Cheap Car Insurance in Alabama

Because insurance coverage rates are significantly cheaper in Alabama than the national average, you have a good chance at finding great car insurance at excellent rates. Below we’ll look at the cheapest car insurance companies and coverage options in the state, beginning with the most affordable providers.

Cheapest Car Insurance Companies in Alabama

Geico, USAA, Nationwide and Travelers are the cheapest car insurance companies in Alabama. Below are the overall and cost ratings for each provider.

Top Alabama Car Insurance Companies	Overall Rating	Cost Rating	Learn More
Geico Learn More	9.2	9.4	Learn More
USAA Learn More	9.5	10.0	Learn More
Nationwide Learn More	8.6	8.6	Learn More
Travelers Learn More	9.1	8.8	Learn More

Top Alabama Car Insurance Companies	Overall Rating	Cost Rating	Learn More
Geico Learn More	9.2	9.4	Learn More
USAA Learn More	9.5	10.0	Learn More
Nationwide Learn More	8.6	8.6	Learn More
Travelers Learn More	9.1	8.8	Learn More

*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in Alabama.

Since car insurance companies have different calculation methods for car insurance premiums, no two quotes are the same. For this reason, we recommend comparing rates from multiple providers if you want to find the cheapest car insurance in Alabama.

Cheapest Car Insurance Coverage in Alabama

The amount of car insurance coverage you choose significantly impacts your rates. Many car insurance quotes from providers include estimates for minimum liability and full coverage car insurance. While minimum liability is all that is required, it’s a good idea for drivers to consider full coverage auto insurance.

Below are the cheapest auto insurance options in Alabama for both coverage types.

Cheap Liability Car Insurance Alabama

At $24 per month or $291 per year, USAA tends to offer the cheapest liability car insurance in Alabama. Geico and Auto-Owners Insurance can also be affordable options for motorists. Below is the complete list of cheap liability coverage options in Alabama.

Cheapest Full Coverage Car Insurance in Alabama

Based on our cost research, USAA provides the cheapest full coverage car insurance in Alabama on average, costing $82 per month and $987 per year. Nationwide and Geico also offer affordable car insurance options for Alabama motorists. We highlight the complete list of cheapest full coverage options for auto insurance in the state below.

*The rates in this table reflect the estimates for a 35-year-old driver with good credit and a clean driving record. 

Age, driving history and a person’s credit scores can have a huge impact on the cost of car insurance in Alabama. Below we compare cheap car insurance estimates for Alabama drivers in these categories.

Cheapest Car Insurance for Young Drivers in Alabama

Young drivers can pay significantly more for car insurance than older adults. The tables below show the cheapest car insurance for young drivers in Alabama, along with estimated monthly and annual cost estimates.

Cheapest Alabama Car Insurance for 16-Year-Olds

Geico tends to offer the cheapest car insurance in Alabama for 16-year-old drivers, with an average estimate of $3,835 per year, or $320 per month. The average rate estimate for 16-year-old drivers in Alabama is $6,425 per year, or $535 per month. That’s 334% higher than the average rate estimate in the state.

Cheapest Alabama Car Insurance for 17-Year-Olds

For those who are eligible, USAA tends to offer the cheapest full coverage insurance for 17-year-old drivers in Alabama at an estimated $2,804 per year, or $234 per month. The average estimate in Alabama for 17-year-old drivers is $5,636 per year, or $470 per month. This is 281% more than the state average estimate.

Cheapest Alabama Car Insurance for 18-Year-Olds

USAA typically offers the cheapest rates in Alabama for 18-year-old drivers at an estimated $2,361 per year, or $197 per month. The average estimate for 18-year-old Alabama drivers is $4,930 per year, or $411 per month. That’s around 233% higher than the average rate estimate for Alabama drivers.

Cheapest Alabama Car Insurance for 21-Year-Olds

For 21-year-old drivers in Alabama, USAA tends to offer the cheapest coverage with an average estimate of $1,561 per year, or $130 per month. The average estimate in Alabama for 21-year-old drivers is $2,380 per year, or $198 per month. This is 61% higher than the average estimate in the state.

Cheapest Alabama Car Insurance for 25-Year-Olds

USAA typically offers the cheapest car insurance in Alabama for 25-year-olds, with an average estimate of $1,287 per year, or $107 per month. The average estimate for 25-year-old drivers in Alabama is $1,775 per year, or $148 per month. This is 20% more expensive than the state average estimate.

