- According to recent data, Nationwide offers the cheapest full coverage car insurance in Alabama at $112 per month.
- Alabama drivers with a clean driving record pay 36% less for car insurance than drivers with a DUI.
- In Alabama, the city of Fort Rucker has the most affordable car insurance rates at $1,664 annually.
- Comparing price quotes from multiple insurers can help you save up to 28% per year on your car insurance policy in Alabama.
The cheapest car insurance in Alabama costs $112 per month for a full coverage policy from Nationwide. That’s a $43 savings from the average cost of insurance in the state, which is $155 a month.
“Drivers looking to get the cheapest insurance premiums in Alabama should maintain continuous coverage and avoid any lapse. When it comes to shopping for a new insurance company, discounts may be applied if the drivers have maintained continuous coverage, which will help lower the annual premium,” says Lauren McKenzie, senior insurance agent, A Plus Insurance.
To help you find the cheapest rates, CarInsurance.com analyzed rates from multiple auto insurance companies in Alabama including Geico, Progressive, State Farm and others, so that you can easily compare car insurance rates.
Car insurance companies with cheap car insurance in Alabama
Nationwide has the cheapest full coverage car insurance in Alabama, at an average premium of $112 per month or around $1,345 per year, based on CarInsurance.com data.
A full-coverage auto insurance policy typically includes liability coverage, which is mandated by most states and optional coverages such as comprehensive and collision insurance, which have a deductible.
The table below provides the cheapest full coverage insurance quotes in Alabama. We’ve gathered rates from different insurance companies to help you find the most affordable option.
Cheapest car insurance rates in Alabama per month
| Company | Full coverage monthly rates |
|---|---|
| Nationwide | $112 |
| Travelers | $119 |
| GEICO | $135 |
| Country Financial | $141 |
| State Farm | $149 |
| Auto-Owners | $178 |
| Allstate | $182 |
| Progressive | $200 |
| Farmers | $212 |
| USAA* | $122 |
Note: USAA is only available to military community members and their families.
Alabama drivers who pay lower insurance premiums
Car insurance rates can differ due to various factors, including age, location, driving history, credit score and the type of vehicle you own. Some insurers may offer cheaper rates for certain types of drivers compared to others.
- Married drivers pay 10% less than single drivers.
- Alabama drivers with clean records pay 36% less than drivers who have a DUI on their record.
- Alabama drivers in their 20s pay 62% lower rates for insurance than a 16-year-old in Alabama.
- Adding a teen to your policy will cost you 77% less than having the teen purchase their own auto insurance policy.
- Drivers who are licensed for three or more years pay 21% less on their insurance premiums.
- Drivers insured for three or more years can save up to 20% on their insurance costs.
TipIf you no longer drive regularly or work remotely, you may want to re-evaluate your insurance policy. Drivers with a daily commute of less than 15 miles can save up to 4% for this state more on their premiums.
Cheapest companies for different coverage levels in Alabama
It’s no secret that car insurance quotes vary drastically from person to person and from company to company. Your car insurance premiums will also vary depending on the coverage level you choose, your driving history and other factors.
In addition to full coverage, there are also liability-only and state minimum policies. Unlike full coverage, liability-only and state minimum policies only cover damage to another driver’s bodily injury and property damage in the event of an accident.
Not all insurers offer the same coverage limits at the same price point. For instance:
- Country Financial is the cheapest for a state minimum policy.
- Country Financial has the cheapest rates for a liability-only policy (50/100/50).
- Nationwide offers the cheapest car insurance for a full coverage policy (100/300/100) in Alabama.
The numbers above (100/300/100) represent coverage of up to $100,000 per person for medical bills with a $300,000 cap per accident, as well as up to $100,000 for property damage.
Cheapest companies for state minimum coverage in Alabama
In Alabama, all drivers must have a certain amount of car insurance, also called the state’s minimum coverage requirements. You must purchase the minimum coverage limits listed below. Keep in mind that minimums are merely that – the minimum. Most drivers need more insurance to be protected in case of a costly accident.
| Minimum coverage | Minimum limit |
|---|---|
| Minimum bodily injury liability | $25,000/$50,000 |
| Minimum property damage liability | $25,000 |
Read more about the minimum liability car insurance requirements by state
The following table lists Alabama’s major insurance providers, ranked by their average annual state minimum coverage rates, from cheapest to most expensive.
| Company | State minimum annual rates |
|---|---|
| Country Financial | $313 |
| State Farm | $340 |
| GEICO | $363 |
| Travelers | $403 |
| Auto-Owners | $416 |
| Progressive | $450 |
| Nationwide | $487 |
| Allstate | $576 |
| Farmers | $667 |
| USAA* | $316 |
Note: USAA is only available to military community members and their families.
Cheapest Alabama insurance companies for liability-only coverage
If you cause an accident, your liability insurance will pay for the medical bills and property damage of others involved, up to the policy limits.
