The best car insurance in Alabama

Laura Gunn

By

Laura Gunn

Laura Gunn

Freelance contributor

Laura Gunn is an insurance expert and writer. As a former English teacher, she made the transition to full-time writing and editing in 2016. Since that time she has written extensively about insurance topics, as well as topics pertaining to education and marketing.

Her work has been published in The Millennial Source, News Hunt 360, Realty Today, HNGN, and other publications.

Published November 17, 2021

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our

editorial standards

and how we make money.

The average cost of full coverage car insurance policy in Alabama is $1,726, but costs will vary from driver to driver. Everything from your age and address to your credit score and past driving history will play a role in your car insurance rates.

Ready to shop car insurance?

Start calculator

The best way to make sure you’re finding affordable coverage is to shop around and compare quotes before you buy. Policygenius can show you options from top car insurance companies so you can be sure you’re making the right choice.

Key Takeaways

  • GEICO has the lowest average rate for full coverage car insurance in Alabama at $977 a year

  • Country Financial offers the cheapest car insurance for 16-year-old drivers at an average rate of $2,558

  • Alabama requires a minimum of $25,000 per person/$50,000 per accident in bodily injury liability coverage and $25,000 in property damage liability coverage

Cheapest car insurance companies in Alabama

Every company looks at factors like age, driving history, credit score, and ZIP code when calculating your rates. But even though car insurance companies all use the same information, costs can vary from company to company, which is why it’s so important to shop around.

Company

Average cost

JD Power Rating

GEICO

$977

871

USAA

$1,002

890

COUNTRY Financial

$1,165

863

Nationwide

$1,281

876

Cincinnati Insurance

$1,307

--

Cheapest car insurance companies by age in Alabama

Age is one of the most important factors when it comes to car insurance costs. The younger and more inexperienced you are as a driver, the more you’ll pay for car insurance. But rates typically fall as you age, and by 25, young drivers age-out of the highest-risk age group.

Age

Cheapest company

Average cost

16

COUNTRY Financial

$2,558

18

GEICO

$2,077

21

GEICO

$1,439

25

GEICO

$1,115

30

GEICO

$972

35

GEICO

$956

45

USAA

$933

55

USAA

$894

Choosing the right car insurance company in Alabama

Shopping for the right car insurance policy can seem overwhelming, but it doesn't have to be. It all comes down to figuring out the most important factors and seeing how your options stack up.

  • Cost: Different companies charge different rates for similar coverage, that's why it's important to compare quotes from multiple car insurance companies to find the best rate

  • Coverage: Make sure the company you choose offers the coverage you need. Remember, the higher you set your limits, the better protected you’ll be 

  • Customer service: Do a little research on the insurance company itself. Read customer reviews and check claims satisfaction ratings to see how the companies stack up

If you're ready to start shopping, Policygenius can help you compare quotes from top car insurance companies so you can choose the option that’s right for you.

Car insurance rates for drivers with driving violations in Alabama

Companies typically consider the past three to five years of your driving history when calculating rates. Any recent driving violations can have a negative impact on your car insurance rates, but driving violations that involve alcohol typically have the biggest impact.

Violation

GEICO

USAA

COUNTRY Financial

Nationwide

Cincinnati Insurance

At-fault Accident

$1,640

$1,546

$1,588

$2,300

$2,342

DUI

$2,061

$2,251

$1,979

$2,900

$3,177

Driving with a suspended license

$2,061

$2,132

$1,979

$2,900

$3,177

Driving with an open container

$2,061

$1,625

$1,570

$2,900

$2,611

Driving with expired registration

$1,171

$1,244

$1,570

$1,723

$1,650

Driving without Lights

$1,171

$1,244

$1,570

$1,723

$1,650

Failure to show documents

$1,127

$1,244

$1,570

$1,723

$1,650

Failure to stop at a red light

$1,171

$1,244

$1,570

$1,723

$1,650

Cheapest car insurance for drivers with bad credit in Alabama

Credit score can also be a determining factor when looking for car insurance. Drivers who have lower credit scores should expect to see higher insurance rates, so if you know you have poor credit, it’s all the more important to shop around for coverage before you buy.

Company

Rates for drivers with bad credit

GEICO

$1,466

Safeway Insurance

$1,711

USAA

$1,839

COUNTRY Financial

$1,888

Nationwide

$2,137

Car insurance costs in Alabama cities

Where you live within Alabama will also have a big impact on what you’ll pay for car insurance coverage. Cities with more cars on the road or higher rates of car theft and vandalism will typically have higher average rates. Here's how the ten biggest cities in Alabama stack up:

  • Birmingham: $1,971

  • Montgomery: $1,741

  • Mobile: $1,854

  • Huntsville: $1,708

  • Tuscaloosa: $1,743

  • Hoover: $1,833

  • Dothan: $1,544

  • Decatur: $1,627

  • Auburn: $1,590

  • Madison: $1,637

Ready to shop car insurance?

Start calculator

Buying car insurance in Alabama

It's important to know and understand Alabama’s state minimum requirements for car insurance. Every driver in Alabama must have at least the following amount of car insurance coverage:

  • Bodily injury liability coverage per person: $25,000

  • Bodily injury liability coverage per accident: $50,000

  • Property damage liability coverage: $25,000

Alabama is an at-fault state, which means the car insurance company of the driver responsible for causing the accident will pay for the repair costs and medical bills of the other party (that’s what liability coverage is for). If you don’t set high enough liability limits, you could be left footing the bill yourself after an expensive accident.

How to get cheap car insurance in Alabama

If your car insurance seems too expensive, then consider some of these tried-and-true tips for making sure you’re getting the most affordable coverage possible:

  • Ask about discounts, like savings for safe drivers or certain professions

  • Bundle your auto and home or renters policies with the same company

  • Reduce coverage on older cars

  • Drive safely and avoid moving violations

  • Reshop your car insurance every year to make sure you’re still getting the best rates

Frequently asked questions

Is cutting car insurance coverage the only way to lower car insurance rates?

No, there are lots of ways to make car insurance more affordable. Everything from finding a new company to improving a personal credit score can have major impacts on the overall cost of your car insurance.

Is car insurance required in Alabama?

Like most states, Alabama does require drivers to be insured. The state requires all drivers to have bodily injury and property damage liability coverage.

Who offers the cheapest car insurance for drivers with bad credit?

GEICO offers the lowest rates for Alabama drivers with bad credit. The average cost is $1,466 for a full coverage policy. Your final rate will depend on a number of other factors in addition to your credit score.

Will my rates drop every year after I turn 25?

Insurance rates can sometimes drop after age 25, but it depends on a few other factors. Things like your driving history, the kind of car you have, and even your ZIP code will all be considered when calculating your insurance rates.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.