Best and Cheapest Car Insurance in Alabama (Savings With These Top 10 Companies in 2024)
The best and cheapest car insurance in Alabama comes from USAA, Travelers, and Geico.
USAA is our top pick for cheap car insurance in AL, but it’s only available to drivers who qualify for the best military car insurance. If that’s not you, Travelers offers cheap Alabama car insurance rates.
| Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 |
#1 | $20 | Military Benefits | A++ | USAA |
 |
#2 | $28 | Specialized Coverage | A++ | Travelers |
 |
#3 | $32 | Special Discounts | A++ | Geico |
 |
#4 | $34 | Deductible Options | A+ | Nationwide |
 |
#5 | $38 | Discount Availability | A | American Family |
 |
#6 | $39 | Safe-Driving Discounts | A+ | Allstate |
 |
#7 | $40 | Extensive Discounts | B | State Farm |
 |
#8 | $41 | Online Management | A+ | Progressive |
 |
#9 | $48 | Insurance Discounts | A | Farmers |
 |
#10 | $58 | Diverse Coverage | A | Liberty Mutual |
Read on to learn more about the top car insurance companies in Alabama. Then, enter your ZIP code into our free comparison tool to see how much you might pay.
What You Should Know
- Alabama insurance rates are usually below average
- Alabama drivers can save by taking advantage of discounts and choosing the right coverage
- USAA and Travelers have the cheapest Alabama car insurance
On this page:
- Who offers the cheapest teen car insurance rates in Alabama?
- Who offers the cheapest car insurance rates for a married couple in Alabama?
- Who offers the cheapest senior car insurance rates in Alabama?
- 10 Cheapest areas in Alabama for car insurance
- 10 Most expensive areas in Alabama for car insurance
- Minimum car insurance coverage and limits in Alabama
- Alabama’s uninsured motorists percentage
#1 – USAA: Top Pick Overall
Pros
- Support for Military Community: Alabama has a significant military presence, and USAA’s specialized services and discounts for military members and veterans make it a top choice. Learn more in our USAA car insurance review.
- Exclusive Military Discounts: USAA offers a variety of discounts to help drivers get the cheapest auto insurance in Alabama, including special savings for military families.
- Exceptional Customer Service: High satisfaction ratings and efficient claims processing make USAA one of the best car insurance companies in Alabama.
Cons
- **Eligibility Restrictions: Not everyone can purchase a USAA policy. Coverage from USAA is only available to military members and their families.
- Higher Costs for Young Drivers: While it’s usually a top pick for the cheapest car insurance in Alabama, USAA may not be the lowest option for teens.
#2 – Travelers: Best for Financial Stability
Pros
- Wide Range of Discounts: Travelers offers numerous discounts, which benefit Alabama families with multiple vehicles and safe driving habits.
- Customizable Policies: Travelers offers a variety of ways for drivers to customize their policies to suit their needs.
- Financial Stability: With strong financial ratings, drivers can trust that Travelers will be able to pay out claims. See more company ratings in our Travelers car insurance review.
Cons
- Limited Digital Tools: Travelers offers a more traditional insurance experience, which has led to less advanced online tools and mobile app.
- Higher Premiums: Although it offers excellent coverage, Travelers doesn’t usually have the cheapest auto insurance quotes in Alabama.
#3 – Geico: Best for Competitice Pricing
Pros
- Competitive Pricing: Geico is known for its affordable rates, appealing to budget-conscious drivers looking for the cheapest Alabama auto insurance.
- Strong Online Presence: Customers agree that Geico offers a user-friendly website and mobile app for policy management.
- Solid Discount Opportunities: Geico offers 16 discounts, making it easy for every type of driver to get cheap car insurance quotes in Alabama.
Cons
- Average Claims Service: Many customers report feeling unsatisfied with the Geico claims process, repeatedly citing slow response times.
- Limited Customization: Despite offering some of the best car insurance in Alabama, Geico lacks some coverage options you can find at its competitors.
#4 – Nationwide: Best for Deductible Savings
Pros
- Vanishing Deductible Program: Nationwide earns a spot as one of the cheap auto insurance companies in Alabama by offering a robust vanishing deductible program. Learn more in our Nationwide car insurance review .
- Comprehensive Coverage: Nationwide offers a wide range of options including gap coverage and accident forgiveness.
- Good Customer Support: Nationwide makes sure its policyholders always get the help they need by offering 24/7 support.
