Cheap Car Insurance in Alabama

Compare the best rates from 13 car insurance companies in Alabama.

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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.

 

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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.

 

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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 you would in other areas of Alabama.

 

Least Expensive Cities Car Insurance 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.

 

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 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.

 

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 — 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:

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–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:

  1. Fairfield — $1,592 (10,001 to 15,000 miles)
  2. Dolomite — $1,582 (10,001 to 15,000 miles)
  3. Mulga — $1,582 (10,001 to 15,000 miles)

The cheapest cities for annual cost per mileage are:

  1. Opp — $1,211 (10,001 to 15,000 miles)
  2. Skipperville — $1,211 (10,001 to 15,000 miles)
  3. Ozark — $1,212 (10,001 to 15,000 miles)

 

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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:

  • 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 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.

Cheap Car Insurance

What's the cheapest car insurance in Alabama?
RankCompany NameAvg. Annual Premium
1Travelers$799
2Cincinnati Insurance$820
3USAA$913
4GEICO$1,040
5Country$1,183
6Auto-Owners$1,194
7Safeway$1,194
8Progressive$1,261
9MetLife$1,354
10State Auto$1,359
11Cal Casualty$1,481
12State Farm$1,548
13Nationwide$1,626
14ALFA$1,709
15Dairyland$1,814
16Allstate$1,892
17Farmers$1,893
18Safeco$2,633
19Liberty Mutual$2,664

Cheap Insurance for Good Drivers in Alabama

Drivers with good driving records typically enjoy lower car insurance costs than drivers with histories of speeding tickets, at-fault accidents, or DUI citations. Alabama drivers without a recent at-fault accident save 31% on their car insurance, on average, while Alabama drivers without a recent ticket save 16%. Both of these figures are near US averages. In addition to earning a cheaper premium for driving incident-free, you may qualify for a safe-driving bonus through your car insurance company. The amount of these discounts may vary, but they typically run between 5 and 10%.

Rating Factor$ Savings% Savings
No Traffic Tickets$27416.92%
No Accidents$61131.20%
Good Credit$1,59154.16%

Cheap Insurance for Young Drivers in Alabama

Young drivers (those between the ages of 16 and 25) pay extraordinarily high auto insurance rates, with those aged 16-19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teens pay more than three times the national average for car insurance. In Alabama, the typical teen driver pays $5,573 per year — approximately $600 more than the nationwide teen driver average and more than three times as much as a typical driver in Alabama.

AgeAnnual Rate with ParentsAnnual Rate Alone
16$5,710$7,768
17$5,463$6,538
18$5,228$5,584
19$4,753$3,541

Cheap Car Insurance for Bad Drivers in Alabama

If you have a clean driving record — no at-fault accidents, speeding tickets, DUIs, or other recent citations — you'll probably pay less for car insurance. Conversely, a bad driving record will cause your rates to skyrocket: car insurance premiums typically increase by 39% after a DUI, 31% after an at-fault accident, and 16% after a speeding ticket in Alabama. These post-incident rate hikes roughly align with national averages. If you have a sparkling clean driving history, be sure to inquire about your insurer's safe driver discount.

Rating FactorAnnual Rate% Increase
At-Fault Accident$1,95731.20%
DUI$2,23039.62%
Speeding Violation$1,62116.92%
Bad Credit$2,93854.16%

What are the Best Car Insurance Companies in Alabama?

Every auto insurance company emphasizes its low rates. But as with any product, the cheapest option isn't always the best choice. Considering the stakes, it's worth doing your due diligence to find the policy that will cover your car adequately in the event of a collision. When your money is at stake, it's worth being patient and finding a great value, rather than settling for the cheapest car insurance in Alabama.

Compare top insurance companies' financial strength and claims satisfaction levels to better understand the level of service they will provide. Claims satisfaction — measured by J.D. Power — is rated on a scale of 2 to 5, with 5 being "among the best" and 2 being "the rest." Financial strength — calculated by A.M. Best and ranging from "Superior" to "Poor" — assesses an insurer's financial strength and ability to meet its policy and contractual obligations.

