Finding the cheapest car insurance companies in Alabama is possible whether you’re looking for minimum or full coverage car insurance. In this state, Bankrate’s research found Geico has the cheapest minimum coverage car insurance, with an average premium of $322 per year.
Minimum coverage may be cheap because it offers less financial protection, but it’s possible to find affordable full coverage car insurance as well. We determined Travelers offers the cheapest full coverage car insurance in Alabama, with an average premium of $1,071 per year. No matter what level of coverage you’re looking for, this review may help you find the cheapest car insurance in Alabama.
The cheapest car insurance companies in Alabama
To identify the cheapest auto insurance in Alabama, Bankrate analyzed quoted annual premium data from Quadrant Information Services. Our methodology included comparing rates for both minimum and full coverage from multiple insurance companies.
Additionally, although the cost may be an important factor when it comes to choosing a car insurance company, other considerations are important as well. Not only do these car insurance companies offer competitive rates, but we also selected only companies with strong financial strength ratings from AM Best and good customer satisfaction ratings from J.D. Power.
The cheapest companies for minimum coverage in Alabama
Drivers interested in minimum coverage car insurance may find it helpful to consider Geico and USAA, two companies that offer some of the cheapest rates for minimum coverage car insurance in Alabama, based on available rate data.
However, individual rates may vary, so comparing at least three quotes from other companies should give you a better idea of which is the cheapest for your situation. To illustrate this, consider these five other cheap car insurance companies that offer the lowest average annual rates for minimum coverage in Alabama:
|Car insurance company||Average annual minimum coverage premium||Average monthly minimum coverage premium|
The cheapest companies for full coverage in Alabama
Full coverage car insurance offers greater financial protection in the event of an accident, and can potentially even save you money in the long run. If you compare rates, leverage discounts and take into consideration your short term versus long term financial goals, you can find affordable full coverage car insurance that fits your budget.
Bankrate’s study identified these as the top five cheapest car insurance companies for full coverage car insurance in Alabama:
|Car insurance company||Average annual full coverage premium||Average monthly full coverage premium|
Events that can impact your cheap rates in Alabama
When major life events happen, your car insurance needs and rates might change as well. Understanding how your premium will be affected can help you decide if steps can be taken to help adjust your coverage or whether or not it’s in your best interest to switch car insurance companies. Some major events that commonly impact your car insurance in Alabama include:
- Adding a teen driver: Teenagers who have just earned their license are some of the most expensive drivers to insure, due to inexperience. Car insurance companies will typically charge the highest rates for this age group to compensate for the greater risk of a claim. However, this can be offset by leveraging discounts common for teen drivers, including a good student discount.
- Receiving a speeding ticket: Speeding is considered a risky driving practice by insurance companies. Drivers who are caught multiple times for speeding are at risk of license suspension in Alabama and can face increased car insurance premiums for many years. Every car insurance company has its own proprietary method of determining rates, so shopping around if you have a speeding ticket to see if another company offers a lower rate may help you save.
- Being involved in an at-fault accident: Being involved in an at-fault accident can impact your premium for three to five years, or as long as the incident stays on your motor vehicle record. Comparing quotes from multiple insurers will help you see which one offers the best rate, taking into account any marks in your driving history.
- Being deemed a high-risk driver: 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 limited options for managing car insurance costs and may even no longer qualify for coverage with some insurance companies. If this is the case, high-risk drivers may want to consider looking into non-standard car insurance.
Cheapest cities in Alabama for minimum coverage
The ZIP code you reside in plays into how your car insurance rates are determined. Bankrate reviewed car insurance rates for multiple cities to find the average cost of car insurance in Alabama. Depending on your future plans to relocate, considering how rates vary by ZIP code could save you a bit on insurance costs. Below are the four cities in Alabama with the cheapest rate for minimum coverage car insurance:
|City||Average annual minimum coverage premium||Average monthly minimum coverage premium|
Cheapest cities in Alabama for full coverage
The cost of full coverage car insurance will differ depending on your location. Every ZIP code in Alabama represents varied crime rates, traffic patterns, accident rates and even weather hazards, among other factors. For full coverage car insurance in Alabama, here are the four cheapest cities we found in our study:
|City||Average annual full coverage premium||Average monthly full coverage premium|
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 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $25,000 in 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 protection. Additional coverage like medical payments, comprehensive, collision and uninsured/underinsured motorist can help you more easily meet the financial demand required after an incident. Keep in mind that if you lease or finance your vehicle, you’ll likely be required to purchase comprehensive and collision coverage options by your financial institution.
Here is how to find (and keep) cheap car insurance in Alabama
Finding cheap car insurance is a common goal of drivers in Alabama and within the U.S. Easy steps to finding and keeping affordable rates for car insurance include:
- Shop around. Insurance companies calculate premiums differently, so requesting quotes from at least three companies is the most recommended way to find affordable rates. Since coverage options and discounts can vary by provider and location, this is another benefit to comparing multiple companies to find what best fits your budget and coverage needs.
- Maintain a clean driving record. Motor vehicle records play a significant role in how car insurance companies determine rates for drivers. Practicing safe driving habits and maintaining a clean driving record will give you the best chance for affordable rates and discounts, and will typically be an advantage if you decide to shop around for quotes.
Frequently asked questions
What is the best car insurance in Alabama?
The best car insurance company in Alabama will be different for every driver, based on ZIP code, life circumstances, and other factors personalized to each person. Understanding your particular needs and priorities — like affordable rates, digital policy management or having access to specific optional coverage — can help narrow your search for the best auto insurance company.
Does car insurance get cheaper as I get older?
In general, car insurance tends to decrease as we age, especially with a clean driving record. Young drivers typically have the most expensive rates because they are new to driving, but senior drivers may also experience a rate increase due to age-related changes, such as decreased reaction time and vision difficulties.
Is Alabama a no-fault state?
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, as the state is an at-fault state. However, you can purchase medical payments coverage (MedPay), which pays for your and your passengers’ injuries — regardless of fault — up to your policy limit. Unlike PIP, MedPay does not include coverage for lost wages or household expenses.
Does Alabama have a high amount of uninsured drivers?
Yes, Alabama is estimated to have a large percentage of uninsured drivers. The Insurance Information Institute (Triple-I) reports that Alabama currently ranks seventh in the U.S. for uninsured drivers, with 19.5% of its driving population estimated to be driving without insurance. In the event of a collision with an uninsured driver, having uninsured or underinsured motorist coverage would be a useful form of financial protection against incurred costs.
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 coverage that meets 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.