The highways and byways of Alabama lead to famous tourist attractions, from Huntsville’s U.S. Space and Rocket Center to the emerald green waters of Gulf Shores. But before you set out to drive to any of these locations, you will need car insurance to be officially road legal. Fortunately, the average cost of car insurance in Alabama is relatively affordable at $1,623 per year for full coverage, according to Bankrate’s 2021 study of quoted annual premiums.
Based on the U.S. Department of Transportation, Alabama had nearly four million licensed drivers in 2019. The Alabama Department of Transportation reports that a traffic accident occurred every three minutes in 2019. Furthermore, collision-related fatalities occur about every nine and a half hours in Alabama, so it makes sense to protect yourself with automobile insurance. Bankrate analyzed some of the most prominent carriers writing policies to help narrow down the best car insurance companies in Alabama that are available to you.
Best car insurance companies in Alabama
To determine which insurers are writing the best auto insurance policies in Alabama, we considered the state’s top five companies’ (by market share) recent customer satisfaction scores and average 2021 quoted premiums, gathered using Quadrant Information Services. Fortunately, several top companies in the state offer both standout coverages and affordable premiums. Each company was also rated in the 2021 J.D. Power Auto Insurance Study, which surveys how consumers rate providers based on factors like billing process, claims handling and customer interaction.
|Provider||Average annual full coverage premium||J.D. Power customer satisfaction score (Southeast region)|
|Alfa||$2,138||837 / 1,000|
|Allstate||$1,313||837 / 1,000|
|Geico||$1,423||843 / 1,000|
|Progressive||$1,573||828 / 1,000|
|State Farm||$1,470||859 / 1,000|
Allstate is one of the largest insurance companies within the U.S. It is known for its slogan of keeping customers “in good hands,” as well as its 24/7 claims center and claims process. The car insurance company offers the cheapest car insurance rate in Alabama on average at $1,313 per year, but many drivers select Allstate for its other offerings such as claims satisfaction guarantee, coverage options, add-ons and policy bundling. Alabama drivers can also turn to Allstate’s local agents to help with providing quotes and submitting claims.
Learn more: Allstate Insurance review
Alfa may have the most expensive average premium on our list, but being a local-based provider, it can offer specialized insurance expertise to Alabama drivers seeking meaningful coverage. Headquartered in Montgomery, Alabama, Alfa has a long-standing history of providing insurance since 1946 and has hundreds of experienced agents across the state available to walk you through your policy options. For example, you could add loss of use coverage to help pay for a rental after a covered accident up to $100 increments each day. There is also an impressive list of discounts, encompassing just about every kind of driver.
Learn more: Alfa Insurance review
Geico is known to offer some of the most affordable rates for car insurance, Alabama included. In addition to offering the second-cheapest average rate for car insurance in Alabama on our list, 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 22% off for an accident-free history and up to 15% savings on car insurance for a new vehicle.
Learn more: Geico Insurance review
Progressive offers an extensive list of coverages, which might help justify its slightly more expensive average rate of $1,573 annually for full coverage. Progressive could be a good choice for drivers who want 24/7 customer support, useful coverage options like custom parts and equipment and multiple ways to save with discounts. There are also innovative premium-saving tools, such as the Name Your Price option and Progressive’s Snapshot safe-driving program.
Learn more: Progressive Insurance review
As the largest car insurance provider in the U.S., State Farm is a popular choice for drivers seeking car insurance in Alabama. With its high financial strength rating of A++ (Superior) from AM Best and various policy types, State Farm offers competitive auto insurance 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 will likely qualify for at least a few of the insurance firm’s list of discounts such as Drive Safe and Save, Steer Clear, good student and others to bring the total down.
Learn more: State Farm Insurance review
Average car insurance cost in Alabama
Alabama automobile owners pay an average annual car insurance premium of $1,623 for full coverage. When compared with the national average of $1,674 for full coverage, Alabamans pay slightly less than drivers in other states. Compared to its Southeast neighboring states, Alabama’s premiums fall somewhere in the middle. Tennessee drivers pay considerably less for car insurance on average, at $1,338 per year. Comparatively, Georgia drivers pay significantly more at $1,982 per year on average. This may in part be due to Georgia having a higher state and licensed driver population than both Alabama and Tennessee.
|Average annual premium for minimum coverage in Alabama||Average annual premium for full coverage in Alabama|
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 per person
- A minimum of $50,000 bodily injury liability per accident
- At least $25,000 property damage liability pe accident.
Alabama auto insurance providers must offer uninsured motorist coverage as well, but it can be declined in writing by the policyholder.
While purchasing the minimum amount of car insurance typically leads to the most affordable rate, experienced insurance experts generally recommend purchasing additional coverage up to your financial ability in order to avoid high out-of-pocket expenses following an accident. Additionally, liability-only insurance does not cover damage to your vehicle. For more robust financial protection for both yourself and your vehicle, it helps to add collision and comprehensive coverages to your policy. If your vehicle is leased or financed, these coverages may be required to protect the loan.
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: Each Alabama driver will have unique considerations when searching for coverage so it is important to consider how your needs stack up when comparing insurers. For example, if you have a driving violation on your record, finding the best rate may be a priority. Otherwise, having a clean record may allow you to place more emphasis on customer satisfaction or meaningful coverages, like for original manufacturer parts. No matter your needs, it may help to discuss your coverage options with a licensed agent to help you best decide.
- Consider state factors: Each state has its own insurance requirements and rules. For example, 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, which may be critical to keep in mind when purchasing coverage limits. Other state factors that you may want to consider include common causes of vehicle damage and the number of uninsured drivers.
Car insurance discounts in Alabama
Alabama drivers have multiple options to save on their car insurance premiums, even from the state’s top companies. Many common savings opportunities include discounts for:
- Anti-theft devices: When you take preventative measures to secure your vehicle, like having a working car alarm, many insurers will offer a discount to account for the reduced risk.
- Loyalty: Most insurers offer discounts for loyal customers who insure multiple vehicles or bundle policies through the same provider.
- Driver occupations or organizations: Some occupations, like federal employees or teachers, may qualify for specialized discounts when they insure a vehicle with certain companies.
- Telematics programs: Many insurers offer discounts based on your tracked driving habits, generally using telematics devices installed in your car. Drivers may earn savings for things like reduced mileage, smooth braking and driving at safe hours.
Frequently asked questions
What is the cheapest car insurance in Alabama?
The cheapest car insurance in Alabama will depend on your driving record and vehicle make, among other factors like your age, credit history and gender. 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. 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.
What information is needed in order to get car insurance in Alabama?
When you contact Alabama insurance companies, agents will likely 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 typically 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. Additionally, there are multiple discounts that may apply to your policy, such as good student, distant student and safe driving programs, which could save you money over several policy periods.
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.