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Cheap Car Insurance in Alabama (2023)

Some of the cheapest car insurance providers in Alabama are State Farm, USAA, and Allstate.

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Katie Powers
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Katie Powers
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Katie Powers is an insurance writer at Insurify with a producer’s license for property and casualty insurance in Massachusetts and expertise in personal finance and auto insurance topics. She strives to help consumers make better financial decisions. Prior to joining Insurify, she completed her undergraduate and graduate degrees at Emerson College. Her work has been published in St. Louis Magazine, the Boston Globe, and elsewhere. Connect with Katie on LinkedIn.
Evelyn Pimplaskar
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Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.Prior to joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative, and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as Credit Karma’s tax editor, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.
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Konstantin Halachev
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Konstantin has led data science and engineering projects across multiple domains: biology, travel and insurance. He loves finding data nuggets that help people.

Updated December 7, 2022

If you live and drive in the Heart of Dixie, your car insurance rates won’t be the highest in the nation — but they’ll also be far from the lowest. Alabama is the 18th least-expensive state for car insurance, where drivers pay an average of $185 per month for car insurance. 

When you’re in the market for car insurance, shopping around for quotes from multiple providers can ensure you find cheap car insurance. With an online comparison tool, you can simply enter your ZIP code and other driving profile information to compare quotes.

Quick Facts

  • The average cost of car insurance in Alabama is $185/mo.

  • State Farm is the cheapest provider in Alabama, with average rates of $87/mo.

  • The easiest way to cut car insurance costs is to compare quotes online.

Best cheap car insurance in Alabama: State Farm

1
State Farm logo

State Farm

Best Cheap Car Insurance
Average Monthly Cost:
$87
Insurify Composite Score:
88

State Farm offers the cheapest premiums for drivers in Alabama, at an average monthly rate of $87. On average, Alabama drivers spend $185 per month for coverage, so State Farm presents a cost-effective option. Additional companies with similar low rates include USAA, Allstate, and GEICO.

Car Insurance CompanyInsurify Composite ScoreAverage Monthly Quote
State Farm88$87
USAA96$92
Allstate85$95
GEICO88$130
Travelers80$131
Erie85$114
American Family89$152
InsureMaxN/A$155
Clearcover97$157
Amigo USAN/A$159
SafeAutoN/A$164
Nationwide89$167
Farmers85$169
Safeco86$169
AssuranceAmericaN/A$172
ProgressiveN/A$172
Direct AutoN/A$174
National General58$181
Midvale Home & AutoN/A$228
Foremost SignatureN/A$233
State Auto76$248
Liberty Mutual82$288
Bristol WestN/A$320
AmicaN/A$474
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Learn More: Best Car Insurance Companies

Insurify Composite Score (ICS)

To calculate the Insurify Composite Score, a proprietary rating, Insurify data scientists and insurance experts weigh multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include J.D. Power ratings, Consumer Reports customer satisfaction surveys and customer complaints, mobile app reviews, user-generated company reviews, and financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch.

How much car insurance you’ll need in Alabama

Alabama requires insurance for all motor vehicles operated or parked on state roadways. You must carry proof of insurance in your car at all times and have it available when:

  • Law enforcement requests it 

  • You renew your vehicle registration

  • The vehicle is involved in a car accident

The minimum liability insurance requirements for private passenger vehicles in Alabama are:[1]

  • $25,000 per person/$50,000 per accident for bodily injury: As a major part of your liability insurance, bodily injury coverage covers medical bills for people other than the policyholder who are injured during an accident. Alabama is an at-fault state, meaning the driver who is responsible for the collision is also responsible for paying for any resulting expenses, either through their car insurance provider or out of pocket.

  • $50,000 per accident for property damage: If authorities determine an insured driver is at fault for an accident, this coverage pays for repairs to the property of the other involved parties. Additionally, property damage coverage can cover legal costs if the insured driver is involved in a lawsuit following the accident.

Alabama DMV information

The Alabama Law Enforcement Agency (ALEA) issues driver’s licenses, vehicle registration, and vehicle tags. Many services are available online, making it convenient for Alabama drivers to renew documentation. The Alabama Department of Revenue maintains motor vehicle records, issues vehicle titles, manages mandatory liability insurance, and more.[2]

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Tips for getting cheap car insurance in Alabama

The best thing you can do to find cheap car insurance rates is to shop around and compare quotes from several companies to find the perfect combination of low rates, good service, and a financially healthy company. An online comparison tool will pull together great rates from all the top insurers in Alabama, making it quick and easy for you to compare policies.

