Below are our picks for Alabama's best home and auto insurance bundling companies:
Best Home and Auto Insurance in Alabama
Updated: April 3, 2025
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Key Takeaways
Farmers, USAA and Allstate are the best home and auto insurance companies in Alabama.
Farmers offers the best home and auto insurance discount, with savings of 23% on auto insurance and 15% on home insurance.
The average annual cost of home and auto insurance in Alabama is $2,778, roughly 10% less than the national average.
Who Offers the Best Home and Auto Insurance Bundles in Alabama?
| USAA | 86 | $2,907 | $230 |
| Nationwide | 79 | $3,168 | $587 |
| Auto-Owners | 78 | $3,318 | $423 |
| Allstate | 75 | $2,250 | $470 |
| Farmers | 74 | $1,868 | $486 |
| State Farm | 73 | $3,157 | $1,198 |
Farmers: Best Cheap Home and Auto Insurance in Alabama
Farmers offers the cheapest home and auto insurance bundle in Alabama, saving customers $486 per year. It provides discounts for young drivers and students, plus up to 15% off car insurance with the Farmers Signal app for safe driving. Farmers ranks sixth in the region for customer satisfaction, according to J.D. Power.
| Auto | $1,335 | $394 | 23% |
| Home | $533 | $92 | 15% |
USAA: Best Home and Auto Insurance in Alabama for Military
USAA offers the third-lowest home and auto insurance rates for military members and their families, plus discounts like the SafePilot program, which saves up to 30% on car insurance. It ranks first in customer satisfaction by J.D. Power.
| Auto | $840 | $26 | 3% |
| Home | $2,067 | $204 | 9% |
Allstate: Best Home and Auto Insurance Coverage Options in Alabama
Allstate is Alabama's second-cheapest home and auto insurer, offering discounts like Drivewise, which saves up to 40% on car insurance. It also provides unique coverage options, including accident forgiveness, new car replacement and green improvement reimbursement.
| Auto | $991 | $161 | 14% |
| Home | $1,260 | $309 | 20% |
Alabama Home and Auto Insurance Cost
In Alabama, home and auto insurance costs an average of $232 per month, lower than the national average of $258. Monthly rates vary by provider, ranging from $156 to $277.
| Alabama home and auto insurance bundle | $2,778 | $316 | -10% |
| National home and auto insurance bundle | $3,094 | $0 | 0% |
Alabama Home and Auto Insurance Quotes Without Bundling
Our research shows bundling home and auto insurance in Alabama may cost more than separate policies, though your quotes may vary. Below are the average costs of coverage combinations from our top providers without bundling, listed from cheapest to most expensive.
| USAA | Farmers | $1,490 |
| Nationwide | Farmers | $1,730 |
| Allstate | Farmers | $1,776 |
| Auto-Owners | Farmers | $2,093 |
| State Farm | Farmers | $2,256 |
| USAA | Allstate | $2,435 |
| Nationwide | Allstate | $2,674 |
| Auto-Owners | Allstate | $3,037 |
| USAA | Auto-Owners | $3,138 |
| State Farm | Allstate | $3,200 |
| Farmers | Allstate | $3,298 |
| Nationwide | USAA | $3,376 |
| Nationwide | Auto-Owners | $3,378 |
| Allstate | USAA | $3,423 |
| Allstate | Auto-Owners | $3,424 |
| USAA | Nationwide | $3,515 |
| USAA | State Farm | $3,589 |
| Auto-Owners | USAA | $3,739 |
| Allstate | Nationwide | $3,801 |
| Nationwide | State Farm | $3,828 |
| Allstate | State Farm | $3,875 |
| State Farm | USAA | $3,902 |
| State Farm | Auto-Owners | $3,904 |
| Farmers | USAA | $4,000 |
| Farmers | Auto-Owners | $4,002 |
| Auto-Owners | Nationwide | $4,118 |
| Auto-Owners | State Farm | $4,191 |
| State Farm | Nationwide | $4,281 |
| Farmers | Nationwide | $4,379 |
| Farmers | State Farm | $4,452 |
Should I Bundle Home and Auto Insurance in Alabama?
For Alabama drivers, bundling home and auto insurance often costs more than buying separate policies. Consider your coverage needs and financial situation to determine your best option.
Individual policies cost less in Alabama
In Alabama, the cheapest annual cost without bundling is $1,490, while bundling starts at $1,868. Buying separate policies could save you $378 per year.
Bundling makes policy management convenient
Bundling simplifies insurance management by combining home and auto policies under one account, saving time and reducing hassle.
It might be better not to bundle in Alabama
Purchasing separate insurance policies in Alabama can help you save money while providing more flexibility in coverage options. This might benefit you if you have certain needs that bundled policies don't address.
Best Auto and Home Insurance in Alabama: Bottom Line
Farmers, Allstate and USAA are the best options for bundling home and auto insurance in Alabama. However, buying policies separately typically costs less. Compare quotes from multiple companies to find the best deal for your situation.
Home and Auto Insurance in Alabama: FAQ
Explore expert answers to questions about Alabama home and auto insurance:
Who has the best home and auto insurance in Alabama?
Farmers offers the best home and auto insurance in Alabama, while USAA is the top choice for military members. Allstate provides the best coverage options in the state.
Who has the cheapest home and auto insurance in Alabama?
Farmers offers the most affordable home and auto insurance bundle in Alabama, with an annual premium of $1,868. The bundle provides an average annual savings of $486.
How much does home and auto insurance in Alabama cost on average?
In Alabama, the average annual cost of bundling home and auto insurance is $2,778, about 10% lower than the national average. The most affordable bundle costs around $1,868 annually, while the priciest option is around $3,318.
Is bundling home and auto insurance cheaper in Alabama?
In Alabama, bundling home and auto insurance is usually more expensive than buying separate policies. While the lowest-cost option may seem attractive, ensure you have enough financial protection against major losses.
Best Auto and Home Insurance Bundle in Alabama: Our Methodology
MoneyGeek used data from the Alabama Department of Insurance and Quadrant Information Services to calculate home and auto insurance rates.
Bundle Scoring System
We combined this data with customer satisfaction ratings from leading agencies, including AM Best and J.D. Power, to generate individual scores for home and auto insurance. We also considered each insurer's bundle discounts to evaluate their savings potential.
Using this information, we calculated a “bundle score” out of 100 based on the following weighted categories:
- Home insurance score: 40%
- Auto insurance score: 40%
- Discounts: 20%
Car, Home and Buyer Profile in Alabama
MoneyGeek’s typical profile includes:
- 40-year-old male
- Good driving history
- 2010 Toyota Camry LE
- 12,000 miles driven annually
- Home built in 2000
Coverage Levels in Alabama
MoneyGeek analyzed rates for full coverage auto insurance with these limits:
- $100,000 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 homeowners insurance with the following 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
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.