Who Has the Cheapest Car Insurance Quotes in Alabama?

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Our team analyzed auto insurance quotes across thousands of ZIP codes and multiple insurance companies in Alabama to find who had the best rates. The average cost of minimum coverage car insurance in Alabama was $368 for a 6-month policy and $736 for an annual policy, or about $61 per month, for our sample driver.

The cheapest Alabama car insurer is Nationwide, with an average annual rate of $586 per year, and the most expensive, Allstate, charges our driver $985 per year, on average.

RankInsurerEditor's rating**Annual rate
1NationwideN/A$586
2AlfaN/A$717
3Progressive

$751
4State Farm

$877
5GEICO

$902
6Allstate

$985
N/A*USAA

$332

*Rates are for a minimum-coverage auto insurance policy in Alabama, as detailed in our methodology. USAA was not ranked, as it is only available to current or former military members.

**Editor's ratings are based not just on affordability but also customer service and available coverages. We continually review the best insurers in the country to find you the most appropriate options for your needs.

Compare Car Insurance Rates in Alabama

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The wide range of rates show why motorists looking for affordable car insurance in Alabama should compare several quotes. Below we've compared average rates by location, company, driver profile and other factors.

Enter your ZIP code above to start shopping among the top insurers in your area for great car insurance rates.

Cheapest auto insurance in Alabama

Nationwide 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 fewer protections in case of an accident.

A minimum coverage policy costs $736 per year on average in Alabama, 65% cheaper than our sample full coverage policy.

This graph shows the three cheapest auto insurance companies in Alabama compared to the state average.
This graph shows the three cheapest auto insurance companies in Alabama compared to the state average.

Compare Car Insurance Rates in Alabama

Currently insured?
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We always recommend that consumers compare at least three insurers to find the best match. Below we break down rates across these companies — using the same sample driver — but with a full coverage policy and after the driver gets into an accident.

Your actual rates are dictated by your coverage levels, your record as a driver, your age and other factors.

Cheapest full coverage car insurance in Alabama

Alabama's cheapest auto insurance company on average is Nationwide, with annual rates of $1,764, 15% lower than the state average. Nationwide is followed closely in affordability by Alfa Insurance. Allstate was the third cheapest insurer in our seven-company sample, but it's not necessarily cheap: At $2,301 per year, its prices are above the Alabama average.

RankInsurerAnnual rate
1Nationwide$1,764
2Alfa$1,898
3Allstate$2,301
4State Farm$2,336
5GEICO$2,492
6Progressive$2,566
N/A*USAA$1,190
USAA was not ranked, as it is only available to current or former military members.

Only Nationwide and Alfa priced below our statewide average, but the most affordable option for qualifying customers is USAA. At $1,190 per year, rates for USAA were cheaper than average, but only current or former military members or their families can qualify for a policy.

Other major insurers such as Allstate, State Farm, GEICO and Progressive were pricier for our sample driver, but consumers should consider shopping around for the best rate.

Cheapest car insurance in Alabama after an accident

An insurer may consider you a riskier customer if you have a history of accidents or traffic violations. The cheapest insurer in Alabama after an at-fault accident is Nationwide, which didn't raise rates for our sample driver.

The rest of the Alabama insurers in our sample raised rates by approximately $300 to $1,500 per year after an accident. Progressive penalized drivers the most, increasing rates by $1,530 per year.

RankInsurerRate after accidentRate before accidentDifference
1Nationwide$1,764$1,764$0
2Alfa$2,207$1,898$309
3State Farm$2,870$2,336$534
4Allstate$3,222$2,301$921
5GEICO$3,966$2,492$1,474
6Progressive$4,096$2,566$1,530
N/A*USAA$1,606$1,190$416
Rates after the accident are for a single at-fault accident in which the driver causes $2,000 in property damage.