Cons
- Higher Rates for High-Risk Drivers: Drivers looking for cheap car insurance in Alabama should look elsewhere if they have at-fault accidents, speeding tickets, or DUIs.
- Less User-Friendly Digital Tools: Many customers suggest that Geico’s website and app could be more intuitive.
#5 – American Family: Best for Teen Drivers
Pros
- Teen Safe Driver Program: To help reduce teen driving accidents, American Family offers a discount to young drivers who complete a teen safe driver educational program. See more ways teens can save in our review of American Family car insurance.
- Multi-Policy Discounts: American Family helps drivers find affordable car insurance in Alabama with discounts, including savings for bundling policies.
- Plenty of Policy Add-Ons: Choose from American Family’s add-ons to get the best car insurance in Alabama for you.
Cons
- Only Available Through Subsidiaries: American Family doesn’t sell insurance under that name in Alabama. Instead, a representative will connect you with other companies under the Am Fam umbrella.
- Less Intuitive Digital Tools: It may offer great Alabama car insurance quotes, but American Family does not have the most impressive online services.
#6 – Allstate: Best for UBI Savings
Pros
- Drivewise Program: Safe drivers can earn savings of up to 40% on their insurance by enrolling in Drivewise, Allstate’s usage-based insurance (UBI) program. Determine if Drivewise is right for you in our Allstate car insurance review.
- Financial Strength: Allstate has a strong financial rating from A.M. Best, meaning you won’t have to worry about your coverage being there for you when you need it.
- Full Coverage Policies: Aside from standard coverage options, Allstate offers a variety of add-ons so you can craft the perfect policy.
Cons
- Expensive Rates: Drivers looking for cheap insurance in Alabama will probably need to skip Allstate as this provider is usually one of the most expensive choices.
- Complex Discount Structure: Allstate discounts can help you find cheap auto insurance in Alabama, but they can be confusing to understand.
#7 – State Farm: Best for Access to Local Agents
Pros
- Local Agent Network: State Farm maintains an extensive presence of local agents in Alabama, providing personalized service.
- Ample Coverage Options: State Farm offers a broad range of coverage options, including rideshare and rental car reimbursement.
- Safe Driver Discounts: State Farm offers a variety of discounts, including several ways for safe drivers to save. Explore all your savings opportunities in our State Farm car insurance review.
Cons
- Average Digital Experience: State Farm may be one of the biggest car insurance companies in the state, but it doesn’t have the best online tools.
- Financial Ratings Dropped: State Farm was recently downgraded by A.M. Best for its financial stability. It currently sits at a B.
#8 – Progressive: Best for Robust Digital Tools
Pros
- Snapshot Program: Progressive offers an innovative UBI program rewarding safe driving, ideal for safe drivers looking for the cheapest car insurance in Alabama.
- Advanced Digital Tools: With a focus on a modern car insurance experience, Progressive customers are impressed with the company’s digital tools. See how Progressive can help you with online policy manage in our Progressive car insurance review.
- Automatic Discounts: Progressive offers 13 discounts, many of which automatically apply to your policy when you qualify.
Cons
- Mixed Customer Service: Progressive drivers report varying levels of satisfaction with the company’s customer support experiences.
- Complex Pricing: Although it offers low car insurance quotes in Alabama, Progressive’s pricing structure can be confusing.
#9 – Farmers: Best Selection of Alabama Discounts
Pros
- Generous Discounts: With 23 discounts, Farmers has one of the best lists of car insurance discounts in Alabama.
- Variety of Insurance Add-Ons: If you have room in your budget, Farmers offers a wide range of coverage options including specialty policies.
- Excellent Customer Service: Farmers consistently earns high ratings for its customer service experience.
Cons
- Higher Average Rates: While it’s not the most expensive coverage option, Farmers also doesn’t usually have the cheapest Alabama car insurance quotes.
- Limited Online Features: Farmers leaves much to be desired when it comes to its online car insurance options. See your online options in our Farmers car insurance review.
#10 – Liberty Mutual: Best for Policy Customization Options
Pros
- Diverse Coverage Options: Liberty Mutual offers a wide range of coverage options, which are important for the diverse driving conditions in Alabama. See all your options in our car insurance review of Liberty Mutual.
- Better Car Replacement: Many companies offer new car replacement, but Liberty Mutual is one of the only that offers coverage for replacing totaled cars with newer models.