You may also qualify for certain discounts, such as:

  • Bundling your home and auto insurance with the same company

  • Good student discount

  • Loyalty discount

  • Safe driver discount

  • Paying in full, rather than monthly

Liability-only vs. full-coverage auto insurance in Alabama

If you live in Alabama, you can opt to carry liability-only auto insurance, which pays for expenses related to injuries and damage to the other party’s car if you cause an accident. Each state sets its own minimums for how much liability insurance it requires drivers to carry. Liability-only insurance can make sense if:

  • You have a low-value vehicle.

  • You can afford to repair or replace your car out of your own pocket.

  • Getting the cheapest insurance possible is your top priority.

For a higher level of protection, you can choose full-coverage insurance, which includes basic liability plus collision and comprehensive coverage. Collision coverage pays for damages to your car, even if you’re at fault for an accident. Comprehensive coverage pays for damages caused by events out of your control, like vandalism, weather, and animals. Auto lenders and leasing companies typically require drivers to carry full coverage on a car they’ve financed. 

You may also opt for full coverage if:

  • You have a high-value vehicle.

  • You wouldn’t be able to afford to repair or replace your car out-of-pocket.

  • Your car’s actual cash value (the payout you’d likely get if your car is totaled) exceeds your annual premium to carry full coverage.

Here’s a look at the cheapest auto insurance in Alabama by policy type.

Car Insurance CompanyAverage Monthly Quote: LiabilityAverage Monthly Quote: Full Coverage
State Farm$45$87
Travelers$48$131
Allstate$49$95
GEICO$67$139
American Family$78$152
Erie$59$114
Amigo USA$79$159
Farmers$87$169
Progressive$89$172
State Auto$93$248
National General$94$181
Safeco$99$169
Travelers$100$131
InsureMax$101$155
Foremost Signature$104$233
AssuranceAmerica$107$172
SafeAuto$112$164
Direct Auto$121$174
Clearcover$125$157
Midvale Home & Auto$129$228
Nationwide$151$167
Bristol West$182$320
Liberty Mutual$210$288
Amica$245$474
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

How your driving history affects your Alabama car insurance rates

Your driving history is the factor that most influences your car insurance costs. Good drivers — whose records are free of serious traffic violations like speeding tickets or reckless driving — tend to get the best car insurance rates in Alabama. But infractions like driving under the influence or at-fault accidents can significantly increase insurance costs.

Here’s a look at average monthly quotes for the cheapest car insurance in Alabama based on driving and accident history.

See More: High-Risk Car Insurance Alabama

Car Insurance CompanyWith a Clean RecordWith an At-Fault AccidentWith a DUIWith a Speeding Ticket
Travelers$126$141$150$151
Progressive$144$307$94$277
National General$150$259$203$277
Nationwide$153$210$140$223
Liberty Mutual$266$337$505$357
InsureMax$137$209$170$219
Clearcover$137$240 $219
Direct Auto$137$288$227$265
AssuranceAmerica$150$236$174$258
Safeco$155$200$165$228
Amigo USA$159$200$78$191
SafeAuto$160$192$117$180
State Auto$185$407 $422
Midvale Home & Auto$189$351$254$300
Foremost Signature$237$209 $251
Bristol West$275$433$362$456
USAA   $140
Allstate   $152
Farmers   $184
State Farm   $210
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

See More: DUI Car Insurance Alabama

SR-22 insurance in Alabama

An SR-22 form is for drivers who have committed a high-risk driving offense, like a DUI, hit-and-run, or reckless driving. The form is filed by your insurance provider and confirms that your insurance meets Alabama’s minimum requirements. These are some of the companies that offer SR-22s in Alabama.

How credit score affects Alabama car insurance quotes

Alabama is one of many states that allow insurers to consider credit scores when setting car insurance rates. Insurers consider poor credit an indicator of higher risk, while good and excellent credit is viewed as a sign of lower risk. Generally, people with excellent or good credit scores can qualify for lower car insurance premiums than people with average or poor credit scores

The table below illustrates average monthly quotes based on credit scores in Alabama.

Credit TierAverage Monthly Quote
Excellent$146
Good$172
Average$189
Poor$293
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

See More: Bad Credit Car Insurance Alabama

How your city affects Alabama insurance quotes

Even something as simple as your ZIP code can affect how much your car insurance costs. More densely populated metropolitan areas tend to see higher rates than suburban areas or smaller towns. We analyzed the average car insurance rates for these major Alabama cities. Find the average rate based on where you live in the chart below.

CityAverage Monthly Quote
Alexander City$164
Auburn$173
Bessemer$239
Birmingham$215
Decatur$180
Dothan$138
Florence$189
Helena$281
Huntsville$185
Madison$204
Mobile$247
Montgomery$200
Prattville$209
Scottsboro$142
Tuscaloosa$222
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

How age affects Alabama car insurance rates

Because insurers generally equate age with experience level, your age will significantly affect how much you pay for car insurance. New drivers, who tend to be teens or people in their early 20s, typically pay more for insurance than drivers 25 and older. 

