Compare Car Insurance Rates in Alabama

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Cheap Car Insurance Alabama: Full and Minimum Coverage

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Crash Course:

  • Rates for car insurance in Alabama average $47 each month for minimum-coverage policies and $143 monthly for full coverage.
  • The lowest prices in the Yellowhammer State usually come from USAA for both minimum and full coverage.
  • High-risk drivers who have at-fault accidents, DUI violations, and speeding tickets on their driving records almost always get charged more for Alabama car insurance.

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The cheapest car insurance in Alabama will generally come from USAA, which has average rate estimates of $26 per month for minimum coverage. Travelers and Progressive are usually the next cheapest providers for Alabama drivers, making them strong choices as well.

Our research team considered cost data, coverage options, customer reviews, and reputations within the industry to learn which companies offer the best car insurance in Alabama. We’ll break down each provider’s average costs to show where you can turn for high-quality and affordable insurance in the Yellowhammer State.

Best Car Insurance Rates in Alabama

The cheapest auto insurance rates for Alabama drivers tend to come from USAA, Country Financial, Travelers, and Progressive. It’s always good to get free quotes from multiple companies to figure out which one has the best rates for your specific vehicle.

  • Our researchers used cost data from Quadrant Information Services to find insurance premium estimates for different coverage types, driver profiles, and cities in Alabama. We used this data to determine the cheapest coverage options from quality car insurance providers, and you’ll find details in tables throughout the article.
  • To determine an overall rating for each top insurance company, our team considers not only affordability but also industry standing, availability, and coverage options. We then factor in the customer experience and online reviews to establish a numerical rating out of the highest possible score of 5.0.
  • Unless stated otherwise, estimates reflect the profile of a 40-year-old driver with a clean driving record and good credit history.

Alabama Car Insurance Rates at a Glance

While you’ll find detailed cost estimates throughout this article, we’ve outlined the cheapest car insurance companies in Alabama for a few driver profiles here:

  • Cheapest full coverage: USAA followed by Travelers
  • Cheapest minimum coverage: USAA followed by Country Financial
  • Cheapest for teen drivers: Travelers followed by Country Financial
  • Cheapest for drivers with a traffic violation: Progressive followed by Travelers

Cheapest Car Insurance Companies in Alabama

Below, we’ve ranked the auto insurance providers that offer Alabama’s best mix of affordable prices and top-tier coverage. While Travelers has the Yellowhammer State’s cheapest rate estimates, State Farm received the highest score of any company we researched.

Car Insurance ProviderOverall RatingAverage Monthly Rate: Minimum CoverageAverage Monthly Rate: Full CoverageNumber of Discounts
State Farm4.6$41$15312

Cheapest Car Insurance Coverage in Alabama

Expect minimum-liability coverage to be your primary option for the cheapest car insurance in Alabama. While this will fulfill the state’s car insurance requirements, it won’t keep your own vehicle safe or cover personal bodily injuries after an at-fault accident.

That’s why getting a full-coverage auto insurance plan might be the more responsible choice. You’ll pay far more than you would for minimum coverage but receive significantly stronger protection through your insurance policy.

Cheapest Minimum-Liability Car Insurance in Alabama

The average rate estimate for minimum coverage in Alabama is $47 per month or $559 per year. USAA tends to offer the cheapest minimum-liability policies with estimates of $26 monthly or $316 per year.

Car Insurance ProviderAverage Monthly Rate for Minimum CoverageAverage Yearly Rate for Minimum Coverage
State Farm$41$496
Country Financial$28$341

Cheapest Full-Coverage Car Insurance in Alabama

The average rate for full-coverage auto insurance is $143 per month or $1,717 per year in Alabama. Overall, USAA has the state’s cheapest average estimates for full-coverage insurance at $79 per month or $948 per year.

Car Insurance ProviderAverage Monthly Rate for Full CoverageAverage Yearly Rate for Full Coverage
State Farm$157$1,835
Country Financial$134$1,603

Alabama Car Insurance Quotes by Driver Profile

Expect your costs for car insurance in Alabama to be somewhat different from the numbers found above. After all, auto insurance companies set individual premiums using many variables such as your age, driving record, and location in Alabama.

car insurance cost factors

Cheapest Car Insurance in Alabama: Age

Alabama drivers often find that age plays a big role in the price of their car insurance. Young drivers and teen drivers in particular pay far more for auto coverage than those in other age groups. The table below has average rate estimates for Alabama drivers of different ages:

Driver AgeAverage Monthly Rate for Full Coverage

Cheapest Car Insurance in Alabama: High-Risk Drivers

Another major component in auto insurance costs is your driving history, as those with clean driving records usually get cheaper car insurance rates. Any at-fault accidents or traffic violations such as speeding tickets can lead to much higher premiums.

The amount that your driving record impacts monthly rates varies by car insurer. Below is a list of the top car insurers in Alabama and their average minimum-coverage rates for good drivers versus those considered high-risk drivers.

Car Insurance ProviderAverage Monthly Rate for Clean Driving RecordsAverage Monthly Rate for High-Risk Drivers
State Farm$34$40
*Data was pulled from 2022 information.

Car Insurance Rates in Alabama: Speeding Ticket

Just one speeding ticket can make your premiums go up quickly in Alabama. USAA tends to offer the Yellowhammer State’s cheapest car insurance after a speeding ticket with an average rate estimate of $91 per month or $1,089 per year. Travelers and Safeway also have competitive rates for Alabama drivers whose recent driving history comes with a speeding ticket.