- Accident Forgiveness: Add accident forgiveness to your Liberty Mutual policy to prevent rate increases after an accident.
Cons
- Higher Rates: Liberty Mutual generally has higher Alabama auto insurance quotes compared to competitors.
- Limited Digital Tools: Liberty Mutual is not the right choice for drivers looking for the latest technology for their insurance experience.
Alabama Car Insurance Rates
Alabama drivers usually see car insurance rates lower than the national average, although there are exceptions. Many factors affect car insurance rates, including your age, ZIP code, and driving record. Check the average rates at our top companies in Alabama below.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $39 | $108 |
| American Family | $38 | $105 |
| Farmers | $48 | $133 |
| Geico | $32 | $89 |
| Liberty Mutual | $58 | $162 |
| Nationwide | $34 | $96 |
| Progressive | $41 | $112 |
| State Farm | $40 | $108 |
| Travelers | $28 | $79 |
| USAA | $20 | $56 |
While Alabama rates are generally low, there are additional ways to save. Consider the following tips to help lower your rates:
- Reduce your coverage
- Increase your deductible
- Keep your driving record clean
- Improve your driving score
- Look for discounts
Most companies offer their drivers discounts to help them save. Take a look below to see a selection of popular discounts offered by the best Alabama car insurance companies.
Of all the things you can do to keep your rates low, the most important is to compare rates with multiple companies. It not only helps you find the lowest rates, but looking at consumer car insurance claims ratings can also ensure you get the service you want.
Most insurance providers offer a quote request form on their websites that takes just a few minutes to fill out.
If you don’t want to take the time to fill out multiple forms on individual websites, you can use a quote generator tool to see what multiple companies can offer you at one time.
Why Your Address Matters
Why does where you live matter to insurance companies? Some companies only operate in certain states due to licensing and other restrictions. More importantly, insurance companies have to take into account crime rates, the security of your car (i.e. can you park it in a secure garage or on the street), and more. They are assessing the likelihood of a claim of some kind.
Finding the best car insurance companies for you depends on your ZIP code because rates aren't just based on state. They can vary throughout Alabama based on the city, neighborhood, and even your house. If you want additional coverage, those rates will also be affected.
Alabama Car Insurance Rates for Teens
Among the five largest car insurance companies in Alabama, Alfa Insurance is the cheapest auto insurance company for male teen drivers. Geico Insurance is the cheapest car insurance option for female teen drivers out of the five companies.
With grades-based discounts for teen drivers, the average rates are changing. It's always best to compare auto insurance rates based on everything you're looking for to find the best new driver car insurance.
Below is a look at the Alabama teen car insurance rates for male and female drivers.
| Insurance Company | Female Teen Rates | Male Teen Rates |
|---|---|---|
| Alfa Insurance | $136 | $179 |
| Allstate Insurance | $163 | $177 |
| Geico | $141 | $139 |
| Progressive | $221 | $251 |
| State Farm Insurance Company | $147 | $174 |
These rates are based on profiles for 18-year-old male and female drivers in Alabama. The car used was a 2015 Honda Civic EX. We used the minimum car insurance state limits. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.
Alabama Car Insurance Rates for Married People
One factor insurance companies consider is your marital status, with married couples paying a little less for coverage. The best car insurance companies for married couples can help people in relationships save a bit on their coverage.
These rates are based on an average subject. For a married couple with two vehicles on a car insurance policy, Geico offers the cheapest average car insurance rates among the five largest auto insurance companies in the states.
| Insurance Company | Married Couple Rates |
|---|---|
| Alfa Insurance | $152 |
| Allstate Insurance | $134 |
| Geico | $94 |
| Progressive | $173 |
| State Farm Insurance Company | $181 |
These rates are based on a 35-year-old married couple with two drivers and two vehicles on a policy. The cars used were two 2015 Toyota Highlander LEs. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had 1 driving incident within the past 3 years, and they both have a good credit score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. If you only get the minimum car insurance or accident forgiveness comes into play, it could change your rates substantially. If either party had a license suspension recently, the best auto insurer could also change. Rate data is provided by Quadrant Information Services.
