Best car insurance in Alabama for 2023

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 coverage that meets each state’s requirements. Our base profile drivers own a 2021 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.

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

According to Bankrate’s study of average quoted annual premiums, the cheapest auto insurance companies in Alabama for minimum coverage are Geico, Allstate and Travelers. However, the cheapest company for you will depend on your driving record and vehicle make, among other rating factors like your age and credit history. Although quote comparisons are a useful first step in finding affordable coverage, you may also find that an insurer with a slightly higher average premium has several discounts that you qualify for, which can significantly reduce your cost. For this reason, it helps to shop around and compare based on the same levels of coverage to see which provider provides the best overall policy for your needs.

How you file a car insurance claim in Alabama will depend on your individual car insurance company’s process. Many insurance providers allow you to file claims through a mobile app, including photos of the accident to the company. You may also be able to file a claim on your desktop or laptop through your company’s online portal. Some insurers may require you to call an agent and file a claim during business hours. If you’re unsure of the process, you may want to look at your provider’s website or talk to an agent to find out how to start the claims filing process.

Alabama requires you to carry at least the minimum amount of liability insurance, but does not require car owners to purchase no-fault insurance like personal injury protection (PIP). This is because Alabama is not a no-fault insurance state. In addition to liability coverage, car insurance companies offer many other types of car insurance coverage that policyholders may add to their auto policies. For instance, some drivers may want comprehensive coverage, which typically covers damages from vandalism, inclement weather, theft, fire or hitting an animal. Collision insurance covers damages from colliding with another driver or object. Uninsured motorist coverage covers your damages and medical bills if the driver that hit you doesn’t have insurance. Most insurance agents recommend that drivers purchase more than just the minimum required coverage in order to help protect themselves from major financial losses.

Young drivers in Alabama typically pay exorbitantly high car insurance rates due to their lack of experience and higher accident frequency. If your teenager is a minor under the age of 18, they will have to be added to your policy, as they cannot get a separate insurance policy of their own. If you have an older teenager above the age of 18, you may be able to save your teenager thousands of dollars per year by adding them to your existing automobile policy. Additionally, multiple discounts may apply to your policy, such as good student, distant student and safe driving programs, which could save you money over several policy periods. However, this may not be an option if your young adult driver no longer lives in your household.

Auto insurers in Alabama typically use more than a dozen rating factors to determine your premium. These factors may include your age, gender, marital status, credit-based insurance score, make and model of your vehicle, auto claim history, vehicle usage and your selected coverage options.