The following table gives a high-level view of how age can affect insurance rates.

Age GroupAverage Monthly Rate
Teenagers$397
Under 25$258
20s$192
30s$169
40s$148
50s$132
60s$124
70s$145
80+$155
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest car insurance in Alabama for young drivers

Young drivers (25 or younger) typically have the highest insurance rates, regardless of the type of coverage they choose. Here’s a look at average monthly rates for basic and full coverage options for young drivers in Alabama, and for young drivers with some common violations.

Car Insurance CompanyLiability OnlyFull CoverageWith an AccidentWith a DUI
Travelers$111$152$162$146
Progressive$117$216$343$172
Liberty Mutual$323$401$415$394
State Auto$126$321$435$235
Amigo USA$110$209$198$220
National General$131$252$333$217
SafeAuto$140$190$188$201
InsureMax$148$228$266$211
Safeco$148$218$224$212
AssuranceAmerica$151$247$314$224
Clearcover$172$207$239$189
Direct Auto$175$241$315$205
Midvale Home & Auto$202$299$360$248
Bristol West$247$397$489$346
Nationwide $228$279$198
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest car insurance in Alabama for middle-aged drivers 

Drivers between the ages of 25 and 65 generally enjoy the lowest car insurance premiums for both liability-only and full coverage car insurance. However, accidents and violations like speeding tickets can increase rates for middle-aged drivers. Here’s a look at average monthly rates for middle-aged drivers in Alabama.

Car Insurance CompanyLiability OnlyFull CoverageWith an AccidentWith a DUI
Progressive$75$146 $269
Travelers$99$125$133$245
Liberty Mutual$155$225$263$422
Amigo USA$54$225$127$237
National General$64$124 $231
InsureMax$77$119$153$219
AssuranceAmerica$80$129$161$231
State Auto$84$218$363$338
Safeco$87$154$181$287
SafeAuto$87$138 $239
Direct Auto$88$130$194$221
Foremost Signature$88$178  
Midvale Home & Auto$103$189$254$332
Clearcover$117$146$199$257
Bristol West$142$274$367$486
Nationwide$136$154 $301
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest Alabama car insurance for senior drivers

While drivers in their 60s, 70s, and 80s typically have the lowest average insurance rates, costs do start to go up for motorists in their 70s and 80s. Factors like the type of coverage and any driving infractions can also affect the cost of car insurance for Alabama seniors. The table below shows average monthly rates for senior drivers in Alabama. 

Car Insurance CompanyLiability OnlyFull CoverageWith an AccidentWith a DUI
Travelers$118$93$125$117
Progressive$127$70N/A$129
Bristol West$248$141$359$215
Nationwide$128$119$156$118
Amigo USA$114$62N/A$117
AssuranceAmerica$99$78N/A$94
Clearcover$129$107$173$112
Direct Auto$115$80$170$102
Foremost Signature$152$130N/A$148
InsureMax$102$72$150$93
Liberty Mutual$174$127$246$151
Midvale Home & Auto$163$102$243$139
National General$150$72N/AN/A
SafeAuto $75N/AN/A
Safeco$130$84$155$125
State Auto$194$74N/A$159
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Alabama car insurance FAQs

  • State Farm, USAA, and Allstate offer some of the cheapest overall rates for drivers in the state of Alabama. Smaller auto insurers, like Amigo USA and SafeAuto, also have affordable car insurance options. For full-coverage car insurance, drivers pay average rates as low as $87 per month with State Farm and $95 per month with Allstate. 

    If you’re looking for liability-only coverage in Alabama, you’ll benefit from even cheaper rates. Average monthly quotes include $45 at State Farm, $48 at Travelers, and $49 at Allstate. Comparing quotes from multiple providers is the most reliable way to ensure you find affordable coverage that meets your specific insurance needs. 

  • Alabama ranks as the 15th least-safe state for driving in the country, alongside states like Indiana and Tennessee, based on our data and insights. Around 18% of drivers in Alabama have a recorded driving incident, and the state ranks 18th in most accidents. Any speeding ticket, DUI, or at-fault accident on a driver’s record tends to increase rates.  

    Additionally, car insurance rates have been increasing across the country. Based on our data, average monthly car insurance rates in Alabama increased by roughly 7% between May 2021 and May 2022. Various factors are responsible for this, including the pandemic, issues with the supply chain, and increased demand.

