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Last updated: October 9, 2024
Best Car Insurance in Alabama
Find the top providers, cheapest rates, and best coverage in the Heart of Dixie.
Best Cheap Auto Insurance in Alabama
Full Coverage Averages
• Annual Premium: $1,059
• Monthly Premium: $88
✓ Cheapest provider in the state
✓ Good rates for all drivers
X No rideshare insurance
Read our Erie review.
Best Auto Insurance for Drivers With a Bad Record in Alabama
Full Coverage Averages
• Annual Premium: $1,235
• Monthly Premium: $103
✓ Cheap rates for drivers with a DUI, speeding ticket, or accident on their record
✓ Largest car insurance company in Alabama
X No gap insurance
Read our Erie review.
Best Auto Insurance for Low-Income Drivers in Alabama
Full Coverage Averages
• Annual Premium: $1,186
• Monthly Premium: $99
✓ Cheapest rates for low-income teens
✓ Cheapest rates for drivers with bad credit
X Limited number of local agents in Alabama
Read our Erie review.
Table of Contents
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With some of the highest rates of uninsured drivers, alcohol-related crashes, and car-related fatalities in the country, Alabama is one of the most dangerous states to drive in. Part of this has more to do with the driving landscape in Alabama than the quality of drivers. A Governors Highway Safety Association study found that nearly half of all driving fatalities in the U.S. occur on rural roads, and Alabama has the eighth-highest rural population in the country.12
Although you need only liability insurance (property damage and bodily injury) to drive legally in Alabama, we recommend you get full coverage with higher limits than the state requirements. Alabama’s minimum limits — $25,000 in bodily injury per person, $50,000 in total bodily injury, and $25,000 in property damage — probably won’t cover the costs of a severe or at-fault accident.3
The good news is that Alabama has some of the most affordable car insurance rates in the nation, and we’ve identified some of the best and most affordable providers for you to choose from.
Pro Tip:
Unsure what you should increase your limits to? Check out our guide on how much coverage you need to stay adequately protected on the road in Alabama.
Average Rate in Alabama
Alabama’s average annual rate for full coverage is $1,482, which is about $600 cheaper than the national average of $2,071. Travelers, which offers the cheapest coverage in Alabama, costs $1,059 annually on average, which is about half the national average.
Average Car Insurance Rate by City in Alabama
If you’re looking to compare prices within the state, here’s what average premiums in Alabama look like by city.
| City | Monthly average premium | Annual average premium |
|---|---|---|
| Dothan | $125 | $1,500 |
| Huntsville | $128 | $1,534 |
| Auburn | $131 | $1,572 |
| Tuscaloosa | $135 | $1,614 |
| Montgomery | $137 | $1,641 |
| Hoover | $140 | $1,684 |
| Mobile | $143 | $1,716 |
| Birmingham | $149 | $1,787 |
Best Auto Insurance Companies in Alabama
- Auto-Owners Insurance – Best Cheap Auto Insurance in Alabama
Travelers has been around for over a century, offering flexible insurance options and the cheapest rates in Alabama on average. - State Farm – Best Auto Insurance for Drivers With a Bad Record in Alabama
State Farm insures nearly a quarter of Alabama’s drivers, making it the largest provider in the state. It also offers the best rates for drivers with a speeding ticket, DUI, or accident on their record.4 - GEICO – Best Auto Insurance for Low-Income Drivers in Alabama
Finding affordable insurance with robust coverage can be difficult for low-income drivers; GEICO is not only one of the largest providers in the country, but it offers some of the best rates for low-income families, teens, and seniors in Alabama.
Comparison of the best auto insurance companies in Alabama
| Feature | Travelers | State Farm | GEICO | Allstate | Cincinnati Insurance |
|---|---|---|---|---|---|
| Average rate in Alabama | $1,059 | $1,235 | $1,186 | $1,315 | $1,196 |
| U.S. Southeast Customer Satisfaction Ranking out of 1,000 (J.D. Power)5 | 818 | 847 | 828 | 832 | N/A |
| Best for | People looking for the cheapest option | People with a DUI, accident, or moving violation | Low-income drivers and drivers with bad credit | Young drivers | Drivers over the age of 50 |
| Accident forgiveness | Yes | Yes | Yes | Yes | No |
| Student discount | Yes | Yes | Yes | Yes | Yes |
| Review | Travelers review | State Farm review | GEICO review | Allstate review | N/A |
Summary
- 1.
Best Cheap Auto Insurance in Alabama: Travelers
- 2.
Best Auto Insurance for Drivers With a Bad Record in Alabama: State Farm
- 3.
