Who Has the Cheapest Car Insurance Quotes in Alabama?
Who Has the Cheapest Car Insurance Quotes in Alabama?
State Farm has the best cheap car insurance in Alabama, at $554 per year, or $46 per month, for minimum liability coverage.
To get your lowest rates, you should always compare quotes from multiple companies. Factors such as your age, vehicle, address and driving history can have a significant impact on your rates.
Cheapest car insurance in Alabama: State Farm
State Farm ranks as the cheapest insurer in Alabama if you buy the bare-minimum car insurance. Buying less coverage means you'll pay less in monthly premiums, but it also means you'll have less protection in case of an accident.
The average cost of car insurance in Alabama is $635 per year, or $53 per month, for minimum liability.
Find Cheap Auto Insurance Quotes in Alabama
Company | Annual rate | Monthly rate |
|---|---|---|
| State Farm | $554 | $46 |
| Nationwide | $609 | $51 |
| Allstate | $681 | $57 |
| Progressive | $697 | $58 |
| Geico | $918 | $76 |
| USAA | $384 | $32 |
*USAA is only available to current and former military members and their families.
Cheapest full-coverage car insurance in Alabama: State Farm
Alabama's cheapest auto insurance company on average is State Farm, with annual full-coverage rates of $1,493, 14% lower than the state average. State Farm is followed closely by Allstate. Nationwide was the third-cheapest insurer we analyzed.
Company | Annual rate | Monthly rate |
|---|---|---|
| State Farm | $1,493 | $124 |
| Allstate | $1,579 | $132 |
| Nationwide | $1,704 | $142 |
| Progressive | $2,070 | $172 |
| Geico | $2,504 | $209 |
| USAA | $1,086 | $91 |
*USAA is only available to current and former military members and their families.
Only Nationwide, State Farm and Allstate have rates below the statewide average, but the most affordable option is USAA. At $1,086 per year, rates for USAA are cheaper than average, but only current or former military members and their families can qualify for a policy.
Other major insurers typically known for having cheap rates, such as Geico and Progressive, were pricier in Alabama than other states, but you should shop around to find your best rates.
Cheapest car insurance for drivers with prior incidents
The average cost of car insurance in Alabama is higher for drivers who have a citation for a traffic violation, a DUI (driving under the influence) or an at-fault accident on their driving record.
Cheapest car insurance after a speeding ticket: State Farm
Getting a speeding ticket can raise your rates by nearly as much as being in an accident, typically around 18% in Alabama. Drivers in Alabama who have been caught speeding could find the cheapest car insurance with State Farm. Compared to the average cost for people with a speeding ticket, State Farm's rates are $432 cheaper.
Company | Annual rate | Monthly rate |
|---|---|---|
| State Farm | $1,624 | $135 |
| Allstate | $1,752 | $146 |
| Nationwide | $2,076 | $173 |
| Progressive | $2,628 | $219 |
| Geico | $3,002 | $250 |
| USAA | $1,249 | $104 |
USAA is only available to current and former military members and their families.
Cheapest car insurance after an accident: State Farm
Other than USAA, the cheapest insurer in Alabama after an at-fault accident is State Farm, which only raised rates by about 22% for a driver who caused a car crash. An insurer may consider you a riskier customer if you have a history of accidents or traffic violations.
The rest of Alabama's top insurers raised rates by an average of 56% per year after an accident. Progressive and Geico penalized drivers the most, increasing rates by 64%.
Company | Annual rate | Monthly rate |
|---|---|---|
| State Farm | $1,819 | $152 |
| Allstate | $2,493 | $208 |
| Nationwide | $2,798 | $233 |
| Progressive | $3,397 | $283 |
| Geico | $3,800 | $317 |
| USAA | $1,560 | $130 |
USAA is only available to current and former military members and their families.
Cheapest car insurance after a DUI: Allstate
Getting a DUI can make your rates 86% more expensive in Alabama. Drivers with a DUI on their record could get the cheapest full-coverage car insurance quotes from Allstate, where costs are 35% cheaper than average for drivers with a DUI.
