Alabama isn’t the cheapest state for car insurance, nor is it the most expensive— it’s somewhere in the middle. The average cost of car insurance in the U.S. varies depending on which state you’re in. The average cost of car insurance in Alabama is $435 for minimum coverage and $1,672 for full coverage.
According to the U.S. Department of Transportation’s Federal Highway Administration’s latest report, there are 3,907,038 licensed drivers in Alabama. With this amount of people on the road, it is no surprise there were a total of 159,925 car crashes in 2018. The risk on the road is a big reason why good car insurance is a necessity.
Many Alabama residents will be looking for the cheapest provider they can find, but it’s possible to get a good price and a good provider. The providers offering the cheapest premiums just so happen to be some of the best providers in the business.
The cheapest car insurance in Alabama
Some of the least expensive providers in Alabama are from providers you are likely to recognize.
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
Geico offers some of the most discounts in the auto insurance world. For example, your car having safety features like air bags could get you a discount of up to 40%, and an anti-theft system could get you 25% off your premium.
Allstate is probably one of the best companies you can work with if you are a student or have a student on your policy. The amount you can save either ‘as’ or ‘with’ a young driver are pretty significant. Allstate’s Safe Driving Club. With this discount, you are given a trial period where Allstate electronically monitors your driving habits. If you drive safely, you can get a discount.
Nationwide has your standard array of discounts (multi-car, paperless, accident free, etc.). Its On Your Side program is a free service Nationwide offers to all of its customers where it will set you up with an insurance expert to help you choose the best coverage for you and your family and make sure you receive all of the discounts you’re eligible for.
USAA only provides insurance to current or retired military, as well as their immediate family members. It doesn’t offer much in the way of discounts because it offers some of the cheapest auto insurance in Alabama without them. That said, the discounts it does offer are substantial. For example, if you are deployed and your car is garaged, you can save up to 60% on your premium.
Travelers is a great company to work with if you’re looking for both standard and unique discounts. Our favorite discount with Travelers is the IntelliDrive Program. With this program you install an app on your smartphone to allow Travelers to monitor your driving habits for 90 days. Travelers will then price your premium depending on what it sees. If you renew your policy, you may get an additional 20% off.
Affordable coverage for Alabama drivers
Basic liability in Alabama is 25/50/25. This means that should you be found at fault for an accident, your insurance provider must pay up to:
- $25,000 per person for bodily injury/ death
- $50,000 per accident for bodily injury/ death
- $25,000 per accident for property damage
While these amounts are all you are required to have, they are often not enough. For example, $25,000 doesn’t cover the cost of many new cars. What most drivers don’t realize is that any amount over your coverage amount must be paid out of pocket in the event that you are found at fault.
How to get cheap car insurance in Alabama
Buying the cheapest car insurance in Alabama largely depends on your willingness to shop around. Though insurance providers may look at the same facts when generating a quote, they don’t weigh the importance of each fact the same way. While one provider may not place too much stock in your credit score, another one may. This is part of the reason why it’s possible to get different quotes from similar providers.
Once you’ve shopped around and narrowed down the companies you’re willing to work with, you’ll next want to compare discounts. Don’t just compare the amount of discounts a company offers, but compare the discounts you would receive upon joining. To do this effectively, you may need to call and speak with a representative about the actual amount you’ll save with each discount.
After you’ve done the groundwork of shopping around and comparing discounts, compare the savings you’d get by raising your deductible. A high deductible means less of a payout, but the cost difference between a low deductible and a high deductible can be a lot of money. If you go this route, consider setting aside some money in case you get into a severe accident.
Frequently asked questions
What is the best car insurance in Alabama?
There are a lot of criteria you could use to answer this question. For example, you might rank a company based off of its customer satisfaction ratings, its financial strength or by the kind of rates it charges. For an in-depth dive, read our Best Car Insurance in Alabama page.
What is the average cost of car insurance in the U.S.?
The average cost of full coverage in the United States is $1,738, but the average expenditure is $1,004.58. Alabama, therefore, is faring better than most Americans.
Is Alabama a no-fault state?
No, Alabama is not a no-fault state. Because of this all drivers should purchase as much liability as they can comfortably afford.
Does Alabama have a high amount of uninsured drivers?
Yes, Alabama does have a large percentage of uninsured drivers. According to the last study conducted by the Insurance Information Institute, Alabama is currently the 6th worst state in the United States for uninsured drivers with 18.4% of the population driving without insurance.
Bankrate utilizes Quadrant Information Services to analyze 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 cleaning 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 sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.