- Best car insurance companies in Alabama
- Cheapest car insurance companies in Alabama
- Average cost of car insurance in Alabama
- Alabama car insurance requirements
- Cheapest car insurance companies for minimum liability coverage in Alabama
- Cheapest car insurance in Alabama by age
- Cheapest car insurance companies in Alabama by driver profile
- Compare auto insurance rates by city in Alabama
- Car insurance premium trends in Alabama
- Methodology
- Compare Alabama car insurance rates with other states
Best car insurance companies in Alabama
Country Financial is the best car insurance company in Alabama, based on an analysis by Insurance.com, with an overall rating of 3.44. Travelers is the second-best auto insurance company in Alabama with an overall rating of 3.34.
Below is a full list of the top Alabama insurance companies based on price, NAIC complaint ratio, and AM Best financial ratings. The total Insurance.com score is calculated out of five using these factors.
| Company | AM Best | JD Power | NAIC | Average annual premium | Insurance.com score |
|---|---|---|---|---|---|
| Country Financial | A+ | 828 | 0.34 | $1,694 | 3.44 |
| Travelers | A++ | 851 | 0.49 | $1,428 | 3.34 |
| Auto-Owners | A++ | 859 | 0.5 | $2,134 | 3.27 |
| Nationwide | A+ | 818 | 0.64 | $1,345 | 3.14 |
| State Farm | A++ | 807 | 0.7 | $1,790 | 3.06 |
| Geico | A++ | 847 | 0.91 | $1,625 | 3.03 |
| Allstate | A+ | 816 | 0.65 | $2,178 | 2.55 |
| Progressive | A+ | 828 | 0.65 | $2,402 | 2.37 |
| Farmers | A | 857 | 0.8 | $2,542 | 2.15 |
Cheapest car insurance companies in Alabama
Don't just go with the first insurer you come across. Comparison shopping is the key when it comes to finding the best deal on auto insurance. Get quotes from several different insurers and compare their rates. You may be surprised at how much difference there can be in rates from one company to another.
We have gathered price quotes from all the major insurance providers in Alabama and put together a list of the cheapest car insurance companies. Based on a rate analysis by Insurance.com, Nationwide offers the cheapest full coverage car insurance in Alabama with rates of $1,345 annually or $112 a month, on average.
| Company | State minimum liability | 50/100/50 liability | 100/300/100 liability with $500 deductible |
|---|---|---|---|
| Nationwide | $487 | $617 | $1,345 |
| Travelers | $403 | $558 | $1,428 |
| USAA | $316 | $431 | $1,458 |
| Geico | $363 | $523 | $1,625 |
| Country Financial | $313 | $475 | $1,694 |
| State Farm | $340 | $511 | $1,790 |
| Auto-Owners | $416 | $618 | $2,134 |
| Allstate | $576 | $752 | $2,178 |
| Progressive | $450 | $718 | $2,402 |
| Farmers | $667 | $1,186 | $2,542 |
Average cost of car insurance in Alabama
The average car insurance rate in Alabama is $1,860 a year for a full coverage policy with a coverage level of 100/300/100 for a driver age 40, according to a recent rate analysis. For state minimum coverage, the average annual cost in Alabama is $433.
Auto insurance calculator
Most & least expensive ZIP codes for auto insurance in Alabama
Most Expensive
| ZIP code | City | Highest rate |
|---|---|---|
| 35218 | Birmingham | $186 |
| 35207 | Birmingham | $185 |
| 35204 | Birmingham | $185 |
| 35208 | Birmingham | $184 |
Least Expensive
| ZIP code | City | Lowest rate |
|---|---|---|
| 36352 | Dothan | $143 |
| 36303 | Dothan | $146 |
| 36362 | Fort Rucker | $146 |
| 35661 | Muscle Shoals | $146 |
The Alabama Department of Insurance says...
Sometimes information will be revealed to the company on your Motor Vehicle Record (MVR) that will require the originally quoted premiums to be changed by the company.
You have three options:
- You may pay the increase.
- You may request cancellation, but the company is entitled to earned premium.
- Do not pay, and the company will cancel your policy for nonpayment of premium.
The producer should be able to give you a satisfactory explanation for the increase in your premium.
- The Alabama Department of InsuranceAlabama car insurance requirements
The minimum car insurance required in Alabama is 25/50/25. The average cost of the state minimum liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. is $433 annually or $36 monthly.
Minimum liability insurance requirements for Alabama:
- Bodily injury liability (BI): $25,000 per person, $50,000 per accident
- Property damage liability (PD): $25,000 per person
Cheapest car insurance companies for minimum liability coverage in Alabama
According to the data analysis, Country Financial provides the most affordable state minimum liability-only car insurance coverage, averaging $320 annually or $27 per month. Although USAA offers the lowest rates, it's important to note that there are eligibility criteria associated with their coverage.
