Key Takeaways
- Travelers offers the most affordable full coverage in Alabama at $1,414 per year.
- Minimum coverage is most affordable from Cincinnati Insurance in Alabama at an average rate of $306 per year.
- Overall, Alabama drivers pay an average rate of $2,048 per year for full-coverage insurance.
- Country Financial is an affordable choice for most teen drivers in Alabama.
We at the MarketWatch Guides team studied the auto insurance industry’s top providers to see which ones offer the cheapest car insurance rates and quality coverage in Alabama. In addition to costs, we rated these providers based on their coverage, reputation and customer service. Here’s what we found.
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Which Company Offers the Best Car Insurance Rates in Alabama?
Travelers offers the most affordable full-coverage car insurance for most drivers in Alabama at average rates of $1,414 per year or $118 per month. The Cincinnati Insurance Company offers the most affordable minimum coverage at $26 per month or $306 per year.
Cheapest Car Insurance Rates in Alabama
For a more accurate estimate of the rates you can expect to pay, see the table below:
| Cheapest Car Insurance in Alabama (by Category) | Company | Average Monthly Premium |
|---|---|---|
| Minimum-Liability Coverage | The Cincinnati Insurance Company | $26 |
| Full Coverage | Travelers | $118 |
| Young Drivers (16-year-olds) | Country Financial | $343* |
| Seniors (65-year-olds) | Travelers | $100* |
| After a Speeding Ticket | Travelers | $150* |
| After an Accident | Travelers | $161* |
| After a DUI | Travelers | $167* |
| Bad Credit | Travelers | $199* |
Cheapest Car Insurance Companies in Alabama
Through our research, we’ve found the four cheapest companies in Alabama are:
- Travelers
- Geico
- Country Financial
- USAA
Cheapest Car Insurance Coverage in Alabama
The amount of car insurance coverage you choose significantly impacts your rates. Many car insurance quotes from providers include estimates for minimum liability and full-coverage car insurance. While minimum liability is all that is required, it’s a good idea for drivers to consider full-coverage auto insurance for additional financial protection in the event of an accident.
Below are the cheapest auto insurance options in Alabama for both coverage types.
Cheap Liability Car Insurance Alabama
At $26 per month or $306 per year, Cincinnati Insurance tends to offer the cheapest liability car insurance in Alabama. Country Financial, USAA and Travelers can also be affordable options for motorists. Below is the complete list of cheap liability coverage options in Alabama.
| Cheapest Liability Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| The Cincinnati Insurance Company | $26 | $306 |
| Country Financial | $31 | $376 |
| USAA | $31 | $376 |
| Travelers | $35 | $419 |
| Geico | $37 | $445 |
Cheapest Full-Coverage Car Insurance in Alabama
Based on our cost research, Travelers provides the cheapest full-coverage car insurance in Alabama on average, costing $118 per month and $1,414 per year. Geico and USAA also have affordable car insurance options for Alabama motorists. We highlight the complete list of cheapest full coverage options for auto insurance in the state below.
| Cheapest Full-Coverage Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Travelers | $118 | $1,414 |
| Geico | $134 | $1,602 |
| USAA | $141 | $1,696 |
| Country Financial | $142 | $1,707 |
| Allstate | $152 | $1,830 |
Cheapest Car Insurance for Teen Drivers in Alabama
Teen drivers can pay significantly more for car insurance than older adults. The tables below show the cheapest car insurance for teen drivers in Alabama, along with estimated monthly and annual cost estimates.
Age, driving history and a person’s credit scores can have a huge impact on the cost of car insurance in Alabama. Below we compare cheap car insurance estimates for Alabama drivers in these categories.
