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Best Cheap Car Insurance In Alabama (2023)

Geico, USAA, and State Farm offer some of the most affordable rates for Alabama drivers.

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09/14/2023 06:27 PM

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Choosing the right auto insurance coverage can be quite a challenge. Our team of experts has done the research to help you find the best and most affordable providers for car insurance in Alabama. USAA, Nationwide, and Geico ranked among the best options for Alabama drivers.

In this article, we’ll take a close look at the best car insurance companies available in Alabama, as well as each provider’s average annual costs, coverage options, and more. We recommend getting free quotes from leading insurers to find the best choice for your needs, so we’ll also cover how to compare quotes from the most reputable providers.

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Cheap Car Insurance In Alabama

The most affordable car insurance company on average in Alabama is USAA, according to our rate estimates. The average cost of a full-coverage auto insurance policy with the insurer is $987 per year. Geico and Nationwide are also good choices for cheap car insurance in Alabama.

Auto Insurance ProviderEstimated Annual Cost
State Farm$1,555
Auto-Owners Insurance$1,561

How Much Is Auto Insurance In Alabama?

According to our rate estimates, Alabama drivers pay an average of $1,479 per year for full-coverage auto insurance. Compared to the national average of $1,730 per year, car insurance in Alabama is almost 15 percent cheaper on average. The National Association of Insurance Commissioners (NAIC) ranked Alabama as the 29th-most expensive state for auto insurance in 2019.

While Alabama tends to have lower-than-average auto insurance costs, providers have their own factors that determine rates. These factors include:

  • Age: Due to their inexperience on the road, young drivers generally pay more for car insurance.
  • Gender on driver’s license: Car insurance tends to be more expensive for men than for women in most states.
  • Marital status: Married drivers typically pay less for coverage and can take advantage of family or bundling discounts.
  • Driving record: Traffic tickets, accidents, and DUIs affect your ability to get low-cost auto insurance. A clean driving record saves you most on comprehensive coverage.
  • Credit score: Drivers with poor credit scores often have to pay higher car insurance premiums than those with good credit scores.
  • Coverage level: A full-coverage policy costs more than the state’s minimum liability insurance.

Cheapest Alabama Car Insurance: Young Drivers

Teen and young adult drivers in Alabama are likely to find USAA, Geico, Nationwide, and Travelers to be the most affordable options for auto insurance, according to our cost estimates.

Cheapest Car Insurance In Alabama: 16-Year-Olds

Sixteen-year-old drivers often get some of the highest rates in the country. However, Alabama drivers this age can find the cheapest car insurance from Geico at around $320 per month and from USAA at around $335 per month.

Cheap Car Insurance In AlabamaAverage Monthly CostAverage Annual Cost
Geico$320 $3,835
USAA$335 $4,016
Nationwide$347 $4,169
Auto-Owners Insurance$371 $4,450
Travelers$382 $4,589

Cheapest Car Insurance In Alabama: 18-Year-Olds

Eighteen-year-olds can find the cheapest coverage in Alabama at USAA. USAA car insurance costs roughly $197 per month on average for this age, but 18-year-old drivers can also find affordable coverage from Geico and Travelers.

Cheap Car Insurance In AlabamaAverage Monthly CostAverage Annual Cost
USAA$197 $2,361
Geico$213 $2,551
Travelers$269 $3,233
Auto-Owners Insurance$306 $3,675
State Farm$313 $3,759

Cheapest Car Insurance In Alabama: 21-Year-Olds

In Alabama, the cheapest full-coverage car insurance for 21-year-olds comes from USAA at $130 per month. Geico comes in a close second at $136 per month.

Cheap Car Insurance In AlabamaAverage Monthly CostAverage Annual Cost
USAA$130 $1,561
Geico$136 $1,630
Nationwide$163 $1,960
Travelers$172 $2,064
Allstate$195 $2,337

Cheapest Car Insurance In Alabama: 25-Year-Olds

The cheapest car insurance in Alabama for 25-year-olds comes at roughly $107 per month on average from USAA. Geico also offers affordable coverage at $108 per month.

