Best car insurance in Alabama in 2022
If you’re looking for the best car insurance in Alabama, Bankrate’s team of insurance experts researched the largest car insurance providers by market share. To do this, we used an objective process of analyzing third-party data to find the best providers in the state. What we found was that USAA is the best car insurance company in Alabama, followed closely by State Farm and Geico. Alabama’s average for full coverage car insurance is $1,766 per year, based on Bankrate’s review of quoted annual premiums, which is slightly lower than the U.S. average of $1,655 per year for full coverage car insurance.
However, the best car insurance in Alabama will differ for everyone. That’s because the best car insurance provider for you will depend on your individual preferences and needs. Some shoppers want the cheapest auto insurance rates available, while others want a highly-rated mobile app or 24/7 customer service. Researching the unique features offered by each company listed below may help you find the right provider in Alabama for you.
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 from companies like S&P and AM Best, customer satisfaction rankings from J.D. Power, available discounts and policy offerings 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.
The table below includes a Bankrate Score, average annual full coverage car insurance premium and J.D. Power customer satisfaction score for the five companies we rated as the best car insurance providers in Alabama.
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score (Southeast region)|
*Not officially ranked with J.D. Power due to eligibility restrictions
USAA consistently tops third-party rankings for its low premiums and high customer satisfaction. In fact, USAA earns the highest J.D. Power customer satisfaction score in almost every region, although it is not eligible for an official ranking due its membership requirements which are limited to the military community. With the lowest average annual full coverage rate on our list, USAA customers tend to enjoy low rates and a wide range of insurance products, including auto, home, life, online banking and retirement plans. However, before getting a quote, note that USAA’s products are only available to active-duty members of the U.S. military, veterans and qualifying family members. The Texas-based insurer boasts a strong balance sheet and is rated A++ (Superior) by AM Best, the highest rating available.
Learn more: USAA Insurance review
Geico has the second-cheapest average annual full coverage premium on our list. Geico is known for its low rates and extensive discounts. The company offers discounts to more than 800 professional and alumni groups and several other groups, including good drivers, students, multi-policy holders and military service members. However, Geico ranks slightly below the industry average in the J.D. Power customer satisfaction survey. The Ohio-based company carries an A++ (Superior) financial strength rating from AM Best.
Learn more: Geico Insurance review
State Farm, the largest U.S. auto insurer by market share, claims the second-highest J.D. Power score on our list. Its average annual full coverage premium is $296 cheaper than the state average for full coverage insurance. The Illinois-based company is known for its top-notch customer service and locally-based agents, and provides a 24/7 customer helpline to its customers. One drawback may be that the company offers fewer specialized coverage options than some of its competitors. Like our other top picks, State Farm is rated A++ (Superior) by AM Best for its financial strength.
Learn more: State Farm Insurance review
The cost of Progressive’s average annual full coverage car insurance rate is about $193 cheaper than the state average. Progressive is known for its inventive programs such as Snapshot, a usage-based program which tracks your driving through telematics and rewards safe driving habits with discounts. However, before choosing Progressive, keep in mind that the company scores below average in customer satisfaction. Ohio-based Progressive holds an A+ (Superior) financial strength rating from AM Best.
Learn more: Progressive Insurance review
Farmers’ average annual full coverage premium is about $334 cheaper than the state average. The California-based company offers a wide range of coverage options, including new car replacement, accident forgiveness, loss of use and rideshare insurance. 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. Before choosing Farmers, keep in mind that the company received the lowest customer satisfaction score on our list. Farmers Insurance is rated A (Excellent) by AM Best for its financial strength.
Learn more: Farmers Insurance review
Average car insurance cost in Alabama
|Average annual premium for minimum coverage in Alabama||Average annual premium for full coverage in Alabama|
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.
Car insurance discounts in Alabama
If you’re looking for the best auto insurance in Alabama, you may want to look for companies that offer discounts that apply to you. 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:
- Young driver discounts: Several top car insurance companies offer discounts for student drivers who earn good grades in high school and college and for students who are away at college without a vehicle.
- Safe driver discounts: If you are accident-free and claims-free for at least three years, or drive a vehicle that includes enhanced safety features such as blind spot monitoring, lane departure warning and pedestrian detection, you may be able to qualify for safe driver discounts. Even if you have a mark on your driving record, you may be able to qualify for telematics discounts. A usage-based telematics program tracks your driving in real-time and awards discounts for safe driving. Your insurer may also offer discounts for participating in a defensive driving course.
- Other discounts: You may also be able to score discounts for having anti-theft devices on your vehicle, having more than one vehicle on the same policy, for belonging to a certain alumni association or being employed by certain companies. Several companies also offer discounts for customer loyalty and bundling multiple insurance policies such as home and auto.
Frequently asked questions
What is the cheapest car insurance company in Alabama?
According to Bankrate’s study of average quoted annual premiums, the cheapest auto insurance companies in Alabama overall are Geico, USAA 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 do I file a car insurance claim in Alabama?
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.
What car insurance coverage options are Alabama drivers required to purchase?
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). Note that Alabama is not a no-fault insurance state. However, 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.
Can I save money by adding my teenager to my insurance policy, rather than purchasing separate coverage?
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.
What factors do insurers use to determine my premium?
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.
Bankrate utilizes Quadrant Information Services to analyze 2022 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 coverage that meets each state’s requirements. Our base profile drivers own a 2020 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.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.