Insurance CompanyClaims Satisfaction (J.D. Power)Financial Strength (A.M. Best)
Allstate3Superior
Auto-Owners5Superior
Cal CasualtyNot RatedExcellent
Cincinnati InsuranceNot RatedSuperior
Country3Superior
Farmers3Excellent
GEICO3Superior
Liberty Mutual3Excellent
MetLife3Superior
Nationwide4Superior
Progressive3Superior
Safeco3Excellent
State Farm3Superior
Travelers3Superior
USAA5Superior

 

What is the Best Car Insurance Coverage in Alabama?

The minimum required insurance level in Alabama is $25,000 Bodily Injury per person, $50,000 Bodily Injury per accident, and $25,000 Property Damage per accident.

If you select the minimum required coverage in Alabama, expect to pay an average of $611 per year. This is cheaper than the national average by 7%. If you opt for a higher level of car insurance coverage, you can choose a policy with comprehensive and collision coverage, which will protect against damages caused by car-versus-car collisions, theft, or weather incidents.

Better coverage comes at a cost: in Alabama, a comprehensive policy with a $1,000 deductible costs $1,219, 100% more than basic liability-only coverage. For a comprehensive policy with a $500 deductible, expect to pay 123% more than you would for basic liability-only coverage.

Compare average rates for liability-only and comprehensive coverage levels below.

LocationLiability-OnlyComprehensive — $1,000 DeductibleComprehensive — $500 Deductible
Alabama$611.13$1,219.35$1,359.81
National Average$657.66$1,241.26$1,397.94

Car Insurance Laws

State minimum insurance requirements in Alabama

In Alabama, the state minimum coverage requirement is liability with limits of:
  • Bodily Injury $25,000 per person
  • Bodily Injury $50,000 per accident
  • Property Damage $25,000 per accident
Optional coverage in Alabama (varies by carrier):
  • Comprehensive
  • Collision
  • Loan/Lease Payoff
  • Medical Payments
  • Rental Car Reimbursement
  • Roadside Assistance
  • Uninsured Motorist Bodily Injury

Liability coverage is legally required in Alabama and pays for injury and lost wages that you cause to another driver or their passengers as well as damage to the other driver’s vehicle in the event that you are considered “at fault” in an accident. The coverage limits are determined by each individual state and normally split into three categories. In Alabama, the minimum is listed as 25/50/25 and explained below:

  • $25,000 bodily injury coverage per person. This is the maximum dollar amount that pays for a single person that you injure in an auto accident.
  • $50,000 bodily injury coverage per accident. This is the maximum dollar amount that pays for all injuries that you cause in an accident if more than one person is hurt.
  • $25,000 property damage per accident. This is the maximum dollar amount that pays for damage that you cause in an accident.

These numbers reflect the minimum limits required in Alabama but higher coverage amounts are available with most companies.

Alabama Car Insurance FAQs

Do you need insurance to drive in Alabama?

If a vehicle is driven regularly, it needs to be insured — period. If you're the owner of the vehicle and primary user, you can insure the vehicle with any insurance company in Alabama. If you regularly borrow another driver's vehicle, you can be added to the insurance policy.

Is Alabama a no-fault state for car insurance?

No. Alabama is a tort state, meaning you are responsible for any property damage and bodily injury you cause.

Who needs to be listed on car insurance in Alabama?

This varies depending on your insurance company. Most insurers require anyone who uses the vehicle more than 12 times during a policy period — typically six months — to be listed as a covered driver. Moreover, non-driving residents can also be required to be listed on the policy. If they do drive, they can be listed as an excluded driver, meaning they are listed on the policy but not included in the premium calculation.

How much does car insurance cost in Alabama cities?

Car insurance companies calculate your rate based on many factors, location of the vehicle being an important one. The cheapest car insurance is found in Florence, Alabama, and the most expensive in Birmingham, Alabama.

RankCityAvg. Annual Premium
1Birmingham$1,451
2Mobile$1,426
3Bessemer$1,421
4Prichard$1,399
5Homewood$1,378
6Hoover$1,341
7Phenix City$1,339
8Montgomery$1,338
9Vestavia Hills$1,338
10Gadsden$1,326
11Northport$1,323
12Tuscaloosa$1,320
13Prattville$1,318
14Alabaster$1,310
15Anniston$1,305
16Auburn$1,270
17Opelika$1,269
18Madison$1,266
19Athens$1,262
20Decatur$1,261
21Enterprise$1,254
22Huntsville$1,251
23Daphne$1,251
24Dothan$1,229
25Florence$1,215

Recent Alabama Car Insurance Questions and Answers

Does liability cover my damages caused by a windstorm?

