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Here's what you need to know when driving in Alabama

The average car insurance rate in Alabama is $1,379 per year — 10% less than the U.S. average. Car insurance rates are impacted by more than just your location. Auto insurance rates comprise many factors, including a driver's age and driving history. The Zebra's experts analyzed average Alabama car insurance rates for these rating factors in an effort to help you find an affordable policy.

Read on to learn how much auto insurance costs in Alabama based on these variables, or submit your ZIP code above to receive personalized quotes from top insurers.

The best car insurance companies in Alabama

Based on data from J.D. Power's 2021 Auto Satisfaction Study and The Zebra's Customer Satisfaction Survey, we have compiled a list of the best car insurance companies in Alabama. 

1st place medal
USAA

Along with topping The Zebra's Customer Satisfaction Survey, USAA received a score of 879 (out of 1,000) in J.D. Powers' 2021 U.S. Auto Insurance Study for the state of Alabama.

2nd place medal
Farm Bureau Insurance - Tennessee

As a highly-rated regional carrier, Farm Bureau Insurance - Tennessee scored an 883 on J.D. Power's 2021 auto study, .

3rd place medal
Erie Insurance

Erie Insurance placed third with a score of 874 in J.D. Power's 2021 customer satisfaction survey. Erie also received second place in The Zebra's Customer Satisfaction Survey.

Key takeaways
  • Alabama pay about 10% less for car insurance on average, with the cheapest major car insurance company being Travelers.

The cheapest car insurance companies in Alabama

These companies offer the cheapest rates in the following scenarios.

medal
Cheapest full coverage insurance: Travelers

The cheapest rates are from Travelers at $1,921 annually, or $160 per month.

medal for most affordable
Cheapest for minimum liability: GEICO

For the minimum required coverage in Alabama, GEICO is the cheapest on average. 

Most affordable medal
Cheapest for DUI: Travelers

If you have a DUI on your record, check out Travelers for the cheapest average rates.

Company Avg. Annual Premium
Travelers $1,281
GEICO $1,330
Nationwide $1,344
USAA $1,400
Allstate $1,593
State Farm $1,716
Farmers $1,965
Progressive $2,446
Updated: 10/04/22.

Dynamic auto insurance data methodology

Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.


Alabama auto insurance laws

Car insurance is mandatory in almost every state, including Alabama. If you choose the legal minimum coverage level in Alabama, expect to pay an average of $478 annually. This expenditure is less expensive than the nationwide average by 11%. 

For the legal minimum coverage level in Alabama, expect to pay about $478 per year.

State minimum coverage

In order to drive legally in the state of Alabama, you must carry at least the minimum liability limits listed below:

  • 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
car with blue windshield

If you opt for better coverage, you can choose a policy with comprehensive and collision, which will protect against the costs of car accidents, theft, vandalism, or weather incidents. But better coverage comes with a cost: in Alabama, a comprehensive insurance policy with a $1,000 deductible costs $1,249, 161% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay 212% more than you would for basic coverage.

in Alabama, a comprehensive insurance policy with a $1,000 deductible costs $1,249, 161% more than liability-only car insurance

The Zebra's guide to Alabama car insurance laws


Learn more about car insurance requirements in the state of Alabama with our helpful guide.


Compare car insurance rates from the best companies in Alabama.

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Alabama car insurance premiums by rating factor

Your rates are determined by a number of individual factors, including your coverage level, driving history, location, and more. Explore average premium costs by rating factor below to get a better sense of how much you should be paying for auto insurance in Alabama.

Cheap auto insurance in Alabama for minimum coverage

Forgoing full coverage for liability-only at the state minimum level will make your car insurance significantly cheaper. In Alabama, the average cost for minimum coverage is $40 per month, or $478 yearly — a savings of $1,014 compared to full coverage.

Company Avg. Annual Premium
GEICO $321
Travelers $428
USAA $445
Nationwide $465
State Farm $526
Allstate $615
Farmers $682
Progressive $767
Updated: 10/04/22.

Cheap auto insurance in Alabama with bad credit

Your credit history is an important factor in determining your car insurance rates. Many carriers see those with a poor credit score as being higher risk, meaning you could pay more for your policy. On average, Alabama drivers with poor credit pay 61% more per year than those with exceptional credit. Have a look at some common rates by credit tier below.

Company Avg. Annual Premium
GEICO $1,921
Nationwide $2,187
Travelers $2,236
USAA $2,521
Allstate $2,632
Farmers $3,004
Progressive $4,132
State Farm $5,456
Updated: 10/04/22.

Cheap auto insurance in Alabama with an at-fault accident

Your driving history plays a big part in how much you pay. Insurance companies look for previous accidents for which you have been at fault to gauge the level of risk you pose as a customer. An at-fault accident in recent years could see your car insurance rates increase by as much as $639 per year.

