Who Has the Cheapest Auto Insurance Quotes in Alabama?

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 as a driver, your age and other factors. 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.

City

CompanyAnnual 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 cheapquotes. 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 cheap auto insurance companies 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 fromProgressive, National General and United Serviceswere 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 atProgressive, National General and United Services, the cheapest three auto insurers in Huntsville. Going with thesethree 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.

Rank

CityAvg 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 ComplaintsComplaint Ratio

Progressive

$171,360,00030.02

Allstate

270,293,00070.03

Alfa Mutual Group

390,185,000120.03

GEICO

228,534,00090.04

State Farm

604,955,000290.05

USAA

151,411,00080.05

Nationwide

97,039,00060.06

Farmers

85,110,00070.08

Liberty Mutual

62,525,000100.16

Travelers

55,880,000120.21

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 ChangeDate

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 ChangeMarch 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

NoneNone

Personal Injury Protection (PIP)

NoneNone

Comprehensive & Collision

None$500 Deductible

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