Cheap Car Insurance In AlabamaAverage Monthly CostAverage Annual Cost
USAA$107 $1,287
Geico$108 $1,291
Nationwide$119 $1,432
Travelers$119 $1,432
Allstate$144 $1,726

Cheapest Alabama Car Insurance: High-Risk Drivers

Drivers that don’t have good credit or the cleanest driving records will pay more for car insurance than the average driver. That doesn’t mean that high-risk drivers in Alabama still can’t find relatively fair prices for full-coverage auto insurance. The following averages are for 35-year-old male drivers.

Cheapest Alabama Car Insurance: Speeding Tickets

You may face higher car insurance rates if you have a speeding ticket on your driving record. For drivers with speeding violations in Alabama, rate estimates show USAA tends to be the least expensive option.

Cheapest Car Insurance In AlabamaAverage Monthly CostAverage Annual Cost
USAA$104 $1,253
Nationwide$120 $1,438
Geico$133 $1,592
Travelers$139 $1,662
State Farm$147 $1,763

Cheapest Alabama Car Insurance: Recent Accidents

Based on our rate estimates, USAA offers the lowest average cost to Alabama drivers who have been involved in recent accidents.

Cheapest Car Insurance In AlabamaAverage Monthly CostAverage Annual Cost
USAA$150 $1,800
State Farm$165 $1,978
Travelers$174 $2,090
Nationwide$182 $2,182
Safeway Insurance$207 $2,488

Cheapest Alabama Car Insurance: DUIs

Drivers with DUI convictions often pay very high prices. In Alabama, DUI drivers can find competitive coverage with State Farm, at $147 per month. Travelers also provides relatively cheap coverage at $155 per month.

Cheapest Car Insurance In AlabamaAverage Monthly CostAverage Annual Cost
State Farm$147 $1,763
Travelers$155 $1,860
Allstate$187 $2,241
USAA$190 $2,280
Nationwide$206 $2,472

Cheapest Alabama Car Insurance: Bad Credit

Your credit report has a significant effect on the cost of your car insurance in Alabama. According to our research, USAA, Geico, and Nationwide are typically the best options for drivers with low credit scores, with average rates below $1,700 per year.

Car Insurance Providers in Alabama Estimated Monthly Cost Estimated Annual Cost
USAA $133 $1,361
Geico $126 $1,513
Nationwide $135 $1,619
Travelers $186 $2,229
Allstate $189 $2,262
Progressive $199 $2,385

Top 5 Auto Insurance Companies In Alabama

Our team considers cost, coverage options, customer satisfaction, and reputation when rating car insurance companies. USAA, Nationwide, and Geico topped the list of best choices for Alabama auto insurance, closely followed by Travelers and State Farm.

Best Car Insurance in Alabama Overall Rating Cost Rating Coverage Rating
1. USAA 4.6 4.9 4.6
2. Nationwide 4.3 4.5 4.2
3. Geico 4.6 4.7 4.2
4. Travelers 4.5 4.4 4.7
5. State Farm 4.7 4.6 4.6

*Our research team scores car insurance companies by taking nationwide factors into account. The order of insurers in this table is specific to auto insurance in Alabama.

#1 USAA: Best For Military Members

We recommend USAA as one of the best car insurance companies in Alabama. Military members, veterans, and their immediate family members can take advantage of affordable rates from the provider. USAA also offers additional auto insurance coverage options such as gap insurance, roadside assistance, and accident forgiveness.

When it comes to customer satisfaction, USAA has one of the best industry reputations. The company received the second-highest score in the J.D. Power 2022 U.S. Insurance Shopping Study℠. Additionally, USAA has excellent industry ratings from respected organizations, including  an A++ rating from AM Best.

Read more: USAA insurance review

#2 Nationwide: Best For Senior Drivers

Our team found some of the cheapest car insurance in Alabama from Nationwide. The insurer is one of the most affordable options for drivers with speeding tickets and bad credit scores. The company also has a strong industry reputation, as evidenced by its A+ ratings from both AM Best and the Better Business Bureau (BBB).

In our research, we found that Nationwide’s discounts and usage-based insurance programs offered some of the best deals. With Nationwide, drivers can save money by bundling policies, being good students, and staying accident-free. Alabama drivers can also save up to 40 percent on auto insurance by participating in Nationwide’s safe-driving program, SmartRide®, or opting for Nationwide’s pay-per-mile option, SmartMiles®.

