Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

Compare car insurance in Alabama

Get the cheapest car insurance in Alabama for 2021

The average cost of car insurance in Alabama is $1,066.92 per year or about $89 per month, according to the National Association of Insurance Commissioners (NAIC). The southern state’s average sits 10% less than the national average, which is $1,190 per year.

However, a number of factors influence your rate like your driving record, car and ZIP code. Also, the NAIC’s average includes policies with both state minimum coverage and higher coverage like comprehensive and collision. Your rate will reflect your personal factors and the coverage you choose.

Alabama car insurance quick facts

Picture not described

Minimum liability requirements

25/50/25

Average annual car insurance cost according to the NAIC

$1,066.92

At-fault state

In at-fault states, the driver who caused the accident pays for damages.

Alabama’s state minimum car insurance requirements

To meet car insurance laws in Alabama, you need to carry a minimum amount of liability coverage — often written as 25/50/25. These numbers are your coverage limits, telling you how much your insurance will pay out of pocket for different kinds of damage.

Let’s break down what’s covered by Alabama’s state minimum requirements.

Bodily Injury Liability

Bodily injury liability

  • $25,000 for injuries to one person
  • $50,000 for injuries to two or more people

For bodily injuries, Alabama requires you to carry 25/50, which pays up to $25,000 for injuries to one person and $50,000 total if you injure more than one person. This coverage is important because it helps you pay for medical bills or legal expenses if you injure other drivers, passengers or pedestrians in an accident.

While these coverage limits are common in many states, they offer little protection beyond minor injuries. Consider upping your limits above Alabama’s requirements.

Property damage liability

Property damage liability

  • $25,000 in property damage liability

Alabama requires at least $25,000 for property damage, which pays for damage that you cause to another other driver’s car or personal property like a phone or cargo. This amount offers a low level of protection for accidents.

Finder tip: Alabama’s state minimum coverage isn’t enough

Even though Alabama keeps standard requirements compared to other states, its state minimums aren’t enough to protect you in moderate or serious car accidents.

For example, if you total someone else’s car that’s worth $40,000, your coverage would pay up to $25,000. And the state minimums won’t pay at all for your medical bills or car repairs. To avoid paying out of pocket, think about raising your liability limits and adding optional coverage, depending on your budget and driving needs.

7 factors that affect car insurance rates in Alabama

Factors are characteristics specific to you that car insurance companies use to set how much you’ll pay for car insurance. The less risky each of your factors is the less you pay, the riskier you are the more you’ll pay. We’ll break down Alabamian’s rating factors to keep in mind.

FactorHow it affects your rates
Age

Age

How old you are is a top factor in determining your car insurance rates. With each passing year, you earn more experience on the road. More experience can equal cheaper rates. Teen drivers pay the most, but rates begin to level off around your 20’s with drivers over 50 paying the least.
Gender

Gender

Alabama takes gender into account when determining your rates. Our analysis of Quadrant data found that men under 18 pay 17% more for car insurance compared to women of the same age. But, between 31 and 45, women see rates 5% higher than men. After 45, rates differ between men and women by only 1%, with women on the higher end.
Location

Location

Where you live affects your rates, including where you park your car. High theft rates, high traffic and a high number of uninsured drivers could mean higher rates.

Alabama vehicle theft rates stand at 222 vehicle thefts per 100,000 inhabitants, according to the FBI’s most recent report on vehicle theft rates. That’s well below the national average of 246 vehicle thefts per 100,000 inhabitants.

As for uninsured drivers, 19.5% of Alabamians on the road are uninsured. That’s more than average for the percent of uninsured drivers in a state according to Insurance Information Institute, with the national average standing at 12.6%.

Vehicle and mileage

Vehicle and mileage

Your car’s make, model and trim directly affect how much you’ll pay for car insurance. Things like its cost, safety ratings, the likelihood of theft and sportiness all help insurers determine its cost to insure.

Safer and cheaper vehicles score the lowest rates, with luxury vehicles with higher repair costs resulting in higher premiums.

And, the more you’re on the road, the more at-risk you are to get in an accident, which means higher premiums. However, according to the Bureau of Transportation, Alabamians drive an average of 48.5 miles per day, that’s well above the average across the US of 36.1 miles per day.

Credit score

Credit score

Your credit score is included in your credit-based insurance score which insurers use to help calculate rates. According to the Insurance Information Institute, there is a strong correlation between your insurance score and claims filings. A good credit-based insurance score could mean lower rates.

Alabama drivers have protections under state laws that regulate the use of your credit history when issuing car insurance policies. Credit score can’t be the only factor used to determine your rates.

