Best Cheap Car Insurance In Alabama

Best Cheap Car Insurance In Alabama
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Auto insurance is an important purchase, but finding cheap car insurance in Alabama isn’t always easy. The best way to find cheap car insurance is to compare rates from multiple insurers.

The cost of car insurance is highly personalized and varies from person to person. Car insurance companies weigh several individual rating factors when considering which rate to charge you, including your age, driving record, address, the type of car you drive, and more. By using a car insurance calculator, you can get a ballpark estimate of how much car insurance will cost without entering your personal information.

The estimator can help you decide if it’s time to switch car insurance companies or find the right company that fits your needs and budget.

Minimum coverage in Alabama is $679 per year on average, but you can likely get a cheaper policy. For example, Cincinnati Insurance offers the cheapest rates in Alabama at $301 per year, on average, for minimum coverage car insurance for a 35-year-old driver with a clean driving record.

Not all car insurance companies are equal. Some will meet your needs better than others. Before you choose a company, take a look at their website to see the types of policies they offer and the coverages and discounts available.

Minimum car insurance requirements in Alabama

Driving without insurance in Alabama is illegal and can result in drivers facing serious consequences. Drivers in Alabama are required to meet state minimum requirements for car insurance. This includes having at least:

Alabama drivers are required to purchase liability insurance, which kicks in if you cause a crash to pay for others’ injury treatment and property damage.

The minimum limits you must select are:

  • $25,000 bodily injury liability coverage per person.
  • $50,000 bodily injury liability coverage per crash.
  • $25,000 property damage liability coverage per crash.

It’s typically smart to get more than the bare minimum, however, as these limits may not be enough to fully cover costs if the incident is serious.

Uninsured motorist coverage must be offered but can be declined by the driver in writing.

While having the state minimum requirements fulfilled by your policy means you are in compliance with Alabama car insurance laws, it can be beneficial to purchase higher amounts of liability or add-on coverage options for better protection. Additional coverage like medical payments, comprehensive, collision and uninsured motorist can help you more easily meet the financial demand required after an incident.

Keep in mind that if you lease or finance your vehicle, you’ll likely be required to purchase comprehensive and collision coverage options from your financial institution. You might also consider purchasing gap insurance, which will pay the difference between your vehicle’s value if it’s totaled and the amount you still owe if the value is lower than the remaining loan balance.

Cheapest car insurance in Alabama for full coverage

For drivers who are looking for more robust coverage than can be found with minimum insurance, full coverage may be a good option. This includes not only the liability insurance that the state requires but also coverage for you and your vehicle if you’re in an at-fault accident or other vehicle mishap. Although the average rate for full coverage in Alabama is $1,843, the carriers listed below all come in below that, with Travelers having the lowest average rate.

CarrierMonthly full coverage premiumAnnual full coverage premiumSavings vs state avg. for full coverage
Travelers$97$1,166– $677
Geico$111$1,330– $513
Nationwide$111$1,332– $511
USAA$126$1,513– $330
Safeway$130$1,562– $281

Cheapest car insurance in Alabama for drivers with prior incidents

In general, individuals with clean driving records, depending on their circumstances, earn the best cheap car insurance in Alabama. Because they have no previous infractions on their license, insurers assume they will continue to drive safely and will be at low risk of filing a claim. If you have an infraction or two on your license, you may pay a higher rate.

However, it’s important to remember that other factors — such as your age, credit rating and the make and model of your car — also play a role in determining your premium.

  • Cheapest car insurance for drivers with a ticket: Geico
  • Cheapest car insurance for drivers with an at-fault accident: Nationwide
  • Cheapest car insurance for high-risk drivers: Travelers

Cheapest car insurance in Alabama for high-risk drivers

Situations that could label a driver as high-risk include multiple accidents or tickets in a set period of time, experiencing a lapse in insurance coverage, or receiving a DUI conviction. The latter is one of the most serious driving incidents you can have on your record.

High-risk drivers may have limited options for managing car insurance costs and may no longer qualify for coverage with some insurance companies.

If you are considered a high-risk driver, you may want to consider looking into cheap car insurance companies offering non-standard car insurance. The table below showcases the cheapest car insurance companies in Alabama for drivers with a single DUI conviction, with Travelers offering the best rates.

However, remember that not all companies will extend coverage to high-risk drivers. Talking to a company directly is the best way to determine your eligibility.

CompanyAvg. annual min coverage premiumAvg. annual full coverage premium
Country Financial$637$2,674

If you have had your license suspended or revoked, you will need to obtain SR-22 insurance in order to have your license reinstated. An SR-22 isn’t actually a separate type of coverage, but instead is a certification that you can usually get from your insurance company that must be filed with the DMV. It states that you have insurance that meets or exceeds the minimum required coverage for Alabama.

The catch is that not all insurers will give you the option of filing an SR-22. If that is the case, you may need to switch to a new provider who is willing to write up the form and submit it for you.

Cheapest car insurance for young drivers in Alabama

It’s not surprising that your age impacts the rate you pay for your car insurance. Carriers look at the age groups that are most likely to be involved in accidents and are likely to charge more if you are in a high-risk age group. Since statistics show that young drivers have the highest number of accidents, this age group tends to pay more for their policies. As they enter their 20s, their rates will start to go down.

It is possible, however, to find reasonably priced policies for young drivers by shopping around.

  • Cheapest car insurance for insuring a teen driver: Allstate
  • Cheapest car insurance for teens with a ticket: Travelers
  • Cheapest car insurance for teens with an at-fault accident: Travelers
  • Cheapest car insurance for young drivers with a DUI: Travelers

Cheapest for 20-year-old drivers

Drivers in their 20s may have to get a lot of quotes to find the best cheap car insurance. Prices can be sky-high for younger 20-somethings but tend to come down as drivers get more experience on the road. Still, some companies routinely have better insurance rates for young drivers, so it’s best to shop around to find them.