Cheapest Alabama Car Insurance for 16-Year-Olds
Country Financial tends to offer the cheapest car insurance in Alabama for 16-year-old drivers, with an average estimate of $4,114 per year, or $343 per month. The statewide average rate for 16-year-old drivers in Alabama is $5,451 per year or $454 per month.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Country Financial | $343 | $4,114 |
| Travelers | $376 | $4,509 |
| Geico | $421 | $5,055 |
| Auto-Owners Insurance | $436 | $5,231 |
| USAA | $444 | $5,324 |
Read more: Best Cheap Car Insurance for 16-Year-Olds
Cheapest Alabama Car Insurance for 17-Year-Olds
Country Financial tends to offer the cheapest full coverage insurance for 17-year-old drivers in Alabama at an estimated $3,606 per year, or $300 per month. That’s far less than the average Alabama full coverage rate of $4,842 per year, or $404 per month for 17-year-old drivers.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Country Financial | $300 | $3,606 |
| Travelers | $316 | $3,794 |
| Geico | $339 | $4,064 |
| USAA | $372 | $4,468 |
| Auto-Owners Insurance | $434 | $5,212 |
Read more: Best Cheap Car Insurance for 17-Year-Olds
Cheapest Alabama Car Insurance for 18-Year-Olds
Again, Country Financial offers the cheapest rates in Alabama for 18-year-old drivers at an estimated $3,221 per year, or $268 per month. That’s 31% less than the average full coverage rate of $4,651 per year for all 18-year-old drivers in Alabama.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Country Financial | $268 | $3,221 |
| Travelers | $269 | $3,226 |
| Geico | $287 | $3,440 |
| USAA | $313 | $3,761 |
| Auto-Owners Insurance | $410 | $4,915 |
As teens age into adulthood and practice safe driving habits, their car insurance rates typically decrease. Below, we compare the cheapest car insurance providers for young adult Alabama drivers aged 19, 21 and 25.
Cheapest Alabama Car Insurance for 19-Year-Olds
At a monthly cost of $231 per month on average, Travelers offers the lowest rates for 19-year-olds in Alabama. Alternatively, Geico and Country Financial also offer affordable full coverage rates for this age group.
| Cheapest Car Insurance in Alabama | Average Monthly Rate | Average Annual Rate |
|---|---|---|
| Travelers | $231 | $2,768 |
| Geico | $240 | $2,880 |
| Country Financial | $244 | $2,928 |
| USAA | $278 | $3,337 |
| State Farm | $374 | $4,488 |
Read more: Best Cheap Car Insurance for 19-Year Olds
Cheapest Alabama Car Insurance for 21-Year-Olds
For 21-year-old drivers in Alabama, USAA tends to offer the cheapest coverage with an average estimate of $1,561 per year, or $130 per month. The average estimate in Alabama for 21-year-old drivers is $2,380 per year, or $198 per month. This is 61% higher than the average estimate in the state.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
| Travelers | $175 | $2,105 |
| Geico | $194 | $2,326 |
| USAA | $205 | $2,466 |
| Country Financial | $211 | $2,538 |
| State Farm | $283 | $3,397 |
Read more: Best Cheap Car Insurance for 21-Year-Olds
Cheapest Alabama Car Insurance for 25-Year-Olds
Travelers typically offers the cheapest car insurance in Alabama for 25-year-olds, with an average estimate of $1,479 per year, or $123 per month. This is around 39% less than the average estimate for 25-year-old drivers in Alabama of $2,411 per year or $201 per month.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Travelers | $123 | $1,479 |
| Geico | $148 | $1,777 |
| Country Financial | $174 | $2,094 |
| USAA | $179 | $2,150 |
| Allstate | $186 | $2,230 |
Read more: Best Cheap Car Insurance for 25-Year Olds
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Cheapest Car Insurance in Alabama for Seniors
As adult drives mature, rates generally continue to decrease. However, as drivers enter their senior years, car insurance rates can increase for a few different reasons. Below, we cover the most affordable car insurance providers for senior drivers in Alabama.
Read more: Cheapest Car Insurance for Seniors
Cheapest Car Insurance in Alabama for 65-Year-Olds
As in many other age groups, Travelers is the cheapest for drivers around age 65. The company’s rates of $1,197 per year are around 36% cheaper than the Alabama full-coverage average for drivers of the same age.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Travelers | $100 | $1,197 |
| Country Financial | $125 | $1,498 |
| Geico | $125 | $1,496 |
| USAA | $128 | $1,537 |
| Allstate | $139 | $1,664 |
Cheapest Car Insurance in Alabama for 75-Year-Olds
Rates for 75-year-old drivers are slightly higher on average than drivers ages 65 and younger. However, Travelers is once again an affordable choice at just $1,404 per year or $117 per month. That’s around 37% below Alabama’s average full-coverage rate for 75-year-old drivers.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Travelers | $117 | $1,404 |
| Country Financial | $139 | $1,674 |
| Geico | $148 | $1,772 |
| USAA | $154 | $1,853 |
| State Farm | $161 | $1,933 |
Cheapest Alabama Car Insurance for High-Risk Drivers
Your age is one of the biggest factors in your car insurance rates, but it isn’t the only one. Different variables related to your driving record, credit rating, and more can also affect the rates you pay for car insurance in Alabama.
