Best & Cheapest Alabama Car Insurance Companies as Rated by Customers in 2021

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#1
/44
USAA
4.73 ★★★★★
4.73 ★★★★★
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Excellent
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#2
/44
4.56 ★★★★★
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#3
/44
4.23 ★★★★★
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With so many car insurance advertisements, it's hard to know which is the best Alabama car insurance company for you. At Clearsurance, we want to simplify the process for you and help you quickly identify the best options for your driving needs. With thousands of car insurance reviews from unbiased policyholders, we have reviews and rankings for hundreds of car insurance companies so you can evaluate and compare the best insurance companies that offer coverage in the state of Alabama.

In the table above, you can sort through all the car insurance companies ranked on Clearsurance. The rating next to each company the insurer's Clearsurance score is based exclusively on the ratings provided by customers. Note: Only those companies with at least 25 car insurance reviews are eligible to appear in the best Alabama car insurance rankings.

It is important to know as much as you can about your car insurance company and the policies they offer before signing on with them. A talk with your local insurance agent should help you clear up any questions you might have. Some questions to consider asking your insurance provider include "what does your full coverage car insurance actually cover?" "do you have any insurance discounts, such as a safe driver discount, good student discount, or military discount?" and "what is your average annual car insurance rate?"

Looking for more information about one of these car insurance companies? By visiting a company's profile page, you can learn about discounts the company offers, other coverages available and read car insurance reviews to learn from the experiences of other policyholders.

On this page:

Why does your address matter when shopping for auto insurance coverage?

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.

Insurance 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.

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.

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.

Below is a look at the Alabama teen car insurance rates for male and female drivers. | Company

Female teen ratesMale teen rates | | :---------- | :----------: | :----------: | | Alfa Insurance | $1,633 | $2,151 | | Allstate Insurance | $1,963 | $2,132 | | Geico | $1,696 | $1,675 | | Progressive | $2,657 | $3,019 | | State Farm Insurance Company | $1,773 | $2,088 |

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.

Who offers the cheapest car insurance rates for a married couple in Alabama?

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.

Company Married couple rates
Alfa Insurance $1,985
Allstate Insurance $1,619
Geico $1,223
Progressive $2,080
State Farm Insurance Company $2,172

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.

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.

Company Female senior ratesMale senior rates
Alfa Insurance $1,221 $1,221
Allstate Insurance $930 $958
Geico $1,152 $1,331
Progressive $962 $1,014
State Farm Insurance Company $1,062 $1,062

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.

What's the best comprehensive and liability coverage for you?

As you might have realized by now, the cheapest auto insurance isn't always the best for you. 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 | $1,380 | | Ozark | $1,383 | | Daleville | $1,391 | | Falkville | $1,395 | | Eva | $1,396 | | Enterprise | $1,396 | | Opp | $1,396 | | Decatur | $1,401 | | Florence | $1,402 | | Ashford | $1,402 |

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.

Where are the 10 most expensive areas in Alabama for car insurance?

Car insurance rates may be more expensive in some areas of Alabama 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 $1,733
Dolomite $1,711
Mulga $1,695
Wilmer $1,691
Chunchula $1,684
Saint Elmo $1,681
Semmes $1,679
Oakman $1,677
Birmingham $1,676
Mobile $1,668

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.

What are the minimum car insurance coverage requirements and limits in Alabama?

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.

Is uninsured motorist coverage mandatory 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 are car insurance rates calculated in Alabama?

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
  • Amount of car insurance coverage (required coverage and optional add-ons, such as collision and comprehensive)

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.

Auto insurance companies in Alabama charge higher rates if you have accidents or 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 the history of drivers in your area also contributes 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 can you save money on your car insurance in Alabama?

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 does Clearsurance rate and rank the best car insurance companies in Alabama?

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.

Do you have 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.

Who offers the cheapest teen car insurance rates in Alabama?

Teen drivers may find it challenging to get cheap car insurance. Insurance prices can be high for these drivers because they are less experienced. Yet, some companies do offer better insurance rates for young drivers.

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.

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.

Save Money by Comparing Insurance Quotes
Compare Free Insurance Quotes Instantly
ZIP Code must be filled out!
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