assistance and accident forgiveness, as these can save you time and money in the long run.