In the table below, see the average annual rates from Alabama’s top insurers for liability insurance, ranked from cheapest to most expensive. Coverage limits are $50,000 for bodily injury per person, $100,000 for bodily injury per accident and $50,000 for property damage.
| Company | Liability only annual rates |
|---|---|
| Country Financial | $475 |
| State Farm | $511 |
| GEICO | $523 |
| Travelers | $558 |
| Nationwide | $617 |
| Auto-Owners | $618 |
| Progressive | $718 |
| Allstate | $752 |
| Farmers | $1,186 |
| USAA* | $431 |
Note: USAA is only available to military community members and their families.
Cheapest car insurance companies in Alabama for full coverage
Full coverage car insurance provides comprehensive protection for your vehicle. It typically includes liability coverage, collision coverage and comprehensive coverage, which safeguards against many incidents beyond accidents, such as theft or natural disasters.
When it comes to car insurance, it’s important to have coverage that fits your income, assets and risk profile. If you’re financing your vehicle, your lender will likely require you to purchase a full coverage auto insurance policy.
The table below lists major insurance providers in Alabama based on the average annual cost for a full coverage policy with limits of $100,000/$300,000 bodily injury, $100,000 property damage and $500 comprehensive/collision deductibles.
| Company | Full coverage annual rates |
|---|---|
| Nationwide | $1,345 |
| Travelers | $1,428 |
| GEICO | $1,625 |
| Country Financial | $1,694 |
| State Farm | $1,790 |
| Auto-Owners | $2,134 |
| Allstate | $2,178 |
| Progressive | $2,402 |
| Farmers | $2,542 |
| USAA* | $1,458 |
Note: USAA is only available to military community members and their families.
Learn more about who has the cheapest full coverage auto insurance
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Cheapest auto insurance in Alabama by driving history
Your driving history impacts insurance premiums in Alabama, as insurance companies use this factor to assess the risks associated with providing coverage for a driver.
A clean driving record is the key to affordable car insurance. Traffic violations like speeding, DUIs and at-fault accidents can significantly increase your insurance premiums – insurers consider drivers with these violations on their records risky.
In Alabama, drivers with a history of traffic violation pay an average of $627 more per year than those with a clean record. Choose responsible driving habits to save money and protect yourself and others on the road.
Cheap car insurance in Alabama after a speeding ticket
If you have a speeding ticket on your Alabama driving record and you are looking for cheap car insurance, Nationwide offers the cheapest full-coverage auto insurance for drivers with a speeding ticket, with an average rate of $1,495 per year.
| Company | Rates before speeding | After speeding (1-29 mph over limit) | % difference | $ difference |
|---|---|---|---|---|
| Nationwide | $990 | $1,495 | 51% | $506 |
| Allstate | $1,583 | $1,763 | 11% | $180 |
| Travelers | $1,290 | $1,813 | 41% | $524 |
| State Farm | $1,705 | $1,849 | 8% | $144 |
| Auto-Owners | $1,640 | $1,971 | 20% | $331 |
| GEICO | $1,178 | $2,143 | 82% | $964 |
| Progressive | $1,972 | $2,563 | 30% | $591 |
| Farmers | $2,164 | $2,805 | 30% | $642 |
| USAA* | $1,130 | $1,300 | 15% | $170 |
Note: USAA is only available to military community members and their families.
Cheapest car insurance premiums in Alabama after a DUI conviction
Alabama drivers with a DUI on their record can get the cheapest car insurance from State Farm at an average of $1,849 a year, followed by Travelers with an annual premium of $1,965 annually, based on recent data.
If you have a clean record, you are likely to pay 36% less for car insurance than someone with a DUI.
| Company | Rates before DUI | Rates after a DUI | % difference | $ difference |
|---|---|---|---|---|
| State Farm | $1,705 | $1,849 | 8% | $144 |
| Travelers | $1,290 | $1,965 | 52% | $676 |
| Nationwide | $990 | $2,011 | 103% | $1,021 |
| Allstate | $1,583 | $2,134 | 35% | $551 |
| Progressive | $1,972 | $2,416 | 23% | $444 |
| GEICO | $1,178 | $2,483 | 111% | $1,304 |
| Farmers | $2,164 | $2,924 | 35% | $760 |
| Auto-Owners | $1,640 | $3,192 | 95% | $1,552 |
| USAA* | $1,130 | $2,345 | 108% | $1,215 |
Note: USAA is only available to military community members and their families.
Cheap car insurance rates in Alabama after an at-fault accident
If you’re a driver with an at-fault accident on your record, Nationwide is the cheapest option, offering car insurance at an average cost of $1,606 annually.
Travelers is the second most affordable option, providing full-coverage insurance to drivers with a history of at-fault accidents at an average cost of $1,837.