Cheapest Alabama Car Insurance for High-Risk Drivers

Your age is one of the biggest factors in your car insurance rates, but it isn’t the only one. Different variables related to your driving record, credit rating, and more can also affect the rates you pay for car insurance in Alabama.

Cheapest Alabama Car Insurance for Drivers With a Speeding Ticket

One of the many reasons to follow the speed limit is to keep car insurance costs down. Motorists who get caught going too fast in the Yellowhammer State pay an average rate of $1,802 per year for full coverage — much higher than the rate for good drivers with a clean driving record.

Cheapest Alabama Car Insurance For Drivers With A Recent Accident

Motorists who’ve recently been involved in an at-fault accident could see considerable boosts to their monthly premiums. The average Alabama car insurance cost for those with an accident in their driving history is $2,103 per year.

Cheapest Alabama Car Insurance for Drivers With a DUI

Expect to be considered a high-risk driver after getting a DUI violation. This status comes with significantly higher premiums, which reach an average of $2,287 per year in Alabama.

Cheapest Alabama Car Insurance for Drivers With Poor Credit

Few factors impact the price of Alabama auto insurance as much as having a bad credit score. Average auto insurance rates skyrocket to $2,720 per year for those who have poor credit.

For those who would like to know about the cheapest auto insurance in Alabama, the sections below contain more detailed information.

#1 Geico: Best for Budget-Conscious Drivers

9.1/10

Overview

Geico is one of the cheapest car insurance options on average for Alabama drivers across multiple categories. The company’s strong financial strength rating shows that it’s able to reliably cover claims, while its average score in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study℠ reveals high customer satisfaction with its claims process.

Keep reading: Geico insurance review

Industry Standing

• J.D. Power regional rating: 828/1,000
• AM Best financial strength score: A++
• Better Business Bureau (BBB) rating: A+

Our research found that the average estimate for full coverage car insurance in Alabama is $1,479 per year, or $123 per month, based on the profile of a 35-year-old driver with good credit and a clean driving record. That’s around 15% cheaper than the national average of $1,730 per year.

For minimum liability coverage, the average estimate in Alabama is $472 per year, or $39 per month based on that same driver profile. This is nearly 26% cheaper than the national average estimate of $635 per year.

Alabama Car Insurance Cost by Age

Your age is one of the single most influential factors when it comes to your car premiums. In Alabama and elsewhere, younger drivers pay far more for coverage than drivers in other age groups. Teens typically pay the highest rates.

The table below shows the average rates for Alabama drivers of different ages.

Alabama Car Insurance Cost by City

Car insurance rates vary between states, but they also vary within states. Insurers adjust rates based on different localized risk factors, so you may pay significantly different rates for insurance than your neighbors in the next county — even if all other factors are the same.

The table below shows the average rates for the 25 most populated towns and cities in Alabama.

Factors That Affect Alabama Car Insurance Rates

Your car insurance rates will likely vary from the figures in the tables in this article. Providers calculate your premiums using a number of variables.

These are the most important factors in the cost of car insurance:

• Age
• Marital status
• Driving record
• Gender listed on your license
• Credit score
• Location

According to the Alabama Department of Motor Vehicles (DMV), all drivers need to carry liability coverage with minimum coverage limits of 25/50/25. This means you’ll need the following coverage amounts:

• Bodily injury liability coverage: $25,000 per person and $50,000 per accident
• Property damage liability coverage: $25,000 per accident

Liability car insurance does not cover your vehicle if you cause an accident or run into a stationary object. It also doesn’t cover any of your medical bills if you cause an accident. Finally, it won’t help out if an uninsured or underinsured motorist causes an accident and can’t cover the damage. To cover these situations, consider adding:

• Comprehensive coverage
• Collision coverage
• Underinsured/uninsured motorist coverage
• Medical payments (MedPay) coverage

How To Get Car Insurance in Alabama

USAA, Geico and Nationwide can all be great options for car insurance in Alabama. However, what’s best for someone else might not be best for you. Compare car insurance rates from multiple providers to see which one offers the best coverage and prices.

In this article, we reviewed the cheapest auto insurance companies, coverage and rates in the state of Alabama. We also looked at average cost of car insurance and coverage requirements in the state.

Cheapest Car Insurance in Alabama: FAQ

Below are frequently asked questions about the cheapest car insurance in Alabama.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.