Best Car Insurance in Alabama for 2024

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.

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

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.

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.

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.

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.

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.

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

FAQs about car insurance costs in Alabama