The table below shows the cheapest car insurance companies for minimum coverage in Alabama.
| Company | Liability insurance premium | Monthly liability insurance premium |
|---|---|---|
| USAA* | $316 | $26 |
| Country Financial | $320 | $27 |
| State Farm | $340 | $28 |
| Geico | $346 | $29 |
| Travelers | $410 | $34 |
| Auto-Owners | $416 | $35 |
| Progressive | $446 | $37 |
| Nationwide | $479 | $40 |
| Allstate | $565 | $47 |
| Farmers | $622 | $52 |
*USAA offers coverage only to military veterans and their family
Cheapest car insurance in Alabama by age
In Alabama, car insurance rates are higher for teenagers (16- to 19-year-olds) as they are more prone to accidents due to their lack of experience on the road.
Country Financial offers the cheapest car insurance for teen drivers in Alabama at $3,260 per year for a full coverage policy.
Car insurance rates will decrease as teens age and keep a good driving record. Car insurance rates for adults 25+ and seniors 60+ are lower than those for teens and young adults.
In Alabama, Nationwide offers the cheapest full coverage car insurance for adult drivers (25-55 year-olds) and senior drivers (60-75 year-olds) at $1,330 per year and $1,240 per year, respectively.
In Alabama, car insurance rates are higher for teenagers (16- to 19-year-olds) as they are more prone to accidents due to their lack of experience on the road.
Compare car insurance rates by age
Select your age group and age below to see the insurance company and its
average annual and average monthly premium rates.
| Nationwide | $5,425 | $452 |
| Geico | $5,523 | $460 |
| USAA | $5,850 | $487 |
| Travelers | $5,869 | $489 |
| State Farm | $5,914 | $493 |
| Allstate | $10,144 | $845 |
| Progressive | $11,470 | $956 |
| Farmers | $14,282 | $1,190 |
Cheapest car insurance companies in Alabama by driver profile
Accidents and tickets can negatively affect car insurance rates. Drivers who have accidents or tickets are considered a higher risk and will pay more.
However, the severity and frequency of the incidents will also play a role in the insurance rates. For instance, drivers with a single minor accident may see a smaller increase in their rates compared to those with multiple major accidents.
Below are average Alabama rates by company for drivers with accidents and tickets on their driving record.
| Company | Clean record | Accident | Speeding ticket |
|---|---|---|---|
| USAA | $1,458 | $2,210 | $1,685 |
| State Farm | $1,790 | $2,151 | $1,934 |
| Travelers | $1,428 | $2,026 | $2,001 |
| Nationwide | $1,345 | $2,235 | $2,074 |
| Allstate | $2,178 | $3,379 | $2,414 |
| Auto-Owners | $2,134 | $2,696 | $2,528 |
| Geico | $1,625 | $2,845 | $3,005 |
| Progressive | $2,402 | $3,944 | $3,065 |
| Farmers | $2,542 | $4,269 | $4,029 |
Compare auto insurance rates by city in Alabama
Auto insurance rates vary not just by state, but also by city. Cities have different levels of risk based on factors like accident rates, claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. costs, weather and more. That means where you live in Alabama will impact what you pay. Below, we've gathered Alabama car insurance rates by city for comparison.
| City | Annual insurance premium |
|---|---|
Alpine | $1,818 |
Bessemer | $1,996 |
Birmingham | $2,040 |
Decatur | $1,700 |
Montgomery | $1,926 |
Car insurance premium trends in Alabama
Car insurance rates change regularly, influenced by changes in the cost of repairs, claim rates and other factors. Recent years have seen car insurance rates rise across the country, but not every state has seen the same increases.
We've tracked car insurance premium trends in Alabama to show you how things have changed and help you prepare for potential changes in the future. Take a look at the chart below.
Methodology
Insurance.com commissioned Quadrant Information Services in 2023 to field rates from major insurers in every state across most ZIP codes. Driver profile: male, age 40, driving a 2023 Honda Accord LX with full coverage of 100/300/100 with comprehensive and collision; $500 deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim..
The car insurance rates for drivers with accidents and tickets are averaged based on rates for the following accidents and tickets:
Accidents:
- 1 at-fault property damage accident over $2k
- 1 at-fault property damage accident under $2k
- At-fault bodily injury accident
- Single vehicle accident
Tickets:
- Distracted driving ticket
- Speeding ticket 1- 10 MPH over limit
- Speeding ticket 11- 29 MPH over limit
- Talking on cellphone ticket
- Texting ticket
Insurance.com analyzed rates from more than 34,000 ZIP codes, 56 million quotes, and 136 companies. Rates sourced from Quadrant Data Services are for comparison purposes only; your rates may differ.
Compare Alabama car insurance rates with other states
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