Read more: Nationwide insurance review

#3 Geico: Best For Discounts

Geico is one of the largest auto insurers in the U.S. and offers excellent coverage at affordable rates in Alabama. AM Best has rated the company A++ for financial strength, demonstrating Geico’s reliability to paying out claims.

In addition to offering the six standard types of car insurance, Geico provides roadside assistance, rental car reimbursement, and mechanical breakdown insurance options as well. Geico is also known for its wide variety of available discounts, including price breaks for good drivers, students, and more. 

Read more: Geico insurance review

#4 Travelers: Best Coverage Options

As one of the oldest insurance companies in the world, Travelers has developed a long roster of coverage options, which is why we gave it our “Best Coverage Options” award. On top of standard auto insurance, Travelers offers loan/lease gap coverage, new car replacement coverage, accident forgiveness, umbrella insurance, and more. 

Travelers also has a great collection of car insurance discounts for policyholders that pay their entire premiums up front, continue their Travelers’ policies, buy new cars, or own electric/hybrid vehicles. Travelers has an A++ rating from AM Best, which showcases its reliability for paying out claims. It also has an A rating from the BBB.

Read more: Travelers insurance review

#5 State Farm: Best Overall Provider

Due to its affordable pricing, good reputation within the industry, and reliable claims service, we rated State Farm as one of the best car insurance companies for Alabama drivers. As for its industry standing, State Farm holds an A++ financial strength rating from AM Best and places seventh (above industry average) in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study℠.

This insurance company offers good car insurance discounts that can help students save up to 25 percent until they reach the age of 25, making it one of the most affordable choices available to students in the state. State Farm’s Steer Clear® program also offers savings up to 20 percent for Alabama drivers under the age of 25.

Read moreState Farm insurance review

Alabama Insurance Requirements

A minimum liability car insurance policy is required by the Alabama Department of Insurance for all drivers. Drivers must carry insurance that meets the following minimum coverage requirements:

  • Bodily injury liability coverage: $25,000 per person/$50,000 per accident
  • Property damage liability coverage: $25,000 per accident

Basic liability car insurance does not cover the cost of any damage to your vehicle or any of your medical payments. It also won’t compensate for damages when an underinsured or uninsured driver causes an accident.

Here are some additional coverage options you should consider adding to your policy to cover these situations:

How To Get Alabama Car Insurance Quotes

Comparing cost and coverage options is the first step to finding affordable car insurance in Alabama. Get free quotes from several top-rated providers. Quotes are readily available online from most major providers, which makes it easy for you to compare car insurance quotes. Alternatively, you can call insurance companies or speak with a broker or agent to get a more personalized quote.

Drivers in Alabama can usually find affordable auto insurance coverage from companies like USAA, Geico, and Nationwide, but your rates will vary depending on factors such as your vehicle type, driving record, age, and credit history. For a rough estimate of what you’ll pay for Alabama auto insurance coverage, reach out for multiple car insurance quotes to find the best option.

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Cheap Car Insurance In Alabama: FAQ

How much is car insurance in Alabama per month?

Full-coverage car insurance in Alabama is $123 per month on average (or $1,479 per year) for a 35-year-old married driver with good credit and a clean driving record. Minimum liability car insurance in Alabama is an average of $39 per month ($472 per year) for the same profile. Alabama drivers who qualify can find the cheapest car insurance in Alabama from USAA, for an average of $82 per month.

What car insurance is required in Alabama?

Drivers that live in Alabama are required to have at least $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident. 

Is car insurance cheap in Alabama?

Car insurance can be cheap in Alabama for drivers that opt for auto coverage from USAA, Geico, or Nationwide. Alabama drivers pay an average of $1,479 per year for full-coverage auto insurance, which is almost 15 percent cheaper than the national average of $1,730 per year. According to the NAIC, Alabama was the 29th-most expensive state in the nation for annual auto insurance rates in 2019.

Is Alabama a no-fault state?

No, Alabama is not considered a no-fault state. As a fault-based state, if a driver is found to be the cause of an accident or “at fault,” then their insurance company is responsible for covering any damages or injuries from the collision.

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.