Company | Annual rate | Monthly rate |
|---|---|---|
| Allstate | $2,109 | $176 |
| Progressive | $2,563 | $214 |
| Nationwide | $3,621 | $302 |
| Geico | $4,319 | $360 |
| State Farm | $4,521 | $377 |
| USAA | $2,253 | $188 |
USAA is only available to current and former military members and their families.
Cheapest car insurance for drivers with poor credit: Nationwide
For drivers with poor credit, we found that the average cost of car insurance in Alabama can be more than 63% more expensive than for drivers with average credit. Nationwide offers the best rates for drivers with poor credit, roughly $624 less than average.
Company | Annual rate | Monthly rate |
|---|---|---|
| Nationwide | $2,205 | $184 |
| Allstate | $2,316 | $193 |
| Progressive | $3,152 | $263 |
| Geico | $3,581 | $298 |
| State Farm | $3,943 | $329 |
| USAA | $1,780 | $148 |
USAA is only available to current and former military members and their families.
Cheapest car insurance for married drivers: State Farm
Drivers who are married can get a small discount on their car insurance premiums. We found that married drivers can save an average of 10%, or $167 per year, compared to single drivers. If you're a married driver in Alabama, State Farm has the lowest rates on average, followed closely by Allstate and Progressive.
Company | Annual rate | Monthly rate |
|---|---|---|
| State Farm | $1,493 | $124 |
| Allstate | $1,495 | $125 |
| Progressive | $1,540 | $128 |
| Nationwide | $1,668 | $139 |
| Geico | $2,286 | $191 |
| USAA | $953 | $79 |
*USAA is only available to current and former military members and their families.
Cheapest car insurance for young drivers in Alabama: State Farm
Young drivers shopping for the cheapest car insurance in Alabama could find the best rates with State Farm or Allstate, which have liability-only rates under $2,000 per year. The cheapest full-coverage auto insurance is offered by State Farm and is about 10% cheaper than average.
The average cost of cheap car insurance for young drivers in Alabama is $2,112 per year, or $176 per month — which is about $1,477 more expensive annually than it is for older drivers.
Car insurance for young drivers is often much more expensive than it is for drivers with more experience. The average cost of minimum-coverage car insurance for 18-year-old drivers is more than triple what it is for 30-year-olds.
Company | Liability only | Full coverage |
|---|---|---|
| State Farm | $1,907 | $4,510 |
| Allstate | $1,951 | $4,888 |
| Geico | $2,168 | $5,236 |
| Nationwide | $2,258 | $5,297 |
| Progressive | $3,487 | $9,461 |
| USAA | $902 | $2,199 |
USAA is only available to current and former military members and their families.
Cheapest car insurance for young drivers after a ticket: State Farm
Young drivers who get caught driving too fast can find the best car insurance from State Farm. At an average rate of $2,119 per year, its liability-only coverage is slightly cheaper than Allstate, the second-cheapest option, at $2,222 per year. The good news for young drivers with a ticket is that their rates won't go up as much as drivers who have gotten into an accident.
Company | Annual rate | Monthly rate |
|---|---|---|
| State Farm | $2,119 | $177 |
| Allstate | $2,222 | $185 |
| Nationwide | $2,488 | $207 |
| Geico | $2,561 | $213 |
| Progressive | $3,861 | $322 |
| USAA | $963 | $80 |
USAA is only available to current and former military members and their families.
Cheapest car insurance for young drivers after an accident: State Farm
Young drivers already pay a lot for car insurance, and being at fault in an accident is one of the biggest causes of insurance rate increase. We found that State Farm has the best minimum-coverage prices for young drivers who were at fault in an accident, with an average of $2,437 per year.
Company | Annual rate | Monthly rate |
|---|---|---|
| State Farm | $2,437 | $203 |
| Nationwide | $2,564 | $214 |
| Allstate | $2,812 | $234 |
| Geico | $3,170 | $264 |
| Progressive | $4,328 | $361 |
| USAA | $1,046 | $87 |
*USAA is only available to current and former military members and their families.
