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Cheapest car insurance in Alabama for 2024

Travelers, Geico and Nationwide offer some of the cheapest car insurance for Alabama drivers, per Bankrate’s research.

Updated Mar 14, 2024
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The cheapest car insurance companies in Alabama

Rate data from Quadrant Information Services suggests that drivers pay an average of $541 for state-mandated minimum coverage and $2,207 for full coverage car insurance in Alabama. Your own rate, however, will likely differ from these averages. Bankrate knows how important finding cheap auto insurance in Alabama is for drivers on a budget, which is why we’ve done the legwork for you. Based on our insurance editorial team’s research and analysis, we discovered that companies like Geico, Travelers and Allstate may be good choices for those looking for the cheapest Alabama car insurance.

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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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Cheapest car insurance in Alabama for minimum coverage

Like most states, Alabama requires drivers to carry a certain amount of car insurance in order to drive legally. Minimum requirements here consist of liability-only coverage, which helps pay for property damage and medical costs the other driver incurs in an accident you cause. Minimum coverage does not provide financial protection for you or your vehicle, though. For that, you’ll need full coverage insurance.

While minimum coverage car insurance can lead to more out-of-pocket costs following an accident, it is still an attractive option for drivers looking to pay a cheaper monthly premium. Bankrate analyzed the most recent rate data available from Quadrant Information Services and found that Geico has the lowest average premium for minimum coverage in Alabama.

Insurance Company Average monthly premium Average annual premium Savings vs state avg. for min coverage
$26
$318
- $223
$28
$340
- $201
$29
$346
- $195
$34
$407
- $134
$36
$435
- $106

Minimum coverage requirements for Alabama drivers

Driving without insurance in Alabama is illegal and can result in drivers facing serious consequences. Drivers in Alabama are required to meet state minimum requirements for car insurance. This includes having at least:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Uninsured motorist coverage must be offered but can be declined by the driver in writing.

While having the state minimum requirements fulfilled by your policy means you are in compliance with Alabama car insurance laws, it can be beneficial to purchase higher amounts of liability or add-on coverage options for better financial protection. Additional coverage types like medical payments, comprehensive, collision and uninsured motorist coverage can help ease the financial impact of causing an accident.

Keep in mind that if you lease or finance your vehicle, you’ll likely be required to purchase comprehensive and collision coverage by your financial institution. You might also consider purchasing gap insurance, which can help pay the difference between your vehicle’s value and the remaining loan balance if your vehicle were to be totaled.

Cheapest car insurance in Alabama for full coverage

For drivers looking for more robust coverage than can be found with minimum insurance, full coverage may be a good option. This includes not only the liability insurance that the state requires but also coverage for you and your vehicle if you're in an at-fault accident or other vehicle mishap. But, this added financial protection almost always comes at a higher price. Although the average rate for full coverage in the Heart of Dixie is $2,207, the carriers listed below all write cheap full coverage car insurance in Alabama, with Travelers offering the lowest rates per Bankrate’s analysis.

Insurance Company Average monthly premium Average annual premium Savings vs state avg. for min coverage
$109
$1,312
- $895
$127
$1,523
- $684
$147
$1,758
- $449
$153
$1,839
- $368
$157
$1,889
- $318

Cheapest car insurance in Alabama for drivers with prior incidents

In general, individuals with clean driving records earn the best cheap car insurance in Alabama. Because they have no previous infractions, insurers view safe drivers as less of a risk to insure. If you have an infraction or two on your license, you may pay a higher rate, although it's important to remember that other factors — such as your age, credit rating and the make and model of your car — also play a role in determining your premium.

Cheapest insurance companies for drivers in Alabama with a speeding ticket: Geico

Speeding in Alabama is considered a risky driving practice. Even a single speeding ticket conviction can increase your car insurance rates. Every car insurance company has its own proprietary method of determining rates, so shopping around to see if another company offers a lower rate may help you save.

Insurance Company Avg. annual min coverage premium Avg. annual full coverage premium
$404
$1,923
$406
$3,520
$416
$1,699
Safeway
$479
$2,285
$480
$2,176

Cheapest car insurance for drivers in Alabama with an at-fault accident: Travelers

Being involved in an at-fault accident can impact your premium for three to five years, depending on your insurer’s guidelines and the severity of the accident. Comparing quotes from multiple insurers may help you see which one offers you the best rate, taking into account any marks in your driving history. Bankrate's research indicates Travelers has the lowest average rates for these drivers.