Cheapest Alabama Car Insurance for Drivers With a Speeding Ticket
One of the many reasons to follow the speed limit is to keep car insurance costs down. Motorists who get caught going too fast in the Yellowhammer State pay an average rate of $2,467 per year for full coverage — much higher than the rate for good drivers with a clean driving record.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Travelers | $150 | $1,801 |
| Allstate | $160 | $1,925 |
| USAA | $163 | $1,962 |
| Geico | $165 | $1,985 |
| State Farm | $175 | $2,101 |
Read more: Best Speeding Ticket Car Insurance
Cheapest Alabama Car Insurance For Drivers With a Recent Accident
Motorists who’ve recently been involved in an at-fault accident could see considerable boosts to their monthly premiums. The average Alabama car insurance cost for those with an accident in their driving history is $2,955 per year.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Travelers | $161 | $1,936 |
| Country Financial | $181 | $2,169 |
| State Farm | $196 | $2,348 |
| USAA | $209 | $2,508 |
| Allstate | $221 | $2,652 |
Read more: What Is Accident Forgiveness Coverage?
Cheapest Alabama Car Insurance for Drivers With a DUI
Expect to be considered a high-risk driver after getting a DUI violation. This status comes with significantly higher premiums, which reach an average of $3,296 per year in Alabama.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Travelers | $167 | $2,005 |
| State Farm | $175 | $2,101 |
| Allstate | $196 | $2,352 |
| Country Financial | $211 | $2,532 |
| Progressive | $233 | $2,800 |
Cheapest Alabama Car Insurance for Drivers With Poor Credit
Few factors impact the price of Alabama auto insurance as much as having a bad credit score. Average auto insurance rates skyrocket to $3,781 per year for those who have poor credit.
| Cheapest Car Insurance in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
| Travelers | $199 | $2,388 |
| Geico | $206 | $2,468 |
| Country Financial | $208 | $2,501 |
| Safeway Insurance | $211 | $2,528 |
| USAA | $246 | $2,955 |
Read more: Cheapest Car Insurance for Bad Credit
Cheapest Car Insurance by Vehicle Type
Whether you drive an electric vehicle, hybrid or gas-powered model can have a considerable impact on your car insurance rates. Below, we break down the cheapest providers for different vehicle types.
Cheapest Insurance for Electric and Hybrid Vehicles
Fully electric vehicles often cost more to build and repair. As a result, these vehicles also tend to cost more to insure. Hybrid vehicles, however, have been shown to be more affordable than both all-electric and gas-powered vehicles when it comes to full-coverage car insurance.
Cheapest Car Insurance for Electric Cars in Alabama
In Alabama, drivers pay an average of $2,840 per year for full coverage on an electric vehicle. That’s far more affordable than the national average of $3,520 per year for similar coverage. In this category, Travelers stands out as the most affordable choice.
| Company | Average Monthly Rate | Average Annual Rate |
| Travelers | $153 | $1,834 |
| State Farm | $174 | $2,091 |
| Country Financial | $182 | $2,181 |
| USAA | $189 | $2,263 |
| Allstate | $206 | $2,468 |
Read more: Electric Vehicle Insurance
Cheapest Hybrid Car Insurance in Alabama
Hybrid vehicles are somewhat more affordable to insure in Alabama. Drivers of hybrid models can expect to pay an average rate of $1,776 per year for full coverage, compared to the national average of $2,357 per year for coverage on similar vehicles. Travelers is the most affordable option for drivers of this vehicle type.
| Company | Average Monthly Rate | Average Annual Rate |
| Travelers | $109 | $1,304 |
| Geico | $111 | $1,333 |
| USAA | $122 | $1,469 |
| State Farm | $128 | $1,540 |
| Allstate | $131 | $1,575 |
Cheapest Insurance for Gas-Powered Vehicles
We’ve broken down gas-powered vehicles into SUVs, sedans and trucks for a closer look at the most affordable car insurance providers by vehicle type.