Best Auto Insurance for Low-Income Drivers in Alabama: GEICO
- 4.
Best Auto Insurance for Teens in Alabama: Allstate
- 5.
Best Auto Insurance for Seniors in Alabama: Cincinnati Insurance
Detailed List of the Best Auto Insurance in Alabama
1. Best Cheap Auto Insurance in Alabama - Travelers
What We Like Most:
- High financial strength rating from AM Best
- Great customer service reviews
- Discounts for safe drivers, homeowners, electric vehicle owners, and more
With an average annual rate of $1,059 for full coverage, Travelers is the most affordable provider on our list and in the state of Alabama. If you’re a safe driver, there’s a good chance Travelers will offer you the best rate regardless of your age or coverage type.
Who It's Best For
- People looking for the cheapest option
- People who want to work a local agent in Alabama
- Homeowners
- People who need commercial auto insurance
Who It's Not Best For
- Drivers with a poor credit score
- Drivers looking for rideshare insurance (not available in Alabama)
Cheapest Rates in Alabama
On average, Travelers offers the cheapest auto insurance in the state. Here’s how Travelers compares with other large providers in Alabama:
| Company | Monthly average premium in Alabama | Annual average premium in Alabama |
|---|---|---|
| Travelers | $88 | $1,059 |
| Nationwide | $92 | $1,104 |
| GEICO | $99 | $1,186 |
| Cincinnati Insurance | $100 | $1,196 |
| State Farm | $103 | $1,235 |
| Allstate | $109 | $1,315 |
| USAA | $117 | $1,400 |
| Farmers | $123 | $1,471 |
Statewide Availability
From the largest cities in the state, like Birmingham and Huntsville, to small towns, like Mt. Olive and Shelby, Travelers has agents in every major city and county across the state. Check out its directory to pick from a pool of 535 agencies: https://agent.travelers.com/al.
Commercial Auto Plans
If you’re a business owner who owns vehicles used for business, you’ll need a commercial auto insurance plan. Whether you’re running a small or large business, Travelers offers excellent commercial auto insurance plans for several types of vehicles.
Here are the types of vehicles Travelers will insure for your business needs:
- Light trucks
- Vans
- Passenger vehicles
- Heavy- and extra-duty trucks
- Specialty vehicles, like light-duty construction vehicles
2. Best Auto Insurance for Drivers With a Bad Record in Alabama - State Farm
What We Like Most:
- Multiple discounts for safe driving, including one specifically for young drivers
- Local agents
- Discounts for multiple cars
Drivers with a DUI, moving violation, accident, or other serious violation on their record tend to pay more for auto insurance. In fact, drivers with a bad record can pay $1,000 more than the average driver for auto insurance on average.
In Alabama, State Farm is your best option to find affordable insurance if you have a bad driving record. State Farm ranks cheapest for drivers after a DUI, speeding ticket, or accident.
Who It's Best For
- People with a bad driving record
- Parents with a teen driver
- People willing to take a safety driving course
- People who need an SR-22
Who It's Not Best For
- People who lease or finance vehicles (no gap insurance)
- People who need rideshare insurance
Affordable Rates for Drivers With a Bad Record
Whether you have a DUI, moving violation, or speeding ticket, State Farm offers the most affordable rates for drivers with a bad record in Alabama on average.
Did you know?
According to the American Addiction Center, Alabama ranks fifth in the country for most alcohol-impaired driving fatalities and alcohol-impaired fatalities for drivers under the age of 21.7
Here are the cheapest providers in Alabama after one speeding ticket:
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| State Farm | $98 | $1,176 |
| USAA | $99 | $1,188 |
| Allstate | $117 | $1$1,188,404 |
| Travelers | $136 | $1,632 |
| Nationwide | $156 | $1,872 |
| Progressive | $183 | $2,196 |
| GEICO | $201 | $2,412 |
Cheapest providers in Alabama after one DUI:
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| State Farm | $162 | $1,944 |
| Allstate | $166 | $1,992 |
| Progressive | $171 | $2,052 |
| USAA | $174 | $2,088 |
| Travelers | $180 | $2,160 |
| Nationwide | $280 | $3,360 |
| GEICO | $356 | $4,272 |
Cheapest providers in Alabama after one accident:
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| State Farm | $108 | $1,296 |
| Allstate | $126 | $1,512 |
| Nationwide | $134 | $1,608 |
| Travelers | $146 | $1,752 |
| Farmers | $169 | $2,028 |
| Country Financial | $184 | $2,208 |
SR-22 Insurance
If you’ve recently been charged with a DUI or serious moving violation and had your license suspended, there’s a good chance you’ll need an SR-22 to drive legally in Alabama. An SR-22 is a certificate of financial responsibility that basically says you have enough insurance to drive legally in your state.
