Auto Insurance Basics

Who Has the Cheapest Auto Insurance Quotes in Alabama?

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Our team analyzed auto insurance quotes for four types of drivers across multiple companies in Alabama to find who had the best rates by insurer and city. Rates varied from city to city, but the greatest gap came from what insurers quoted. The most expensive carrier charged as much as 2.5x the cheapest auto insurance company in Alabama. This is why motorists in the Heart of Dixie should compare several quotes if they're looking for good rates. Enter your zip code above to start shopping among top insurers in your area for great car insurance rates.

Cheapest Auto Insurance in Alabama

Rates were obtained for 16 underwriters for a single 30 year old man. The driver is a typical 30 year old motorist in Alabama with a good driving record. Based on these results, we found the cheapest auto insurance rates in Alabama at: Progressive, United Services, ACCC, National General and Infinity. 

This graph shows which five companies in Alabama had the most affordable rates in our study

Find the Cheapest Auto Insurance Quotes in Your Area

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Rates from the top three lowest cost companies averaged $800, which came out to about 36% cheaper than what the typical company charged for basic liability coverage in the state. Below is a table ranking the carrier groups with the best car insurance rates in Alabama to the most expensive.

RankAuto Insurance CompanyAvg Annual Rates
1 Progressive $673
2 United Services $863
3 ACCC $865
4 National General $887
5 Infinity $948
6 Integon National $1,012
7 Guideone Speciality $1,128
8 Allstate $1,160
9 Integon General $1,181
10 Standard Fire $1,194

Your actual rates are dictated by your record and history as a driver, and we always recommend consumers to compare across at least three insurers to find the best match. Here is a list of nine Alabama auto insurance companies included in our study, as well as the average cost of coverage for a year based on our sample driver profiles.

Cheap Car Insurance in Alabama: by City

The table below lists the companies with the cheapest auto insurance rates in each Alabama city in our study. Note that these annual premiums are composite rates based on a typical 30 year old male driver types of driver in the Yellowhammer State. Your actual quotes will be different and tailored to your individual circumstances. This merely shows who tends to offer the best rates, and in which cities. 

CityCompanyAnnual Rate From Top 3 Insurers
Alexander City Progressive $699
National General $858
Accc $894
Andalusia Progressive $695
Accc $845
Infinity $900
Anniston Progressive $664
United Services $842
National General $851
Auburn Progressive $690
National General $809
United Services $853
Bay Minette Progressive $687
Accc $806
National General $831
Birmingham Progressive $670
Infinity $796
National General $821
Boaz Progressive $661
United Services $844
National General $856
Citronelle Progressive $728
Accc $919
United Services $996
Clanton Progressive $716
Accc $837
United Services $899
Cullman Progressive $659
Infinity $906
Accc $926
Daphne Progressive $698
Accc $806
United Services $807
Decatur Progressive $655
United Services $795
National General $808
Dothan Progressive $631
United Services $727
National General $839
Eufaula Progressive $679
Accc $874
National General $934
Florence Progressive $621
National General $783
United Services $793
Foley Progressive $668
Accc $806
National General $831
Ft Payne Progressive $698
United Services $809
Accc $854
Grove Hill Progressive $704
Accc $908
United Services $934
Gulf Shores Progressive $668
Accc $806
United Services $818
Huntsville Progressive $601
United Services $790
National General $794
Jasper Progressive $704
United Services $892
Accc $926
Mobile Progressive $728
National General $866
United Services $904
Montgomery Progressive $646
National General $864
United Services $872
Ozark Progressive $634
Accc $845
United Services $846
Russellville Progressive $651
Accc $830
United Services $839
Troy Progressive $663
Accc $860
United Services $918
Tuscaloosa Progressive $657
United Services $850
National General $862

Birmingham, AL

Despite having the largest urban population in the state of Alabama, Birmingham has the 10th least expensive rates in the state. Car collectors are in great company in Birmingham, with the largest collection in the world of both vintage and modern motorcycles and racecars at the Barber Vintage Motorsports Museum. It's currently the only city in the Deep South to host the Honda Indy Grand Prix on the North American circuit. Last but not least, Birmingham is home base for the Porsche Sport Driving School as well. Residents here pay on average $1,226 to insure their cars each year.

Drivers looking for the cheap auto insurance in Birmingham should include Progressive, Infinity, and National General when shopping for cheap quotes. Our analysis shows that these three companies had the cheapest auto insurance rates, averaging about $762 for our sample driver, which is 61%  lower than what the average company in Birmingham was quoting. 

The five companies with the best rates on car insurance in Birmingham are displayed in this graph

Montgomery, AL

Montgomery is the second largest city in Alabama and home to 206,000 residents. $1,268 was the average cost for our resident driver, about $20 more in the state capital to buy car insurance compared to the rest of the state. We suggest adding Progressive, National General and United Services when looking for great auto quotes in Montgomery. Rates at these three insurers go for about $794 a year, which saves drivers 60% compared to the average insurer's quotes in Montgomery.

This graph shows where to find affordable car insurance rates in Montgomery

Mobile, AL

In addition to being the birthplace of Mardi Gras in the United States and the only saltwater seaport in Alabama, Mobile ranks as the most expensive city for car insurance. $1,368 is the mean annual premium for in Mobile, AL based on quote data for our example driver. Quotes from Progressive, National General and United Services were the most affordable in Mobile. On average, rates from these three cheap car insurance companies in Mobile were $832 a year and about 64%  lower than the citywide cost. 

