Updated: November 14, 2024
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Cincinnati Insurance offers the cheapest minimum coverage policy in Alabama, while COUNTRY Financial and Travelers are the most affordable for certain types of drivers.
MoneyGeek ranks the companies providing the best car insurance in Alabama based on their balance of quality service and affordability.
CheapestCar InsuranceAlabamaTable of Contents
Why Trust MoneyGeek? We used up-to-date information from the Alabama Department of Insurance and Quadrant Information Services to find the cheapest auto insurance for different types of drivers in Alabama.
These rates reflect the cheapest car insurance quotes in Alabama as of October 2024.
The cheapest auto insurance companies for minimum coverage in Alabama are:
Farmers offers the costliest minimum coverage, with an average yearly premium of $656. Alabama's minimum insurance policies include only property damage liability and bodily injury liability coverage.
| Cincinnati Insurance | $226 | $19 |
| State Farm | $385 | $32 |
| Travelers | $413 | $34 |
| Country Financial | $439 | $37 |
| Auto-Owners Insurance Co | $453 | $38 |
| Progressive | $482 | $40 |
| GEICO | $509 | $42 |
| Nationwide | $628 | $52 |
| Allstate | $649 | $54 |
| Farmers | $656 | $55 |
A minimum coverage policy covers only the expense for damage or injury you cause to others, not your own vehicle. Consider purchasing a full coverage policy with comprehensive and collision insurance to have coverage for your car.
Find the Best Car Insurance in Alabama for You
The amount of coverage you need depends on your preferences and insurance requirements.
The table above shows Alabama’s minimum coverage insurance rates.
Our analysis also used service quality and affordability to rate the best car insurance providers in Alabama.
The average cost of car insurance in Alabama for various driver profiles provides insights into how certain factors impact prices.
In Alabama, the following companies offer the cheapest full coverage auto insurance:
Progressive's annual premium for full coverage in Alabama is around $1,359, the state's highest.
Your annual premium increases when you add comprehensive and collision insurance to your policy. For instance, COUNTRY Financial charges $241 more for full coverage than minimum coverage.
Full coverage auto insurance affords you better financial protection. It covers losses from off-road incidents (like storm help damage, theft and vandalism) and on-road collisions (with another vehicle or object, like a tree or light pole).
| Country Financial | $680 | $57 |
| Cincinnati Insurance | $796 | $66 |
| Travelers | $847 | $71 |
| State Farm | $962 | $80 |
| Auto-Owners Insurance Co | $1,022 | $85 |
| GEICO | $1,085 | $90 |
| Allstate | $1,138 | $95 |
| Nationwide | $1,164 | $97 |
| Farmers | $1,267 | $106 |
| Progressive | $1,359 | $113 |
Your rates will vary depending on how much car insurance you need. MoneyGeek’s sample full coverage policy has the following:
Alabama's drivers can save by selecting lower liability limits; a higher deductible for comprehensive, collision or both; or forgoing comprehensive and collision insurance. Unfortunately, decreasing the limits puts you at risk of inadequate coverage in an accident.
Many providers offer online auto insurance quote estimates, which generally take up to 15 minutes and often require you to disclose sensitive information. If you’re researching numerous insurers, this can be a time-consuming hassle.
Instead of submitting your personal information to several insurers, use MoneyGeek's car insurance calculator to get a quick estimate of how much your car insurance costs in Alabama. Enter your age, gender and driving history from the options below to get started.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Nov 20, 2024
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Age impacts car insurance rates. Depending on your age group, GEICO or COUNTRY Financial is the most affordable choice for you and your family.
Parents in Alabama who want to add their teens to their auto policy will find the following companies to be the cheapest:
These rates apply to a 16-year-old insured under a parent's plan. Auto-Owners policies cost the most for female teens at $3,457 per year, while State Farm charges the most for male teens at $3,900 yearly on average.
Car insurance rates for teens drop with age, creating a big difference between premiums for drivers aged 16 and 19. GEICO offers the cheapest rate for 19-year-old female drivers in Alabama at $1,362 annually.
Adding a teen to your insurance typically costs much less than purchasing a separate policy. A teen under 18 cannot legally purchase auto insurance without a parent or guardian's consent. Individual plans for a 16-year-old driver from Alabama cost roughly $5,869 per year compared with $2,769 when added to a parent's car insurance. That’s a $3,100 premium difference.
| GEICO | $1,764 | $5,791 |
| Allstate | $1,765 | $4,842 |
| Nationwide | $1,909 | $3,595 |
| Travelers | $2,126 | $4,123 |
| Farmers | $2,527 | $8,192 |
| State Farm | $3,084 | $3,348 |
| Progressive | $3,139 | $8,803 |
| Auto-Owners Insurance Co | $3,457 | $3,089 |
Although GEICO and Nationwide don't provide distant student discounts, all the Alabama insurers we evaluated offer discounts to students with good grades.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens due to their higher risk of accident frequency. This rate difference is not as notable when drivers reach their 20s and beyond. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
These are the cheapest auto insurance providers for Alabama drivers in their 20s:
Progressive offers the most expensive insurance for young individuals, with an average annual premium of $1,932. In Alabama, drivers in their 20s pay an average of $282 more annually for auto insurance from COUNTRY Financial than people in their 30s to 50s.
