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Best car insurance in Alabama for 2023

Updated Aug 03, 2023
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Best car insurance companies in Alabama

According to our research, on average, Alabama auto insurance costs $1,843 per year for full coverage and $441 per year for minimum coverage. These rates are quite a bit lower than the national average premiums, which are $2,014 and $622, respectively.

However, through our experience as licensed agents, we know that drivers who want the best car insurance company aren’t just looking for the cheapest rates. For these shoppers, we also considered third-party customer service scores issued in the J.D. Power 2022 U.S. Auto Insurance Study, along with other factors like digital tools and coverage options. Based on this information along with premium data provided by Quadrant Information Services, you might find the best auto insurance in Alabama by shopping with Geico, USAA, Progressive, State Farm and Farmers.

Geico
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
J.D. Power score (Southeast region)
843
/1,000
Average monthly full coverage premium
$111
Average annual full coverage premium
$1,330
USAA
Rating: 4.3 stars out of 5
4.3
Bankrate Score
Info
J.D. Power score (Southeast region)
886
/1,000
Average monthly full coverage premium
$126
Average annual full coverage premium
$1,513
Progressive
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
J.D. Power score (Southeast region)
842
/1,000
Average monthly full coverage premium
$164
Average annual full coverage premium
$1,967
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
J.D. Power score (Southeast region)
855
/1,000
Average monthly full coverage premium
$388
Average annual full coverage premium
$1,696
Farmers
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info
J.D. Power score (Southeast region)
828
/1,000
Average monthly full coverage premium
$154
Average annual full coverage premium
$1,847
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

USAA is not officially ranked by J.D. Power due to eligibility restrictions.

Geico
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
J.D. Power score (Southeast region)
843
/1,000
Average monthly minimum coverage premium
$22
Average annual minimum coverage premium
$261
USAA
Rating: 4.3 stars out of 5
4.3
Bankrate Score
Info
J.D. Power score (Southeast region)
886
/1,000
Average monthly minimum coverage premium
$32
Average annual minimum coverage premium
$378
Progressive
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
J.D. Power score (Southeast region)
842
/1,000
Average monthly minimum coverage premium
$46
Average annual minimum coverage premium
$555
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
J.D. Power score (Southeast region)
855
/1,000
Average monthly minimum coverage premium
$32
Average annual minimum coverage premium
$141
Farmers
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info
J.D. Power score (Southeast region)
828
/1,000
Average monthly minimum coverage premium
$48
Average annual minimum coverage premium
$575
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

USAA is not officially ranked by J.D. Power due to eligibility restrictions.

Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Insurance Disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Best for cheap rates

Rating: 4.4 stars out of 5
4.4 Bankrate Score
JD Power: 843/1,000 AM Best: A++

Average annual premium

$ 1,330 for full coverage
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Why Geico made our list: Geico offers the cheapest rates out of all the Alabama auto insurance companies we analyzed. In Alabama, the company’s average annual rate for a minimum coverage policy is an astounding 41 percent lower than the state average. In addition to these lower-than-average rates, Geico has a long list of discounts that could save you even more. You could earn a discount for being a military member, a government employee, for taking a defensive driving class or enrolling in Geico’s telematics program DriveEasy.

Who Geico may be good for: If you’re a budget-conscious driver looking for a fairly basic, no-frills auto insurance policy, Geico may be worth checking out.  

Read full Geico Insurance review

Best for customer service

Rating: 4.3 stars out of 5
4.3 Bankrate Score
JD Power: 886/1,000 AM Best: A++

Average annual premium

$ 1,513 for full coverage
Get a quote

Answer a few questions to see personalized rates from top carriers.

Why USAA made our list: Based on third-party scores, USAA might offer the best customer service. While USAA membership is limited to military members or eligible immediate family members, Alabama has five military bases — many Alabama residents might qualify for coverage. Due to these strict membership requirements, J.D. Power does not include USAA in its official ranking. However, unofficially, USAA earned the number one spot in the Southeast region for overall customer satisfaction in J.D. Power’s most recent auto insurance study. USAA also earned second place in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study

Who USAA may be good for: If you’re eligible for coverage with USAA and prioritize customer service, USAA might be an excellent option. That is, as long as you don’t mind doing business over the phone and online, as USAA does not have any brick-and-mortar insurance agencies.  

Read full USAA Insurance review

Best for digital tools

Rating: 4.2 stars out of 5
4.2 Bankrate Score
JD Power: 842/1,000 AM Best: A+

Average annual premium

$ 1,967 for full coverage
Get a quote

Answer a few questions to see personalized rates from top carriers.

Why Progressive made our list: Progressive provides a streamlined shopping experience with its Name Your Price Tool. This online tool allows shoppers to key in how much they’d like to spend on insurance, and the company’s website will present coverage packages that meet (or comes as close to meeting) your budget. Progressive will even show you other carriers’ estimated quoted premiums so you can quickly determine how competitive its rates are. This may be why, out of all the companies we analyzed, Progressive earned the highest score in the shopping category in the J.D. Power 2022 U.S. Insurance Digital Experience Study.  