Safe driver discounts

In addition to having a cheaper premium, some companies offer a safe driving discount. While the amount varies based on your company, it can range between 5 and 10%.

Company Avg. Annual Premium
Travelers $1,694
USAA $1,995
Nationwide $2,284
State Farm $2,289
GEICO $2,314
Allstate $2,504
Farmers $2,731
Progressive $3,914
Updated: 10/04/22.

Cheap auto insurance for young drivers in Alabama

Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In Alabama, teen drivers pay especially high rates: $4,773 per year — that's $23 less than the nationwide average but over twice as much as a typical Alabama driver.

Company Avg. Annual Premium
Travelers $3,526
USAA $3,790
GEICO $4,288
Nationwide $4,727
Allstate $5,147
State Farm $6,149
Farmers $8,353
Progressive $12,162
Updated: 10/04/22.

Alabama auto insurance rate by violation

In Alabama, a bad driving record will cause your rates to skyrocket. If you receive a ticket or citation, your auto insurance premiums will probably rise. By how much depends on the violation, your insurer's pricing standards, and differing local insurance regulations and risks. That's why tickets may have a different impact on insurance in your state compared to the national average

Accident/Violation Avg. Annual Premium % Rate Increase $ Rate Increase
One Med/PIP claim $1,770 0% $0
None $1,770 0% $0
Two Med/PIP claims $1,826 3% $56
Not-at-fault accident $1,842 4% $72
One comp claim $1,862 5% $92
Two comp claims $1,973 11% $203
Driving without lights $2,010 14% $240
Failure to wear a seat belt $2,053 16% $282
Child safety restraint $2,066 17% $295
Failure to show documents $2,098 19% $328
Cell phone violation $2,142 21% $372
Texting while driving $2,142 21% $372
Driving with expired registration $2,163 22% $393
Driving too slowly $2,187 24% $417
Speeding in school zone $2,187 24% $417
Speeding 6 - 10 MPH over limit $2,187 24% $417
Speeding 11 - 15 MPH over limit $2,198 24% $428
Wrong way/wrong lane $2,209 25% $439
Following too closely $2,211 25% $441
Failure to yield $2,212 25% $442
Illegal turn $2,213 25% $442
Speeding 16 - 20 MPH over limit $2,215 25% $445
Failure to stop at a red light $2,222 26% $452
Improper passing $2,223 26% $453
Passing school bus $2,300 30% $530
Speeding 21 - 25 MPH over limit $2,302 30% $532
At-fault accident - less than $1000 $2,338 32% $568
In 65 MPH zone $2,417 37% $647
Operating a vehicle without permission $2,530 43% $760
At-fault accident - $1000-$2000 $2,595 47% $824
At-fault accident - greater than $2000 $2,607 47% $837
Open container $2,629 49% $859
Racing $2,907 64% $1,137
Reckless driving $2,913 65% $1,143
Driving with a suspended license $3,057 73% $1,286
Refusal to submit to a chemical test $3,175 79% $1,405
DUI $3,175 79% $1,405
Leaving scene of an accident/hit and run $3,299 86% $1,529
Updated: 10/04/22.

Alabama DUI laws

In Alabama, a DUI offense can increase your annual car insurance premium by an average of $776. Finding affordable auto insurance in the wake of a DUI violation isn’t simple. In fact, a DUI often brings about a bigger premium increase than any single road violation — more than an at-fault accident, racing, or reckless driving.

 
Low-cost car insurance after a DUI in Alabama

If you're convicted of a DUI or DWI violation in Alabama, it’s key to mull over each of your insurance choices carefully. Auto insurance premiums following a DUI can vary substantially by insurer. For example, the least expensive car insurance company with a DUI in Alabama, Travelers, advertises annual rates 15% less than the statewide average insurance rate with a DUI. The second-cheapest insurer for auto insurance after a DUI in Alabama is Allstate, while the priciest firm is GEICO, with prices 51% above average.

Company Avg. Annual Premium
Travelers $1,832
Allstate $2,129
Farmers $2,626
State Farm $2,672
Nationwide $2,878
Progressive $2,943
USAA $3,082
GEICO $3,261
Updated: 10/04/22.

There is no car insurer in particular that offers inexpensive DUI car insurance. The recommended way to save in the wake of a DUI citation is to shop around.

Compare and buy car insurance online or reach out to an insurance agent to assess your choices and find a cost-effective policy.

Learn more about car insurance and DUI infractions.

Alabama SR-22 insurance

An SR-22 is a routine legal requirement triggered by a violation such as a DUI conviction, a ticket for driving without insurance, an at-fault collision, driving with a suspended license, or accumulating too many points on your license. It is not a type of insurance policy, but a form issued by your insurance company with the state of Alabama to ensure that you remain insured.

