Cheapest car insurance in Alabama for 2023

The cheapest car insurance companies in Alabama

When shopping for cheap car insurance, Alabama drivers should keep in mind that rates vary by a number of metrics. Cheap insurance for one driver may not be the same as cheap insurance for another. To that end, we analyzed several driver profiles to find cheap Alabama car insurance for a wide range of drivers.

Cheapest company for minimum coverage

Cheapest company for full coverage

Cheapest company for adding a teen driver

Cheapest company for getting a speeding ticket

Cheapest company for being in an at-fault accident

Cheapest company after a high-risk incident

The cheapest car insurance companies in Alabama by coverage level 

Alabama drivers pay an average of $1,843 per year for full coverage and $441 per year for minimum coverage car insurance. In the pursuit of cheap insurance, Alabama drivers may want to take their coverage limit into consideration. Minimum coverage, which is the state-mandated minimum amount you must purchase to drive legally, is often the cheapest, but provides far less financial protection than having higher liability limits or full coverage. Below are the companies with the cheapest car insurance in Alabama for both minimum and full coverage.

Cheapest cities in Alabama for car insurance

Getting cheap auto insurance in Alabama will depend on where you live in the state. Some areas have lower costs of living or a lower incidence of accidents, both of which lower rates. The tables below show the cheapest cities in Alabama for minimum and full coverage, as well as the cheapest company in that state. Our research shows that Geico is cheapest for minimum coverage while Travelers is cheapest for full coverage.

Getting a speeding ticket

Getting into an at-fault accident

Being deemed a high-risk driver

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 protection. Additional coverage like medical payments, comprehensive, collision and uninsured and 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. You might also consider purchasing gap insurance, which will pay the difference between your vehicle’s value if it’s totaled and the amount you still owe, if the value is lower than the remaining loan balance.

How to get the cheapest car insurance in Alabama

Finding low-cost car insurance in Alabama is a common goal for many drivers. When shopping for affordable car insurance, Alabama drivers may want to keep these tips in mind.

Shop around

Insurance companies calculate premiums differently, so requesting quotes from at least three companies can be a good strategy to find affordable rates. Since coverage options and discounts can vary by provider and location, comparing multiple companies may help you 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 may give you the best chance for affordable rates and discounts, and will typically be an advantage if you decide to shop around for quotes. You may get additional savings if you take part in a telematics program, which rewards responsible driving behaviors.

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 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 discounts. You might also save if you drive fewer miles than average or sign up for a telematics program.
• Other discounts: Bundling your auto and home insurance is one of the most common Alabama car insurance savings opportunities. You might also save by going paperless or paying in larger installments versus monthly.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 2021 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. 

Bankrate Scores 

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.