Who Progressive may be good for: Because Progressive makes shopping for car insurance online so easy, new drivers or those unfamiliar with car insurance coverage options might find the company’s website especially helpful. However, these might want to be prepared to spend more on their policy, as Progressive doesn’t offer the cheapest car insurance in AL. 

Read full Progressive Insurance review

Best for local offices

Rating: 4.2 stars out of 5
4.2 Bankrate Score
JD Power: 855/1,000 AM Best: A++

Average annual premium

$ 1,696 for full coverage
Get a quote

Answer a few questions to see personalized rates from top carriers.

Why State Farm made our list: State Farm is known for its local agencies, and for good reason — the company has hundreds of agency locations throughout Alabama. These agents could be more in-tune with the local market than agents in a contact center since they live in the community they serve. In addition to local agents, State Farm has a strong digital presence through its mobile app. In fact, State Farm won second place in the service category in the J.D. Power 2022 U.S. Insurance Digital Experience Study. Whether you prefer the personal touch of a neighborhood agent or like to take the hands-on approach with online tools, State Farm has options. 

Who State Farm may be good for: Drivers looking for car insurance in Alabama that is sold and serviced by a member of their own community might want to contact State Farm for a quote, as long as they don’t mind basic policy options.   

Read full State Farm Insurance review

Best for robust coverage options

Rating: 3.8 stars out of 5
3.8 Bankrate Score
JD Power: 828/1,000 AM Best: A

Average annual premium

$ 1,847 for full coverage
Get a quote

Answer a few questions to see personalized rates from top carriers.

Why Farmers made our list: Outside of standard coverage types like comprehensive and collision, Farmers offers a wide range of coverage options in Alabama, including new car replacement, accident forgiveness, full windshield and glass coverage and more. Farmers even offers spare parts coverage, which could pay up to $750 to replace spare parts damaged or destroyed in a loss. Farmers also has some of the cheapest full coverage car insurance in Alabama of the companies we analyzed. To augment these cheap rates, the company also offers a 5% discount for just downloading its Signal app, a usage-based telematics program that tracks your driving and can provide additional discounts for safe driving. 

Who Farmers may be good for: Alabama drivers who value robust coverage options over customer service might find Farmers appealing. 

Read full Farmers Insurance review

How Bankrate chose the best car insurance companies in Alabama

To find the best car insurance in Alabama, Bankrate analyzed each company’s average annual premiums in Alabama using the latest premium data from Quadrant Information Services. Since most drivers care about more than just how much they pay for their premium, we also analyzed third-party financial strength ratings, customer satisfaction rankings, available discounts and more to create an individualized Bankrate Score. Each Score is calculated on a 5.0 scale. Our Bankrate Score presents a holistic view of each company’s performance across these important measures.

How much is car insurance in Alabama?

Based on average premium data sourced by analytics company Quadrant Information Services, Alabama car insurance averages $1,843 per year for a full coverage policy and $411 for minimum coverage. Although these rates are lower than the national average, Alabama is in the middle of the pack when compared to nearby states.

For instance, Alabama’s average full coverage premium is much lower than Florida’s (an eye-popping $3,183 per year). On the other hand, Tennessee’s average full coverage premium ($1,429 per year) is much cheaper than Alabama’s. These averages make sense when considering one of the most significant risk factors in the Southeast — hurricanes. Hurricanes impact both Alabama and Florida, but Florida is at much higher risk for severe damage. Tennessee does get its share of severe weather, but hurricanes are not much of a threat due to its more northern and inland location.

Average annual premium for minimum coverage in Alabama Average annual premium for full coverage in Alabama
$411 $1,843

How to find the best car insurance in Alabama

The best car insurance in Alabama will depend on your individual needs. However, the following steps may allow you to find the best provider to help financially protect you and your family.

Consider minimum insurance requirements in Alabama

When looking for car insurance, Alabama residents will likely want to consider the state’s insurance regulations. In every state except New Hampshire and Virginia, drivers must comply with carrying at least their state’s minimum insurance requirements. To review Alabama’s minimum auto insurance requirements, you can visit the Alabama Department of Insurance website or familiarize yourself with Alabama’s insurance laws.

Consider lender requirements

Lenders or lienholders often require you to have full coverage insurance for leased vehicles, which includes collision and comprehensive coverages that are typically optional. If the car you’re leasing is badly damaged or destroyed, your lender wants to ensure funds are available to repair or replace it. Gap insurance is a common form of car insurance that pays the difference between what your newer leased car is worth in the current market and what you owe on it.

Consider your individual needs

Life events can affect which insurance provider might be best for you. For instance, if you have a mark on your driving record, such as a DUI conviction in the state of Alabama or a speeding ticket, you may want to find a provider that offers car insurance to high-risk drivers. If you’ve recently added a teen driver to your car insurance, you may want to find a company that offers competitive student discounts.

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Written by
Carol Pope
Former Writer, Insurance

Carol Pope is a former insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

Edited by Editor, Credit Cards