Christy Rakoczy has been a personal finance and insurance writer for over a decade. Her work has been published on USA Today, MSN, Yahoo Finance, Credit Karma, Forbes Advisor, and more. Christy has a JD from UCLA School of Law and previously worked as a data analyst for Blue Cross and as a paralegal studies instructor before transitioning to writing full time.
Christy has been a contributor at Insurify since August 2023.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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Alabama has the third-cheapest car insurance rates in the U.S., Insurify data shows. But with so much affordable coverage available, it can be a challenge to know which insurance company is best for your needs.
From flexible payment options and plenty of add-on coverages, to how a company handles claims, you have a lot to consider when shopping for car insurance in Alabama. You’ll need to decide what matters most to you.
To determine which insurers are best for Alabama drivers, Insurify analyzed more than 50 insurance companies. We considered pricing, available coverages, customer satisfaction, and more to arrive at these five recommendations.
Best car insurance companies in Alabama
More than 160 companies sold car insurance policies in Alabama in 2023, according to the Alabama Department of Insurance.[1] Companies range from national organizations with high name recognition like State Farm, to ultra-regional providers like Alfa Mutual, which serves only Alabama and Georgia.
Here are the five best car insurance companies in Alabama based on Insurify’s research.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$37/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$68/mo
4.2
Best choiceBased on 9,450 verified guest reviews and ratings
▲
State Farm's score
▲▼
Industry average
▲▼
Coverage options
4.2
3.2
Customer service
4.1
3.6
Discounts
4
2.9
Policy transparency
4
3.1
Value
4
2.9
How drivers feel about State Farm
Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
How drivers feel about State Farm
Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Reviews (5,202)
Rayford
January 20, 2025
Verified Review
Great Agent
They are better than the other ones that I have had. Every State Farm agent is different, and this agent and his staff are great.
Barbara
January 20, 2025
Verified Review
Super Sweet
My experience with State Farm has been awesome.
Sari
January 20, 2025
Verified Review
Struggling to find affordable auto insurance
I've tried pretty much everything, but auto insurance is just too expensive.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
855
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.78
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
In business for more than a century, State Farm is an ideal choice for drivers looking for cheap coverage, robust options, and superior customer service. The insurer offers reasonable premiums in Alabama for both full-coverage policies and liability-only (or minimum-coverage) policies.
Beyond providing cheap car insurance, State Farm ranked above average for customer satisfaction in the Southeast in the J.D. Power 2024 U.S. Auto Insurance Study.[2] Its large local agent presence also means Alabamans can get the help they need in person.
Pros
Many available discounts
Above-average customer service rating from J.D. Power
Rideshare coverage available
Cons
Slightly more complaints than expected for a company of its size, according to the National Association of Insurance Commissioners (NAIC)
May not be the cheapest option for all driver profiles
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.3 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$53/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$137/mo
How drivers feel about Direct Auto
Drivers appreciate the initial low rates and the roadside assistance but dislike the significant rate increases and poor customer service.
AI-generated from the text of verified reviews collected by Insurify
Best For
High-risk drivers
Ample discounts
24/7 claims support
How drivers feel about Direct Auto
Drivers appreciate the initial low rates and the roadside assistance but dislike the significant rate increases and poor customer service.
AI-generated from the text of verified reviews collected by Insurify
Best For
High-risk drivers
Ample discounts
24/7 claims support
Reviews (287)
Debra
January 16, 2025
Verified Review
Too Expensive
Their rates are extremely high for a person of 60 years with no tickets or accidents.
Sandy
January 15, 2025
Verified Review
Not Very Nice in Person
Their rates are not bad.
Dana
January 9, 2025
Verified Review
Dissatisfied
The customer service is horrible and the people I have come into contact with are unable to provide me with the explanations I request.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
2.02
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A
Why we picked this company
Direct Auto is a top choice for approximately 18% of Alabama residents 65 and older. Direct Auto provides competitive car insurance rates ideal for retirees on fixed incomes.
Plus, drivers 55 and older could save an additional 5% on coverage by completing an approved accident prevention course. Senior drivers may also appreciate Direct’s roadside assistance coverage, which is available as a policy add-on.
Pros
Multiple senior-friendly discounts, including a 5% senior discount
Roadside assistance and rental car reimbursement available
Offers SR-22 filing for Alabama drivers
Cons
Accident forgiveness not available after first at-fault accident
Much higher-than-average number of complaints in the NAIC Complaint Index
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.4 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$36/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$67/mo
4.9
Best choiceBased on 1,675 verified guest reviews and ratings
▲
USAA's score
▲▼
Industry average
▲▼
Coverage options
4.9
3.2
Customer service
4.6
3.6
Discounts
4.9
2.9
Policy transparency
4.9
3.1
Value
4.9
2.9
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (961)
William
January 18, 2025
Verified Review
Trouble Remembering PIN with USAA
USAA is great, but I do have trouble remembering my PIN number. That's a problem.