This graph shows which companies in Mobile, AL are the cheapest for car insurance, and compares them to the citywide average

Huntsville, AL

Alabama's third cheapest city is situated in the Tennessee Valley. Named to the National Trust for Historic Preservation's "America's Dozen Distinctive Destinations for 2010", Huntsville, AL is the fourth largest city in the state. The average cost of insuring a vehicle in Huntsville is $1,168 for our sample, about $80 less than what other state residents may pay. Rates here are already low, but if you're looking to go lower, start at Progressive, National General and United Services, the cheapest three auto insurers in Huntsville. Going with these three could save you $439; that's 60% lower than the citywide average in Huntsville. 

This chart answers with the names of the five companies with the cheapest rates for auto insurance in Huntsville.

Tuscaloosa, AL

Rounding out our top five list of cheapest cities for car insurance in Alabama is Tuscaloosa, also the fifth largest city in the state with 90,000 residents. Home to the University of Alabama system and the Mercedes-Benz assembly plant, a 30 year old driver living in Tuscaloosa will pay on average $1,220 for full coverage car insurance. That's just a tad less than the overall state mean. Based on the annual premiums we found the lowest auto insurance quotes at Progressive, National General and United Services for our 30 year old driver. Going with one of these three companies meant a premium that was lower than the city average by $430, which shaved about 55% off of what the typical insurer would charge here.

This graph shows which insurers in Tuscaloosa have the most affordable rates for auto insurance

Average Cost of Car Insurance in Alabama: by City

The mean cost of insurance in Alabama was $1,249 as measured for our 30 year old male driver. Generally speaking, the cost of insurance did not vary much depending on location. In fact, the difference between the cities with the most expensive rates (Mobile, AL) and the cheapest car insurance (Dothan, AL) was just about 20% - less than other states in our other auto insurance studies. 

RankCityAvg Annual Rate
1 Florence $1,132
2 Ozark $1,166
3 Huntsville $1,169
4 Dothan $1,176
5 Foley $1,198
6 Decatur $1,202
7 Auburn $1,209
8 Gulf Shores $1,218
9 Tuscaloosa $1,220
10 Birmingham $1,226
11 Andalusia $1,227
12 Anniston $1,235
13 Boaz $1,235
14 Alexander City $1,244
15 Russellville $1,245
16 Bay Minette $1,248
State Average $1,249
17 Ft Payne $1,251
18 Cullman $1,255
19 Daphne $1,257
20 Clanton $1,266
21 Montgomery $1,268
22 Troy $1,284
23 Jasper $1,333
24 Eufaula $1,354
25 Citronelle $1,361
26 Grove Hill $1,368
27 Mobile $1,368

Best Car Insurance Companies in Alabama

One way we've thought of addressing the question of who the best auto insurers in Alabama are is to figure out which received the least complaints relative to the amount of business the conduct. We researched the amount of business and complaints for the ten biggest carriers in the state, and calculated each carrier's complaint ratio. To compute this ratio, we took a company’s complaints and divided it per $1 million premiums of the company. This ratio allows us to compare across the major carriers, and shows how dissatisfied consumers are with their provider. The table below ranks the largest companies from the lowest ratio (least dissatisfied and happiest) to largest ratio (most dissatisfied and least happy). Progressive, Allstate, and Alfa rank as the three best rated car insurance companies in Alabama based on this metric.

Company Direct Premiums # of Complaints Complaint Ratio
Progressive $171,360,000 3 0.02
Allstate 270,293,000 7 0.03
Alfa Mutual Group 390,185,000 12 0.03
GEICO 228,534,000 9 0.04
State Farm 604,955,000 29 0.05
USAA 151,411,000 8 0.05
Nationwide 97,039,000 6 0.06
Farmers 85,110,000 7 0.08
Liberty Mutual 62,525,000 10 0.16
Travelers 55,880,000 12 0.21

Auto Insurance Rate Changes in Alabama

If car insurance companies want to raise their rates they must file with each individual state. It's not different in Alabama. Each year these insurers like to make adjustments (usually up!) to their premiums for drivers in the state. To give you an idea of how much these companies have changed their rates in the last year we've looked at eight top companies in Alabama:

Auto Insurer Rate Change Date
Travelers Insurance +8.4% October 2013
Esurance +6.3% February 2014
GEICO +5.8% June 2013
Hartford Insurance +5.1% July 2013
Progressive +3.7% February 2014
USAA +1.5% July 2013
State Farm +1.4% February 2014
Allstate No Change March 2014

How We Conducted This Study

We collected quotes from a variety of insurance companies across 27 towns and cities in Alabama. Our sample driver was a 30 year old male who drove a Toyota Camry. To obtain quotes, we kept parameters for getting coverage the same, such as that he was single, had a good credit score and a clean driving record. The only parameter that changed was the zip code where he lived. The amount of coverage we opted for gave our driver bit more than what is required of state minimums. Below you can see the state required limits as well as the coverage used in our study.

Coverage TypeAlabama MinimumStudy Limits 
Bodily Liability  $25,000 per person / $50,000 per accident   $50,000 per person/ $100,000 per accident
Property Damage  $25,000 per accident  $50,000 per accident 
Uninsured/Underinsured Motorist BI None $50,000 per person/ $100,000 per accident 
Uninsured/Underinsured Motorist Property 
None
None
Personal Injury Protection (PIP) None None
Comprehensive & Collision None  $500 Deductible 

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