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Car Insurance

Alabama: Cheapest Car Insurance

Whether you’re moving to Alabama or looking for a new carrier, you’ll want to compare quotes and read our list of cheapest cities to drive in order to save the most money on auto insurance.

Known as "The Heart of Dixie," Alabama certainly has a lot of heart. The state's significant role in the Civil Rights Movement and the origins of blues music proves its patriotic passion. While residents in Alabama tend to pay more to insure their vehicles than the U.S. as a whole, if you’re moving to this southern state to find your passion, you should also be able to find affordable car insurance.

The Alabama state average for car insurance is $2,090/year.

Even with this average, you can still end up spending more or less depending on where you live. If you need a deciding factor in terms of where to make your next move, whether it be to a new state or a new provider, the below list outlines the 10 cheapest cities in Alabama for auto insurance.

10 Cheapest Cities in Alabama to insure your vehicle:

  1. Dothan - $1,936

  2. Huntsville - $1,970

  3. Gulf Shores - $1,980

  4. Bay Minette - $2,022

  5. Gadsden - $2,090

  6. Tuscaloosa - $2,104

  7. Camden - $2,106

  8. Birmingham - $2,116

  9. Montgomery - $2,180

  10. Saraland - $2,200

Based on the above listing, you’ll be able to estimate how much your insurance will be in these or surrounding cities. Data from this study shows that the more densely populated the city, the higher the annual costs for car insurance. Reasons for this vary but essentially, more people means more cars and more cars mean a higher chance of accidents or thefts and, in turn, a higher amount of claims for the insurance companies to fulfill. This is something providers like to avoid because continually paying out claims costs them money and so they raise premiums.

This list also shows that the price of your premium can vary greatly depending on what company you choose. Even if you live in Dothan, which offers the cheapest car insurance prices, you could end up paying something closer to the state average of $2,090. It’s important to shop around for potential premiums to ensure you’re getting the best deal. Comparing even a minimum of three different providers will help you find the best match for your budget.

While shopping around, remember that you must carry liability insurance that will protect the other driver in the event of an at-fault accident. In most cases, your state will have set a required minimum in order for you to drive, but you might want to consider purchasing more especially if you drive a nice car. Most liability minimums won’t cover much at all if you’re involved in an accident that’s your fault. The Alabama Department of Insurance has set their minimum at 25/50/25 which includes: $25,000 coverage for bodily injury per person, $50,000 total coverage for bodily injury per accident, and $25,000 coverage for property damage.

Start shopping with a comparison site that makes it easy to customize your coverage and earn discounts. Insurify’s intelligent, virtual agent can help assess what liability exactly fits your needs and give you the power to compare all carriers within your region to get you the best rate possible.