Best car insurance in Alabama for 2023

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.

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.

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.

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.

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.

Keep in mind that premiums will vary depending on factors like your age, driving experience, driving record and the value of your car. It’s important to compare quotes to find a policy that fits your budget and needs. Remember to look into discount opportunities to help lower your premiums further.

Each insurer in Alabama will have its own process for filing claims. Many insurers will let you file a claim through their mobile app by uploading photos and other key details. You can also file over the phone or online if the insurer has a digital claims portal. Check with your agent or your insurer’s website to learn more about the specific process you should follow.

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.