Cheapest SUV Insurance in Alabama
In Alabama, SUV drivers pay a yearly average of $1,756 for full-coverage car insurance. Compare this average against Travelers’ low rate of $1,294 per year.
| Company | Average Monthly Rate | Average Annual Rate |
| Travelers | $108 | $1,294 |
| Geico | $117 | $1,409 |
| USAA | $123 | $1,479 |
| State Farm | $130 | $1,558 |
| Allstate | $131 | $1,572 |
Cheapest Car Insurance for Sedans in Alabama
Sedans are, surprisingly, among the most expensive types of vehicle to insure. Sedan drivers in Alabama pay an average of $2,065 per year for full coverage. Fortunately, Travelers helps many drivers save with its low annual average rate of $1,483 per year.
| Company | Average Monthly Rate | Average Annual Rate |
| Travelers | $124 | $1,483 |
| Geico | $132 | $1,581 |
| USAA | $135 | $1,620 |
| Allstate | $139 | $1,672 |
| State Farm | $147 | $1,763 |
Cheapest Car Insurance for Trucks in Alabama
While trucks cost around $1,837 per year on average to insure in Alabama, Travelers again offers a much more affordable average rate of $1,343 per year. Geico and USAA are also affordable choices for Alabama drivers.
| Company | Average Monthly Rate | Average Annual Rate |
| Travelers | $112 | $1,343 |
| Geico | $124 | $1,487 |
| USAA | $127 | $1,528 |
| State Farm | $134 | $1,607 |
| Country Financial | $135 | $1,622 |
Read more: Everything You Need To Know About the Cost of Truck Insurance
Factors That Affect Alabama Car Insurance Rates
Your car insurance rates will likely vary from the figures in the tables in this article. Providers calculate your premiums using a number of variables.
These are the most important factors in the cost of car insurance:
- Age
- Marital status
- Driving record
- Gender listed on your license
- Credit score
- Location
Cheap Car Insurance Quotes in Alabama by ZIP
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Best Cheap Car Insurance in Alabama
In the sections below, we break down average coverage rates and discount details for each of the cheapest car insurance providers in Alabama.
#1 Travelers: Best for Most Alabama Drivers
9.5/10
Average Monthly Minimum-Coverage Cost: $35
Average Monthly Full-Coverage Cost: $118
Number of Discounts: 12
Travelers Overview
Our rate estimates show Travelers is an affordable choice for coverage, especially for young drivers in Alabama. The company offers many coverage options, including new car replacement, rideshare coverage, roadside assistance and accident forgiveness. Travelers also has positive industry ratings from the BBB and AM Best, and took the top spot on our list of the best car insurance companies on a national scale.
Travelers Insurance Cost and Coverage in Alabama
Expect full coverage from Travelers to cost an average of $1,414 per year or $118 per month. Minimum coverage from the company costs an average of $419 per year or $35 per month. Both rates are more affordable than the Alabama averages of $2,048 per year for full coverage and $572 per year for minimum coverage.
In addition to liability coverage that meets Alabama minimum insurance requirements, Travelers offers comprehensive and collision coverage that protects you and your property regardless of who is at fault in an accident. Standout coverage options from Travelers include optional rental car reimbursem*nt, accident forgiveness, rideshare coverage and lease gap coverage
Top Travelers Insurance Discounts in Alabama
If you’d like to save even more on your car insurance premiums in Alabama, consider the following discount opportunities from Travelers:
- IntelliDrive: This is Travelers’ usage-based program that tracks driving habits over a period of 90 days and adjusts rates for both safe and risky driving behaviors.
- Student discounts: Students in Alabama can take advantage of the good student discount, the away-at-school discount and the driver training discount to save money on car insurance premiums from Travelers.
- Continuous insurance discount: If you have maintained your Travelers car insurance policy with no gaps, you may qualify for a rate discount.
- Multi-policy and homeowner’s discounts: If you own a home in Alabama, you can get discounted insurance rates from Travelers. If you also insure your home through Travelers, you can bundle your home and car insurance policies to save even more.