Customer picks for the best car insurance companies in Alabama

Alabama residents should look for more than just an insurance company with a cheap quote; they should also seek out providers with the best service experience. Excluding price, the customer picks for the top insurance companies in Alabama are:

  • Alfa Insurance
  • Progressive
  • Nationwide

We compiled this list using the customer complaint ratio from the National Association of Insurance Commissioners (NAIC), which adjusts the number of complaints relative to the size of the company. By this standard, Alfa stands out, with only a 0.03 complaint index versus a national median of 1.0, while Nationwide ranks third.

RankAuto insurerMarket shareComplaint index
1Alfa12.3%0.03
2Progressive8.5%0.36
2Nationwide1.8%0.36
4State Farm20.8%0.57
4Travelers1.9%0.57
6Allstate8.7%0.64
7Auto-Owners Insurance2.6%0.67
8USAA6.4%0.88
9GEICO9.4%1.21
10National General (Integon)2.6%2.13
The analysis includes the top 10 insurance groups in the state by market share. An insurer with a complaint index of 1.0 has an expected number of complaints given its market size. If an underlying insurance company has a name distinct from its insurance group, it is noted in parentheses.

Alfa and Nationwide's combination of cheap rates and low customer complaints make the insurers great starting points for Alabamans who are auto insurance shopping.

Integon, a National General subsidiary, and GEICO rank as some of the worst insurers in Alabama for customer service, with complaint indexes above 1.0.

Alabama's minimum car insurance requirements

Drivers have to have a certain amount of liability car insurance in Alabama by law, as is typical in the U.S. Those that are caught driving without insurance coverage risk being fined, having their vehicle registration suspended and even imprisonment. Below we detail the liability insurance requirements for Alabama drivers:

  • Bodily injury liability insurance: $25,000 per person and $50,000 per accident
  • Property damage liability insurance: $25,000 per accident

We suggest purchasing more coverage than is required by state law, but shoppers should balance the increased protection against the increased premiums of paying for more coverage. The full coverage policy with increased liability limits in our sample costs approximately $1,300 more per year than a minimum coverage policy.


Cheap car insurance in Alabama by city

The table below lists the companies with the cheapest full coverage auto insurance rates in the 50 most populous cities in Alabama, where quotes were available.

In all 50 Alabama cities, USAA, Nationwide and Alfa Insurance were the cheapest car insurance providers.

Note that these annual premiums are composite rates based on our sample driver in the Yellowhammer State. Your actual quotes will be different and tailored to your individual circumstances. This table merely shows who tends to offer the best rates, and in which cities.