| Country Financial | $844 | $70 |
| Cincinnati Insurance | $981 | $82 |
| Travelers | $994 | $83 |
| State Farm | $1,241 | $103 |
| Allstate | $1,276 | $106 |
| GEICO | $1,342 | $112 |
| Auto-Owners Insurance Co | $1,431 | $119 |
| Farmers | $1,531 | $128 |
| Nationwide | $1,563 | $130 |
| Progressive | $1,932 | $161 |
The following insurers provide the cheapest full coverage policies for senior drivers in Alabama:
At around $1,396 per year, Progressive offers the most expensive premium for seniors in the state.
Compared with drivers in their 40s and 50s, senior drivers in Alabama pay an average of $45 less per year for car insurance from COUNTRY Financial. However, rates often rise when drivers approach their 70s and 80s due to increased accident frequency.
| Country Financial | $574 | $48 |
| Cincinnati Insurance | $644 | $54 |
| Travelers | $827 | $69 |
| State Farm | $885 | $74 |
| Auto-Owners Insurance Co | $997 | $83 |
| GEICO | $1,047 | $87 |
| Nationwide | $1,070 | $89 |
| Farmers | $1,198 | $100 |
| Allstate | $1,234 | $103 |
| Progressive | $1,396 | $116 |
Allstate, GEICO and Farmers are among the insurers in Alabama that provide discounts to seniors. Insurance companies consider age when calculating premiums, so compare quotes from different providers to get the best offer.
In Alabama, COUNTRY Financial has the lowest rates for drivers with speeding tickets, accident history and DUI. Rates generally go up with violations.
Travelers is the most affordable insurance for sports cars, while COUNTRY Financial is the cheapest for people with poor credit.
Most Alabama drivers who receive a speeding ticket can find the most affordable full coverage policy with the following insurers:
Progressive has the most expensive insurance premium, at around $1,941 annually. If you get a speeding ticket in Alabama, your average premiums might increase by as much as $246.
| Country Financial | $828 | $69 |
| Cincinnati Insurance | $946 | $79 |
| State Farm | $1,062 | $89 |
| Auto-Owners Insurance Co | $1,169 | $97 |
| Travelers | $1,179 | $98 |
| GEICO | $1,290 | $108 |
| Allstate | $1,300 | $108 |
| Nationwide | $1,428 | $119 |
| Farmers | $1,632 | $136 |
| Progressive | $1,941 | $162 |
The cheapest full coverage auto insurance providers for Alabama motorists with an at-fault collision on their records are:
The most expensive, Progressive, costs around $2,606 annually for drivers with at-fault accidents. Being at fault in a car accident in Alabama can boost your average annual premium by $541.
| Country Financial | $861 | $72 |
| State Farm | $1,201 | $100 |
| Travelers | $1,231 | $103 |
| Auto-Owners Insurance Co | $1,370 | $114 |
| Cincinnati Insurance | $1,374 | $115 |
| Allstate | $1,633 | $136 |
| GEICO | $1,649 | $137 |
| Farmers | $1,855 | $155 |
| Nationwide | $1,948 | $162 |
| Progressive | $2,606 | $217 |
An at-fault accident may cause your auto insurance premium to rise significantly, but if you have accident forgiveness coverage on your policy, you won't see your rate go up. This optional coverage stops the premium increase after your first at-fault accident. You can pay for this coverage or earn it with certain insurance companies, such as GEICO. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
If you have a DUI on your record, the least costly options for full coverage auto insurance in Alabama are:
Nationwide has the highest annual premium for drivers with a DUI, at about $2,399. With a DUI on your record, you can expect a $712 increase in your annual rate in Alabama.
| Country Financial | $993 | $83 |
| State Farm | $1,062 | $89 |
| Travelers | $1,365 | $114 |
| Allstate | $1,585 | $132 |
| Farmers | $1,772 | $148 |
| Progressive | $1,852 | $154 |
| Cincinnati Insurance | $1,887 | $157 |
| Auto-Owners Insurance Co | $2,137 | $178 |
| GEICO | $2,382 | $198 |
| Nationwide | $2,399 | $200 |
Alabama's least expensive car insurance providers for people with bad credit are:
State Farm charges more than any other insurer, around $3,297 annually if you have a poor credit score.
Insurers use a driver's credit history to create a proprietary credit-based insurance score when determining premiums. In Alabama, you may pay about $911 more for car insurance for having a credit score of under 580 compared with someone with a credit score above 750.
| Country Financial | $949 | $79 |
| Cincinnati Insurance | $1,280 | $107 |
| Travelers | $1,327 | $111 |
| GEICO | $1,648 | $137 |
| Nationwide | $1,691 | $141 |
| Allstate | $1,929 | $161 |
| Farmers | $1,961 | $163 |
| Progressive | $2,505 | $209 |
| Auto-Owners Insurance Co | $2,837 | $236 |
| State Farm | $3,297 | $275 |
Statistically, drivers with a poor credit history file more claims than drivers with good credit, and Alabama allows insurance companies to consider credit history when deciding premiums.
