Alabama drivers pay an average of $1,623 per year for full coverage car insurance and $469 per year for minimum coverage, but there are ways to find a cheaper policy. Although there are numerous factors to consider when choosing a car insurance company, finding the cheapest car insurance in Alabama could be one of the biggest considerations for many drivers.
With over four million licensed drivers on the road, having a car insurance policy in Alabama is a smart financial move. If you are in an accident, your car insurance policy can step in to help you pay for the damages you cause or incur, which could save you from financial devastation. Finding cheap auto insurance in Alabama can help to protect both your budget and your financial health.
The cheapest car insurance companies in Alabama
To begin our search for the cheapest auto insurance in Alabama, we first obtained current rate information from Quadrant Information Services for the largest carriers by market share. Based on our research, the following companies tend to offer cheap average premiums in Alabama:
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
Geico’s low average premiums might be due to the company’s generous list of discounts. There are savings for military members, federal employees, good students, safe drivers and more. However, Geico’s policies do not come with many options for personalization. There are a few endorsements that you can consider, but not as many as some of the other companies on our list.
Learn more: Geico Insurance review
USAA only provides insurance to current or retired military members as well as their immediate family members. Although the company’s average premiums are below the state’s average, there are also numerous discounts that could help you save even more, like savings for garaging your vehicle on a military base, having a new vehicle or storing your vehicle while you are deployed. USAA also consistently receives high customer satisfaction scores from J.D. Power, although it is not eligible for official ranking because of its eligibility restrictions.
Learn more: USAA Insurance review
Travelers could be a great company to work with if you are looking for both standard and unique discounts. You can save for having a hybrid or electric car, having continuous insurance or being a safe driver. You could even earn a personalized discount with the company’s IntelliDrive program, which tracks your driving patterns through a smartphone app. And if you are looking for optional coverages, Travelers has several options, including ridesharing coverage and accident forgiveness.
Learn more: Travelers Insurance review
Farmers is not the cheapest company on our list, but its average premiums are still below Alabama’s average. The higher premium might be due to the number of optional coverages available. Although optional coverages will increase your premium, they will also help to expand your coverage. With Farmers, you can add options like towing and roadside assistance, ridesharing coverage, guaranteed value coverage, customized equipment coverage and spare parts coverage.
Learn more: Farmers Insurance review
If you want to buy your policy online, Allstate might be a good choice. The company received an above-industry average score from J.D. Power in the 2021 U.S. Insurance Digital Experience Study for the shopping category, meaning that the company’s online shopping experience is generally well received by customers. The company also allows you to tailor your coverage with endorsements like sound system coverage and roadside assistance. And you might save money with the Drivewise telematics program, or any other of the company’s numerous discounts.
Learn more: Allstate Insurance review
Minimum coverage for Alabama drivers
Alabama car insurance law mandates that drivers must carry at least certain minimum car insurance levels. To drive legally in Alabama, you must carry at least the following minimum coverages and limits:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $25,000 property damage to others
While these amounts are all you are legally required to have, most insurance professionals advise that you purchase higher liability limits. Although higher limits will cost more, having more liability coverage means you have more financial protection if you cause an accident. If the damages and injuries you cause exceed the amount of insurance you have, you will be responsible for the overage out of pocket.
Additionally, Alabama’s minimum coverage limits do not include comprehensive or collision coverages, which provide coverage for damage to your car. This is often called “full coverage.” If you have a loan or lease, your lender probably requires you to have full coverage.
How to get cheap car insurance in Alabama
Alabama’s average cost of car insurance is not too different from the national average, but there are things you can do to find the cheapest coverage possible. Here some tips to help you find the cheapest car insurance in Alabama:
- Shop around: Getting quotes from several different providers might help you find the cheapest auto insurance in Alabama. Though insurance providers may look at similar factors when generating a car insurance quote, they do not weigh the importance of each rating factor the same way. This is why your quote from one company can be so different from another company, even if the coverage is the same.
- Compare discounts: Once you have shopped around and narrowed down the companies that could fit your needs, compare the discounts you might be eligible for. To do this effectively, you may need to call and speak with a company representative about the actual amount you will save with each discount.
- Increase your deductibles: If you have full coverage, your policy has two deductibles: one for comprehensive and one for collision. The higher your deductibles, the more you will pay out of pocket if you file a claim for damage to your car. Because of this, increasing your deductibles can lower your premium. Just make sure you choose an amount you can comfortably pay so you can avoid financial stress if you need to file a claim.
Other ways you might save money on car insurance include reconsidering the car you drive, participating in a telematics program (if your company offers one) and maintaining a clean driving record to avoid surcharges.
Frequently asked questions
What is the best car insurance in Alabama?
There is no single best car insurance company in Alabama. Every driver has a different situation and has different wants and needs from their car insurance company. Understanding your particular circumstances and knowing what you want from a company — like the lowest price, a mobile app or certain optional coverages — might help you find the best auto insurance company for your needs.
What is the average cost of car insurance in the U.S.?
The average cost of full coverage in the United States is $1,674 per year. Alabama’s average annual full coverage premium is $1,623, just slightly lower than the average national premium. Minimum coverage, however, is considerably cheaper in Alabama than it is nationally. Alabama’s average minimum coverage premium is $469 per year, while the national average is $565 per year.
Is Alabama a no-fault state?
No, Alabama is not a no-fault state. No-fault insurance refers to personal injury protection (PIP) coverage, which pays for medical bills (and some related expenses like lost wages) for you and your passengers regardless of who is at fault for the accident. PIP is not available in Alabama, but you can purchase medical payments coverage, which also pays for your and your passengers’ injuries regardless of fault, up to your policy limit, but does not include coverage for lost wages or household expenses like PIP does.
Does Alabama have a high amount of uninsured drivers?
Yes, Alabama does have a large percentage of uninsured drivers. According to the latest study conducted by the Insurance Information Institute, Alabama currently ranks seventh in the United States for uninsured drivers, with 19.5% of its driving population estimated to be driving without insurance.
Bankrate utilizes Quadrant Information Services to analyze 2021 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 2019 Toyota Camry, 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.