The best car insurance in Alabama

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Laura GunnLaura GunnFreelance contributorLaura 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.&Andrew HurstAndrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

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Anna SwartzAnna SwartzSenior Managing Editor & Auto Insurance ExpertAnna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
Expert reviewedExpert reviewedThis article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.Learn more about oureditorial review process.

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Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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USAA has the cheapest car insurance in Alabama. On average, a full coverage policy from USAA costs $84 per month. But only drivers who are in the military or a part of a military family can get coverage through USAA, which means it isn’t an option for every Alabama driver.

The cheapest car insurance companies in Alabama for drivers who aren’t affiliated with the military are Travelers, COUNTRY Financial, and GEICO, at an average of $102 per month. But average rates don’t necessarily reflect what you would pay, so you should compare rates to find which company is the cheapest for you.

Company

Average monthly cost

Average annual cost

USAA

$84

$1,002

Travelers

$102

$1,218

COUNTRY Financial

$102

$1,218

GEICO

$102

$1,219

State Farm

$105

$1,265

Cheapest car insurance companies in Alabama

USAA

4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

USAA logo

USAA is one of the most reliably cheap car insurance companies in the country. It also has a long-standing reputation for great customer service. Unlike other providers, USAA is only offered to drivers who are affiliated with the military.

Pros

  • Offers coverage in every state and the District of Columbia

  • Usually has some of the cheapest car insurance rates of any company

  • Drivers can use discounts to lower their rates

  • Consistently high customer satisfaction

Cons

  • Limited options for adding extra coverage

  • Only available to members of the military, veterans, and their families

USAA is the cheapest car insurance company in Alabama. On average, drivers in Alabama who are a part of the military or a military family can get car insurance from USAA for $84 per month. That’s $726 less per year than the statewide average.

Travelers

4.3

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Travelers logo

Travelers has cheaper-than-average rates (and a long list of discounts). Plus, drivers can upgrade a standard policy with any of the company’s useful add-ons. But Travelers has weaker claims satisfaction and complaint scores than other providers.

Pros

  • Lower-than-average rates

  • Offers useful endorsements like new car replacement, gap coverage

  • Has a range of discounts that can save drivers money

  • Coverage is available to all drivers in most states

Cons

  • Customer service scores are lower than some competitors

Travelers has the second-cheapest car insurance in Alabama. On average, Travelers offers car insurance for $102 per month, or $1,218 per year. Travelers also has some of the cheapest car insurance in Alabama for drivers with a DUI on their records.

COUNTRY Financial

4.3

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

COUNTRY Financial logo

COUNTRY Financial only offers car insurance in 19 states, but it’s often one of the best and cheapest companies where it’s available. Besides its affordable rates, COUNTRY Financial also has high satisfaction ratings compared to other big insurers.

Pros

  • Lower-than-average rates

  • One of the cheapest companies for young drivers

  • Offers new car replacement and personal effects coverage

Cons

  • Coverage not available in every state

COUNTRY Financial is tied for the second-cheapest car insurance in Alabama. On average, car insurance from COUNTRY costs $102 per month. That’s $510 cheaper per year than Alabama’s statewide average.

We also found that COUNTRY has some of the cheapest insurance rates for young drivers in Alabama.

GEICO

4.6

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

GEICO logo

GEICO is nationally available and often has some of the cheapest rates. GEICO gets fewer service complaints than average, even though claims satisfaction can be mixed. Drivers can also customize their car insurance from GEICO with a few useful add-ons.

Pros

  • Available in every state and the District of Columbia

  • Usually has some of the cheapest rates

  • Gets fewer complaints than expected for its service

  • Allows drivers to add different types of useful coverages to a basic policy

Cons

  • Mixed reputation for claims satisfaction

GEICO has the third-cheapest car insurance in Alabama. On average, GEICO costs slightly more than $102 per month — it’s just $1 more expensive per year than Travelers and COUNTRY Financial.

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

As the country’s biggest car insurance company, State Farm makes it easy for drivers to get coverage, make claims, and stay in contact. Also, State Farm is one of the cheapest insurers for most drivers, and tends to have great customer service.