Although some companies refuse to insure drivers with an SR-22, State Farm is not one of them. State Farm will help you file your SR-22 and get the coverage you need.
Safety Driver Programs
State Farm has two usage-based safety programs: Steer Clear and Drive Safe & Save. For both programs, State Farm will track your driving habits through an app. You’ll also need to complete a number of requirements, like logged driving hours and training quizzes, to be eligible for the usage-based discount.
Here are a few key differences between Steer Clear and Drive Safe & Save:
| Program | Age | Discount | Tracks driving habits | Training requirements |
|---|---|---|---|---|
| Steer Clear | Under 25 | Up to 20 percent | Yes | Yes |
| Drive Safe & Save | Any age | Up to 30 percent | Yes | No |
3. Best Auto Insurance for Low-Income Drivers in Alabama - GEICO
What We Like Most:
- Save money with defensive driving courses
- Cheapest rates after a speeding ticket
- Save by installing safety equipment
Regardless of your income or economic status, we believe that everyone deserves quality insurance at an affordable rate. Not only is GEICO one of the largest and oldest providers in the country, but it offers the most affordable rates for low-income individuals and families in Alabama.
FYI:
The median household income in Alabama is just under $55,000, which is about $15,000 less than the national average. With a 16 percent poverty rate, Alabama is among the top 10 states with the highest rates of poverty. Because individuals with a lower income tend to live in areas with higher vehicle theft, have a worse credit history, and file more claims, they can pay anywhere from 40 to 90 percent more for car insurance.89
Who It's Best For
- Low-income individuals and families
- People who don’t drive often
- People with a poor credit score
- Mobile home owners
Who It's Not Best For
- Homeowners
- High-value vehicle owners
Affordable Rates for Low-Income Drivers
Although drivers with a lower income tend to pay more for car insurance on average, there are still ways to find quality insurance at an affordable rate. GEICO offers a number of discounts for a variety of driver types, and its average rates are the lowest in the state for drivers with a low income.
Here’s what your rates might look like among the top providers in Alabama for low-income families:
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| GEICO | $107 | $1,279 |
| Allstate | $119 | $1,432 |
| Travelers | $132 | $1,584 |
| Country Financial | $133 | $1,595 |
| State Farm | $140 | $1,683 |
| Nationwide | $158 | $1,892 |
| Progressive | $179 | $2,147 |
| Farmers | $189 | $2,266 |
Here’s what those rates look like for low-income teens and students:
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| GEICO | $140 | $1,681 |
| Country Financial | $165 | $1,984 |
| Allstate | $178 | $2,133 |
| State Farm | $198 | $2,372 |
| Travelers | $204 | $2,447 |
| Progressive | $208 | $2,493 |
| Farmers | $215 | $2,579 |
| Nationwide | $218 | $2,616 |
Great Option for Drivers With a Poor Credit Score
GEICO offers the cheapest rates for drivers with a poor credit score. Here’s what those numbers look like among the top providers in Alabama:
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| GEICO | $162 | $1,946 |
| Country Financial | $165 | $1,985 |
| Travelers | $177 | $2,131 |
| Nationwide | $205 | $2,461 |
| Farmers | $235 | $2,818 |
| Allstate | $241 | $2,888 |
| State Farm | $244 | $2,931 |
Did You Know?
According to Experian’s 2020 Credit Score Review, Alabamians have the third-poorest average credit score in the country.10 In Alabama, insurance providers can use credit scores to increase premiums, deny insurance, or terminate an existing policy. Because individuals with a poor credit score tend to file more claims and miss more payments, you can expect your premium to increase if you have bad credit.
DriveEasy Program
Usage-based insurance programs are excellent ways to save money on car insurance if you’re a low-income driver. Your premiums are generated based on how safely and how many miles you drive. The safer and the less you drive, the lower you can expect to pay.
If you’re interested in a usage-based insurance plan, you can sign up for GEICO’s usage-based insurance program, DriveEasy. You’ll need either an iPhone running on at least iOS 10 or an Android 6.0 or higher. After you complete the DriveEasy setup on your phone, the app will automatically track when you drive, how safely you drive, how many miles you drive, and other key metrics.
4. Best Auto Insurance for Teens in Alabama - Allstate
What We Like Most:
- Three ways to earn a student discount
- Pay-per-mile option for drivers with low mileage
- No waiting period to purchase accident forgiveness
Teens pay the highest rates for car insurance of any age group because they have the highest rates of claims, accidents, and moving violations. That’s why it’s so important to find a provider that can offer quality coverage at an affordable rate. Allstate offers the cheapest rates for teens and several optional coverage types, like tiered roadside assistance, to keep your teen safer on the road.
