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.
- Among the companies analyzed by CarInsurance.com, Nationwide stands out as the cheapest option for full coverage car insurance in Alabama, with an insurance premium of $112 per month.
- Drivers in Alabama with a clean record pay 36% less for premiums compared to those with a DUI.
- The city with the lowest car insurance rates in Alabama is Fort Rucker, with an annual premium of $1,664 .
- Alabama drivers can save up to 28% annually on their auto insurance policy by comparing price quotes from multiple carriers.
Which company offers the cheapest car insurance 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.
You might also be interested in
- Non-owner car insurance in Alabama: Find affordable rates
- Liability insurance for Alabama drivers
- Minimum car insurance requirements in Alabama
- Alabama car insurance calculator: Get estimates by ZIP code and model
- How much is car insurance for a 25-year-old in Alabama?
- Car insurance for high-risk drivers in Alabama
- Cheap car insurance for seniors in Alabama
- Car insurance discounts in Alabama; 13% potential savings
- How much does car insurance cost in Alabama?
Who pays a lower insurance premium 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 insurers for different coverage levels in Alabama
We all know that car insurance costs are different for everyone and can vary depending on your insurance company. Other than the insurer, your driving record and coverage levels also play a role in determining your premium.
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
Below are the average annual rates from major insurance companies in Alabama, ranked from cheapest to the most expensive for the 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 insurance providers for liability-only coverage in Alabama
Liability-only coverage will financially protect you up to the specific policy limits for any damage, injuries or deaths resulting from an accident for which you’re responsible.
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 full coverage car insurance in Alabama
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.
In an ideal scenario, having full coverage means having a policy that aligns with your income, assets and risk profile. Lenders typically mandate full coverage for individuals financing their vehicles.
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
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 rates 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
CarInsurance.com analyzed insurance rates for Alabama drivers with DUI convictions and we found that State Farm provides the cheapest car insurance rates at an average annual premium of $1,849 . Travelers is the second-cheapest insurer at an average of $1,965 per year.
A DUI can significantly impact your car insurance costs. On average, drivers with clean records pay 36% less than drivers with a DUI on their record.
| 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 after an at-fault accident in Alabama
Nationwide is the cheapest car insurance company for drivers with a history of at-fault accidents with an annual premium of $1,606 .
Travelers is the second most affordable option, providing full-coverage car insurance with an average annual premium 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.
Cheapest car insurance rates by state
Please enter the correct format
Our apologies, we cannot display the data due to availability or spelling errors. Please check the spelling and try again. For assistance, reach out us via Alabama cities with the lowest auto insurance rates
Your car insurance company sets your rates based on many factors. One of the most important is where you live. Companies look at the number and cost of car insurance claims in your area to determine how risky it is to insure you.
In Alabama, Fort Rucker stands out as the city with the lowest auto insurance rates, at an average of $1,664 per year.
Insurance providers rely on statistical data regarding thefts, collisions and vandalism to analyze the likelihood of such incidents occurring in a particular area. Besides driving history, your car model and age play a significant role in determining your insurance premiums.
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 car insurance in Alabama?
By comparing car insurance quotes, you can save an average of 28% per year for a full coverage policy in Alabama.
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
Our research shows that Nationwide has the cheapest full coverage car insurance rates in Alabama for individuals with a good driving record.
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.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Managing Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
Guide to car insurance (with rates) in cities of Alabama