CityCheapest car insurance companiesAnnual rates
AlabasterUSAA$1,226
Nationwide$1,699
Alfa$2,202
AlbertvilleUSAA$1,112
Nationwide$1,661
Alfa$1,739
Alexander CityUSAA$1,163
Alfa$1,654
Nationwide$1,674
AnnistonUSAA$1,126
Nationwide$1,846
Alfa$1,883
AthensUSAA$1,162
Alfa$1,730
Nationwide$1,748
AuburnUSAA$1,126
Nationwide$1,686
Alfa$1,991
BessemerUSAA$1,268
Nationwide$1,891
Alfa$2,036
BirminghamUSAA$1,266
Nationwide$1,877
Alfa$2,119
CaleraUSAA$1,183
Nationwide$1,699
Alfa$2,219
Center PointUSAA$1,325
Nationwide$1,878
Alfa$2,247
CullmanUSAA$1,204
Nationwide$1,737
Alfa$1,880
DaphneUSAA$1,108
Nationwide$1,646
Alfa$1,866
DecaturUSAA$1,108
Nationwide$1,685
Alfa$1,863
DothanUSAA$1,044
Nationwide$1,628
Alfa$1,852
EnterpriseUSAA$1,041
Nationwide$1,696
Alfa$1,798
FairhopeUSAA$1,223
Nationwide$1,646
Alfa$1,866
FlorenceUSAA$1,179
Nationwide$1,646
Alfa$1,841
FoleyUSAA$1,113
Nationwide$1,646
Alfa$1,866
Fort PayneUSAA$1,114
Alfa$1,694
Nationwide$1,695
GadsdenUSAA$1,185
Nationwide$1,755
Alfa$1,987
GardendaleUSAA$1,196
Nationwide$1,886
Alfa$2,054
HartselleUSAA$1,081
Nationwide$1,685
Alfa$1,838
HelenaUSAA$1,224
Nationwide$1,790
Alfa$2,046
HomewoodUSAA$1,233
Nationwide$1,880
Alfa$2,108
HooverUSAA$1,195
Nationwide$1,811
Alfa$2,244
HueytownUSAA$1,260
Nationwide$1,878
Alfa$2,054
HuntsvilleUSAA$1,123
Nationwide$1,813
Alfa$1,955
MadisonUSAA$1,098
Nationwide$1,806
Alfa$2,092
MillbrookUSAA$1,192
Nationwide$1,804
Alfa$1,969
MobileUSAA$1,255
Nationwide$1,928
Alfa$2,095
MontgomeryUSAA$1,197
Nationwide$1,846
Alfa$1,983
Mountain BrookUSAA$1,233
Nationwide$1,880
Alfa$2,285
Muscle ShoalsUSAA$1,145
Nationwide$1,575
Alfa$1,919
NorthportUSAA$1,192
Nationwide$1,731
Alfa$2,048
OpelikaUSAA$1,167
Nationwide$1,686
Alfa$1,896
OxfordUSAA$1,121
Nationwide$1,812
Alfa$1,841
OzarkUSAA$1,023
Nationwide$1,696
Alfa$1,730
PelhamUSAA$1,219
Nationwide$1,743
Alfa$2,198
Pell CityUSAA$1,193
Nationwide$1,724
Alfa$1,842
Phenix CityUSAA$1,253
Nationwide$1,760
Alfa$1,908
PrattvilleUSAA$1,192
Nationwide$1,767
Alfa$1,982
PrichardUSAA$1,286
Nationwide$1,901
Alfa$1,974
SaralandUSAA$1,275
Nationwide$1,901
Alfa$2,104
ScottsboroUSAA$1,113
Nationwide$1,695
Alfa$1,805
SelmaUSAA$1,253
Nationwide$1,750
Alfa$1,908
TalladegaUSAA$1,193
Nationwide$1,642
Alfa$1,714
TroyUSAA$1,136
Nationwide$1,696
Alfa$1,836
TrussvilleUSAA$1,210
Nationwide$1,837
Alfa$2,272
TuscaloosaUSAA$1,181
Nationwide$1,731
Alfa$1,910
Vestavia HillsUSAA$1,225
Nationwide$1,878
Alfa$2,257

Next we dig into insurance prices for the five biggest cities in Alabama by population:

  • Birmingham
  • Montgomery
  • Huntsville
  • Mobile
  • Tuscaloosa

For each city, we show average annual full coverage rates for our seven sample insurers and explain how costs compare to the state average. USAA is technically the cheapest insurer in each city, but it is only available to current or former military members and their families.

Birmingham, Alabama

Birmingham has the largest urban population in the state of Alabama, and it is the second most expensive city for car insurance, after Center Point. Our sample driver pays an average of $2,344 to insure his car each year in Birmingham, 13% higher than the state average.

InsurerAnnual rate
USAA$1,266
Nationwide$1,877
Alfa$2,119
Allstate$2,444
GEICO$2,772
State Farm$2,896
Progressive$3,036

Drivers looking for the cheapest auto insurance in Birmingham should consider starting their search with Nationwide or Alfa Insurance. Both offer rates cheaper than the Birmingham average of $2,344.

Montgomery, Alabama

Despite being the second largest city in the state, Montgomery's average annual rate of $2,152 was only 3.5% higher than the state average.

InsurerAnnual rate
USAA$1,197
Nationwide$1,846
Alfa$1,983
Allstate$2,241
State Farm$2,518
GEICO$2,596
Progressive$2,681

As in other large cities, we suggest looking at Nationwide and Alfa when shopping for cheap auto insurance companies in Montgomery. Rates at these two insurers are below $2,000 per year for our sample driver.

Huntsville, Alabama

Huntsville is the third largest city in Alabama, but auto insurance costs in the city don't reflect the number of people: The average cost of insuring a vehicle in Huntsville is $2,057 for our sample driver, 1% below the state average.