Keep reading: Travelers Insurance Review
#2 Geico: Best for Budget-Conscious Drivers
9.3/10
Average Monthly Minimum-Coverage Cost: $37
Average Monthly Full-Coverage Cost: $134
Number of Discounts: 12
Geico Overview
Geico is one of the cheapest car insurance options on average for Alabama drivers across multiple categories. The company’s A++ financial strength rating shows that it’s able to reliably cover claims. Geico also offers affordable rates in Alabama for drivers with recovering credit scores.
Geico Insurance Cost and Coverage in Alabama
Geico customers pay an average annual rate of $1,602 per year or $134 per month for full coverage. Minimum coverage from Geico is also affordable at $445 per year or $37 per month. Both annual averages are well below the statewide averages of $2,048 per year and $572 per month for similar coverages.
In addition to standard liability and full-coverage options, Geico offers optional add-ons like rental car reimbursem*nt and roadside assistance. Geico also offers mechanical breakdown insurance (MBI), a unique coverage that functions like an extended car warranty.
Top Geico Insurance Discounts in Alabama
Geico is known nationally and in Alabama for its wide range of available discounts, including:
- Vehicle safety equipment discounts: Geico offers a number of discounts for various safety features on vehicles, including restraints, airbags, anti-lock brakes and anti-theft devices.
- Military discount: Geico is one of few providers outside of USAA that offers discounts specifically for enlisted and retired service members.
- Affiliation discounts: If you’re employed by a member of any one of over 500 organizations, Geico may offer you special rate discounts.
Keep reading: Geico insurance Review
#3 Country Financial: Best for Young Drivers
8.8/10
Average Monthly Minimum-Coverage Cost: $31
Average Monthly Full-Coverage Cost: $142
Number of Discounts: 11
Country Financial Overview
Country Financial isn’t as well-known as other providers on this list and only serves 19 states, including Alabama. However, the company is a great choice for local, affordable coverage for Alabama drivers. Country Financial consistently offers the lowest rates for teen drivers in Alabama. It also offers affordable minimum coverage and low full-coverage rates after an accident.
Country Financial Insurance Cost and Coverage in Alabama
Alabama drivers pay an average of $1,707 per year or $142 per month for full coverage from Country Financial. Minimum coverage from Country Financial averages around $376 per year or $31 per month. Both rates are more affordable than the statewide averages of $2,048 per year for full coverage and $572 per year for minimum coverage in Alabama.
Like most reputable car insurance companies, Country Financial offers both liability-only and full-coverage car insurance policies. Add-on coverages available from Country Financial include:
- The Keeper: This works like new car replacement. It ensures your new vehicle is completely replaced with a brand-new car in the event that sustained damages to your existing car exceed the value of a new car.
- Emergency roadside assistance: This coverage includes towing services, fuel delivery and lockout service for emergencies.
- Personal effects coverage: If items like your phone or laptop are stolen from your vehicle, Country Financial will cover these items up to $800.
Top Country Financial Insurance Discounts in Alabama
Alabama drivers who choose to work with Country Financial can take advantage of several discount opportunities, including:
- Legacy discount: Country Financial offers discounts to customers who “inherit” their insurance policies from their parents.
- Engaged couple discount: Soon-to-be newlyweds who insure their cars through Country Financial can qualify for a discount on their premiums.
- Occupation discount: Alabama drivers who are teachers, firefighters, police officers and paramedics receive discounts of up to 15% on their car insurance policies with Country Financial.
#4 USAA
Best For Military Members
Average Monthly Minimum-Coverage Cost: $31
Average Monthly Full-Coverage Cost: $141
Number of Discounts: 12
USAA Overview
Military members, veterans and their families should strongly consider USAA coverage for car insurance in Alabama. The company has the highest-rated customer service in the Southeast region, according to the J.D. Power 2024 U.S. Auto Insurance Study℠. Its rates are some of the cheapest in the state of Alabama, making it a smart choice to consider for those who qualify.
USAA Insurance Cost and Coverage In Alabama
Military members and their families in Alabama pay an average of $1,696 per year or $141 per month for full-coverage car insurance. Minimum coverage from USAA costs around $376 per year or $31 per month on average.
USAA offers standard options like liability and full coverage in addition to roadside assistance, car replacement and accident forgiveness.
