Compare the best rates from 35 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 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.
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.
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.
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 $1,600 annually. The most expensive cities for the cost per mileage are:
The cheapest cities for annual cost per mileage are:
If you own a Honda Fit, you can rest easy knowing it is the cheapest car to insure in Alabama! Below are the cheapest vehicles to insure in Alabama:
This probably won’t come as a surprise, but Mercedes-Benz is the most expensive vehicle manufacturer for which to purchase insurance in Alabama. Below are the most expensive vehicles to insure in Alabama:
Finding car cheap car insurance in Alabama that fits your needs can be easy! Before making your final decision on your insurance provider, consider your vehicle use and what you’re looking for in a provider. Many car insurance companies offer discounts for eco-friendly vehicles, safe drivers, shared family policies, and more. Look into services like roadside assistance and accident forgiveness, as these can save you time and money in the long run.
Compare quotes from over 30 insurance companies that provide coverage throughout Alabama. Enter your ZIP code below to get started.
Drivers with good driving records typically enjoy lower car insurance costs than drivers with histories of speeding tickets, at-fault accidents, or DUI citations. Alabama drivers without a recent at-fault accident save 31% on their car insurance, on average, while Alabama drivers without a recent ticket save 16%. Both of these figures are near US averages. In addition to earning a cheaper premium for driving incident-free, you may qualify for a safe-driving bonus through your car insurance company. The amount of these discounts may vary, but they typically run between 5 and 10%.
|Rating Factor||$ Savings||% Savings|
|No Traffic Tickets||$274||16.92%|
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 national teen driver average and more than three times as much as a typical driver in Alabama.
|Age||Annual Rate with Parents||Annual Rate Alone|
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 Factor||Annual Rate||% Increase|
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 Company||Claims Satisfaction (J.D. Power)||Financial Strength (A.M. Best)|
|Cal Casualty||Not Rated||Excellent|
|Cincinnati Insurance||Not Rated||Superior|
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.
|Location||Liability-Only||Comprehensive — $1,000 Deductible||Comprehensive — $500 Deductible|
In Alabama, drivers are required to maintain liability coverage at the below levels:
If you get a ticket, your car insurance rates may rise. How much your rates rise depends on the type of violation, your insurance company's pricing strategy, and local insurance regulations. That's why tickets may have a different impact on insurance in your state compared to the national average.
Below is a snapshot of average car insurance rates in Alabama after a few common citations.
|Violation||Avg. Annual Auto Insurance Rate||% Insurance Rate Increase||$ Insurance Rate Increase|
|Hit and Run||$2,380||72%||$992|
|Refused Breathalyzer/Chemical Test||$2,261||63%||$874|
|Driving with a Suspended License||$2,129||53%||$742|
|Driving with an Open Container||$1,968||42%||$581|
|Operating a Vehicle Without Permission||$1,729||25%||$342|
|Passing a School Bus||$1,717||24%||$330|
|Following Too Closely||$1,687||22%||$300|
|Failure to Stop at a Red Light||$1,687||22%||$300|
|Driving Wrong Way/Wrong Lane||$1,687||22%||$300|
|Failure to Yield||$1,687||22%||$300|
|Speeding in a School Zone||$1,663||20%||$276|
|Driving Too Slowly||$1,663||20%||$276|
|Driving with Expired Registration||$1,591||15%||$203|
|Failure to Show Documents||$1,591||15%||$203|
|Failure to Use Child Safety Restraint||$1,464||6%||$77|
|Failure to Wear a Seat Belt||$1,464||6%||$77|
|Driving Without Lights||$1,387||0%||$0|
Travelers is the cheapest insurance company in Alabama. Our data show Travelers charges $399 for a six-month policy — or $67 a month.
The average monthly premium in Alabama varies. The average driver pays $113/month for car insurance in Alabama. Our estimate could be low or high depending on your driving profile. Use our comparison tool to find multiple options for you.
The best company and best rates will depend on you. Based on your driving history, different companies will charge you different amounts. Use our comparison tool to find the perfect match for you.
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 Enterprise, Alabama, and the most expensive in Birmingham, Alabama.
|Rank||City||Avg. Annual Premium|