The best cheap car insurance companies in Birmingham, Alabama are Geico, USAA, Travelers, Allstate and Country Financial, based on Bankrate’s extensive research on the largest insurance carriers in the city by market share. Our analysis of these companies shows that it is often possible to find quality car insurance coverage at an affordable price.
Birmingham residents pay an average of $1,764 per year for full coverage car insurance, based on quoted annual premiums. Although your car insurance premium is based on numerous factors, one of the easiest ways to ensure you are getting a competitive rate is to get quotes from several companies to compare premiums. Our goal is to help you make an informed decision as you look for which company might be the best and most affordable option for you.
Best car insurance companies in Birmingham
If you are looking for the best car insurance in Birmingham, you might want to consider quotes from Geico, USAA, Travelers and Allstate. Based on our research, these companies offer low average premiums, highly-rated customer service and discounts that can further reduce insurance costs.
To determine which companies to feature, Bankrate started by reviewing current premium information from Quadrant Information Services for the largest carriers by market share in Birmingham. Because price is not the only consideration when it comes to car insurance, we also reviewed each company’s discounts, coverages, policy features and third-party rankings.
|Insurance company||J.D. Power score
|Average annual premium for minimum coverage||Average annual premium for full coverage|
*USAA is rank-ineligible with J.D. Power due to its eligibility restrictions.
Geico has some of the lowest rates in Birmingham, but the company is also known for its customer service. In fact, Geico earned the top spot in the J.D. Power 2021 U.S. Insurance Digital Experience Study in the Service category. If you like to handle your insurance online or on an app, you might want to consider getting a quote from Geico. This company also has one of the longest lists of discounts in the industry, with savings for military members, federal employees, safe drivers and good students.
Learn more: Geico Insurance review
USAA provides a long list of discounts and coverage options, but the company only sells its products to military members, veterans and their immediate families. Although USAA is technically rank-ineligible due to membership limitations, it does consistently receive high customer satisfaction scores from J.D. Power. In addition to the standard coverages you might expect, USAA offers options tailored to military members, including discounts if you garage your car on a military base or store it while you are deployed.
Learn more: USAA Insurance review
Travelers not only offers standard auto coverage at competitive rates, but also offers several optional coverages to further customize your policy. Auto insurance endorsements include new car replacement, accident forgiveness, rideshare coverage, gap insurance and roadside assistance. You will also find a long list of available discounts, ranging from policy bundling to driver training. If you are looking for a highly customizable policy, Travelers might be a good fit.
Learn more: Travelers Insurance review
Allstate offers average rates in Birmingham that are far lower than the city’s average quoted premiums, as well as a unique way to earn rewards. If you participate in the company’s Drivewise or Milewise programs, you could save money on your car insurance and earn points for good driving. You can redeem your points for gift cards, hotels, car rentals, magazine subscriptions and other merchandise. Allstate also offers car insurance options for classic cars and coverage for driving in Mexico.
Learn more: Allstate Insurance review
Cheapest car insurance in Birmingham
The cheapest car insurance company in Birmingham is Geico, followed by USAA, Travelers, Allstate and COUNTRY Financial. Based on our research, the average rates from these companies are well below the Birmingham average.
The average cost of car insurance in Birmingham is $1,764 per year for full coverage. Alabama residents pay $1,623 per year for full coverage and the national average premium is $1,674 per year for full coverage. However, by comparing premiums, you could find coverage that is quite a bit lower than the average premiums.
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
However, cost is not the only aspect of a car insurance policy to consider. While finding a cheap auto insurance policy might be a priority, you may also want to think about what coverages you need, what discounts you qualify for, how highly the company rates for customer service and how the insurer’s financial stability.
Birmingham insurance requirements
Alabama requires drivers to maintain auto insurance with 25/50/25 minimum requirements, which means that you must carry the following coverages and limits to drive legally:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $25,000 property damage to others
However, purchasing minimum coverage is not your only option, nor does it fit every personal circumstance. For instance, if you lease or finance a car, your lender or lessor typically requires you to add collision and comprehensive coverage. For many drivers, full coverage provides a higher degree of financial protection and greater peace of mind.
Alabama is ranked seventh in the country for the highest number of uninsured motorists on the roads, according to the Insurance Information Institute. Many insurers recommend adding uninsured motorist coverage to protect your finances if you are hit by an uninsured driver. To help determine the best coverage for your needs, consider consulting with a licensed insurance agent.
Car insurance discounts in Birmingham
There are several ways to save on auto insurance in Birmingham. One of the easiest ways to lower your insurance premium is to take advantage of discounts. Below are some that are widely available in Birmingham and might reduce your annual premiums:
- Policy bundling discount: This discount is often available if you buy your auto policy from the same company that has your home, condo or renters insurance.
- Automatic payments discount: If you sign up to have your premiums automatically withdrawn from your bank account, many carriers offer an additional discount.
- Paid-in-full discount: If you are able to pay your premiums up front, ask your company if there is a discount. Sometimes you can save money by paying in full.
- Student discounts: If you insure a driver under 25 — or if you are a driver under 25 — that is also a full-time student, you might save for getting good grades, having taken a driver training course or going to college without a vehicle.
Discounts vary by provider, so choosing a company that offers several discounts you qualify for might help you get a lower premium. You can often view discounts on a provider’s website, but because availability differs by state, talking to a company representative might be the best way to identify savings opportunities.
Frequently asked questions
What is the best car insurance company?
The best car insurance company for you is based on your personal preferences and what features you are looking for. Many insurance experts recommend looking for a carrier with strong financial ratings, high customer service scores, competitive rates and the coverages and discounts that you need. Getting quotes from multiple companies and comparing them can help you find a good fit for your situation.
How much car insurance do I need in Birmingham?
To drive legally, you only need to purchase Alabama’s minimum limits. However, minimum limits are relatively low and most insurance experts recommend that you purchase higher limits if you can afford to. Higher liability limits means that you will have greater financial protection in an accident. If you have a loan or lease, you will likely need to carry full coverage.
Is Alabama a no-fault state?
No, Alabama is considered an at-fault state, sometimes called a tort state. This means if you are the at-fault driver in an auto accident, you are responsible for paying the other party’s medical and property damage expenses. Auto insurance is designed to help you avoid financial devastation in these situations, but if you cause damage or injuries in excess of your insurance limits, you will be responsible for the overage out of pocket.
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 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.