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.
Affordable insurance companies in Alabama
What's the cheapest car insurance in Alabama?
| Rank | Company Name | Avg. Annual Premium |
|---|---|---|
| 1 | Travelers | $799 |
| 2 | Auto-Owners | $1,194 |
| 3 | USAA | $1,201 |
| 4 | MetLife | $1,354 |
| 5 | Cal Casualty | $1,481 |
| 6 | Progressive | $1,560 |
| 7 | Country | $1,613 |
| 8 | Nationwide | $1,657 |
| 9 | Liberty Mutual | $2,664 |
| 10 | Cincinnati Insurance | $4,482 |
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Cheap auto insurance for good drivers in Alabama
Drivers with spotless 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% |
| No Accidents | $611 | 31.20% |
| Good Credit | $1,591 | 54.16% |
Cheap auto 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 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 |
|---|---|---|
| 16 | $5,710 | $7,768 |
| 17 | $5,463 | $6,538 |
| 18 | $5,228 | $5,584 |
| 19 | $4,753 | $3,541 |
Cheap auto 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 Factor | Annual Rate | % Increase |
|---|---|---|
| At-Fault Accident | $1,957 | 31.20% |
| DUI | $2,230 | 39.62% |
| Speeding Violation | $1,621 | 16.92% |
| Bad Credit | $2,938 | 54.16% |
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Top rated 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.
Use the table below to better understand the quality of service you'll receive. You'll see reviews for popular auto insurers' financial strength, claims satisfaction, and customer satisfaction including an internal satisfaction score from The Zebra's customers.
| Insurance Company | Claims Satisfaction (J.D. Power) | Customer Satisfaction (J.D. Power) | Financial Strength (A.M. Best) | Customer Satisfaction (The Zebra) |
| Auto-Owners | Excellent | Above average | Superior | N/A |
| Cal Casualty | N/A | N/A | Good | N/A |
| GEICO | Average | Average | Superior | 4.4 / 5 |
| Liberty Mutual | Below average | Above average | Good | 4.2 / 5 |
| MetLife | Excellent | Below average | Excellent | N/A |
| Progressive | Below average | Below average | Excellent | 4.3 / 5 |
| Safeco | Average | Average | Excellent | N/A |
| State Farm | Above average | Above average | Superior | 4.5 / 5 |
| Travelers | Below average | Below average | Superior | 4.3 / 5 |
| USAA | Excellent | Excellent | Superior | 4.6 / 5 |
Alabama auto insurance laws
In Alabama, drivers are required to maintain liability coverage at the below levels:
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
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.
View a full breakdown of Alabama auto insurance rules and regulations.
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How tickets change insurance rates in Alabama
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.
Alabama car insurance FAQs
Who actually has the cheapest car insurance in Alabama?
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?
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?
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.
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 Enterprise, Alabama, and the most expensive in Birmingham, Alabama.
| Rank | City | Avg. Annual Premium |
|---|---|---|
| 1 | Birmingham | $1,648 |
| 2 | Hoover | $1,596 |
| 3 | Mobile | $1,592 |
| 4 | Montgomery | $1,488 |
| 5 | Tuscaloosa | $1,479 |
| 6 | Huntsville | $1,431 |
| 7 | Auburn | $1,354 |
| 8 | Decatur | $1,348 |
| 9 | Dothan | $1,346 |
| 10 | Enterprise | $1,292 |
Related Content
- Alabama Car Insurance Laws
- Auto Insurance Rate Trends in Alabama
- Birmingham, AL Car Insurance
- Car Insurance for High-Risk Drivers in Alabama
- Car Insurance with a DUI in Alabama
- Huntsville, AL Car Insurance
- Mobile, AL Car Insurance
- Montgomery, AL Car Insurance
- SR-22 Car Insurance in Alabama
- Tuscaloosa, AL Car Insurance