Who It's Best For
- Teens
- Parents of teens
- Homeowners
- Good students
Who It's Not Best For
- Teens with a bad driving record
- Teens with a poor credit score
Best Rates for Teens in Alabama
Here’s how Allstate’s rate for teens compares to the rest of the state:
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| Allstate | $281 | $3,371 |
| Nationwide | $304 | $3,645 |
| State Farm | $332 | $3,989 |
| Travelers | $336 | $4,031 |
| GEICO | $371 | $4,453 |
| Farmers | $373 | $4,476 |
| Progressive | $398 | $4,774 |
Teen Discounts
Allstate offers several teen discounts to bring your premiums down and encourage safer driving habits. Here are a few of Allstate’s major saving opportunities for teens:
- You can earn up to 20 percent off if you are a good student under the age of 25. You have to be unmarried and meet one of the following requirements:
- Complete the teenSMART program
- Maintain a 2.7 GPA or higher
- Attend school at least 100 miles away from where your vehicle is garaged
- Discounts are available to young drivers who sign up for a driver’s ed course.
- Share your recent good report card with Allstate for an additional student discount.
- Teen drivers can earn a safe driver bonus rebate for every six months they drive without an accident.
teenSMART Partnership
Allstate has partnered up with the teenSMART program, which helps instill safe driving habits and awareness in teen drivers on the road. teenSMART is an eight-hour online program made up of interactive lessons, modules, videos, and other learning tools. Teens who complete the program are eligible for additional Allstate discounts, like the good student discount.
5. Best Auto Insurance for Seniors in Alabama - Cincinnati Insurance
What We Like Most:
- Most affordable for seniors
- Dozens of local-based agents across Alabama
- Best for high-end cars
Cincinnati Insurance has dozens of local agents across the state of Alabama. It’s the cheapest provider for Alabamians over the age of 50, and it offers additional incentives for individuals with high-value vehicles and properties.
Who It's Best For
- Older Americans
- Individuals with an expensive vehicle
- Classic car owners
- People looking for personal customer service
Who It's Not Best For
- Young drivers
- Low-income drivers
Best Rates for Seniors in Alabama
Older Americans between the ages of 50 and 75 pay some of the lowest rates for car insurance on average. In Alabama, you’ll find the best average rates with Cincinnati insurance for full coverage.
| Company | Monthly average premium | Annual average premium |
|---|---|---|
| Cincinnati Insurance | $85 | $1,020 |
| State Farm | $88 | $1,057 |
| Nationwide | $99 | $1,183 |
| Travelers | $90 | $1,074 |
| Country Financial | $100 | $1,197 |
| Farmers | $111 | $1,328 |
| GEICO | $114 | $1,369 |
| Allstate | $140 | $1,679 |
| Progressive | $158 | $1,891 |
Personalized Customer Service
Cincinnati Insurance has some of the highest customer service and complaint scores among all providers. With only 23 National Association of Insurance Commissioners complaints, customers filed as low as 16 percent of the complaints that the average provider received in 2022.11 Additionally, it has an A+ rating from the Better Business Bureau, receiving only 14 complaints in the past three years.12
Coverage for Classic and Vintage Vehicles
If you enjoy collecting and showing off your antique or classic car, Cincinnati’s Exhibition Auto coverage might offer the coverage you need. Cincinnati Insurance makes insuring your classic vehicle easy by allowing you to integrate your classic car into your regular auto insurance policy.
Frequently Asked Questions
Do I need uninsured motorist coverage in Alabama?
You do not need uninsured motorist coverage in Alabama. However, more than 19 percent of drivers do not have insurance in Alabama, the seventh-highest rate of uninsured drivers in the U.S.13
Because of the high uninsured motorist rate, we highly recommend you add uninsured/underinsured motorist coverage to make sure your vehicle is covered if you get into an accident with an uninsured driver.
Is Alabama an at-fault state?
Alabama is an at-fault state, also known as a tort state, which means that the driver who is responsible for an accident is also responsible for paying for the other party’s damages and injuries.
Additionally, you can file a lawsuit to seek compensation in Alabama. However, the state’s pure comparative negligence law means that if you are even 1 percent responsible for an accident, you will be barred from suing the other driver.
Is pay-per-mile coverage a good idea in Alabama?
Pay-per-mile coverage, which determines your premium based on how many miles you drive each month, can be a good idea in Alabama if you drive less than 7,500 miles per year.
