With just over 200,000 residents, Montgomery is a bustling metropolis with plenty to do and see. Residents of Alabama’s capital city should be aware that Alabama, like most states, requires drivers to carry car insurance. On average, Montgomery residents pay $519 per year for minimum coverage and $1,642 per year or full coverage — just slightly lower than the national average.
In 2019, Alabama reported a traffic accident every three minutes and 18 seconds. This further illustrates how important it is for drivers in Montgomery to find the right auto insurance coverage to provide financial protection. Bankrate has reviewed several carriers based on current average annual premiums obtained from Quadrant Information Services. We also analyzed coverage options, discounts offered and customer service ratings to help drivers find the best cheap insurance in Montgomery.
Best car insurance companies in Montgomery
Based on our research, the best car insurance companies in Montgomery are Geico, Farmers, Country Financial and State Farm. These four providers offer some of the most affordable premiums and include an array of coverage options and discounts.
|Insurance company||J.D. Power score
|Average annual premium for minimum coverage||Average annual premium for full coverage|
|State Farm||835 /1,000||$550||$1,539|
Quadrant Information Services, 2020
Geico offers Montgomery drivers the ability to save on annual premiums while offering high overall customer satisfaction. Geico is a subsidiary of Berkshire Hathaway and is the second largest insurer of private passenger vehicles in the United States. In addition to already low premiums, the company has no shortage of discounts, with savings for military members, good students and federal employees. You may also get a discount for having safety features like airbags installed on your vehicle, being claims free and insuring more than one vehicle.
Farmers is a large national carrier offering numerous coverage options and policy discounts. Customers looking for digital tools might be pleased to know that the mobile app makes policy management easy and accessible. Although Farmers did score below the industry average for the Southeast region in the 2020 J.D. Power U.S. Auto Insurance Study, the company received a roughly average complaint index score from the National Association of Insurance Commissioners (NAIC). A score of 1.00 indicates a baseline level of complaints. Farmers’ private passenger auto insurance product received a score of 1.08.
Country Financial operates in 19 states across the country, including Alabama. It offers a few options to customize your auto insurance policy, such as emergency roadside service coverage and safety glass coverage. While the coverage options with Country Financial are fairly standard, the company does offer a wide range of discounts to help policyholders lower their premiums. You may earn a discount for bundling your policies, getting engaged and driving safely. One of the most unique discounts is Country Financial’s occupation discount — K-12 teachers, firefighters, police officers, paramedics and EMTs could save on their car insurance.
State Farm is the largest insurer of personal vehicles in the United States. State Farm offers speciality coverage options such as rideshare coverage and gap insurance to allow policyholders to create an auto insurance policy tailored to their needs. Discounts such as the Drive Safe & Save program offer savings up to 30%, and bundling your policies could save you up to 17%. State Farm did receive a below-average score in the Southeast region from J.D. Power. However, its private passenger insurance product receives fewer complaints than average, according to the NAIC, with a score of 0.69.
Cheapest car insurance in Montgomery
On average, car insurance costs $565 per year for minimum coverage and $1,674 per year for full coverage nationally. Alabama residents pay slightly less than the national average, with annual rates of $469 for minimum coverage and $1,623 for full coverage. The average in Montgomery is slightly higher than it is in Alabama, at $519 annually for minimum coverage and $1,642 annually for full coverage.
Bankrate analyzed the average premiums for the largest insurance providers by market share in the Montgomery area to find the best cheap car insurance options. Along with average premiums, factors such as financial stability, customer service ratings, coverage options and available discounts were all reviewed.
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
Although price is a factor when shopping for car insurance, it is not the only consideration. You may also want to review a company’s customer service reviews, coverage and discount options and financial stability before choosing a provider.
Montgomery insurance requirements
Alabama requires that drivers carry at least a minimum amount of liability insurance. The state minimum levels of insurance coverage are:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $25,000 property damage per accident
However, insurance professionals recommended that you purchase higher liability limits if you can afford to. If you carry minimum levels of liability insurance and you cause an accident, you could be left with out-of-pocket expenses.
You may also want to consider full coverage to provide coverage for damage to your own vehicle. If you lease or finance your car, your lender will usually require you to carry comprehensive and collision coverage.
Alabama ranks sixth in the country for highest number of uninsured motorists, with just over 18% of drivers estimated to be uninsured. Adding uninsured motorist coverage to your policy may be a good idea. This coverage will help to pay for your medical bills and property damage, up to your policy limits, if you are hit by an uninsured driver. Insurance companies in Alabama are required to offer a minimum of 25/50 uninsured motorist coverage, but you do have the option to reject the coverage in writing.
Car insurance discounts in Montgomery
While Montgomery drivers pay about the same amount for car insurance as average drivers in the United States, discounts can still help you lower your car insurance premiums. Most car insurance companies offer discounts to policyholders. Some common discounts in Montgomery include:
- Safe driving discount: If you are willing to use an app or plug-in device to track your driving habits, then you could save money for being a safe driver.
- Good student: If you are a student or if you insure a student on your policy who gets good grades, your insurance company may reward you by applying a discount to your policy.
- Safety equipment features: Carriers often provide discounts if your car has safety features such as airbags, an anti-theft system or anti-lock brakes.
- Paperless discount: Several carriers offer a discount for choosing electronic statements instead of paper versions.
Every insurance company offers its own selection of discounts. Check with your company to make sure you are taking advantage of as many as possible.
Frequently asked questions
What is the best car insurance company?
The best car insurance company for you may be different from a friend or family member’s best company, since everyone has a unique situation that they bring to auto insurance. However, examining factors for each carrier such as digital tools, customer service ratings, average premiums and financial stability may help you narrow down your choices. A good practice is to obtain quotes from several insurance companies and compare them.
How much car insurance do I need in Montgomery?
You will need to carry at least 25/50/25 liability limits to legally drive in Alabama. However, there are other considerations when deciding how much coverage you need. If you lease or finance your car, you will likely be required by your bank to carry comprehensive and collision coverage. Talk with your agent or insurance company about how much insurance is recommended for your situation.
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 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 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.