Cheapest Car Insurance in Alabama

Cincinnati Insurance offers the cheapest minimum coverage auto insurance for Alabama drivers at $19 per month or $226 per year. This rate is $258 below the state average, according to data from Quadrant Information Services as of December 2024. Read our research methodology to learn about how we found the cheapest Alabama car insurance.

Cincinnati Insurance is the cheapest car insurance company for most drivers, with an average monthly cost of $43 for minimum and full coverage policies. This rate is $21 less than the state average of $64. Other affordable options include COUNTRY Financial, Travelers, State Farm and Auto-Owners.

*We used combined minimum and full coverage rates for a 40-year-old driver with good credit and no driving violations to calculate these averages.

Cincinnati Insurance offers the cheapest minimum coverage car insurance in Alabama, while COUNTRY Financial is the most affordable for full coverage. However, the best rate for you depends on your personal details. Below are the most affordable car insurance rates for different driver profiles.

Cincinnati Insurance offers the cheapest minimum coverage in Alabama. State Farm, Travelers and COUNTRY Financial also provide low premiums for drivers. Use the table below to compare rates from these companies and see how they compare to the state’s monthly average.

COUNTRY Financial is the cheapest provider of full coverage auto insurance in Alabama, with rates averaging $57 per month or $680 per year, $29 less than the state average. Check the table below for other options.

In Alabama, Cincinnati Insurance offers the best rates for young adult drivers. A minimum coverage policy costs an average of $24 per month for 25-year-olds.

*We used minimum coverage for a 25-year old driver with good credit and no driving violations to determine the cheapest provider.

Cincinnati Insurance offers the cheapest car insurance for young drivers in Alabama at $24 monthly for minimum coverage, while COUNTRY Financial is the most affordable for full coverage at $70. Rates vary based on your driving record. Cincinnati Insurance is a good choice for those with bad credit or accidents, and State Farm works well for DUI situations. These companies are a great starting point for affordable options.

In Alabama, senior drivers can get affordable rates with Cincinnati Insurance, averaging $16 monthly for minimum coverage.

*We used minimum coverage for a 65-year old driver with good credit and no driving violations to determine the cheapest provider.

Cincinnati Insurance typically offers the cheapest rates for senior drivers needing minimum coverage, including those with bad credit, accidents or speeding tickets. State Farm is a budget-friendly option for DUIs, while COUNTRY Financial offers the best full coverage rates. Use the table below to compare quotes and find the right policy for your needs.

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State Farm offers the best rates for Alabama drivers with DUIs, averaging $36 per month ($436 per year) for minimum coverage. Check the table below for a list of insurance providers and their average monthly premiums for drivers with DUIs in Alabama.

*We used a 40-year-old driver with good credit and a DUI on record to calculate these averages.

Cincinnati Insurance, with rates averaging $34 per month ($402 per year), is the cheapest company for drivers after an at-fault accident. The table below lists other insurers offering affordable coverage for drivers with accidents on their records. Rates are for a minimum coverage policy.

*We used a 40-year-old driver with good credit and an at-fault accident on record to calculate these averages.

Cincinnati Insurance offers the cheapest rates for Alabama drivers with speeding tickets, starting at just $23 per month. Check the table below to compare providers offering minimum coverage for drivers with speeding tickets.

*We used a 40-year-old driver with good credit and a speeding ticket on record to calculate these averages.

Cincinnati Insurance is the cheapest car insurance provider for drivers with poor credit, with a monthly rate of $31 and an annual rate of $372 for minimum coverage. Check the table below for more options.

*These rates are based on a 40-year-old driver with bad credit and a clean driving record.

Location affects car insurance rates, with factors like population, flood risks and crime influencing costs. 

In Alabama, for instance, Cincinnati Insurance offers a minimum coverage policy for $22 per month in Birmingham, while the same policy costs $19 in Huntsville. Check the table below for the most affordable car insurance in your Alabama city and see the lowest average monthly premium.

The lowest rate reference is for a minimum coverage policy for 40-year-olds with good credit and no driving violations.