Alabamians drive 14,210 miles per year on average, which is significantly higher than the national average of 9,405.14 If you don’t drive often, if you share a car, or if you can find other means of transportation, pay-per-mile insurance may save you on your insurance policy.
How long do you have to file a car insurance claim in Alabama?
According to Alabama’s statute of limitations for car accidents, you have two years to file a claim after an accident. After two years, you’ll be unable to file your claim and receive compensation.
Methodology
In order to find the best providers and most relevant coverage types for drivers in Alabama, we leveraged our proprietary data, gathered information from third-party insurance rankings, reviewed federal and state sources, and looked at the most common driver types across the state.
- Proprietary data: We’ve gathered data about which insurance providers have had the most success with different drivers based on their marital status, economic background, coverage needs, and location. We’ve used that data to help us find the best rates, discounts, and coverage in Alabama based on your age, background, and more.
- Third-party rankings: Third-party rankings, like J.D. Power, the Better Business Bureau, and the National Association of Insurance Commissioners, assess insurers based on their financial strength and customer service. These institutions provide objective rankings of insurers, providing us with information on which companies are best suited to handle complaints, communicate with customers, pay claims, and more.
- Expert guidance: One thing that sets AutoInsurance.com apart is our insider knowledge of the insurance world. Our team is guided by Paul Ford, president of insurance at Centerfield, AutoInsurance.com’s parent company. Paul has decades of experience in the insurance world, with tenures at NetQuote, InsLogic, Bankrate, and others, providing us with the experience and guidance we need to help you make better insurance decisions.
Staff Writer & Editor
Ali Saleh is a copywriter with nearly 10 years of experience in content writing, editing, and journalism. Ali’s work has been featured on a number of notable sites and publications, including MSN, Business.com’s award-winning newsletter, and Groove Korea, South Korea’s largest English-print magazine. Today, he writes for dozens of brands, providing expert guides and informative articles on auto insurance, healthcare, recruiting technology, business, and more. Ali holds a Master of Fine Arts in creative writing from North Carolina State University.
Citations
Most Rural States. World Population Review. (2023).
https://worldpopulationreview.com/state-rankings/most-rural-statesRural Roads Are Disproportionately Deadly, New GHSA Study Finds. Governors Highway Safety Association. (2022, Sep 1).
https://www.ghsa.org/resources/news-releases/GHSA/Rural-Road-Safety22Mandatory Liability Insurance. Alabama Department of Revenue. (2023).
https://www.revenue.alabama.gov/tax-types/mandatory-liability-insurance/Market Share by Line of Business – Property & Casulaty. National Association of Insurance Commissioners. (2023, Apr 11).
https://www.aldoi.gov/PDF/Companies/2022PrivatePassengerAuto.pdfAuto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds. J.D. Power. (2023, Jun 13).
https://www.jdpower.com/business/press-releases/2023-us-auto-insurance-study535 Insurance Agencies in Alabama. Travelers. (2023).
https://agent.travelers.com/alDUIs Arrests and Fatalities Across the US. American Addiction Centers. (2023, Jun 17).
https://alcohol.org/guides/dui-arrests-fatalities-across-us/Major Auto Insurers Raise Rates Based on Economic Factors: Low- and Moderate-Income Drivers Charged Higher Premiums. Consumer Federation of America. (Jun 2016).
https://consumerfed.org/wp-content/uploads/2016/06/6-27-16-Auto-Insurance-and-Economic-Status_Report.pdfTop 10 Poorest States in the U.S. Friends Committee on National Legislation. (2013, nov 6).
https://www.fcnl.org/updates/2023-11/top-10-poorest-states-usMinnesota residents have the highest average credit score—here’s how other states compare. CNBC Select. (2022, May 24).
https://www.cnbc.com/select/average-credit-score-by-state/Results by Complaint Index. National Association of Insurance Commissioners. (2023).
https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=10677&REALM=PROD&COCODE=10677&REALM=PRODCincinnati Financial Corporation. Better Business Bureau. (2023).
https://www.bbb.org/us/oh/fairfield/profile/insurance-companies/cincinnati-financial-corporation-0292-3177One in Eight Drivers Uninsured: $13 Billion Spent in 2016 to Protect Against Uninsured and Underinsured Drivers. Insurance Research Council. (2021, Mar 22).
https://www.insurance-research.org/sites/default/files/downloads/UM%20NR%20032221.pdfHighway Statistics Series. U.S. Department of Transportation Federal Highway Administration. (2021, Oct).
https://www.fhwa.dot.gov/policyinformation/statistics/2020/ps1.cfm
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