Best car insurance companies in Alabama
State Farm is our pick for the best widely available car insurance in Alabama.
State Farm has a high customer satisfaction score, according to the J.D. Power 2021 U.S. Auto Insurance Study, and is also highly rated by our editorial team, at four and a half stars, which is ranked based on the company's coverage, cost and customer support.
Company |
Editor's rating
|
JD Power
|
AM Best
|
|---|---|---|---|
| State Farm | 859 | A++ | |
| Geico | 843 | A++ | |
| Nationwide | 831 | A+ | |
| Allstate | 838 | A+ | |
| Progressive | 828 | A+ | |
| USAA | 890 | A++ |
All the companies we looked at had a Financial Strength Rating from A.M. Best of "A" or better, meaning A.M. Best believes they have an "Excellent" or "Superior" ability to pay out claims.
Average car insurance cost in Alabama by city
The average cost of full-coverage car insurance in Alabama is $1,724 per year, but where you live in the state can mean a much different price. The range between the cheapest city in Alabama and the most expensive city is $554 per year, on average.
- Chancellor was the cheapest city in Alabama, with an average rate of $1,469 per year.
- Tarrant is the most expensive, at $2,023 per year for a full-coverage policy.
City | Average annual rate | Percent from average |
|---|---|---|
| Abbeville | $1,588 | -8% |
| Abernant | $1,768 | 3% |
| Adamsville | $1,952 | 13% |
| Adger | $1,863 | 8% |
| Akron | $1,780 | 3% |
Minimum auto insurance requirements in Alabama
Drivers must have a certain amount of liability car insurance in Alabama by law.
Coverage | Limit |
|---|---|
| Bodily injury liability (BI) | $25,000 per person/$50,000 per accident |
| Property damage liability (PD) | $25,000 per accident |
We suggest purchasing more coverage than is required by state law, but you should balance the increased protection against the increased premiums of paying for more coverage. Consider getting more coverage if you have a high net worth, a valuable car or you regularly engage in risky driving, such as driving at night or long distances.
Recap of the cheapest auto insurance in Alabama
- Minimum coverage: State Farm
- Full coverage: State Farm
- After a speeding ticket: State Farm
- After an at-fault accident: State Farm
- After a DUI: Allstate
- Poor credit history: Nationwide
- Married drivers: State Farm
- Young drivers: State Farm
- Young drivers after a ticket: State Farm
- Young drivers after an accident: State Farm
Frequently asked questions
What is the cheapest car insurer in Alabama?
State Farm has the lowest-priced minimum-coverage policy in Alabama, at $554 per year, and the best rate for full coverage, with an annual price of $1,493.
How much car insurance is required in Alabama?
To drive in Alabama, you need at least $25,000 per person and $50,000 per accident of bodily injury liability coverage, and $25,000 of property damage liability coverage.
What does car insurance cost in Alabama?
The average price for a minimum-coverage car insurance policy in Alabama is $635 per year, or $53 per month. Full coverage in Alabama is $1,724 per year, on average.
Methodology
We collected thousands of rates from ZIP codes across Alabama for some of the largest insurers in the state. We used a sample driver with the following profile:
- 30-year-old man
- Drives a 2015 Honda Civic EX
- Average credit
The base policy for the study was a full-coverage policy with the following limits:
Coverage | Limit |
|---|---|
| Bodily injury liability | $50,000 per person/$100,000 per accident |
| Personal injury protection | $10,000 |
| Property damage liability | $25,000 per accident |
| Uninsured/underinsured motorist bodily injury | $50,000 per person/$100,000 per accident |
| Comprehensive and collision | $500 deductible |
For our minimum-coverage policy, we quoted a policy with the minimum required limits in Alabama.
For other rates analyses (age, credit score, accident history and marital status), the base policy was changed to reflect the new driver.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.