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Car insurance quick facts
In at fault states, the driver who caused the accident pays for damages.
Company | Direct premiums written (billions) | Market share |
---|---|---|
State Farm | $845,280 | 23.7% |
Alfa Mutual | $503,354 | 14.1% |
Geico | $386,216 | 10.8% |
Allstate | $370,610 | 10.4% |
Progressive | $283,343 | 8.0% |
USAA | $263,029 | 7.4% |
National General | $103,441 | 2.9% |
Nationwide | $85,476 | 2.4% |
Liberty Mutual | $83,695 | 2.3% |
Farmers Insurance | $81,996 | 2.3% |
Alabama’s on the cheap side for car insurance, but watch out for some of its unique driving laws. Costs can vary wildly from person to person, depending on the provider and a number of outside factors. But as a state, Alabama sits near the median cost for car insurance nationwide, which is between $110 and $130 a month for an annual total of approximately $1,400.
Factors that can influence your insurance cost include your driving record, your age and the type of vehicle you drive. Location-based factors can come into play as well, like crime rates where you live or work. The climate can even affect your rates if you live in a place known for extreme blizzards or hurricanes because you’re more likely to use comprehensive coverage for flood damage, falling tree limbs or an ice-related accident.
If you live near a city, you could expect rates to go up too, since accidents are more common in cities than in rural areas. In a state like Alabama, which doesn’t have as many cities with heavy traffic as California or Florida, this is less likely to affect you.
Company | Average annual rate | Learn more |
---|---|---|
USAA | $231 | Get a quote Read review |
Alfa | $289 | |
Allstate | $313 | Get a quote |
Safeco | $415 | |
Metromile | $521 | Get a quote Read review |
Country Financial | $600 | Read review |
Progressive | $830 | Get a quote Read review |
21st Century | $920 | Read review |
Auto-Owners | $921 | |
State Farm | $926 | Get a quote |
Of Alabama’s largest cities, Madison has the cheapest rates and Mobile has the most expensive car insurance rates. Mobile drivers could face rates 4 times more than Madison drivers.
Company | Annual car insurance rate |
---|---|
Allstate | $361 |
21st century | $1211 |
Metromile | $701 |
Progressive | $883 |
Geico | $873 |
Company | Annual car insurance rate |
---|---|
Allstate | $363 |
21st century | $1069 |
Metromile | $624 |
Progressive | $924 |
Geico | $870 |
Company | Annual car insurance rate |
---|---|
Allstate | $313 |
21st century | $1025 |
Metromile | $703 |
Progressive | $844 |
Geico | $785 |
Company | Annual car insurance rate |
---|---|
Allstate | $417 |
21st century | $1280 |
Metromile | $758 |
Progressive | $982 |
Geico | $845 |
Company | Annual car insurance rate |
---|---|
Allstate | $342 |
21st century | $1053 |
Metromile | $668 |
Progressive | $826 |
Geico | $793 |
State minimum requirements for car insurance vary by state. To fulfill car insurance laws in Alabama, you must carry liability insurance that includes at least:
When shopping for car insurance, you may see these liability limits written as 25/50/25.
Some states require drivers to carry uninsured/underinsured (UM/UIM) motorist coverage, which protects a driver if they’re involved in an accident with another driver that isn’t adequately covered by a car insurance policy. However, Alabama doesn’t require UM/UIM coverage.
An SR-22 is a form that lets the state know that you’re carrying at least the minimum for auto liability insurance so you can legally drive again. It is used as confirmation of insurance for high-risk insurance policies, often after major driving infractions:
The regulations and methods for obtaining an SR-22 vary from state to state. You’re required to file an SR-22 in Alabama if:
How to file an SR-22 in Florida
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To drive in Alabama, you’ll need to purchase liability insurance or set up alternative means to payout at least $50,000. Research your car insurance options to find the cheapest coverage for your needs when driving in Alabama.
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