Best car insurance in Alabama for 2021

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The highways and byways of Alabama lead to amazing adventures, from Huntsville’s U.S. Space and Rocket Center to the emerald green waters of Gulf Shores. But before you set out on the open road, you need to protect yourself and your vehicle with Alabama auto insurance.

Based on the U.S. Department of Transportation, Alabama had nearly four million licensed drivers in 2018. The Alabama Department of Transportation (ALDOT) reports that a traffic accident occurred every 197 seconds in 2018, so it makes sense to protect yourself with automobile insurance.

Best Car Insurance Companies in Alabama

Marketing research company J.D. Power conducts an annual study of car insurance companies to determine which ones offer the best coverage, prices and service. The survey rates insurance companies using a points system, which focuses on how providers perform in the billing process and policy information, claims handling, customer interaction, policy offerings, pricing and overall customer satisfaction.

Although USAA earned high marks in the survey, it technically does not qualify for J.D. Power’s ranking, because it only provides insurance products for military members, veterans and their families. Nonetheless, for those who qualify, USAA offers a great option for the cheapest car insurance in Alabama.

Provider Average annual full coverage premium J.D. Power customer satisfaction score
Allstate $1,313 846/1000
Farmers $1,432 832/1000
Geico $1,423 857/1000
Progressive $1,573 848/1000
State Farm $1,470 835/1000
USAA $1,230 909/1000

Allstate

Allstate is one of the highest ranked insurance companies within the U.S. It is known for its 24/7 claims center and claims process. Although the car insurance company doesn’t offer the cheapest car insurance in Alabama, drivers select Allstate for its other offerings such as claims satisfaction guarantee, coverage options, add-ons and bundling policy. Alabama drivers can also depend on local experts to help with providing quotes and submitting claims.

Farmers

J.D. Power ranks Farmers as one of the best car insurance companies in Alabama for customer satisfaction. Although the auto coverage is already competitive at $1,432 per year for full coverage, the company offers several discounts, including safe driving, good student and bundling savings.

Geico

Geico may offer some of the best car insurance rates in Alabama. In addition to offering one of the cheapest average rates for car insurance in Alabama, Geico also offers a list of discounts to choose from that will help you save even more money on your car insurance. Some of the best discounts include up to 25% off for an accident-free history and up to 15% savings on new car insurance.

State Farm

As one of the largest car insurance providers in the U.S., State Farm is a popular choice for drivers seeking car insurance in Alabama. With its A+ BBB rating, high financial strength, and high J.D. Power ranking, State Farm makes the list of one of the best car insurance companies in Alabama. In terms of price, State Farm offers affordable rates at an average of $1,470 per year for full coverage car insurance in Alabama. While it may not be the cheapest on the list, Alabama drivers can apply any of the insurance firm’s list of discounts such as the Drive Safe, Steer Clear, Good Student and others to bring the total down.

Progressive

Progressive is known for outstanding customer service with a J.D. Power Score of 848 and offers an average rate of $1,573 annually for full coverage. Progressive is a good choice for drivers who may want 24/7 customer support, unique coverage options and multiple ways to save with discounts.

USAA

USAA technically tops the list in customer satisfaction with 909 points. It doesn’t earn first place, because its auto insurance isn’t available to everyone with this carrier. Membership is reserved for active military, veterans, retired military and their families. If you can qualify for membership, you’ll have access to the highest-rated car insurance in Alabama.

Average Car Insurance Cost in Alabama

Alabama automobile owners pay an average annual car insurance premium of $469 for minimum coverage and $1,623 for full coverage. When compared with the national average of $1,738 for full coverage, Alabamans pay slightly less than drivers in other states.

Average annual premium for minimum coverage in Alabama Average annual premium for full coverage in Alabama
$469 $1,623

State Minimum Insurance Requirements in Alabama

All states require drivers to carry minimum coverage. Alabama’s requirement for auto owners is a minimum amount of liability car insurance. In Alabama, you must purchase:

  • At least $25,000 bodily injury liability to cover the medical or death expenses of one person in a single accident.
  • A minimum of $50,000 bodily injury liability to pay the medical or death expenses of more than one person in a single traffic accident.
  • At least $25,000 property damage liability to pay for damage caused in a single collision.

How to get the best car insurance

Car insurance is different for everyone and is based on several different rate factors. When shopping for car insurance, consider these factors to find the best car insurance for you.

  • Evaluate your needs: When you are ready to shop for an Alabama insurance company, research insurance rates for the make and model of vehicle you want to buy before you make a purchase. Contact as many insurance companies as possible to compare rates. To save extra money, consider raising deductibles to reduce your premium. If you own an older vehicle, consider discontinuing high-cost coverages, such as comprehensive and collision.
  • Consider state factors: Alabama is considered an at-fault state. This means that the insurance of the driver who causes the accident is required to pay for any collision bills of the other driver involved in the accident. To determine who is at fault, drivers must collect a police report and pictures of the accident and submit a claim for insurance companies to investigate the damages done to the vehicles.

Car Insurance Discounts in Alabama

Inquire about discounts that can lower your premium. Contact your homeowners or renters insurance provider to find out if you can save money by bundling existing coverages with a car policy.

Discount Allstate Farmers Geico Progressive State Farm USAA
Anti-lock brakes X X X
Anti-theft devices X X X
Automatic payment/paperless billing X X X
Defensive driving course X X X
Early signing X X
Full payment X X
Good student X X X X X X
Green vehicle
Loyalty X
Low annual mileage X X X X
Military X X
Multiple policies X X X X X X
Multiple vehicles X X X X X
Occupational or organizations X
Safe driver/accident free X X X X X X
Safety features X X X

Frequently asked questions

What is the cheapest car insurance in Alabama?

Factors such as your age, credit history and vehicle make and model play a role in how insurance companies determine your rate. For the best rate possible, you must shop around.

What information is needed in order to get car insurance in Alabama?

When you contact Alabama insurance companies, agents will need to know the type of car you want to insure, your age, where you live, your annual mileage and information about your driving record.

Does Alabama require car owners to purchase no-fault insurance?

Alabama requires minimum amounts of liability insurance but does not require car owners to purchase no-fault insurance.

Can I save money by adding my teenager to my insurance policy, rather than purchasing separate coverage?

Alabama teenagers pay exorbitantly high car insurance rates. Oftentimes, you can save your teenager thousands of dollars per year by adding them to your existing automobile policy.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.