Where Can You Get the Cheapest Car Insurance in Alabama?

Compare the best rates from 13 car insurance companies 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 that you can quickly make an expert decision and get back to the things you enjoy in life.

 

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The average annual car insurance premium in Alabama is $1,358, which is slightly lower than the national average of $1,427. For an in depth analysis on which insurance is right for you, we’ve done the research to help you find the cheapest rates!

The cheapest car insurance in Alabama is Travelers at $799 annually, or about $67 per month. Travelers has a great user satisfaction rating of A++, which is the highest rating an insurance company can receive. Travelers also offers many discounts including for driving a hybrid or electric vehicle and safe-driving discounts.

 

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 they handle claims) is Not Rated. Their Not Rated standing is worth noting, but they do have a user satisfaction rating of A+.

USAA rounds out the top three at $913 annually, or right at $76 monthly. USAA might be slightly more expensive than the top two, but they have major benefits. USAA’s financial strength rating is Superior, meaning they have the power to keep your assets safe. Also, like Travelers, USAA has a high user satisfaction rating of A++. Lastly, USAA has the highest J.D. Power rating of the top three with a 5 out of 5 score.

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 on ratings, visit J.D. Power’s claims satisfaction study.

 

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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 in other areas of Alabama. However, the difference in cost between the most expensive rates and the cheapest rates is minimal.

 

Least Expensive Cities Car Insurance Alabama

 

Residents living in Opp can rest assured they’re paying the least amount for car insurance compared to all other Alabama cities. With an annual premium of $1,200 a year, this is more than $150 less than the state average and over $350 less than occupants of Fairfield. All cities in the top 10 pay under $1,222 a year for insurance. Take a glimpse at the graph above to see which make their residents dish out the least in car insurance premiums each year.

 

Most Expensive Car Insurance Cities in Alabama

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 is Dolomite and Mulga, each with higher premiums than the mega populated city of Birmingham. The top 10 most expensive cities for car insurance have annual premiums of at least $200 more than the state average. Alabama’s capital, Montgomery, doesn’t even round out the list. Check out the graph above to see which cities topped the list.

 

Car Insurance by Use in Alabama

 

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, at about $1,347. If your commute is greater 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, so it is still worth it to make the trip.

 

Coverage Requirements and Laws

Alabama’s state minimum insurance requirement is liability coverage. Liability insurance covers injury costs and lost wages that you cause to another driver, their vehicle and 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 insurance available through most companies.

 

Most Expensive 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:

AlabamaMulga$7,115.00
AlabamaDolomite$7,110.00
AlabamaFairfield$7,108.75
AlabamaBirmingham$6,992.64
AlabamaPalmerdale$6,974.25
AlabamaPinson$6,969.00
AlabamaBessemer$6,912.33
AlabamaPleasant Grove$6,909.50
AlabamaBelle Fontaine$6,903.75
AlabamaBayou 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 10,000–15,000 mile window for car insurers. If you’re an Alabamian driving the average mileage per year, you’ll pay anywhere between $1,200 and $1,600 annually. The most expensive cities for the cost per mileage are:

  1. Fairfield—$1,592 per 10,001 to 15,000 mile commutes
  2. Dolomite—$1,582 per 10,001 to 15,000 mile commutes
  3. Mulga—$1,582 per 10,001 to 15,000 mile commutes

The cheapest cities for annual cost per mileage are:

  1. Opp—$1,211 per 10,001 to 15,000 mile commutes
  2. Skipperville—$1,211 per 10,001 to 15,000 mile commutes
  3. Ozark—$1,212 per 10,001 to 15,000 mile commutes

 

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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 per type:

  • Cheapest car: Honda Fit
  • Cheapest luxury vehicle: Acura RDX
  • Cheapest SUV: Honda CR-V
  • Cheapest truck: Nissan Frontier
  • Cheapest van: Honda Odyssey

 

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This probably won’t come as a surprise, but Mercedes-Benz is the most expensive vehicle manufacturer to insure in Alabama. Below are the most expensive vehicles to insure in Alabama per type:

  • 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, make sure you have considered your specific vehicle uses and what you’re looking for in a provider. Many providers offer discounts for types of vehicles, safe drivers, family accounts and more. Don’t forget to look into services like roadside assistance and accident forgiveness, as these services can save you time and money in the long run.

Additional Resources:

Alabama Car Insurance

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Alabama Tour Guide Scholarship

At The Zebra, we know better than most just what a pain buying car insurance can be. We also know that students suffer from higher-than-average policy rates. Talk about a double-whammy. That’s why, this year, we’ve decided to continue The Zebra’s annual scholarship with the goal of helping to alleviate the financial pressures of college-bound students in the Alabama area, while also getting an insider view of the Yellowhammer State.

Click here to learn more.

Prompt

So, Alabama students, we want to see your favorite road trip destination(s) in your state— from your unique perspective. If it makes sense to hit the open road and be our virtual tour guide, that’s great! But there are no limits to what we’re looking for: a narrated animation, a slideshow of memorabilia, an illustrated map of the best roadside attractions on the way. This is a chance for you to showcase any place you love in as an original way as possible.

Please Note:

  • The length of the road trip to your feature destination is inconsequential. So if you have an awesome spot in mind that’s just two miles from home, we want to see it.
Qualifications:

Applicants must be currently enrolled at or planning to attend a four-year university, graduate program, community college, or trade school located in the continental United States. Upon notification, winner(s) must supply a current proof of enrollment or letter of acceptance.

How to Apply:
  • Entrants should create an original video not exceeding 2 minutes. Each video submission must be hosted on YouTube or Vimeo, and should be submitted by email to scholarships@thezebra.com.
  • With your submission, please include your name, address, and phone number.
Details
  • Selected winner(s) will be awarded a check for $1,000.
  • Applications must be received no later than 11:59 p.m. CST on December 31st, 2018.
  • Winner(s) will be selected and notified by e-mail by January 31st, 2019.
  • Submissions will be judged by The Zebra and the winner will be selected based on creativity in the content and presentation.
  • Upon notification, winner(s) must also supply a current proof of enrollment at a four-year university, graduate program, community college, or trade school located in the continental United States.

Fine Print

  • By participating, entrants represent that the video submitted is their sole and original work and does not infringe the intellectual property rights of any other party. In other words, no copyrighted music or images may be used.
  • Employees of The Zebra and their immediate family members are not eligible to participate in the contest.
  • Written credits for any technical or talent positions (e.g., editor, director, actors) should be included with your submission, along with any sources used to create the video.