Insurance Company Avg. annual min coverage premium Avg. annual full coverage premium
$475
$1,892
$625
$3,900
$631
$2,408
Safeway
$694
$2,924
$733
$2,873

Cheapest car insurance in Alabama for high-risk drivers: Travelers

Situations that could label a driver as high-risk include multiple accidents or tickets in a set period of time, experiencing a lapse in insurance coverage or receiving a DUI conviction. High-risk drivers may have more limited options for managing car insurance costs and might even no longer qualify for coverage with some companies. If you are considered a high-risk driver, it could be a good idea to look into cheap car insurance companies offering non-standard car insurance. The table below showcases the cheapest car insurance companies in Alabama for drivers with a single DUI conviction, with Travelers offering the best rates. But, talking to a company directly is the best way to determine your eligibility for coverage.

Insurance Company Avg. annual min coverage premium Avg. annual full coverage premium
$475
$1,892
$625
$3,900
$631
$2,408
Safeway
$694
$2,924
$733
$2,873
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Bankrate’s take: If you have had your license suspended or revoked, you will need to obtain SR-22 insurance in order to have your license reinstated. An SR-22 isn't actually a separate type of coverage, but instead is a certificate that willing insurers can file on your behalf with the DMV. It states that you have insurance that meets or exceeds the minimum required coverage for Alabama. The catch is that not all insurers will give you the option of filing an SR-22. If that is the case, you may need to switch to a new provider.

Cheapest car insurance for young drivers in Alabama

It's not surprising that your age impacts the rate you pay for your car insurance. Carriers look at the age groups that are most likely to be involved in accidents, and are likely to charge more if you are in a high-risk age group. Since statistics show that young drivers have the highest number of accidents, this age group tends to pay more for their policies. As they enter their 20s, their rates will start to go down. It is possible, however, to find reasonably priced policies for young drivers by shopping around.

Cheapest Alabama car insurance for insuring a teen driver: Allstate

Teenagers who have just earned their licenses are some of the most expensive drivers to insure, due to inexperience behind the wheel and a higher likelihood of accidents. Car insurance companies will typically charge the highest rates for this age group to compensate for the greater risk of a claim being filed. However, this can be offset by leveraging common potential discounts for teen drivers, including a good student discount. If you’re looking for cheap car insurance in Alabama with a teen on your policy, you might consider getting a quote from one of the carriers listed below.

Insurance Company Avg. annual min coverage premium Avg. annual full coverage premium
$677
$5,025
$750
$2,626
$943
$3,681
$1,021
$3,467
$1,063
$3,701
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Bankrate’s take: Bankrate's average rates were determined based on a 16-year-old driver on their parents’ policy. Insurers perceive teens of this age to be a higher risk because statistics show that they have more accidents than any other age group and are more likely to engage in risky driving behavior. Because they are more likely to file claims than other age groups, insurers compensate by charging more. The good news is that, as long as they maintain a clean driving record, their rates should decrease over time.

Cheapest Alabama car insurance for teens with a ticket: Travelers

As is true for adult drivers, a teen who earns a ticket is likely to see an increase in their rates when their policy (or their parents' policy) comes up for renewal. Multiple tickets may result in an even greater increase or may move the teen into the high-risk driver category. Bankrate found that Travelers has the best average rate for a teen with a ticket on their record.

Insurance Company Avg. annual min coverage premium Avg. annual full coverage premium
$1,056
$4,229
$1,221
$9,355
$1,299
$5,056
$1,446
$5,311
$1,598
$6,008

Cheapest Alabama car insurance for teens with an at-fault accident: Travelers

A teen who is involved in an at-fault accident may want to consider taking a defensive driving course to hone their skills. Successful completion of the course may also earn them a discount, which could be welcome since their rates are likely to increase after the accident. A serious accident may lead insurers to place the teen in the high-risk category, which also has implications for their insurance rate. Once again, Travelers had the lowest average rate based on our research.

Insurance Company Avg. annual min coverage premium Avg. annual full coverage premium
$1,118
$4,403
$1,318
$9,786
$1,367
$5,266
$1,746
$6,232
$1,827
$6,814
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Bankrate’s take: One coverage option that parents with teen drivers may want to consider is accident forgiveness. This endorsement, or add-on, "forgives" a driver for one at-fault accident, meaning your premium typically won't increase after you file a single claim (so long as you maintain a clean driving record). Keep in mind, however, that you will still face any state penalties incurred from the accident and not all insurers offer this type of coverage.