Your insurance premiums may decrease when your credit situation improves. However, insurers give discounts, which can help you counteract the higher rates associated with poor credit.
The cheapest auto insurance providers in Alabama for owners of sports cars are:
Progressive's average annual premium of $1,965 is the state's most expensive.
Sports car insurance is typically more expensive than a policy for a standard car due to higher repair and replacement costs. Sports car owners in Alabama pay around $218 more for auto insurance than those who drive a Toyota Camry LE.
| Travelers | $827 | $69 |
| Auto-Owners Insurance Co | $1,026 | $85 |
| Allstate | $1,167 | $97 |
| Farmers | $1,184 | $99 |
| State Farm | $1,202 | $100 |
| GEICO | $1,301 | $108 |
| Nationwide | $1,328 | $111 |
| Progressive | $1,965 | $164 |
MoneyGeek obtained the quotes above using a Ford Mustang, but auto insurance premiums can vary significantly based on the vehicle type. Sports, electric and luxury cars often cost more to insure than others.
Active-duty military personnel and veterans in Alabama can find the cheapest full coverage insurance from COUNTRY Financial for around $680 per year.
USAA also offers quality car insurance coverage to active-duty military, veterans and their qualifying family members in all 50 states and Washington, D.C. Its average annual premium is $774.
Where you live in Alabama will affect the amount you pay for auto insurance. Drivers residing where theft, vandalism or accidents occur more frequently are more likely to file insurance claims. Hence, they pay higher premiums.
Huntsville residents have the most affordable full coverage car insurance in the state, with Cincinnati Insurance offering it for around $870 annually. In Montgomery, an annual full coverage policy from Cincinnati Insurance costs $884 annually.
The following list will give you an idea of how much car insurance costs in different Alabama cities.
| Birmingham | Cincinnati Insurance | $1,046 |
| Huntsville | Cincinnati Insurance | $870 |
| Mobile | Cincinnati Insurance | $970 |
| Montgomery | Cincinnati Insurance | $884 |
Alabama mandates that motorists have bodily injury and property damage liability coverage. The state doesn't require coverage for personal injury protection or uninsured/underinsured motorists.
Alabama law demands that auto insurance that meets the minimum limits for bodily injury and property damage liability coverage be carried out. Although economical, a minimum coverage policy provides less protection. MoneyGeek advises getting the highest liability coverage you can afford for added security.
Most significant driving infractions, including reckless driving, driving without insurance and driving while your license is suspended, also call for SR-22 insurance in Alabama, which could increase your coverage requirements.
Bodily injury liability
Bodily injury liability insurance pays for injuries you inflict on another driver in a collision for which you're responsible. In Alabama, minimum bodily liability coverage requirements are $25,000 per person and $50,000 per accident. You're responsible for the remaining balance if the medical costs exceed this cap.
Property damage liability
Alabama mandates that motorists carry a minimum of $25,000 in property damage liability coverage. If you're at fault in an accident that causes damage to another person's property, your insurance will pay up to $25,000 per accident. Still, you'll be responsible for any damage over this amount.
MoneyGeek recommends purchasing liability insurance with at least $100,000 in bodily injury per person and $300,000 per accident, as well as property damage liability coverage of $100,000.
If your vehicle is financed or leased, it's best to carry comprehensive and collision coverages, which may be required. Comprehensive coverage will pay for any non-collision-related damage to your car, such as from animals, theft, vandalism and weather events.
In an at-fault collision, collision coverage will pay for repair or replacement if your car is damaged by another vehicle or a stationary object — such as a tree. Having comprehensive and collision coverage on an expensive vehicle is a good idea, even if you did not finance or lease it.
Alabama provides alternatives to carrying the state’s minimum liability insurance. For example, drivers can submit a motor vehicle liability bond with the Department of Revenue via a surety company for at least $50,000. Another option is to make a cash deposit of the same amount with the state treasurer.
Those who choose the former will be issued a certificate for a motor vehicle liability bond, whereas those who choose the latter will be issued a certificate for a cash bond. You should always have copies of these certifications in your vehicle, just like you would with insurance.
We answered a few common questions to help you understand Alabama auto insurance cost and quality.
With an average annual premium of $226, Cincinnati Insurance offers the cheapest car insurance in Alabama for minimum coverage. The average cost of full coverage car insurance in Alabama is $1,032 annually, and your driver details affect your cheapest option.
If cost is your primary concern, a minimum coverage policy from Cincinnati Insurance, the cheapest provider in Alabama, may meet your needs. However, we recommend additional coverage for better protection in case of a serious event. For a balance between price and quality, Cincinnati Insurance also has the best auto insurance in Alabama.
You can include uninsured/underinsured motorist (UM/UIM) coverage in your auto policy in Alabama. Every company must offer it, and you must decline it in writing. With over 19% of drivers in the state uninsured, insurance professionals highly recommend having UM coverage.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