Car Insurance ProviderAverage Monthly Rate After a Speeding TicketAverage Yearly Rate After a Speeding Ticket
State Farm$165$1,981
Country Financial$172$2,062

Car Insurance Rates in Alabama: At-Fault Accident

Motorists who cause car accidents also face higher rates for car insurance in Alabama. Progressive will often have the cheapest coverage for Alabama drivers with a recent accident, with average rate estimates of $40 per month or $480 per year. Travelers and State Farm offer relatively affordable coverage for drivers with an at-fault accident as well.

Car Insurance ProviderAverage Monthly Rate After an At-Fault AccidentAverage Yearly Rate After an At-Fault Accident
State Farm$44$528
*Data was pulled from 2022 information.

Car Insurance Rates in Alabama: DUI

A violation for driving under the influence (DUI) could make your auto insurance premiums rise dramatically. For Alabama motorists who’ve received a DUI, Travelers offers average estimates of $147 per month or $1,765 per year.

Car Insurance ProviderAverage Monthly Rate After a DUIAverage Yearly Rate After a DUI
State Farm$165$1,981
Country Financial$195$2,335

Average Cost of Car Insurance in Alabama

The average cost of car insurance in Alabama comes out to $559 per year for minimum-liability insurance and $1,717 annually for full coverage. These rates are about 27% lower than the national average for minimum coverage and 13% lower than the national rate for full coverage.

Average Car Insurance Cost in Alabama by City

Your specific location in Alabama has a major impact on the auto insurance premiums you can expect to be charged. Risk factors such as population density, crime rates, and weather patterns vary between ZIP codes, meaning that car insurance rates will too. The table below shows the average rates for car insurance in Alabama’s largest cities.

Cities in AlabamaAverage Monthly Rate for Minimum CoverageAverage Monthly Rate for Full Coverage
Phenix City$44$144
*Data was pulled from 2022 information.

Alabama Minimum Car Insurance Coverage

According to Alabama law, every driver in the state must meet or exceed the following minimum coverage requirements:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Liability insurance is extremely important to carry, but it doesn’t protect against everything. Insurance agents and experts both recommend moving beyond the minimum-coverage policies required by the Alabama Department of Motor Vehicles (DMV). That’s because opting for higher limits could protect you from paying large sums of money out of pocket after an at-fault accident.

If you purchase collision coverage and comprehensive coverage, you’ll be protected from repair costs to your own vehicle after instances of theft or vandalism, car accidents, and severe weather. Other types of insurance such as medical payments coverage (MedPay) and underinsured or uninsured motorist coverage could also be worthwhile.

Cheap Car Insurance in Alabama: Conclusion

The cheapest car insurance in Alabama generally comes from USAA, which has average rates of $26 per month. It’s best to compare auto insurance quotes either online or at an insurance agency to see if you could potentially find more affordable coverage elsewhere.

You may also want to consider the benefits of a full-coverage policy, which includes greater financial protection and peace of mind. The best rates from any casualty insurance company came from USAA for as little as $79 per month.

Best Car Insurance in Alabama: Recommended Providers

While a few providers are known to offer reasonable premiums to Alabama drivers, get car insurance quotes from various providers to find your best rates. We recommend considering Progressive and USAA as you begin your hunt for the best auto insurer.

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Progressive: 4.5 out of 5.0

Progressive is an excellent choice for drivers searching for one of the cheapest car insurance in Alabama. The company has some of the state’s lowest rates for coverage, and these can be further reduced through the Snapshot? program. Keep in mind, though, the Progressive isn’t highly ranked for its customer service or insurance claims process.

Read more: Progressive insurance review

USAA: 4.5 out of 5.0

Price estimates for USAA were also quite reasonable in the Yellowhammer State, making the company a solid pick for eligible drivers. The provider has a strong customer service reputation and is typically known to pay out claims quickly and without issues. Note that USAA is only available for those in the military, veterans, and family members.

Read more: USAA insurance review

Cheapest Auto Insurance in Alabama: FAQ

Which company gives the cheapest car insurance?

State Farm generally has the cheapest car insurance when it comes to national averages. Drivers in the state of Alabama receive their lowest premiums from USAA and Travelers.

How much is car insurance per month in Alabama?

The average cost of car insurance each month in Alabama is $47 for a minimum-coverage policy and $143 for full coverage. Our research team found rates in Alabama as low as $26 per month for minimum coverage and $79 for a full-coverage policy.

How to reduce car insurance in Alabama?

The best ways to reduce car insurance costs in Alabama are by lowering your amounts and types of coverage, increasing your deductible, and searching for driver discounts. Improving your credit score and bundling coverage with renters or homeowners insurance are other ways to find lower rates over the long term.

How much is car insurance on average in Alabama?

Car insurance in Alabama averages out to $559 per year for minimum coverage and $1,717 annually for full-coverage policies.

Is it illegal to drive without insurance in Alabama?

Yes, it’s illegal to drive without car insurance in Alabama. Expect to receive a misdemeanor if you’re caught driving without coverage and current registration. It’s possible in many states that you could be fined, lose permission to drive, or even face a short time in prison.

Is it cheaper to pay car insurance every six months or monthly?

You’ll almost always get charged lower rates if you pay off your Alabama auto insurance policy every six months rather than each month. Many providers give discounts for covering car insurance policies upfront, though this isn’t offered everywhere.

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.

  • Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
  • Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
  • Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
  • Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
  • Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
  • Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.

*Data accurate at time of publication.