Alabama Car Insurance Rates for Older Drivers
Among the five largest car insurance companies in the state, Allstate offers the cheapest car insurance rates for senior drivers in Alabama. However, the best car insurance companies for senior drivers will vary by driver, so it's important to look at multiple providers.
| Insurance Company | Female Senior Rates | Male Senior Rates |
|---|---|---|
| Alfa Insurance | $101 | $101 |
| Allstate Insurance | $77 | $79 |
| Geico | $96 | $110 |
| Progressive | $80 | $84 |
| State Farm Insurance Company | $88 | $88 |
These rates are based on profiles for 65-year-old male and female drivers. The car used for each was a 2015 Toyota Camry LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had zero incidents within the past three years and a good credit score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.
Cheapest Alabama Cities for Car Insurance
As you might have realized by now, the cheapest auto insurance isn't always the best for you. While you can use any of the top ways customers save money on their car insurance, choosing the minimum coverage to save money could cost you thousands of dollars if you're ever involved in an accident. Your monthly premium is important, especially if you're on a tight budget. But whether you're in Alabama or somewhere else, it shouldn't be the only factor.
There are many things that affect your car insurance rates, such as the state you live in. But did you know the Alabama city and even the neighborhood within the city you live in affects your rates also? In the table below, you can see the top 10 cheapest areas in Alabama for car insurance for single adults.
| Area | Car insurance rates |
|---|---|
| Hartselle | $115 |
| Ozark | $115 |
| Daleville | $116 |
| Falkville | $116 |
| Eva | $116 |
| Enterprise | $116 |
| Opp | $116 |
| Decatur | $117 |
| Florence | $117 |
| Ashford | $117 |
These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score.
Most Expensive Cities in Alabama for Insurance
Wondering why car insurance is so expensive in some areas of Alabama? Rates are based on a few factors: driving behavior in the area, frequency of accidents, and crime rate. These can cause rates to be more expensive in some cities and even different neighborhoods within the city.
The table below displays the top 10 most expensive areas in Alabama for car insurance for a single adult.
| Area | Car insurance rates |
|---|---|
| Fairfield | $144 |
| Dolomite | $142 |
| Mulga | $141 |
| Wilmer | $141 |
| Chunchula | $140 |
| Saint Elmo | $140 |
| Semmes | $140 |
| Oakman | $139 |
| Birmingham | $139 |
| Mobile | $139 |
These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.
Alabama Car Insurance Requirements
Alabama's car insurance laws are similar to many other states in the country, as drivers are required to purchase bodily injury and property damage liability insurance. The minimum liability amounts required are listed below, but you should consider purchasing higher limits if you want to protect your assets in the event of a costly crash. You can learn more about different car insurance coverages and what the limits mean here.
If you are caught without the necessary car insurance in Alabama, you'll be fined $500, and your license and registration will be suspended.
However, you can have more than just the minimum coverage requirements set by the state. Talk to your insurance provider about adding on additional coverage, such as collision insurance and damage liability coverage.
Alabama state minimum requirements:
Liability:
- Bodily injury — $25,000 per person
- Bodily injury — $50,000 per accident
- Property damage — $25,000 per accident
Bodily injury liability provides coverage for injuries sustained by the other vehicle's driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims.
Property damage liability provides coverage in the event you damage someone else's property in an automobile accident, most commonly the other vehicle, but also things like a home or fence.
Uninsured Motorist Coverage Requirements in Alabama
While uninsured motorist coverage is not required in Alabama, it would be a wise purchase for residents to consider. Alabama's percentage of uninsured drivers is 18.4 the sixth highest of any state in the country, according to 2015 data from the Insurance Information Institute.
Uninsured motorist coverage or underinsured motorist coverage offers you protection in the event you are involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough coverage.
How Car Insurance Rates are Determined
When searching and comparing quotes from the best auto insurance companies in Alabama, it can be frustrating trying to understand how your insurance rates are calculated. While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the price you pay for your insurance. So, if you're looking for car insurance in Alabama, it's best to shop around, because insurance rates vary between companies.
Among the factors that car insurers consider are:
- Your driving record
- How much you drive
- Location
- Age
- Marital status
- Gender
- Your car’s make, model and year
- Your credit history
- What kind of car insurance you need
Auto insurers also consider if the policyholder's address is in an urban or rural part of the state, as well as the type and age of the insured vehicle. As in most states, younger and less-experienced drivers pay more in Alabama than experienced drivers, regardless of which insurance company they may choose. Moreover, men in Alabama generally pay a little bit more on average than women in the same age group, although that difference becomes less evident once drivers leave their 20s.
