- Among the companies analyzed by CarInsurance.com, GEICO stands out as the cheapest option for full coverage car insurance in Alabama, with an insurance premium of $129 per month.
- Drivers in Alabama with a clean record pay 68% less for premiums compared to those with a DUI.
- The city with the lowest car insurance rates in Alabama is Dothan, with an annual premium of $1,919.
- Alabama drivers can save up to 27% annually on their auto insurance policy by comparing price quotes from multiple carriers.
The cheapest full coverage car insurance in Alabama is $129 , saving you $47 compared to the average cost of insurance in the state, which is around $176 per month.
CarInsurance.com has done the homework for you. We analyzed rates from various auto insurance companies in Alabama, such as Geico, Progressive, State Farm and more, so you can effortlessly compare their rates to find the most affordable option.
“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.
Which company offers the cheapest car insurance in Alabama?
GEICO offers the cheapest car insurance rates in Alabama for a full coverage policy with an average premium of $129 per month or around $1,546 per year, based on CarInsurance.com’s rate analysis.
A full coverage policy includes liability insurance, which is required by law in most states and optional coverage such as comprehensive and collision insurance, which typically have a deductible.
The below table shows the cheapest quotes in Alabama by different insurance carriers for a full coverage policy.
Cheapest car insurance rates in Alabama per month
| Company | Full coverage monthly rates |
|---|---|
| GEICO | $129 |
| Travelers | $137 |
| Auto-Owners | $156 |
| Allstate | $162 |
| Nationwide | $164 |
| Country Financial | $174 |
| Progressive | $209 |
| Safeway Insurance | $245 |
| Farmers | $274 |
| USAA* | $130 |
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 9% less than single drivers.
- Alabama drivers with clean records pay 68% less than drivers who have a DUI on their record.
- Alabama drivers in their 20s pay 59% lower rates for insurance than a 16-year-old in Alabama.
- Adding a teen to your policy will cost you 59% less than having the teen purchase their own auto insurance policy.
- Drivers who are licensed for three or more years pay 28% less on their insurance premiums.
- Drivers insured for three or more years can save up to 21% 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).
- GEICO 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 | $383 |
| GEICO | $422 |
| Auto-Owners | $526 |
| Travelers | $564 |
| Progressive | $584 |
| Allstate | $633 |
| Safeway Insurance | $632 |
| Nationwide | $702 |
| Farmers | $949 |
| USAA* | $352 |
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 | $408 |
| GEICO | $485 |
| Auto-Owners | $595 |
| Travelers | $598 |
| Safeway Insurance | $619 |
| Nationwide | $632 |
| Allstate | $678 |
| Progressive | $698 |
| Farmers | $1,000 |
| USAA* | $391 |
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 |
|---|---|
| GEICO | $1,546 |
| Travelers | $1,650 |
| Auto-Owners | $1,873 |
| Allstate | $1,948 |
| Nationwide | $1,965 |
| Country Financial | $2,083 |
| Progressive | $2,503 |
| Safeway Insurance | $2,940 |
| Farmers | $3,294 |
| USAA* | $1,561 |
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 $1,114 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 rates after a speeding ticket in Alabama
If you’ve got a speeding ticket on your Alabama driving record and need affordable car insurance, Allstate might be the answer. With an average annual rate of $2,074 , Allstate offers the cheapest full coverage auto insurance options for drivers with speeding tickets in Alabama.
| Company | Rates before speeding | After speeding (1-29 mph over limit) | % difference | $ difference |
|---|---|---|---|---|
| Allstate | $1,948 | $2,074 | 6% | $126 |
| Travelers | $1,650 | $2,345 | 42% | $695 |
| Country Financial | $2,083 | $2,861 | 37% | $778 |
| Auto-Owners | $1,873 | $2,896 | 55% | $1,023 |
| GEICO | $1,546 | $2,959 | 91% | $1,413 |
| Nationwide | $1,965 | $3,684 | 88% | $1,719 |
| Safeway Insurance | $2,940 | $3,753 | 28% | $813 |
| Progressive | $2,503 | $3,967 | 58% | $1,464 |
| Farmers | $3,294 | $4,219 | 28% | $925 |
| USAA* | $1,561 | $1,801 | 15% | $240 |
Cheapest car insurance in Alabama after a DUI conviction
Travelers offers the cheapest car insurance to Alabama drivers with a DUI conviction at $2,439 per year and Allstate has the second-cheapest insurance premiums at $2,627 a year, based on recent data.