Top USAA Insurance Discounts in Alabama
In addition to standard discounts like good driving discounts and policy bundling, USAA also offers discounted rates for legacy members, vehicle safety features and military vehicle storage.
Keep reading: USAA Insurance Review
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Average Cost of Car Insurance in Alabama
Our research found that the average estimate for full-coverage car insurance in Alabama is $2,048 per year or $171 per month, based on the profile of a 35-year-old driver with good credit and a clean driving record. That’s around 24% cheaper than the national average of $2,681 per year.
For minimum liability coverage, the average estimate in Alabama is $572 per year or $48 per month based on that same driver profile. This is nearly 34% cheaper than the national average estimate of $869 per year.
Alabama Car Insurance Cost by Age
Your age is one of the single most influential factors when it comes to your car premiums. In Alabama and elsewhere, younger drivers pay far more for coverage than drivers in other age groups, since they have less driving experience and are therefore more likely to be in accidents. Teens typically pay the highest rates.
The table below shows the average full-coverage rates for Alabama drivers of different ages.
| Age | Estimated Monthly Cost | Estimated Annual Cost |
| 16 | $454 | $5,451 |
| 17 | $404 | $4,842 |
| 18 | $388 | $4,651 |
| 19 | $383 | $4,601 |
| 21 | $272 | $3,260 |
| 25 | $201 | $2,411 |
| 35 | $171 | $2,048 |
| 45 | $162 | $1,945 |
| 55 | $149 | $1,784 |
| 65 | $155 | $1,864 |
| 75 | $186 | $2,237 |
Page 1 of 2
Alabama Car Insurance Cost by City
Car insurance rates vary between states, but they also vary within states. Insurers adjust rates based on different localized risk factors, so you may pay significantly different rates for insurance than your neighbors in the next county — even if all other factors are the same.
The table below shows the average rates for the 25 most populated towns and cities in Alabama.
| City in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
| Alabaster | $166 | $1,996 |
| Athens | $157 | $1,881 |
| Auburn | $161 | $1,936 |
| Bessemer | $195 | $2,335 |
| Birmingham | $188 | $2,259 |
| Center Point | $194 | $2,328 |
| Daphne | $159 | $1,905 |
| Decatur | $158 | $1,896 |
| Dothan | $153 | $1,833 |
| Enterprise | $157 | $1,886 |
| Florence | $152 | $1,821 |
| Foley | $154 | $1,845 |
| Homewood | $180 | $2,159 |
| Hoover | $180 | $2,156 |
| Huntsville | $161 | $1,936 |
| Madison | $158 | $1,895 |
| Mobile | $182 | $2,188 |
| Mobile County | $182 | $2,188 |
| Montgomery | $175 | $2,096 |
| Opelika | $163 | $1,950 |
| Pelham | $170 | $2,039 |
| Trussville | $184 | $2,208 |
| Tuscaloosa | $169 | $2,032 |
Page 1 of 3
Alabama Car Insurance Rates vs. National and State Averages
Overall, car insurance in Alabama is more affordable than the national average. See the chart below for a visual comparison:
| State | Average Annual Minimum-Liability Premium | Average Annual Full-Coverage Premium |
| Alabama | $572 | $2,048 |
| Alaska | $506 | $2,116 |
| Arizona | $956 | $3,127 |
| Arkansas | $589 | $2,398 |
| California | $736 | $3,040 |
| Colorado | $750 | $3,010 |
| Connecticut | $1,293 | $3,206 |
| Delaware | $1,288 | $3,364 |
| Florida | $1,605 | $3,795 |
| Georgia | $1,256 | $2,907 |
| Hawaii | $455 | $1,581 |
| Idaho | $463 | $1,588 |
| Illinois | $823 | $3,054 |
| Indiana | $557 | $1,949 |
| Iowa | $456 | $1,994 |
| Kansas | $683 | $2,421 |
| Kentucky | $1,072 | $2,545 |
| Louisiana | $1,497 | $4,357 |
| Maine | $456 | $1,460 |
| Maryland | $1,261 | $2,943 |
| Massachusetts | $759 | $2,620 |
| Michigan | $1,640 | $4,626 |
| Minnesota | $752 | $2,463 |
| Mississippi | $563 | $2,140 |
| Missouri | $752 | $2,613 |
| Montana | $517 | $2,368 |
| Nebraska | $545 | $2,252 |
| Nevada | $1,665 | $3,870 |
| New Hampshire | $594 | $1,766 |
| New Jersey | $1,609 | $3,454 |
| New Mexico | $608 | $2,335 |
| New York | $2,490 | $8,232 |
| North Carolina | $815 | $2,271 |
| North Dakota | $490 | $2,029 |
| Ohio | $511 | $1,660 |
| Oklahoma | $710 | $3,256 |
| Oregon | $1,161 | $2,408 |
