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.
- Nationwide has the cheapest car insurance rates in Alabama for full coverage at $112 a month among the companies analyzed by the team of CarInsurance.com.
- In Alabama, drivers with clean driving records pay 36% less than drivers with a DUI.
- The city of Fort Rucker has the lowest auto insurance rates in Alabama, with an average premium of $1,664 per year.
- You can save up to 28% per year on your car insurance policy in Alabama by comparing price quotes from multiple insurers.
Which company offers the cheapest car insurance rates in Alabama?
Based on data analysis by CarInsurance.com, Nationwide provides the cheapest full coverage auto insurance rates for Alabama drivers at a monthly rate of $112 or $1,345 a year.
A full coverage policy bundles liability insurance, which is required by most states, with optional coverages like comprehensive and collision. These additional coverages come with a deductible, meaning you’ll have to pay a set amount out-of-pocket before your insurance kicks in.
Find out which insurance company offers the cheapest car insurance rates for full coverage in Alabama.
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.
Who pays the lowest auto insurance premiums in Alabama?
The cost of car insurance can vary greatly depending on your age, location, driving record, credit score, driving habits and vehicle type. However, some insurers may offer you more affordable rates than others based on your situation.
- 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 Alabama companies for different coverage levels
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.
There are cheaper options, such as liability-only and state minimum policies. These types of insurance only provide coverage for the other party in an at-fault accident up to the limits of the policy.
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 up to $100,000 for medical bills per person, with a $300,000 cap per accident and up to $100,000 to repair other drivers’ cars and property that you damage.
Cheapest state minimum coverage in Alabama
State laws require all drivers to maintain a minimum level of car insurance coverage, also known as the state’s minimum coverage requirements. In Alabama, you must have at least the following insurance coverage on your car.
| 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
Below, you’ll see average annual rates for major insurance providers in Alabama, ranked from cheapest to most expensive for state minimum coverage.
| 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 liability-only coverage in Alabama
Your liability-only coverage will cover the cost of property damage or bodily injury you cause in an accident, up to the policy limits.
Below, you’ll see average annual rates for major insurance providers in Alabama, ranked from cheapest to most expensive for liability insurance coverage. The coverage limit for the below-mentioned rates is $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 full coverage in Alabama
Full coverage car insurance policies consist of comprehensive and collision insurance. Comprehensive and collision protect against accidents, theft, vandalism and natural disasters.
Ideally, full coverage means you have insurance that’s appropriate for your income, assets and risk profile. Lenders require full coverage from those who finance their cars.
The table below shows the average annual rates from major insurance providers in Alabama, listed by cost, for a full coverage policy of $100,000 for bodily injury per person, $300,000 for bodily injury per accident and $100,000 for property damage, with comprehensive and collision coverage and a $500 deductible.
| 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
Cheapest car insurance in Alabama by driving history
In Alabama, driving history significantly impacts car insurance costs. Insurance companies use this information to evaluate the risk of insuring a driver. Drivers with clean records pose less risk, leading to lower premiums.
Insurance companies consider traffic violations like speeding tickets, DUIs and at-fault accidents as indicators of risky driving behavior. So, they charge higher premiums to drivers with these violations on their record.
In Alabama, drivers with a history of such violations typically pay $627 more annually than drivers with clean records.
Cheap car insurance rates in Alabama after a speeding ticket
A speeding ticket can impact your Alabama car insurance rates, but finding affordable options is still possible. Among the carriers analyzed, Nationwide has the cheapest car insurance premiums for individuals with a speeding ticket at an average cost of $1,495 a 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 in Alabama after a DUI conviction
State Farm offers the cheapest car insurance to Alabama drivers with a DUI conviction at $1,849 per year and Travelers has the second-cheapest insurance premiums at $1,965 a year, based on recent data.
Drivers with clean driving records can expect to pay an average of 36% less than those with a history of 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 companies in Alabama after an at-fault accident
The car insurance company with the cheapest driver rates after an at-fault accident is Nationwide, at $1,606 a year.
On the other hand, Travelers offers the second-cheapest full-coverage car insurance rates for drivers with a history of at-fault accidents at an average annual premium of $1,837.
When you are responsible for an accident, it can have a significant impact on your insurance premiums. Insurance companies generally consider at-fault accidents an indicator of increased risk, which leads to increased premiums.
| 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
Average savings on car insurance in Alabama
If you compare car insurance quotes, you could enjoy an annual saving of around 28% on a full coverage policy in Alabama.
While the actual savings may differ for each person, comparing price quotes before buying a policy can help you find affordable insurance.
Car insurance discounts in Alabama: Save on premiums
In Alabama, car insurance companies offer various discounts to drivers, such as safe driver and bundling discounts to help you save on your premiums. Learn more about some common car insurance discounts in Alabama below.
| 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 auto insurance in Alabama
Based on our findings, Nationwide provides the cheapest rates for a full coverage policy in Alabama if you have a good driving record.
It’s important to find the cheapest auto insurance and ensure you have the right amount of protection for your needs.
To get affordable car insurance in Alabama, figure out the coverage you require, compare quotes from different companies, look for discounts and keep a good driving record.
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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