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Alabama drivers seeking affordable car insurance can find coverage through USAA, Auto-Owners, and State Farm.
Full-coverage auto insurance in Alabama averages $144 per month, compared to the national average of $193. Your actual premium depends on multiple factors, including age, driving history, and where you live. Getting quotes from several insurers is the most effective way to determine your specific rate.
This guide examines Alabama's most affordable car insurance options by coverage type, driver profile, and company.
Affordable full-coverage car insurance in Alabama
Alabama drivers pay an average of $144 monthly for full-coverage insurance, which is lower than the national average of $193. USAA, Auto-Owners, and State Farm are among the cheapest car insurance providers.
| Average monthly full coverage cost | |
| Alabama average | $144 |
| National average | $193 |
| USAA | $107 |
| Auto-Owners | $108 |
| State Farm | $108 |
| Allstate | $116 |
Affordable liability-only car insurance in Alabama
For drivers seeking basic coverage, National General, Direct Auto, and USAA are some of Alabama's most affordable liability car insurance providers.
Alabama's average liability-only premium runs $64 monthly, while drivers nationwide pay an average of $106.
| Average monthly liability-only cost | |
| Alabama average | $64 |
| National average | $106 |
| National General | $51 |
| Direct Auto | $57 |
| USAA | $70 |
| Auto-Owners | $70 |
Cheap car insurance in Alabama by age
Age dramatically affects insurance pricing. Teen drivers face the steepest rates, with car insurance for teens averaging $305 monthly in Alabama because of their limited driving experience.
Premiums drop significantly as drivers enter their twenties, averaging $191 per month. The trend continues through their thirties and forties, with monthly costs around $151 and $149, respectively.
Alabama seniors pay an average of $123 monthly in their sixties and $122 in their seventies.
These age-related premium variations reflect insurance companies' risk assessments, with inexperienced younger drivers and potentially higher-risk older drivers typically facing increased costs.
| Age group | Average monthly full coverage cost | Average monthly liability-only cost |
| Teens | $305 | $136 |
| 20s | $191 | $85 |
| 30s | $151 | $67 |
| 40s | $149 | $66 |
| 50s | $135 | $60 |
| 60s | $123 | $55 |
| 70s | $122 | $54 |
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Cheap car insurance in Alabama for high-risk drivers
Drivers with violations or accidents on their record face higher premiums. Below are Alabama's average costs for motorists with accidents, speeding tickets, or DUI convictions, based on rates for car insurance if you have a bad driving record.
| Violation | Average monthly full coverage cost | Average monthly liability-only cost |
| Accident | $197 | $88 |
| Speeding ticket | $192 | $86 |
| DUI | $187 | $83 |
Compare low-cost car insurance after an accident
For Alabama drivers with an accident history, Auto-Owners, USAA, and State Farm provide competitive rates. Drivers with accidents pay an average of $197 monthly for full coverage.
| Company | Average monthly full coverage cost | Average monthly liability-only cost |
| Auto-Owners | $140 | $91 |
| USAA | $140 | $92 |
| State Farm | $140 | $91 |
Average rate:
Compare low-cost car insurance after a speeding ticket
Alabama drivers with speeding violations can find affordable coverage through USAA, State Farm, and Auto-Owners. Full coverage with a speeding ticket averages $192 monthly.
| Company | Average monthly full coverage cost | Average monthly liability-only cost |
| USAA | $136 | $89 |
| State Farm | $136 | $88 |
| Auto-Owners | $138 | $90 |
Compare low-cost car insurance after DUI conviction
Alabama motorists with DUI convictions can secure affordable full coverage through USAA, Auto-Owners, and State Farm. Full coverage for drivers with a DUI history averages $187.
| Company | Average monthly full coverage cost | Average monthly liability-only cost |
| USAA | $149 | $98 |
| Auto-Owners | $150 | $98 |
| State Farm | $150 | $98 |
Cheap car insurance in Alabama by credit score
Credit score significantly impacts insurance costs in Alabama. Drivers with excellent credit pay approximately $127 monthly. Meanwhile, those with poor credit face higher premiums, starting around $180 per month.
This pricing disparity stems from how insurers use credit scores to assess risk, with lower credit scores often resulting in higher premiums due to statistical correlations between creditworthiness and claim frequency.
| Credit score | Average monthly cost of full coverage | Average monthly cost of liability-only |
| Excellent | $127 | $57 |
| Good | $143 | $64 |
| Average | $147 | $66 |
| Poor | $180 | $80 |
FAQs
What makes Alabama car insurance cheaper than most other states?
Alabama generally offers more affordable car insurance compared to many other states due to several factors. The state benefits from lower population density outside major metropolitan areas, which typically results in fewer accidents and claims. Alabama also experiences fewer severe weather events compared to coastal regions, reducing comprehensive claims from natural disasters. Additionally, Alabama operates under an "at-fault" insurance system rather than a no-fault system, which means drivers aren't required to carry expensive personal injury protection coverage.
How does Alabama's high uninsured driver rate affect my insurance costs?
Alabama has one of the higher rates of uninsured drivers in the nation, meaning you're more likely to encounter drivers without coverage on Alabama roads. While this doesn't directly increase your base premiums, it makes uninsured motorist coverage particularly important for protecting yourself financially. Alabama law requires insurers to offer this coverage with every policy, though you can decline it in writing if you choose.
What specific penalties will I face for driving without insurance in Alabama?
Alabama uses a real-time electronic reporting system that immediately notifies authorities when your coverage lapses. First-time offenders face a $500 fine and possible six-month license suspension, plus a $200 registration reinstatement fee. Second offenses double to $1,000 fines and $400 reinstatement fees. The state's Online Insurance Verification System makes it nearly impossible to avoid detection for uninsured driving.
Do I need SR-22 insurance after a DUI in Alabama?
Alabama may require an SR-22 certificate after serious violations like a DUI, license suspension, or driving without insurance. This isn't separate insurance but rather a filing your insurer submits directly to Alabama's Department of Revenue verification system. Not all insurers offer SR-22 filings, so you may need to switch companies, and expect significantly higher premiums while the SR-22 requirement remains active.
How do Alabama's minimum coverage limits compare to what I actually need?
Alabama requires only 25/50/25 coverage ($25,000 per person, $50,000 per accident for bodily injury, $25,000 property damage). However, legal experts warn these limits are insufficient for serious accidents, especially given Alabama's "at-fault" system where you're personally liable for damages exceeding your coverage. Consider higher limits since Alabama doesn't cap medical costs or property damage awards like some states.
Bottom line
Although these companies offer the most competitive rates in Alabama, they may not necessarily provide the lowest cost for your specific situation. Your best approach is to obtain quotes from multiple insurance providers and compare them based on both pricing and service quality.
Data throughout provided by Insurify.
Average rate:
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