Finding cheap auto insurance with an SR-22 in Alabama might require some research, but it could pay off in the end.

 

How to acquire an SR-22 in Alabama

For currently insured drivers

If you already have auto insurance, getting an SR-22 certificate is straightforward. Contact your car insurance company ask the company to file an SR-22 request for you. If your insurer isn’t willing to file a request, you'll need to look for a new insurer.

 

For uninsured drivers

When filing for a new policy, you might be saddled with an up-front fee to have your prospective insurer file an SR-22 request for you and to cover your high-risk driving profile. Needing an SR-22 might disqualify you from purchasing insurance from some companies, while others would be happy to sell you a policy.

 

For drivers without a vehicle

Not owning a vehicle makes it more difficult to obtain an SR-22, as you will need to furnish proof of insurance to receive the certificate. In this scenario, purchase a non-owners car insurance policy before filing an SR-22 request. Non-owners auto insurance is typically less expensive than traditional coverage since it doesn't protect against material damage to your vehicle.

 

Learn more about SR-22 certificate requirements and how they impact insurance premiums.

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Rates by city

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

Have a look at the table below to see average car insurance costs in some of Alabma's biggest cities.

City Avg. Annual Premium
Huntsville $1,706
Tuscaloosa $1,762
Montgomery $1,807
Mobile $1,910
Birmingham $1,975
Updated: 10/04/22.

Car insurance price trends in Alabama

In Alabama, average annual auto insurance costs increased by $82 in the past year. A typical Alabama driver pays an average of $1,379 per year.

The recent pricing trend in Alabama leans toward slightly cheaper car insurance costs than the national average. The steepest decrease occurred from 2015 to 2016, while the highest surge took place from 2016 to 2017. At the same time, car insurance rates across the United States have stayed relatively steady in the past few years, moving from $1,521 in 2018 to $1,529 in 2021.

ALABAMA CAR INSURANCE RATE TRENDS
Year Avg. Annual Premium — Alabama Yearly Change — Alabama Avg. Annual Premium — US Yearly Change — US
2021 $1,379 $82 $1,529 $46
2020 $1,297 -$148 $1,483 -$61
2019 $1,445 -$13 $1,544 $23
2018 $1,458 -$16 $1,521 $84
2017 $1,796 $234 $1,437 $69
2016 $1,562 -$323 $1,368 $88
2015 $1,885 $216 $1,280 $51
2014 $1,669 $155 $1,229 $34
2013 $1,514 -$63 $1,195 -$80
2012 $1,577 $323 $1,276 $82

If your rates are rising faster than the average in your state, compare quotes and find a better deal. The Zebra's car insurance comparison engine furnishes quotes based on your specific profile — enter your ZIP below to get started.


Alabama car insurance FAQs

Below you'll find answers to some of the most commonly asked questions regarding Alabama auto insurance.

Who actually has the cheapest car insurance in Alabama? Chevron down icon
Travelers is the cheapest insurance company in Alabama. Our data show Travelers charges $399 for a six-month policy — or $67 a month.
How much is car insurance in Alabama per month? Chevron down icon
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.
What insurance company has the best auto rates? Chevron down icon
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.

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RECENT QUESTIONS

If I have car insurance, can I test drive a car that has no insurance?

Yes, most companies in Alabama will cover you to drive another vehicle, especially just to test drive it. You can always call your specific insurance company to find out what their coverage entails.
Jun 24, 2019 Madison, AL

Can my fiancé and I share an insurance policy?

Thank you for reaching out to us here at The Zebra. You can call our agency at 888-444-8949 to speak to one of our Licensed Insurance Advisors.
Jul 22, 2022 Birmingham, AL

Who do I get auto insurance from before a storm?

Unfortunately once a huge storm, like a hurricane, is imminent, most (if not all) insurers offering coverage in the storm's path will stop writing new policies to decrease their risk exposure. My recommendation would be to check with every possible company offering insurance in Florida to see if any will issue a policy.
Sep 16, 2017 Delray Beach, FL

How to handle car insurance when buying out of state

There are many different factors that go into calculating your insurance rate. At The Zebra, we can quote you with over 200 companies at once for your mother.
Jan 8, 2019 Birmingham, AL

Renata Balasco photo
Renata BalascoContent Strategist

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist. Her expertise in property and casualty insurance informs her work in creating expert home and auto insurance guides to educate shoppers. 

Renata previously worked as a content specialist for Lifespan, the largest hospital system in the state of Rhode Island. She holds a bachelor’s degree in French Language and Communications from The University of Rhode Island.

Renata's work has been cited by Car and Driver, The Balance and Fox Business

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.