INSURANCE - CAR INSURANCE

Best Car Insurance in Alabama for 2024

Updated Dec. 12, 2023
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USAA and GEICO generally have the lowest cost full coverage car insurance in Alabama.

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From the sandy shores of Dauphin Island and Orange Beach to the history and culture in cities like Mobile, Montgomery, and Huntsville, Alabama has much to explore. You can start planning your next road trip with ease, knowing that car insurance in Alabama is generally lower than in other parts of the country.

In this article

Key takeaways

  • The best car insurance in Alabama is USAA, which costs an average of $920 per year for comprehensive coverage.
  • Drivers with a clean driving record pay an average of $106 monthly in Alabama.
  • Senior drivers in Alabama pay an average of $1,658 a year for full coverage.

Best car insurance companies in Alabama

The cost of car insurance in Alabama averages $1,276 a year for full coverage, compared to the national average of $1,582. USAA offers the lowest-cost coverage in the Yellowhammer State, averaging about $920 a year for full coverage and $304 for minimum coverage.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 876/1,000 $920/year $304/year
State Farm 847/1,000 $1,209/year $604/year
Progressive 836/1,000 $1,547/year $627/year
Allstate 832/1,000 $1,118/year $498/year
GEICO 828/1,000 $1,046/year $375/year
Travelers 818/1,000 $1,217/year $562/year

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USAA: Highest customer satisfaction

USAA earned the highest customer satisfaction rating in Alabama, an 876 out of 1,000. It is also the most affordable carrier for full and minimum coverage and offers most standard policies and some specialty policies. However, it is only available to current and former military members and their families.

Pros
  • The least expensive on our list for Alabama
  •  Multiple discounts, including up to 30% when you sign up for the SafePilot program
Cons
  •  USAA policies are not available to everyone
  •  You may find more policy options with a competitor

Get a quote now | USAA review

State Farm: Best for new drivers

Younger drivers in Alabama typically pay an average of $4,518 annually, so finding an insurance company with competitive rates for new drivers can be invaluable. State Farm was not the cheapest option on our list of the best car insurance in Alabama, but it offers discounts of up to 25% for new drivers.

Pros
  •  Offers extensive policy and discount options for new and experienced drivers
  •  Second-highest customer satisfaction rating in Alabama
Cons
  •  Above-average pricing for minimum coverage insurance in Alabama
  •  It does not offer some policies, like gap insurance

Get a quote now | State Farm review

Progressive: Best for high-risk drivers

High-risk drivers in Alabama pay an average of $2,137 for full coverage insurance. While your rates will likely increase if you have a DUI or DWI conviction, multiple speeding tickets, or at-fault accidents, Progressive may be a good option because it will file SR22 forms with the required state office.

Pros
  •  Third-highest customer satisfaction score in Alabama
  •  Offers a vanishing deductible program, among other policy options
Cons
  •  Does not offer discounts for safety equipment installed in a vehicle
  •  The highest-cost provider on our list for Alabama

Get a quote now | Progressive review

Allstate: Best for coverage options

Allstate’s full coverage insurance in Alabama costs an average of $1,118 and $498 for minimum insurance. Although it’s not the cheapest coverage available, it has multiple policy and discount options that could make it worthwhile. While Allstate has standard coverages available, it also has specialty policies like gap and roadside coverage.

Pros
  •  Has popular coverage options, including accident forgiveness and vanishing deductibles
  •   Offers multiple discounts, including safe driving and bundling policies
Cons
  •  You may be able to find a lower-cost option with a competitor
  •  It had only average customer satisfaction ratings in Alabama

Get a quote now | Allstate review

GEICO: Most affordable coverage

Unlike USAA, GEICO is the lowest-cost option for full and minimum coverage car insurance available to everyone in Alabama. Good drivers who use GEICO pay an average of $1,046 yearly for full coverage and $375 for minimum coverage. It has a good mix of policies and discounts but ranked fifth in customer satisfaction.

Pros
  •  GEICO has the lowest cost coverage available to everyone in Alabama
  •  Has multiple discount options, including new vehicles and multi-policy
Cons
  •  Had one of the lowest customer satisfaction scores in Alabama
  •  GEICO has limited agents in Alabama compared to some competitors

Get a quote now | GEICO review

Alabama auto insurance requirements

To drive legally in Alabama, drivers must carry at least the following car insurance policies:

  • $25,000 bodily injury liability limit per person
  • $50,000 maximum for all bodily injuries for any one accident
  • $25,000 maximum for property damage per accident

How to choose a car insurance provider in Alabama

When you’re looking for a new car insurance provider, keep a few things in mind to help you get the best insurance at the best price:

  • Check financial stability: Before starting a policy with any insurance company, check its financial ability to pay claims on a website like Standard & Poor’s or AM Best. It’s also wise to check with the Alabama Department of Insurance or the National Association of Insurance Commissioners (NAIC) to confirm a company is licensed in Alabama.
  • Check pricing and discounts: Get quotes from multiple companies to compare pricing and discounts. Ensure the policy amounts and coverage options are similar for an accurate comparison, and double-check you received all the discounts you qualify for.
  • Look for good service: You want to find a company that is easy to work with, handles claims quickly, and is good at answering questions. Read online reviews and ask friends and family for recommendations.

How much does car insurance cost in Alabama?

The average cost of car insurance in Alabama is $1,276 for full coverage and $584 a year for minimum coverage. Huntsville drivers generally pay the least for car insurance in Alabama, an average of $1,608 annually. Tuscaloosa drivers pay the most, with a yearly average of $1,872.

Alabama car insurance rates by city

The crime rate where you live can significantly impact what you pay for insurance. Drivers in Birmingham (population 197,575) are likely to pay more for car insurance than drivers in Montgomery (population 198,665), partly due to higher crime rates.

Both cities have roughly the same number of people, which usually means their car insurance rates should be similar. However, Montgomery earned a score on NeighborhoodScout’s crime index of 4 out of 100, meaning it is safer than only 4% of U.S. neighborhoods. While that’s pretty low, Birmingham earned a 1 out of 100, and higher crime rates generally translate to higher rates for car insurance.

City Avg. annual full-coverage premium
Tuscaloosa $1,872/year
Birmingham$1,853/year
Mobile $1,812/year
Montgomery $1,715/year
Huntsville $1,608/year

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the best auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in Alabama

What are the minimum car insurance coverage requirements in Alabama?

In Alabama, drivers must carry $25,000 in bodily injury liability per person and $50,000 maximum for all bodily injuries for any one accident. They must also have a $25,000 maximum for property damage per accident.

How much does car insurance cost in Alabama?

Car insurance in Alabama costs an average of $1,276 yearly for full coverage and $584 for minimum coverage.

Which car insurance companies cover Alabama?

Several car insurance providers cover Alabama, including USAA, GEICO, Progressive, State Farm, and Allstate.

What is the cheapest car insurance company in Alabama?

USAA is Albama’s cheapest car insurance company, costing an average of $920 a year for full coverage and $304 for the state’s minimum coverage. GEICO is the second-best option, costing an average of $1,046 yearly for full coverage.

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.