Drivers with clean driving records can expect to pay an average of 68% less than those with a history of DUI.
| Company | Rates before DUI | Rates after a DUI | % difference | $ difference |
|---|---|---|---|---|
| Travelers | $1,650 | $2,439 | 48% | $789 |
| Allstate | $1,948 | $2,627 | 35% | $679 |
| Country Financial | $2,083 | $2,978 | 43% | $895 |
| GEICO | $1,546 | $3,369 | 118% | $1,823 |
| Progressive | $2,503 | $3,570 | 43% | $1,067 |
| Safeway Insurance | $2,940 | $3,753 | 28% | $813 |
| Farmers | $3,294 | $4,412 | 34% | $1,118 |
| Auto-Owners | $1,873 | $4,451 | 138% | $2,578 |
| Nationwide | $1,965 | $4,977 | 153% | $3,012 |
| USAA* | $1,561 | $3,291 | 111% | $1,730 |
Cheap car insurance rates in Alabama after an at-fault accident
If you’re a driver with an at-fault accident on your record, Travelers is the cheapest option, offering car insurance at an average cost of $2,306 annually.
Auto-Owners is the second most affordable option, providing full-coverage insurance to drivers with a history of at-fault accidents at an average cost of $2,860 .
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 |
|---|---|---|---|---|
| Travelers | $1,650 | $2,306 | 40% | $656 |
| Auto-Owners | $1,873 | $2,860 | 53% | $987 |
| Country Financial | $2,083 | $2,866 | 38% | $783 |
| GEICO | $1,546 | $2,933 | 90% | $1,387 |
| Allstate | $1,948 | $2,941 | 51% | $993 |
| Nationwide | $1,965 | $3,659 | 86% | $1,694 |
| Safeway Insurance | $2,940 | $3,871 | 32% | $931 |
| Farmers | $3,294 | $4,588 | 39% | $1,294 |
| Progressive | $2,503 | $4,633 | 85% | $2,130 |
| USAA* | $1,561 | $2,357 | 51% | $796 |
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, Dothan stands out as the city with the lowest auto insurance rates, at an average of $1,919 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 |
|---|---|
| Dothan | $1,919 |
| Madison | $1,953 |
| Huntsville | $1,987 |
| Auburn | $1,988 |
| Decatur | $2,003 |
| Tuscaloosa | $2,100 |
| Mobile | $2,163 |
| Montgomery | $2,163 |
| Hoover | $2,188 |
| Birmingham | $2,249 |
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 27% 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
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 | 3% | $62 |
| Anti-Theft Device | 2% | $52 |
| Comp and Coll Deductibles | 15% | $307 |
| Daily Commute | 4% | $89 |
| Days Advanced Purchase | 5% | $115 |
| Days Per Week Driven | 4% | $90 |
| Education | 4% | $88 |
| Electronic Funds Transfer | 2% | $53 |
| Electronic Signature | 4% | $77 |
| Homeowner | 3% | $64 |
| Lower Annual Mileage | 5% | $106 |
| Loyalty – Years Renewal With Company | 10% | $217 |
| Marital Status | 9% | $199 |
| Multi Policy | 8% | $163 |
| Paperless/Electornic Documents | 3% | $58 |
| Payment Type | 8% | $165 |
| Primary Use | 7% | $148 |
| Profession | 9% | $183 |
| Purhase Status | 4% | $77 |
| Safety Devices | 3% | $70 |
| Student Away At School | 9% | $186 |
| Telematics | 9% | $187 |
| Vehicle Ownership | 4% | $77 |
| Years Insured | 21% | $446 |
| Years Licensed | 28% | $602 |
The bottom line on cheap car insurance in Alabama
Based on our research, if you are a good driver, GEICO 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 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.
*USAA is only available to military community members and their families.
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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