| Pennsylvania | $893 | $3,909 |
| Rhode Island | $1,084 | $2,921 |
| South Carolina | $959 | $2,519 |
| South Dakota | $443 | $2,590 |
| Tennessee | $707 | $2,237 |
| Texas | $960 | $3,156 |
| Utah | $968 | $2,451 |
| Vermont | $366 | $1,539 |
| Virginia | $726 | $2,070 |
| Washington | $661 | $2,110 |
| Washington, D.C. | $870 | $2,636 |
| West Virginia | $617 | $2,308 |
| Wisconsin | $561 | $2,003 |
| Wyoming | $303 | $1,794 |
Page 1 of 6
Read more: Car Insurance Rates by State
Alabama Car Insurance Requirements
According to the Alabama Department of Motor Vehicles (DMV), all drivers need to carry liability coverage with minimum coverage limits of 25/50/25. This means you’ll need the following coverage amounts:
- Bodily injury liability coverage: $25,000 per person and $50,000 per accident
- Property damage liability coverage: $25,000 per accident
Liability car insurance does not cover your vehicle if you cause an accident or run into a stationary object. It also doesn’t cover any of your medical bills if you cause an accident. Finally, it won’t help out if an uninsured or underinsured motorist causes an accident and can’t cover the damage. To cover these situations, consider adding:
- Comprehensive coverage
- Collision coverage
- Underinsured/uninsured motorist coverage
- Medical payments (MedPay) coverage
How To Get Car Insurance in Alabama
Travelers, Geico and Country Financial can all be great options for car insurance in Alabama. However, what’s best for someone else might not be best for you. Compare car insurance rates from multiple providers to see which one offers the best coverage and prices.
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Cheap Auto Insurance in Alabama: The Bottom Line
In this article, we reviewed the cheapest auto insurance companies, coverage and rates in the state of Alabama. We also looked at average cost of car insurance and coverage requirements in the state.
Cheapest Car Insurance in Alabama: FAQ
Below are frequently asked questions about the cheapest car insurance in Alabama.
Full-coverage car insurance policies in Alabama cost an average of $171 per month or $2,048 per year. This is cheaper than the national average of $223 per month or $2,681 per year.
The state of Alabama requires drivers to carry liability insurance in the amounts of 25/50/25. This insurance covers injuries and property damage for other parties in accidents that you cause. It doesn’t cover damage to your car or injuries that happen after an at-fault accident.
To get car insurance in Alabama, you can shop online with any major provider. You can also contact agents at insurance companies or independent agents who can compare companies for you.
How We Chose the Cheapest Car Insurance in Alabama
Our comprehensive rating system utilizes the latest 2024 insurance rates from Quadrant Information Services in combination with data we’ve collected on dozens of insurance companies. To help consumers get the most accurate picture of insurance rates in the state of Alabama, we’ve averaged rates from the top 12 providers across 40 Alabama ZIP codes. Unless otherwise specified, our base driver profiles for Alabama insurance quotes include male and female drivers, age 35, driving a 2023 Toyota Camry with a clean driving record and good credit.
We’ve also looked at quotes for Alabama drivers of multiple ages and those with a history of accidents, speeding tickets or DUIs, as well as drivers with poor credit. Our minimum-coverage quotes reflect coverage that meets state minimum insurance requirements in Alabama, while our full-coverage quotes reflect the following coverage amounts:
✔ $50,000 per person in bodily injury coverage
✔ $100,000 per accident in bodily injury coverage
✔ $50,000 per person in property damage coverage
✔ $500 comprehensive coverage deductible
✔ $500 collision coverage deductible
In this article, providers are sorted by cheapest average costs in Alabama and selected for recommendation based on our national ratings. When rating providers nationally or in Alabama we take several factors into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800 hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
