Best Car Insurance in Alabama (2025)
State Farm, Direct Auto, and USAA are among the best insurers for Alabama drivers, offering competitive rates and solid coverage options.
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Written byChristy Rakoczy
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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.
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Edited byEvelyn Pimplaskar
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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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Table of contents
Table of contents
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.
State Farm: Best overall
| User Reviews | 4.2 |
|---|---|
| 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. | 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. | $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 |
4.2
Best choiceBased on 10,204 verified guest reviews and ratings
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
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
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Reviews (5,623)
Brent
March 26, 2025
Verified Review
Underwhelmed
The premiums have significantly increased over the years.
James
March 26, 2025
Verified Review
Good
Good, but I'm looking for a discount for full coverage.
Michael
March 26, 2025
Verified Review
Your rate increases for no apparent reason. My agent is never available for direct communication. They don't live up to the hype.
Your rate increases for no apparent reason. My agent is never available for direct communication. They don't live up to the hype.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
855NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.78A.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
Gap insurance not available
Direct Auto: Best for seniors
| 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 |
|---|---|
| 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. | $135/mo |
How drivers feel about Direct Auto
Drivers appreciate the insurer’s helpful customer service and easy-to-use website. But they dislike the frequent and significant rate increases, especially for those with clean driving records. Some also report difficulties with roadside assistance.
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 insurer’s helpful customer service and easy-to-use website. But they dislike the frequent and significant rate increases, especially for those with clean driving records. Some also report difficulties with roadside assistance.
AI-generated from the text of verified reviews collected by Insurify
Best For
High-risk drivers
Ample discounts
24/7 claims support
Reviews (318)
Sade
March 25, 2025
Verified Review
Avoid Plans Without Extensive Coverage
It's bad to pay a high price for a plan that doesn't offer extensive coverage.
Mary
March 25, 2025
Verified Review
Credit Basis
Even though they're not supposed to base it off credit, they directly base it off credit. When they were having a major issue with their computers shutting down, they ran it through my credit nearly 10 times. This affected my quote, which they would not change, and now I'm paying more.
Christina
March 25, 2025
Verified Review
The number in the app doesn't work. When I call a local office, they never answer the phone. They added my parents to my policy without my permission, even though they have their own insurance and policy with a different company.
The number in the app doesn't work. When I call a local office, they never answer the phone. They added my parents to my policy without my permission, even though they have their own insurance and policy with a different company.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NRNAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
2.02A.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).
AWhy we picked this company
Direct Auto is a top choice for approximately 18% of Alabama residents who are 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 on the NAIC Complaint Index
Limited bundling opportunities
USAA: Best for active-duty military and veterans
| User Reviews | 4.9 |
|---|---|
| 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. | 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. | $66/mo |
4.9
Best choiceBased on 1,838 verified guest reviews and ratings
How drivers feel about USAA
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
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
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (1,059)
Donald
March 26, 2025
Verified Review
Unsatisfactory Experience for Veterans
They are unsatisfactory in handling home claims. They seem to side with questionable contractors and don't pay adequate attention to the veterans. Both the claims adjuster and the mitigation company seem dishonest. I had a very negative experience.
Tammie
March 26, 2025
Verified Review
USAA
USAA has always been quick to respond. However, they don't really fight for their policy holders.
Michael
March 25, 2025
Verified Review
Other than that, they're great
The car coverage cost goes up a little too high.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
886NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.35A.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
Gap insurance not available
No 24/7 customer service
COUNTRY Financial: Best for students
| User Reviews | 3.6 |
|---|---|
| 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. | 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. | $73/mo |
3.6
A solid optionBased on 43 verified guest reviews and ratings
How drivers feel about Country Financial
Customers appreciate the prompt claims service and personal touch but are frustrated by the constant rate increases and lack of discounts.
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
Customers appreciate the prompt claims service and personal touch but are frustrated by the constant rate increases and lack of discounts.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Good claims process
High customer satisfaction
Reviews (29)
Donna
March 12, 2025
Verified Review
Ok
The policy is good, but it's too pricey.
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.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NRNAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.2A.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
Auto-Owners: Best for drivers with DUIs
| User Reviews | 4.0 |
|---|---|
| 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. | 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. | $66/mo |
4.0
Best choiceBased on 172 verified guest reviews and ratings
How drivers feel about Auto-Owners
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
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
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
Reviews (108)
Gerld
March 26, 2025
Verified Review
Worthwhile Insurance
My overall experience has been very good!
Sandra
March 24, 2025
Verified Review
Who is my agent?
The service is fair, but it depends on which function was performed.
Mike
March 21, 2025
Verified Review
Just Wow
The good thing is that the company I work with is family-oriented. The bad thing is that my rate was tripled without any notice.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
871NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.5A.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 Alabama auto insurers. See which one 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 $139 per month for full coverage, while drivers with speeding tickets pay $216 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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Average cost of car insurance in Alabama
Car insurance in Alabama costs an overall average of $99 per month — well below the overall national average of $151 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 $139 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.
Which company has the cheapest car insurance rates in Alabama?
Auto-Owners has the cheapest liability-only rates in Alabama, at $36 per month.
State Farm and USAA also offer low rates for Alabama drivers, with liability coverage as low as $36 and $36 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.
Sources
- Alabama Department of Insurance. "Market Share by Line of Business - Property & Casualty."
- J.D. Power. "Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, J.D. Power Finds."
- Drive Safe Alabama. "Drinking and driving."
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Christy Rakoczy
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.
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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