William
January 13, 2025
Verified Review
I love USAA
I love USAA. However, I don't know my PIN, and that has caused me some inconvenience.
Thomas
January 13, 2025
Verified Review
Too Personal
They penalize me for using my phone as a passenger in someone else's car. Even though I have a Bluetooth hands-free phone, they still want to deduct points. I guess next they'll penalize me if I talk to my wife while I'm driving.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
886
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.35
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
Alabama is home to several military bases, including Maxwell Air Force Base. In addition to many active-duty servicemembers, around 8% of Alabama’s population are veterans, according to census data.
USAA only serves active-duty military members, veterans, and their eligible family members. If you meet USAA’s membership criteria, you’ll get top-notch customer service and cheap car insurance premiums. USAA has some of the cheapest car insurance rates in Alabama and was the highest-ranking insurer for customer satisfaction in the J.D. Power 2024 U.S. Auto Insurance Study.
Pros
Affordable premiums and exceptional customer service
Extra discounts for vehicles stored during deployment
Optional replacement coverage available in some states
Cons
Strict membership criteria means most drivers won’t qualify
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.8 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$40/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$75/mo
3.6
A solid optionBased on 41 verified guest reviews and ratings
▲
Country Financial's score
▲▼
Industry average
▲▼
Coverage options
3.6
3.2
Customer service
3.5
3.6
Discounts
3.1
2.9
Policy transparency
3.5
3.1
Value
3
2.9
How drivers feel about Country Financial
Drivers appreciate the great customer service and initial low prices but dislike the frequent rate increases and poor roadside assistance.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Good claims process
High customer satisfaction
How drivers feel about Country Financial
Drivers appreciate the great customer service and initial low prices but dislike the frequent rate increases and poor roadside assistance.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Good claims process
High customer satisfaction
Reviews (28)
Ida-Marie F
December 16, 2024
Verified Review
Good Company
They are honorable and pay our claims promptly.
Antonio
December 14, 2024
Verified Review
Car and Home Insurance
They have become expensive now.
Chloe
October 19, 2024
Verified Review
Unaffordable Rates That Increase Monthly
Terrible, I wouldn't ever recommend Country Financial to anyone. My policy kept increasing monthly without any explanation, despite not having any new accidents or tickets. They didn't offer many discounts and it became unaffordable very quickly.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.2
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company
COUNTRY Financial is available in 19 states, including Alabama — and that’s good news for young drivers. The regional insurance company has some of the lowest rates in the state for teen drivers and offers multiple ways for young drivers to save even more.
Young Alabama drivers could benefit from its discounts for good students, recent college graduates, and for completing a driver education or defensive driving course. COUNTRY Financial’s DriverIQ program provides feedback on driving habits to help newer drivers develop safer driving skills.
Pros
Low rates for teen drivers in Alabama
Numerous discount opportunities for students
Emergency roadside assistance coverage is available
Cons
Only 2.4 (out of 5) stars and many complaints on Trustpilot
Accident forgiveness not available
Just 1 (out of 5) stars from reviewers on the Better Business Bureau site
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.5 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$36/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$68/mo
4.0
Best choiceBased on 153 verified guest reviews and ratings
▲
Auto-Owners's score
▲▼
Industry average
▲▼
Coverage options
3.9
3.2
Customer service
3.7
3.6
Discounts
3.5
2.9
Policy transparency
3.8
3.1
Value
3.5
2.9
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
Reviews (94)
Tammy
January 13, 2025
Verified Review
Affordable Insurance in Michigan
The insurance is affordable.
Allen
January 12, 2025
Verified Review
Excellent
Absolutely no problems.
Michael
January 6, 2025
Verified Review
Pleased
I have had a positive experience with Auto-Owners company and personnel.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
871
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.5
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
In 2022, alcohol and drugs were factors in more than 6,500 crashes in Alabama.[3] A DUI will raise your car insurance rates significantly for several years.
Auto-Owners offers some of the lowest monthly rates for drivers with a DUI on their driving record. The insurer also offers numerous discounts that you may be able to qualify for, even with a DUI, such as a multi-policy or paid-in-full discount.