Pros

  • Coverage available in nearly every state (along with in-person offices)

  • Cheap car insurance, including for some high-risk drivers

  • Consistently high customer service ratings

  • Some discounts, especially for good drivers

Cons

  • Doesn’t offer as many coverage options as some competitors

We found that State Farm also has some of the cheapest car insurance in Alabama. Drivers in Alabama can get car insurance from State Farm for $105 per month. That’s $463 cheaper per year than average. Less than $40 separates State Farm from the other cheapest insurance companies in Alabama.

Best car insurance companies in Alabama

The best car insurance company in Alabama is USAA, according to the most recent J.D. Power Auto Insurance Study, which ranks companies based on how real customers feel about factors like price, transparency, and overall satisfaction. [1]

Auto-Owners Insurance, Alabama-based Alfa and State Farm also made the list of best car insurance companies in Alabama, based on the J.D. Power scores for companies in the Southeast (the average score for the region was 849).

USAA and State Farm are the only two car insurance companies that cracked the top five on the J.D. Power list and had among the cheapest car insurance rates in Alabama, which means they’re both good options for drivers who value affordability and customer service.

Rank

Company

J.D. Power score

1

USAA

886

2

Auto-Owners Insurance

871

3

Alfa

862

4

State Farm

855

5

Nationwide

850

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.

We found that COUNTRY Financial or USAA has the cheapest car insurance rates for younger drivers in Alabama.

Age

Cheapest company

Average cost

16

COUNTRY Financial

$2,917

18

USAA

$2,261

21

USAA

$1,502

25

USAA

$1,288

30

USAA

$1,063

35

USAA

$1,009

45

USAA

$933

55

USAA

$894

60

USAA

$902

65

USAA

$934

70

USAA

$1,001

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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.

We found that State Farm often has the cheapest car insurance for drivers in Alabama who have a past violation on their records.

Violation

USAA

Travelers

COUNTRY Financial

GEICO

State Farm

At-fault accident

$1,546

$1,748

$1,660

$2,011

$1,556

DUI

$2,251

$1,905

$1,939

$2,548

$1,394

Suspended license

$2,132

$1,905

$1,939

$2,548

$1,394

Open container

$1,625

$1,660

$1,687

$2,548

$1,394

Expired registration

$1,244

$1,660

$1,687

$1,453

$1,394

Driving without lights

$1,244

$1,660

$1,687

$1,453

$1,394

Running a red light

$1,244

$1,660

$1,687

$1,453

$1,394

Following too closely

$1,244

$1,660

$1,687

$1,453

$1,394

Hit and run

$2,371

$1,905

$1,939

$2,548

$1,394

Not-at-fault accident

$1,081

$1,311

$1,304

$1,191

$1,286

Passing a school bus

$1,625

$1,905

$1,687

$1,453

$1,394

Reckless driving

$1,625

$1,905

$1,939

$2,548

$1,394

Speeding

$1,244

$1,683

$1,939

$2,548

$1,394

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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.

We found that Safeway Insurance has the best rates for drivers in Alabama with bad credit.

Company

Rates for drivers with bad credit

Safeway Insurance

$1,632

COUNTRY Financial

$1,818

GEICO

$1,824

USAA

$1,839

Cincinnati Insurance

$2,193

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: $1,973

  • Montgomery: $1,751

  • Mobile: $1,855

  • Huntsville: $1,701

  • Tuscaloosa: $1,740

  • Hoover: $1,836

  • Dothan: $1,547

  • Decatur: $1,621

  • Auburn: $1,596

  • Madison: $1,632

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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

Find car insurance in your city:

Frequently asked questions

What is the cheapest car insurance in Alabama?

The cheapest car insurance company in Alabama is USAA at $1,002 per year.

How much car insurance is required in Alabama?

Drivers in Alabama are required to have at least $25,000 of bodily injury liability insurance per person and $50,000 per accident. You also have to carry at least $25,000 of property damage liability coverage to drive in Alabama.

Can you go to jail for no insurance in Alabama?

It's possible. If you're caught driving without insurance in Alabama, you could pay a fine, have your license suspended, or go to jail for up to six months.

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

Safeway offers the lowest rates for Alabama drivers with bad credit. Your final rate will depend on a number of other factors in addition to your credit score.

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: $50,000 per person/$100,000 per accident

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: $50,000 per person/$100,000 per accident

  • 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.

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our

editorial standards.
  1. J.D. Power

    . "

    2022 Auto Insurance Study

    ." Accessed January 23, 2023.

Authors

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.

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Editor

Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

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