  • On average, Alabama auto insurance costs $185 per month, but we found rates as low as $87 and $95 from some top insurers. During the past year, Alabama drivers have actually experienced lower rates. Your auto insurance rates will depend on your driving record, age, and credit history, but numerous quality insurance providers offer affordable rates. 

    Drivers in Alabama benefit from living in the 18th least-expensive state for purchasing auto insurance. They find rates much lower than the national average of $233 per month. In comparison to bordering states, rates in Alabama are lower than average rates in Mississippi and Georgia but slightly higher than rates in Tennessee. 

  • Numerous high-quality car insurance companies offer Alabama drivers affordable rates. Top providers with the highest Insurify Composite Score (ICS) rankings include USAA, State Farm, and Allstate. Our scores are calculated using the latest industry rankings related to financial strength, customer and claims satisfaction, and more. 

    State Farm, which offers the cheapest quote for Alabamans, earned an A++ rating from A.M. Best and an AA rating from Standard & Poor’s. Similarly, USAA scored an A++ rating from A.M. Best and an AA+ Standard & Poor’s. Allstate, in comparison, earned an A+ rating from A.M. Best and an A- from Standard & Poor’s. 

  • No, you do not need personal injury protection (PIP) coverage in Alabama. The state uses an at-fault system when it comes to financial responsibility for an accident, which means that the person who was at fault is responsible for compensating the people who were harmed. Medical payments insurance (MedPay) is also not required.

    In no-fault states, PIP coverage covers your necessary personal medical payments in the aftermath of an accident. Depending on your plan, you may receive non-medical benefits, compensating you for lost wages, household expenses, and funeral costs.

  • Yes, car insurance is mandatory in Alabama for all motor vehicles operated or parked on Alabama roadways.[2] The minimum liability insurance requirements for private vehicles are $25,000 per person and $50,000 per accident for bodily injury and $25,000 per accident for property damage.[3] Drivers must comply to drive legally.

    Bodily injury and property damage liability provide drivers coverage for other people’s damages and injuries in an accident.

  • As in most other states, car insurance tends to follow the car rather than the driver in Alabama. In practice, this means that your auto insurance coverage will apply even if someone borrows your vehicle and has a car accident. After your coverage is used up, the insurance of the driver who borrowed your car may cover the remaining costs associated with the accident.

    Even though your insurance will likely follow the car and provide some coverage, you should never let an uninsured driver borrow your vehicle. Not only will they potentially face penalties, but there’s also no additional coverage if your insurance doesn’t cover fees from the accident. 

  • Elements of liability, comprehensive, and collision coverage make up a full-coverage car insurance policy. Required by state law, liability-only coverage includes bodily injury and property damage coverage for other people affected by an accident. Comprehensive insurance covers damage to your car resulting from vandalism and natural disasters. 

    The last portion of a full-coverage policy is collision coverage, which specifically applies to necessary repairs to your car following an auto accident. Certain drivers should consider purchasing a full-coverage policy more than others, including drivers with expensive vehicles and those living in densely populated urban areas. 

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  • Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

Sources

  1. Alabama Department of Insurance. "Automobile Insurance FAQs." Accessed December 7, 2022
  2. Alabama Department of Revenue. "Mandatory Liability Insurance." Accessed December 7, 2022
  3. Insurance Information Institute. "Automobile Financial Responsibility Laws By State." Accessed December 7, 2022
Katie Powers
Written by
Katie Powers
Linkedin

Insurance Writer

Katie Powers is an insurance writer at Insurify with a producer’s license for property and casualty insurance in Massachusetts and expertise in personal finance and auto insurance topics. She strives to help consumers make better financial decisions. Prior to joining Insurify, she completed her undergraduate and graduate degrees at Emerson College. Her work has been published in St. Louis Magazine, the Boston Globe, and elsewhere. Connect with Katie on LinkedIn.

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Evelyn Pimplaskar
Edited by
Evelyn Pimplaskar
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Editor-in-Chief, Director of Content

Evelyn Pimplaskar
Edited by
Evelyn Pimplaskar
Editor-in-Chief, Director of Content
Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.Prior to joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative, and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as Credit Karma’s tax editor, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.
Amber Benka
Reviewed by
Amber Benka

Licensed Insurance Agent

Icon of a woman
Reviewed by
Amber Benka
Licensed Insurance Agent
Amber Benka is a licensed insurance agent specializing in auto, home, commercial, life, and health insurance.
Konstantin Halachev
Data reviewed by
Konstantin Halachev
Linkedin

VP of Engineering

Headshot of Konstantin Halachev, VP of Engineering at Insurify
Data reviewed by
Konstantin Halachev
VP of Engineering
Konstantin has led data science and engineering projects across multiple domains: biology, travel and insurance. He loves finding data nuggets that help people.