Pros
More affordable premiums with a DUI history than many other Alabama insurers
Gap insurance available
At-fault accident forgiveness available after 36 months accident-free
Cons
Quotes not available online
Ranked below-average for customer satisfaction in the J.D. Power 2024 U.S. Auto Insurance Study
Only 2 (out of 5) stars on Trustpilot
Our editorial team analyzed regional and national auto insurance companies that sell policies in Alabama to assess which offer the best rates, coverage options, customer service, and savings to drivers. We prioritized competitive rates, 24/7 customer service, low-mileage discounts or programs, safe driving discounts, homeownership discounts or bundling options, and specialty or supplemental coverages.
How to get the best car insurance in Alabama
Finding the right coverage involves evaluating your priorities and comparing insurance companies to find one that’s a good fit. These tips can help you find the right auto insurance with the features you need based on your driving record and budget.
Consider how much coverage you need
Your auto insurance should meet Alabama’s minimum liability insurance requirements and fully protect your assets. State-minimum coverage is rarely enough. For example, if you lease or finance your vehicle, you’ll also need to buy collision and comprehensive coverages. And if you drive a high-value vehicle, you’ll need higher full-coverage policy limits to help repair or replace it.
Read reviews from policyholders
It’s a good idea to see what current or former customers have to say about a car insurance company before you buy a policy. Reading reviews can give you an idea if a company has good rates, pays car insurance claims quickly and fairly, and excels at customer service.
Consider customer service scores
Customer service scores give you a quick insight into how an insurer treats their policyholders. Insurify assigns companies an Insurify Quality (IQ) Score. You can also check J.D. Power auto insurance ratings and review the complaints database maintained by the National Association of Insurance Commissioners to see if the company has more or less complaints than average.
Compare quotes
Price is a big consideration for most drivers buying auto insurance, so you’ll want to see how much money different insurance companies charge for a policy. To find cheap car insurance, get quotes online from at least three or four different Alabama auto insurers. See who offers the lowest average rate on coverage with the best terms for people with your driving record.
Drive safely
Many factors affect the cost of car insurance, including things that are out of your control like your age and gender. But you can control your driving habits, which can help lower your car insurance.
Safe drivers in Alabama pay an average of $141 per month for full coverage, while drivers with speeding tickets pay $218 per month for the same coverage.
Practice good driving habits, such as following speed limits, driving for road and weather conditions, and avoiding hard braking.
Find Cheap Car Insurance in Alabama
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Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Average cost of car insurance in Alabama
Car insurance in Alabama costs an overall average of $100 per month — well below the overall national average of $152 monthly. But rates have been rising in Alabama for multiple years.
Inflation and rising auto repair costs helped push Alabama’s average cost of full coverage from $1,564 in 2023 to $1,722 in 2024, Insurify data shows.
Despite these increases, prices for an insurance policy in Alabama remain relatively affordable, in large part due to the state’s low population density. Alabama, unfortunately, has more motor vehicle fatalities per vehicle miles traveled than the nationwide average. Though it does have a smaller percentage of impaired driving fatalities, and fewer vehicle thefts than many other locations.
Best car insurance in Alabama FAQs
Alabama has a competitive car insurance market, with plenty of options for affordable policies. With so many choices available, here’s some additional information to help you decide on the best car insurance company for your needs.
How much is car insurance in Alabama?
Full-coverage car insurance costs an average of $141 per month in Alabama, Insurify data shows. Liability-only coverage averages $59 per month in the state.
Your monthly rates could be higher or lower than average, based on rating factors that are specific to you such as your driving record, age, gender, and where you live.
What are the best car insurance companies in Alabama?
Insurify researched more than 50 car insurance companies in Alabama to find the best insurers for drivers in the state. Based on our research, State Farm is the insurance company in Alabama. Direct Auto and USAA are also worth considering for their competitive rates and coverage offerings.
Who has the cheapest car insurance rates in Alabama?
USAA has the cheapest liability-only rates in Alabama, at $36 per month.
Auto-Owners and State Farm also offer low rates for Alabama drivers, with liability coverage as low as $36 and $37 per month, respectively.
What is the required auto insurance coverage amount in Alabama?
To drive in Alabama, you must have $25,000 in bodily injury coverage per person and $50,000 per accident. You must also have $25,000 property damage liability coverage per accident.
But insurance professionals typically recommend you buy more liability coverage than your state’s minimum for better financial protection.
Christy Rakoczy has been a personal finance and insurance writer for over a decade. Her work has been published on USA Today, MSN, Yahoo Finance, Credit Karma, Forbes Advisor, and more. Christy has a JD from UCLA School of Law and previously worked as a data analyst for Blue Cross and as a paralegal studies instructor before transitioning to writing full time.
Christy has been a contributor at Insurify since August 2023.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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