Cheapest full coverage car insurance in Alabama for 20-year-olds

Drivers in Alabama with clean driving records may want to consider the following companies, which had the lowest average rates:

  1. Country Financial: $2,679 per year, or about $223 per month.
  2. Travelers: $2,738 per year, or about $228 per month.
  3. Progressive: $3,031 per year, or about $253 per month.
  4. Allstate: $3,124 per year, or about $260 per month.
  5. Auto-Owners: $3,189 per year, or about $266 per month.

Cheapest minimum coverage car insurance in Alabama for 20-year-olds

Drivers in Alabama who want just the state minimum coverage may want to check with these companies, which had the lowest average rates:

  1. Country Financial: $756 per year, or about $63 per month.
  2. Cincinnati Insurance: $772 per year, or about $64 per month.
  3. Travelers: $787 per year, or about $66 per month.
  4. Auto-Owners: $824 per year, or about $69 per month.
  5. Progressive: $955 per year, or about $80 per month.

Cheapest auto insurance in Alabama for 20-year-olds with poor credit

Drivers with poor credit in Alabama should look at the following insurers with the lowest average rates for minimum coverage:

  1. Safeway: $1,094 per year, or about $91 per month.
  2. Cincinnati Insurance: $1,146 per year, or about $96 per month.
  3. Country Financial: $1,171 per year, or about $98 per month.
  4. Travelers: $1,227 per year, or about $102 per month.
  5. Progressive: $1,306 per year, or about $109 per month.

Cheapest auto insurance in Alabama for 20-year-old drivers with one speeding ticket

For drivers with a recent speeding ticket in Alabama, here are the companies with the lowest average rates for minimum coverage:

  1. Cincinnati Insurance: $916 per year, or about $76 per month.
  2. Travelers: $980 per year, or about $82 per month.
  3. Country Financial: $1,038 per year, or about $87 per month.
  4. Progressive: $1,083 per year, or about $90 per month.
  5. Safeway: $1,094 per year, or about $91 per month.

Cheapest auto insurance in Alabama for 20-year-old drivers with one at-fault crash

For drivers with a recent accident in Alabama, here are the companies with the lowest average rates for minimum coverage:

  1. Travelers: $1,033 per year, or about $86 per month.
  2. Country Financial: $1,043 per year, or about $87 per month.
  3. Auto-Owners: $1,137 per year, or about $95 per month.
  4. Progressive: $1,186 per year, or about $99 per month.
  5. Cincinnati Insurance: $1,369 per year, or about $114 per month.

Cheapest auto insurance in Alabama for 20-year-old drivers after a DUI

The cheapest auto insurance we found after a DUI is shown here, alongside the insurers’ average rates for minimum coverage.

  1. Progressive: $1,120 per year, or about $93 per month.
  2. Travelers: $1,186 per year, or about $99 per month.
  3. Country Financial: $1,298 per year, or about $108 per month.
  4. Allstate: $1,457 per year, or about $121 per month.
  5. Safeway: $1,587 per year, or about $132 per month.

Average cost of car insurance in Alabama

The average estimate for full coverage car insurance in Alabama is $1,479 per year, or $123 per month, based on the profile of a 35-year-old driver with good credit and a clean driving record. That’s around 15% cheaper than the national average of $1,730 per year.

For minimum liability coverage, the average estimate in Alabama is $472 per year, or $39 per month based on that same driver profile. This is nearly 26% cheaper than the national average estimate of $635 per year.

Car insurance discounts in Alabama

If you are wondering how to save on car insurance in Alabama, you may want to take advantage of auto insurance discounts. Here are some some common ways to save on car insurance in Alabama:

  • Young driver discounts: Teen drivers are usually quite expensive to insure, but many insurers offer savings specifically for this age group. Common discounts include good student, distant student and driving training. 
  • Safe driver discounts: If you’ve been ticket- and claim-free for a certain number of years, you might qualify for a good driver or claim-free discount. You might also save if you drive fewer miles than average or sign up for a telematics program.
  • Other discounts: Bundling your auto and home insurance is one of the most common Alabama car insurance savings opportunities. You might also save by going paperless or paying in larger installments versus monthly.

What is the best car insurance company in Alabama?

The best car insurance company will be different for every driver. If you’re looking for the best car insurance company in Alabama, it helps to consider what is most important to you when shopping for an auto insurance carrier. For instance, you may find having digital options, an agent you can speak with face-to-face or a company with excellent customer service scores the most important factors.

Comparing what you find most important can help you find the best auto insurance company in Alabama for you.

How do I get the cheapest car insurance in Alabama?

Rating factors for car insurance vary by state. For instance, in Alabama, credit is a factor in car insurance rates, while in certain states it isn’t a factor. In addition to having good credit, there are other strategies you can use to get the cheapest car insurance in Alabama. For example, don’t assume that the first quote you get is going to be the lowest.

Obtaining multiple quotes is easy and free, and can often be done quickly on a carrier’s website. It can pay off to gather a handful of quotes, so you can see whose premium rate is the lowest for your circumstances.

When you get quotes, make sure that all possible discounts are included, since these can also help you save money on your policy.

Is Alabama a no-fault state?

Alabama is not a no-fault state.

No-fault insurance refers to personal injury protection (PIP) coverage, which pays for medical bills and some related expenses like lost wages for you and your passengers, regardless of who is at fault for the accident. PIP is not available in Alabama. However, you can purchase medical payment coverage, which pays for your and your passengers’ injuries — regardless of fault — up to your policy limit.

Unlike PIP, medical payment coverage does not include coverage for lost wages or household expenses.


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