I have liability insurance my car was damaged in a windstorm will it cover my damages...

AUG 17, 2018
In Alabama, does the car insurance follow the driver or the car?

My daughter’s car was hit by another driver and the car was damaged. The driver of that car was not ...

JUN 16, 2018
Car insurance for a car I own but don’t drive

So, here’s the deal. My daughter bought a car but couldn’t afford the loan payments so my son took over. ...

JUN 04, 2018
If my Alabama registration tags expire, do I still have to carry insurance?

My registration expired last month and I want to cancel my insurance to save some money until I’m ready to ...

AUG 13, 2017

Driving Laws

Alabama Texting and Driving Laws

  1. Ban on all cell phones for novice drivers (16, or 17 w/ Intermediate License <6 months)
  2. Ban on text messaging for all drivers

 

Alabama DUI Laws

If you’re caught under the influence of alcohol or drugs while driving in Alabama, you’re subject to a slew of penalties. Though repeat offenders are subject to the harshest penalties, even first-time offenders will find DUIs costly, both in the cost of fines and time spent in jail.

First-time DUI offenders in Alabama:

  • May be imprisoned for up to one year in municipal or county jail (no minimum sentence)
  • Must pay a fine between $500 and $2,000, plus $100 to the Impaired Drivers Trust Fund
  • Are given a mandatory 90-day license suspension
  • Must attend DUI school

 

Alabama At-Fault Accident Laws

Alabama is considered an “at-fault” state. This means that, in the case of an accident, fault can be assigned to a driver and they will be held liable for the cost of damage, injury, and other loss.

Accidents must be reported to the Alabama Department of Public Safety within 30 days of taking place if the accident resulted in injury, death, or damages exceeding $250.

Drivers in Alabama are required to maintain mandatory liability insurance with minimums of:

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

 

Alabama Racing Regulations

Racing in Alabama is defined as one or more vehicles conducting a:

  • Race, speed competition, or contest
  • Drag race or acceleration contest
  • Test of physical endurance
  • Exhibition of speed or acceleration
  • Or attempt to make a speed record on any public highway.

 

Distracted Driving in Alabama: Defined

You are guilty of distracted driving in Alabama if you are operating a wireless device, such as a phone, while actively driving on the road. This includes using a device to send or read texts or emails, watch videos, or otherwise operate the device.

You are, however, allowed to use the voice-activated features of your device while driving in Alabama. Since Alabama does not have a hands-free law, you are allowed to hold your device while driving. You are also allowed to select a contact to call, but cannot send or read any communication with any contacts.

You are also allowed to use the GPS or navigational functionality of your device while driving, provided that your destination is pre-programmed before driving.

Any mobile device use is prohibited for drivers who are 16 years old. In addition, 17-year-olds cannot use a phone while driving if they have had their license for less than six months.

 

Reckless Driving Laws in Alabama

Alabama law considers reckless driving to be defined as driving any vehicle “carelessly and heedlessly in willful or wanton disregard for the rights or safety of persons or property, or without due caution and circumspection and at a speed or in a manner so as to endanger or be likely to endanger any person or property.”

In other words, driving dangerously in Alabama may result in you being charged with reckless driving.

 

Alabama Speed Limits

Statutory speed limits in Alabama are:

  • 30 miles per hour in an urban area
  • 35 miles per hour on an unpaved road
  • 45 miles per hour on a county paved road (unless otherwise posted)
  • 55 miles per hour in other locations
  • 65 miles per hour where posted
  • 70 miles per hour where posted on the interstate

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.

Prompt

So, 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.

How do I choose a location?

The length of the road trip to your feature destrination 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
1. Create a video

Your original video should not exceed 2 minutes

2. Post online

The video must be hosted on YouTube or Vimeo

3. Submit by email

Email your submission to scholarships@thezebra.com

4. Please include...

your name, address, and phone number when you submit

Details
Award

Selected winner(s) will be awarded a check for $1,000

Deadline

Applications must be received by 11:59 p.m. CST on December 31st, 2018

Notification

Winner(s) will be selected and notified by email by January 31st, 2019

Judges: The Zebra

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.

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