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Choosing the right auto insurance coverage can be quite a challenge. Our team of experts has done the research to help you find the best and most affordable providers for car insurance in Alabama. Geico, USAA, and State Farm ranked among the best options for Alabama drivers.

In this article, we’ll take a close look at the best car insurance companies available in Alabama, as well as each provider’s average annual costs, coverage options, and more. We recommend getting free quotes from leading insurers to find the best choice for your needs, so we’ll also cover how to compare quotes from the most reputable providers.

Cheap Car Insurance In Alabama

The most affordable car insurance company on average in Alabama is USAA, according to our rate estimates. The average cost of a full coverage policy with the insurer is $809 per year. With average annual costs below $1,100 in the state, Geico and Nationwide are also good choices for cheap car insurance in Alabama.

Car Insurance Providers in Alabama

Estimated Annual Cost

USAA

$809

Geico

$993

Nationwide

$1,025

Travelers

$1,269

State Farm

$1,349

Allstate

$1,372

Auto-Owners Insurance

$1,377

Progressive

$1,385

How Much Is Auto Insurance In Alabama?

According to our rate estimates, Alabama drivers pay an average of $1,478 per year for full coverage auto insurance. Compared to the national average of $1,732 per year, car insurance in Alabama is about 15 percent cheaper on average. The National Association of Insurance Commissioners (NAIC) ranked Alabama as the 31st-most expensive state for auto insurance in 2018.

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: 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 auto 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

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

Car Insurance Providers in Alabama

Estimated Annual Cost

Geico

$1,115

USAA

$1,141

Travelers

$1,539

Allstate

$1,610

Nationwide

$1,652

State Farm

$1,836

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.

Car Insurance Providers in Alabama

Estimated Annual Cost

USAA

$927

Geico

$1,224

Nationwide

$1,326

State Farm

$1,470

Allstate

$1,524

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.

Car Insurance Providers in Alabama

Estimated Annual Cost

USAA

$1,178

Geico

$1,609

State Farm

$1,652

Travelers

$1,756

Nationwide

$1,757

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.

Car Insurance Providers in Alabama

Estimated Annual Cost

USAA

$1,361

Geico

$1,513

Nationwide

$1,619

Travelers

$2,229

Allstate

$2,262

Progressive

$2,385

Top 5 Auto Insurance Companies In Alabama

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

Best Car Insurance in Alabama

Overall Rating

Cost Rating

Coverage Rating

1. Geico Car Insurance

5.0

4.5

5.0

2. USAA Car Insurance

5.0

5.0

4.5

3. State Farm Car Insurance

4.5

4.5

4.0

4. Allstate Car Insurance

4.0

3.5

4.5

5. Nationwide Car Insurance

4.0

3.5

4.5

*Our research team scores car insurance companies by taking nationwide factors into account. The order of insurers in this table is specific to auto insurance in Alabama.

#1 Geico: Best Overall Provider

Geico is one of the largest auto insurers in the U.S. and offers excellent coverage at affordable rates in Alabama. AM Best has rated the company A++ for financial strength, demonstrating Geico’s reliability when it comes to its ability to pay out claims.

In addition to offering standard auto insurance coverage, Geico provides roadside assistance, rental car reimbursement, and mechanical breakdown coverage options as well. Geico is also known for its wide variety of available discounts, including price breaks for good drivers, students, and more. In our nationwide insurance review, we gave the company 5.0 stars–our highest rating.

To learn more about the insurer’s average costs and coverage options, check out our Geico insurance review.

#2 USAA: Best For Military Members

We recommend USAA as one of the best car insurance companies in Alabama. Those who qualify for coverage, which includes only military members, veterans, and their immediate family members, can take advantage of affordable rates from the provider. USAA also offers additional auto insurance coverage options such as gap insurance, roadside assistance, and accident forgiveness.

When it comes to customer satisfaction, USAA has one of the best industry reputations. The company received the highest score in the Southeast region in the J.D. Power 2021 U.S. Auto Insurance Study℠. Additionally, USAA has excellent industry ratings from respected organizations, including an A+ rating from the Better Business Bureau (BBB) and an A++ rating from AM Best.

Read our USAA insurance review to learn more about the provider.

#3 State Farm: Best For Student Drivers

Due to its affordable pricing, good reputation within the industry, and reliable claims service, we rated State Farm as one of the best car insurance companies for Alabama drivers. As for its industry standing, State Farm holds an A++ financial strength rating from AM Best and placed sixth in the J.D. Power 2021 U.S. Auto Claims Satisfaction Study℠.

This insurance company offers good car insurance discounts that can help students save up to 25 percent until they reach the age of 25, making it one of the most affordable choices available to students in the state. State Farm‘s Steer Clear® program also offers savings up to 20 percent for Alabama drivers under the age of 25.

For more information, take a look at our State Farm insurance review.

#4 Allstate: Best Local Agents

Allstate ranks among our top recommendations for Alabama drivers because of the exceptional value it provides. The company provides excellent auto insurance coverage at an affordable price point, making it an especially good choice for car insurance in Alabama. It’s also known for its network of local insurance agents, who offer a more personalized experience with positive customer service.

In addition to standard auto insurance coverage, the company offers roadside assistance, rental reimbursement coverage, rideshare insurance, and several other options. Allstate also offers a usage-based insurance program called Drivewise®, which rewards safe driving habits with discounts on auto insurance policies.

Read our Allstate insurance review for more information about the insurer.

#5 Nationwide: Best For Senior Drivers

Our team found some of the cheapest car insurance in Alabama from our final pick, Nationwide. The insurer is one of the most affordable options for drivers with a speeding ticket on their record and those with a bad credit score. The company also has a strong industry reputation, as evidenced by its A+ ratings from both AM Best and the BBB.

In our research, we found that Nationwide’s discounts and usage-based insurance programs offered some of the best deals. With Nationwide, drivers can save money by bundling policies, being a good student, and staying accident-free. Alabama drivers can also save up to 40 percent on auto insurance by participating in Nationwide’s safe-driving program, SmartRide®, or opting for Nationwide’s pay-per-mile option, SmartMiles®.

Read our Nationwide insurance review for more details about the company and its auto insurance coverage options.

Alabama Insurance Requirements

A minimum liability 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 insurance does not cover the cost of any damage to your vehicle or any of your medical payments. Furthermore, it will not 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 coverage
  • Collision coverage
  • Underinsured/uninsured motorist coverage

How To Get Alabama Car Insurance Quotes

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 Geico, USAA, and State Farm, 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.

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Frequently Asked Questions

How We Rate Insurers

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 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.