Best Cheap Car Insurance In Alabama (2023)

The most affordable car insurance company on average in Alabama is USAA, according to our rate estimates. The average cost of a full-coverage auto insurance policy with the insurer is $987 per year. Geico and Nationwide are also good choices for cheap car insurance in Alabama.

How Much Is Auto Insurance In Alabama?

According to our rate estimates, Alabama drivers pay an average of $1,479 per year for full-coverage auto insurance. Compared to the national average of $1,730 per year, car insurance in Alabama is almost 15 percent cheaper on average. The National Association of Insurance Commissioners (NAIC) ranked Alabama as the 29th-most expensive state for auto insurance in 2019.

While Alabama tends to have lower-than-average auto insurance costs, providers have their own factors that determine rates. These factors include:

• Age: Due to their inexperience on the road, young drivers generally pay more for car insurance.

• Gender on driver’s license: Car insurance tends to be more expensive for men than for women in most states.

• Marital status: Married drivers typically pay less for coverage and can take advantage of family or bundling discounts.

• Driving record: Traffic tickets, accidents, and DUIs affect your ability to get low-cost auto insurance. A clean driving record saves you most on comprehensive coverage.

• Credit score: Drivers with poor credit scores often have to pay higher car insurance premiums than those with good credit scores.

• Coverage level: A full-coverage policy costs more than the state’s minimum liability insurance.

Cheapest Alabama Car Insurance: Young Drivers

Teen and young adult drivers in Alabama are likely to find USAA, Geico, Nationwide, and Travelers to be the most affordable options for auto insurance, according to our cost estimates.

Cheapest Car Insurance In Alabama: 16-Year-Olds

Sixteen-year-old drivers often get some of the highest rates in the country. However, Alabama drivers this age can find the cheapest car insurance from Geico at around $320 per month and from USAA at around $335 per month.

Cheapest Car Insurance In Alabama: 18-Year-Olds

Eighteen-year-olds can find the cheapest coverage in Alabama at USAA. USAA car insurance costs roughly $197 per month on average for this age, but 18-year-old drivers can also find affordable coverage from Geico and Travelers.

Cheapest Car Insurance In Alabama: 21-Year-Olds

In Alabama, the cheapest full-coverage car insurance for 21-year-olds comes from USAA at $130 per month. Geico comes in a close second at $136 per month.

Cheapest Car Insurance In Alabama: 25-Year-Olds

The cheapest car insurance in Alabama for 25-year-olds comes at roughly $107 per month on average from USAA. Geico also offers affordable coverage at $108 per month.

Cheapest Alabama Car Insurance: High-Risk Drivers

Drivers that don’t have good credit or the cleanest driving records will pay more for car insurance than the average driver. That doesn’t mean that high-risk drivers in Alabama still can’t find relatively fair prices for full-coverage auto insurance. The following averages are for 35-year-old male drivers.

Cheapest Alabama Car Insurance: Speeding Tickets

You may face higher car insurance rates if you have a speeding ticket on your driving record. For drivers with speeding violations in Alabama, rate estimates show USAA tends to be the least expensive option.

Cheapest Alabama Car Insurance: Recent Accidents

Based on our rate estimates, USAA offers the lowest average cost to Alabama drivers who have been involved in recent accidents.

Cheapest Alabama Car Insurance: DUIs

Drivers with DUI convictions often pay very high prices. In Alabama, DUI drivers can find competitive coverage with State Farm, at $147 per month. Travelers also provides relatively cheap coverage at $155 per month.

Cheapest Alabama Car Insurance: Bad Credit

Your credit report has a significant effect on the cost of your car insurance in Alabama. According to our research, USAA, Geico, and Nationwide are typically the best options for drivers with low credit scores, with average rates below $1,700 per year.

Our team considers cost, coverage options, customer satisfaction, and reputation when rating car insurance companies. USAA, Nationwide, and Geico topped the list of best choices for Alabama auto insurance, closely followed by Travelers and State Farm.

A minimum liability car insurance policy is required by the Alabama Department of Insurance for all drivers. Drivers must carry insurance that meets the following minimum coverage requirements:

• Bodily injury liability coverage: $25,000 per person/$50,000 per accident
• Property damage liability coverage: $25,000 per accident

Basic liability car insurance does not cover the cost of any damage to your vehicle or any of your medical payments. It also won’t compensate for damages when an underinsured or uninsured driver causes an accident.

Here are some additional coverage options you should consider adding to your policy to cover these situations:

• Comprehensive insurance
• Collision insurance
• Underinsured/uninsured motorist coverage
• Medical payments coverage or personal injury protection

Comparing cost and coverage options is the first step to finding affordable car insurance in Alabama. Get free quotes from several top-rated providers. Quotes are readily available online from most major providers, which makes it easy for you to compare car insurance quotes. Alternatively, you can call insurance companies or speak with a broker or agent to get a more personalized quote.

Drivers in Alabama can usually find affordable auto insurance coverage from companies like USAA, Geico, and Nationwide, but your rates will vary depending on factors such as your vehicle type, driving record, age, and credit history. For a rough estimate of what you’ll pay for Alabama auto insurance coverage, reach out for multiple car insurance quotes to find the best option.

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

• Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.