InsurerAnnual rate
USAA$1,123
Nationwide$1,813
Alfa$1,955
Allstate$2,249
GEICO$2,261
State Farm$2,446
Progressive$2,551

Car insurance rates in Alabama are fairly consistent across cities, so Nationwide and Alfa are once again the cheapest providers in this town, with the exception of USAA.

Mobile, Alabama

Mobile ranks as one of the most expensive cities for auto insurance in Alabama. Its average annual rate of $2,279 is 10% higher than the state average.

InsurerAnnual rate
USAA$1,255
Nationwide$1,928
Alfa$2,095
Allstate$2,439
State Farm$2,591
GEICO$2,651
Progressive$2,991

Our sample driver could only get rates cheaper than Alabama's average if he went with USAA or Nationwide. All other insurance companies — including Alfa — charged Mobile residents in excess of $2,000 per year.

Tuscaloosa, Alabama

Rounding out our top city analysis in Alabama is Tuscaloosa, the second-cheapest city for car insurance of the largest five. Our sample driver paid $2,131 per year on average, trailing only Huntsville for affordability.

InsurerAnnual rate
USAA$1,181
Nationwide$1,731
Alfa$1,910
State Farm$2,372
Allstate$2,461
GEICO$2,517
Progressive$2,747

USAA — accessible only to military families — remains far and away the cheapest insurer, but Tuscaloosa residents should make sure to look into Nationwide and Alfa Insurance. As with other major cities in Alabama, big names like State Farm, Allstate, GEICO and Progressive are notably expensive.


Average cost of car insurance in Alabama by city

The average cost of full coverage car insurance in Alabama was $2,078 per year, as measured for our sample 30-year-old male driver. The range between the cheapest city in Alabama and the most expensive city was only $519 per year, on average.

  • Ozark was the cheapest city in Alabama in our sample, with an average rate of $1,871 per year.
  • Center Point was the most expensive, with our sample driver paying $2,390 per year.

The table below ranks the 50 most populous cities in Alabama from the cheapest to most expensive car insurance.

Rank

CityAverage annual cost

1

Ozark$1,871
2Enterprise$1,901
3Alexander City$1,913
4Fort Payne$1,922
5Muscle Shoals$1,923
6Florence$1,928
7Dothan$1,932
8Hartselle$1,934
9Foley$1,935
10Talladega$1,939
11Decatur$1,956
12Fairhope$1,965
13Athens$1,967
14Auburn$1,977
15Opelika$1,984
16Scottsboro$1,987
17Troy$1,994
18Albertville$1,997
19Daphne$1,999
20Anniston$2,021
21Oxford$2,027
22Madison$2,030
23Pell City$2,034
24Huntsville$2,057
25Cullman$2,074
26Millbrook$2,087
27Gadsden$2,094
28Prattville$2,106
29Alabaster$2,108
30Calera$2,113
31Phenix City$2,126
32Tuscaloosa$2,131
33Northport$2,145
34Montgomery$2,152
35Selma$2,172
36Helena$2,191
37Prichard$2,208
38Saraland$2,226
39Pelham$2,228
40Homewood$2,233
41Hueytown$2,235
42Hoover$2,248
43Vestavia Hills$2,253
44Bessemer$2,271
45Gardendale$2,272
46Mobile$2,279
47Trussville$2,283
48Mountain Brook$2,284
49Birmingham$2,344
50Center Point$2,390

Methodology

We collected rates for hundreds of cities in Alabama from seven insurance companies. Our sample driver was a:

  • 30-year-old male
  • Driving a 2015 Honda Civic EX

The driver was profiled as having no credit history, making him equivalent to a driver with below-fair to poor credit, according to our data source, Quadrant Information Services.

Our base policy was full coverage auto insurance with the following limits:

Coverage typeStudy limits
Bodily liability$50,000 per person/$100,000 per accident
Property damage$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible

For a minimum-coverage policy, our sample driver had coverage equivalent to the minimum requirements of the state of Alabama.

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.