Insurance companies in Alabama charge higher rates if you have violations on your driving record. However, if you have a clean driving record, you can keep your rates low by doing your best to follow speed limits and avoid accidents. One of the biggest misunderstandings when it comes to insurance rates is that drivers in your area contribute to how much you pay. For instance, even if you go two years without an accident, if there were a lot of accidents near you recently, your rates might still go up. Why is that the case?
Insurance companies disperse risk across all policyholders so that when it comes time to pay a claim, they have enough money to payout. But imagine a scenario where they only raised rates for drivers with an accident. For drivers who had an expensive claim, drivers simply wouldn't be able to afford the raised rates that are based on how much their insurer had to pay after an accident. So instead, insurance companies slightly increase rates across the board to offset the costs, though of course, the at-fault driver may see a larger increase.
How to Save Money on Your Car Insurance
At the end of the day, we'd all like to have the best coverage at a cheap, affordable price from one of the best Alabama car insurance companies. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance premium.
Here are six ways you may be able to lower your car insurance rates:
- Bundle your car insurance with other policies
- Consider raising your deductibles
- Pay your car insurance policy in full
- Try usage-based car insurance
- Monitor price changes to your policy
- Shop for better insurance rates
How Clearusrance Ranks the Best Alabama Car Insurance Companies
Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:
- Price
- Customer Service
- Claim service
- Likelihood to renew
The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.
The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings. While it takes some effort to compare quotes, avoiding the penalty for driving without car insurance is worth it.
Getting a Car Insurance Guide
Whether you're buying your insurance directly or going through an agent, understanding the different car insurance coverage options is a must. Do you know what is covered by comprehensive coverage? Are you familiar with uninsured motorist coverage? Do you know how a deductible works?
Everyone wants to find the cheapest rates from a reputable car insurance company. However, make sure you are not sacrificing the quality of insurance you are receiving. Before making a final decision, it is best to discuss your options with a licensed insurance agent to ensure that you are getting the best deal.
We want to make sure you’re equipped with a proper knowledge of car insurance, so check out our car insurance guide. Looking for more educational information about car insurance? Check out our car insurance blog for more information and topics related to car insurance. Also, make sure to enter your ZIP into our free comparison tool to see rates in your area from multiple companies.
Frequently Asked Questions
Who offers the cheapest teen car insurance rates in Alabama?
Among the five largest car insurance companies in Alabama, Alfa Insurance is the cheapest auto insurance company for male teen drivers. Geico Insurance is the cheapest car insurance option for female teen drivers out of the five companies.
Who offers the cheapest car insurance rates for a married couple in Alabama?
For a married couple with two vehicles on a car insurance policy, Geico offers the cheapest average car insurance rates among the five largest auto insurance companies in the states.
Who offers the cheapest senior car insurance rates in Alabama?
Among the five largest car insurance companies in the state, Allstate offers the cheapest car insurance rates for senior drivers in Alabama.
What is the best car insurance company in Alabama?
While there are many factors that affect car insurance rates, our research shows that USAA, Geico, and State Farm have the best prices in Alabama. However, the best company for you depends on your needs. For example, the best car insurance companies that cover car windows will be different than drivers looking for original parts coverage.g/best-car-insurance-companies-that-cover-car-windows) will be different than drivers looking for original parts coverage.
How much insurance do you need in Alabama?
Alabama insurance requirements are simple – you only need a 25/50/25 liability car insurance to legally drive.
Do Alabama car insurance rates decrease after you turn 21?
Drivers in Alabama should see their rates decrease by the time they turn 21 as long as they’ve kept their driving record clean. Shopping at the best car insurance companies that decrease rates after you turn 21 can help you find the lowest rates.
What happens if you drive without car insurance in Alabama?
The penalties for driving without car insurance in Alabama can include fines, license and registration suspension, vehicle impoundment, and jail time.
Why is Alabama insurance so expensive?
Alabama car insurance rates are actually cheaper than the national average, but they are on the rise. While there are many factors behind this increase, the primary culprits are higher car theft rates, increased accidents, and denser traffic.
How much is Alabama car insurance?
The amount you pay for car insurance in Alabama depends on the type of driver you are, but most Alabama drivers see rates below the national average.
Do high-risk drivers need SR-22 insurance in Alabama?
SR-22 insurance is one requirement the state of Alabama may put on a driver after violations like driving without insurance or getting a DUI. If you need SR-22 insurance, comparing quotes from best car insurance for high-risk drivers can help you save.