If you’re accountable for an accident, it can significantly affect your insurance premiums, as insurance companies see at-fault incidents as a sign of higher risk, leading to increased costs for coverage.
| Company | Rates before accident | Rates after accident | % difference | $ difference |
|---|---|---|---|---|
| Nationwide | $990 | $1,606 | 62% | $616 |
| Travelers | $1,290 | $1,837 | 42% | $547 |
| GEICO | $1,178 | $2,025 | 72% | $847 |
| State Farm | $1,705 | $2,065 | 21% | $361 |
| Auto-Owners | $1,640 | $2,111 | 29% | $472 |
| Allstate | $1,583 | $2,487 | 57% | $905 |
| Farmers | $2,164 | $3,044 | 41% | $880 |
| Progressive | $1,972 | $3,319 | 68% | $1,348 |
| USAA* | $1,130 | $1,708 | 51% | $578 |
Note: USAA is only available to military community members and their families.
Check out the most affordable insurance options in your neighboring state
Cities with the lowest auto insurance rates in Alabama
Your location plays a key role in determining your car insurance premium. Insurance companies analyze claim data in your area to assess the risk of insuring you. Areas with higher accident rates or theft statistics have higher premiums.
In Alabama, Fort Rucker stands out as the city with the lowest auto insurance rates, at an average of $1,664 per year.
Insurers base these rates on various factors such as theft statistics, collision rates and incidents of vandalism to assess risk in different areas. Additionally, your individual driving history, vehicle make and age play a role in calculating the premiums you pay.
The table below shows a list of cities in Alabama with the most affordable car insurance rates.
| City | Full coverage annual rates |
|---|---|
| Fort Rucker | $1,664 |
| Ozark | $1,669 |
| Muscle Shoals | $1,669 |
| Dothan | $1,670 |
| Tanner | $1,672 |
| Hartford | $1,674 |
| Hartselle | $1,675 |
| Sheffield | $1,675 |
| Webb | $1,677 |
| Cottonwood | $1,678 |
Learn about the 10 most important factors that affect car insurance rates
How much can you save on auto insurance in Alabama?
Shopping around for car insurance quotes in Alabama can help drivers save 28% annually on full coverage policies.
How much money you save depends on factors specific to you but compare quotes and ensure you’re getting exactly what you need at a good price.
Car insurance discounts in Alabama: Save on premiums
Alabama drivers can lower their car insurance costs by taking advantage of discounts. Insurance companies give discounts to drivers who drive safely, have safety features in their cars and bundle insurance policies.
Compare prices and coverage from different insurance companies to get the best deal and discounts for your specific needs.
Below, find common auto insurance discounts available in Alabama.
| Discount type | % difference | $ difference |
|---|---|---|
| Air bags | 1% | $22 |
| Anti-theft device | 1% | $25 |
| Daily commute | 5% | $108 |
| Days advanced purchase | 6% | $125 |
| Days per week driven | 4% | $60 |
| Education | 5% | $94 |
| Electronic funds transfer | 2% | $37 |
| Homeowner | 3% | $61 |
| Lower annual mileage | 5% | $78 |
| Loyalty – years renewal with company | 11% | $207 |
| Marital status | 10% | $194 |
| Multi policy | 8% | $158 |
| Paperless/electornic documents | 4% | $72 |
| Payment type | 9% | $173 |
| Primary use | 8% | $149 |
| Profession | 11% | $209 |
| Safety devices | 2% | $40 |
| Telematics | 11% | $191 |
| Years insured | 18% | $500 |
| Years licensed | 20% | $722 |
The bottom line on cheap car insurance in Alabama
Based on our research, if you are a good driver, Nationwide is the cheapest in Alabama for a full coverage policy.
We know that finding the best and cheapest auto insurance coverage is essential, but so is getting the right amount of protection.
The best way to find affordable car insurance in Alabama is to know and understand the coverage you need, compare quotes, apply for discounts and maintain a clean driving record. Even if you have tickets or accidents, it’s still possible that the company will offer you a policy at affordable rates.
Resources & Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to field rates in 2023 from all the major insurers in nearly every ZIP code of Alabama for three different coverage levels:
- Full coverage policy with limits 100/300/100, including comprehensive and collision coverage and a $500 deductible.
- Liability-only with limits 50/100/50.
- State-minimum car insurance limits of 25/50/25.
The rates are based on the sample profile of a 40-year-old male and female driving a Honda Accord LX with a clean driving record and a good credit score. We have compared 53,409,632 car insurance quotes from 75 company groups across 34,588 ZIP Codes.
Violations:
Car insurance rates are calculated by evaluating the sample profile of a 40-year-old driver for a full coverage policy with limits 100/300/100, including comprehensive and collision coverage, and a $500 deductible, with the following incidents applied: clean record, at-fault accident, DUI conviction and speeding ticket.
Discounts:
Car insurance discount rates are for a full coverage policy with limits of 100/300/50 and a $500 comprehensive and collision deductible based on the sample profile of a 40-year-old male driver. To gather the data, our data experts compared 2,677,890 insurance quotes across various ZIP Codes.
The rates are for comparison purposes only and your exact rates may vary.
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