For affordable home and auto insurance bundles in Alabama, Allstate leads with an average annual premium of $1,664. Other cost-effective options are listed below.

*Rates are for a 40-year-old driver with good credit and no driving violations.

The average cost of car insurance in Alabama is $86 for full coverage and $40 for minimum coverage. Understanding these averages helps you gauge if you're getting a fair deal on your policy.

In Alabama, car insurance rates vary by city. See this table for average state minimum and full coverage costs in different locales.

Car insurance in Alabama is generally more affordable than in most other states. This is due to factors like the state's lower population density, less severe weather and fewer vehicle thefts, which help keep insurance premiums lower for Alabama residents.

Alabama law requires all drivers to carry car insurance that meets the state’s minimum coverage limits: $25,000 for bodily injury per person, $50,000 per accident and $25,000 for property damage. 

If you finance or lease your car, you’ll likely need comprehensive and collision insurance in addition to these minimum coverages. While minimum liability insurance is the most affordable option, it offers the least financial protection. Experts recommend choosing full coverage with the highest deductible and liability limits you can comfortably afford.

Drivers with serious violations, like speeding or DUI, may need SR-22 insurance, which can increase premiums. You must file the SR-22 form in Alabama, which remains valid for three years from your most recent offense.

A common alternative to car insurance in Alabama is a surety bond. This bond guarantees payment for damages if you cause an accident, helping you meet the state's insurance requirements.

Self-insurance is another option for business owners. It involves setting aside enough money to cover potential accident costs and proving to the state that you can handle claims without traditional insurance.

MoneyGeek recommends full coverage car insurance, which includes liability, collision and comprehensive coverage. We suggest the following liability limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage per accident

Comprehensive coverage pays for off-road damage to your car if it's stolen, vandalized or damaged by something other than a collision, like severe weather or a fire. Collision coverage pays for damage to your car in an on-road collision.

If you own a valuable car, it's wise to purchase both comprehensive and collision insurance, even though it’s not legally required. Tailor your deductible to what you can afford to pay out of pocket before your insurance covers the rest.

COUNTRY Financial offers Alabama's cheapest full coverage at $57 monthly, and Cincinnati Insurance provides minimum coverage for just $19. While low prices are tempting, the cheapest option isn't always the best for car insurance. Experts recommend choosing the most coverage you can afford for the best financial protection.

We answer common questions about the cheapest car insurance in Alabama to ensure you get the right minimum coverage for your needs.

MoneyGeek obtained Alabama auto insurance rates from the Alabama Department of Insurance and Quadrant Information Services. We examined 31,680 auto insurance quotes from 11 providers across 45 ZIP codes to determine Alabama's most affordable car insurance companies.

Alabama Driver Profile

We used a driver profile with the following background information to identify the cheapest auto insurance companies in Alabama:

• 40-year-old male
• 2012 Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

To find the cheapest option for various driver backgrounds, we adjusted this sample profile by age, driving record, credit score, car make and model, and military service where specified.

Standard Coverage Levels in Alabama

We compared Alabama car insurance companies that offer minimum and full coverage policies. We set the limits of the minimum coverage car insurance policy to the minimum amount required by law in Alabama.

The minimum coverage limits in Alabama are:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident

For full coverage policy rates, we used the following liability limits:

• $100,000 for bodily injury liability per person
• $300,000 for bodily injury liability per accident
• $100,000 for property damage liability
• Comprehensive and collision coverage with a $1,000 deductible

Home and Auto Coverage Levels in Alabama

MoneyGeek analyzed the rates of insurance companies for a full coverage auto insurance policy that includes the following coverage and limits:

• $100,000 in property damage liability
• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• Comprehensive and collision coverage with a $1,000 deductible

We also analyzed rates for a homeowners insurance policy that includes the following limits and coverage:

• $250,000 dwelling coverage
• $25,000 other structures coverage
• $100,000 personal property coverage
• $25,000 loss of use coverage
• $100,000 personal liability coverage
• $1,000 medical payments coverage
• All-perils coverage with a $1,000 deductible