Best car insurance in Alabama for 2024

Our 2024 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. 

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. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average 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, Demotech 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 and home 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.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.

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.

The cheapest car insurance companies will be different for every driver. Car insurance companies all have different methods for calculating premiums, which is why it's generally a good idea to ask several companies for quotes when you are looking for the cheapest Alabama car insurance companies. Keep in mind that affordable price may only be one factor to consider. You may also want to pay attention to the companies that score well on J.D. Power's annual Customer Satisfaction Index. It's also a good idea to compare companies for factors such as the number of discounts they offer or what kind of endorsements are available to customize your policy.

Filing a car insurance claim isn't usually difficult. In many cases, you can do it via your insurer's mobile app or website. If these digital tools are not available, a call to your local agent is likely all that you will need to file your claim. Before you make the call, ensure that you have all the information needed, which can include a police report, photos of the damage, your name and policy number and any other information to help your insurer process the claim quickly and efficiently.

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.

In general, Alabama drivers pay less for their car insurance than the national average. But you may have a higher-than-average rate for a number of reasons. Insurers take a broad range of factors into account when determining what you will pay for coverage. Your age, gender and even your credit rating will play a role, as well as your car's age, make and model. One significant element in determining your rate is your driving history. Statistically speaking, drivers with a clean record pay more affordable rates than those with an at-fault accident on their records. Other moving violations, such as speeding tickets or DUIs can also push your rates up. Your ZIP code also matters, with those in urban areas often paying more due to the increased risk of accidents on crowded city streets and highways.