Cheapest Alabama car insurance for young drivers with a DUI: Travelers

Few infractions on your license are as serious as a DUI in Alabama. For young drivers who already face high premiums, earning a DUI is likely to send those rates even higher. In addition to an increased rate, a driver with a DUI will also need to pay state penalties, which may include fines, license suspension and legal costs. Some insurers, such as Travelers, will not write policies for drivers who have had a DUI, and others will place them in the high-risk category, where they are unlikely to find cheap rates.

Insurance Company Avg. annual min coverage premium Avg. annual full coverage premium
$716
$3,007
$819
$6,349
$902
$3,380
$1,282
$5,254
$1,400
$5,171

Cheapest car insurance rates by city in Alabama

Getting cheap auto insurance in Alabama will partially depend on where you live in the state. Some areas have lower costs of living or a lower incidence of accidents, both of which have the potential for lower rates. The table below lists the cheapest car insurance in some of Alabama’s largest cities, as well as the cheapest cities for car insurance in the state overall. Bankrate knows that drivers looking for the lowest possible premiums tend to gravitate toward minimum coverage policies, so those rates are reflected below.

Cheapest cities in Alabama for car insurance

Wadley
City average annual min coverage premium
$454
Cheapest car insurance carrier
Geico
Company average annual premium
$270
Cragford
City average annual min coverage premium
$460
Cheapest car insurance carrier
Geico
Company average annual premium
$270
Wedowee
City average annual min coverage premium
$460
Cheapest car insurance carrier
Geico
Company average annual premium
$270
Ashland
City average annual min coverage premium
$466
Cheapest car insurance carrier
State Farm
Company average annual premium
$267
Andalusia
City average annual min coverage premium
$433
Cheapest car insurance carrier
Geico
Company average annual premium
$252

Cheapest car insurance in larger cities in Alabama

Birmingham
City average annual min coverage premium
$600
Cheapest car insurance carrier
Geico
Company average annual premium
$360
Huntsville
City average annual min coverage premium
$568
Cheapest car insurance carrier
Geico
Company average annual premium
$323
Mobile
City average annual min coverage premium
$640
Cheapest car insurance carrier
Travelers
Company average annual premium
$347
Montgomery
City average annual min coverage premium
$569
Cheapest car insurance carrier
Allstate
Company average annual premium
$348
Tuscaloosa
City average annual min coverage premium
$573
Cheapest car insurance carrier
Geico
Company average annual premium
$317

Car insurance discounts in Alabama

If you are wondering how to save on car insurance in Alabama, you may want to take advantage of auto insurance discounts. Here are some common ways to save on car insurance in Alabama:

  • Young driver discounts: Teen drivers are usually quite expensive to insure, but many insurers offer savings specifically for this age group. Common discounts include good student, distant student and driving training.
  • Safe driver discounts: If you’ve been ticket- and claim-free for a certain number of years, you might qualify for a good driver or claim-free discount. You might also save if you drive fewer miles than average or sign up for a telematics program.
  • Payment-related discounts: Many insurers offer discounts based on how you choose to pay your premium. Opting to pay in full as opposed to monthly could earn you a discounted rate, as could choosing paperless billing.
  • Professional discounts: Your job could earn you a discount on your car insurance. Insurers offer discounts to healthcare professionals, teachers, engineers and other members of professional organizations.
  • Vehicle safety discounts: If your vehicle is equipped with safety features (like anti-lock brakes) or anti-theft devices, you could be rewarded with a discount.
  • Loyalty discounts: Insurers incentivize customer loyalty with several types of discounts, such as bundling discounts for drivers who purchase multiple lines of insurance (like home and auto). Multi-car discounts are also possible with some insurers, as are continuous policyholder ones.

Frequently asked questions

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Methodology

Bankrate utilizes Quadrant Information Services to analyze the latest rates in February 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate increases filed by insurance companies and are weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. 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 2022 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.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Teens: Rates were determined by adding a 16-year-old teen to a 40-year-old married parent’s policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy. 

Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Written by
Mary Van Keuren
Contributor, Insurance

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

Edited by Editor, Insurance