Coverage

Coverage

The more coverage you get and the higher limits you choose, the more protection you’ll have and the more you’ll pay in monthly premiums. And, if you opt for full coverage car insurance that includes comprehensive and collision, the amount of your deductible weighs into your costs too, higher deductibles mean lower monthly premiums.
Driving Record

Driving Record

The better your driving record, the lower your premium. If you’re in an at-fault accident you could see rates increases from 20% to 50%. And DUI’s in Illinois can increase your rate by around 54%. These types of violations typically stay on your record for about three years.

What happens if I need an SR-22 in Alabama?

In Alabama, you may be notified that you need an SR-22 if you commit serious driving offenses like driving uninsured or under the influence of alcohol. An SR-22 is a form that lets the state know that you’re carrying at least the minimum for auto liability insurance. You’ll need to ask your insurance company to file this form with the DMV.

Learn more about the process of filing an SR-22 in Alabama, including fees and how long you have to file.

Coverage that we recommend in Alabama

Car insurance exists to cushion the financial blow after an accident. To make sure that your policy protects you from common scenarios in Alabama, think about boosting your policy with optional coverage.

Higher liability limits for major damage

The Alabama-required 25/50/25 in liability coverage should cover most minor accidents. However, if you’re faulted for serious injuries or car damage or if someone takes you to court, you can easily run through this level of coverage. For example, a hospital stay costs thousands of dollars per day and the amount depends on the exact care that a person needs.

Since these are variables you can’t control, you want to make sure that your liability limits cover all of the reasonable possibilities. Talk with your insurance agent about the limits that make sense for you.

Collision coverage brings a lot of cost-benefit

Collision coverage focuses on your own protection if you hit another car or object like a pole or railing. It helps you recover faster from paying for your car’s repairs than if you saved for a rainy day on your own.

Most Alabamans pay $32 per month for collision coverage, based on the NAIC’s averages. If you damaged your car and needed $1,500 in repairs, it would take you four years of saving that monthly premium to recover from the accident. Rather than saving for years, let collision coverage pay for those repairs and cover you for any other at-fault incidents that may happen.

Consider this coverage if . . .

  • You drive a lot and rely on your car.
  • You have an auto loan, and it requires full coverage.
  • You don’t have the savings to pay for car repairs.

Comprehensive coverage to take on theft and more

For the many types of damage that are covered, comprehensive coverage also may be worth buying if you have wiggle room in your budget. This “other-than-collision” coverage pays for many damages like theft, vandalism, harsh weather, a falling tree branch or a cracked windshield.

Consider this coverage if . . .

  • Your auto loan requires it.
  • You can’t pay for major car repairs on your own.
  • You live in an area known for theft or crime.
  • You live in a rural part of Alaska with large wildlife.
  • Your area sees harsh weather.

    Uninsured drivers abound in Alabama

    In Alabama, about 1/5 of drivers don’t carry the proper car insurance. Stay prepared with uninsured or underinsured motorist coverage in case another driver hits you but can’t pay for the damage. Since this coverage is optional in this state, you’ll need to add it to your policy.

    Consider this coverage if . . .

    • You couldn’t pay for your own car repairs.
    • You don’t have health insurance.
    • Your health insurance has a high deductible or copays.

    Top 10 auto insurance companies in USA that serve Alabama

    We’ve pulled the top 10 companies by market share that offer coverage in Alabama, according to S&P Global. Compare top companies by three major rating agencies along with our overall Finder score.

    • Better Business Bureau (BBB) rating measures how a business interacts with its customers, with the highest rating being A++.
    • J.D. Power determines customers’ overall satisfaction with their car insurer’s price, billing, claims and customer support. The higher the J.D. Power score out of 1,000, the better.
    • NAIC complaint index shows how a company’s number of complaints compares to similar companies of its size. Scores lower than 1.00 show the company receives less than the average number of complaints, and scores above 1.00 show more complaints than average.
    • Finder’s score shows you an overall look at the company by taking into account scores from each of these agencies as well as the coverage and discounts each company offers.
    Provider
    BBB Rating
    JD Power Rating
    NAIC complaint ratio
    National market share %
    Finder score
    Go to site
    State Farm
    A+
    847/1000
    1.93
    16.2

    ★★★★★ 4/5

    Read review

    Geico
    A+
    832/1000
    1.42
    13.6

    ★★★★★ 4/5

    Read review

    Progressive
    A+
    830/1000
    1.05
    13.3

    ★★★★★ 4/5

    Get Quotes
    Allstate
    A+
    827/1000
    2.71
    10.4

    ★★★★★ 4/5

    Get Quotes
    USAA
    A+
    884/1000
    1.9
    6.3

    ★★★★★ 4/5

    Get Quotes
    Farmers
    A-
    820/1000
    1.64
    4.9

    ★★★★★ 4/5

    Read review

    Liberty Mutual
    A+
    827/1000
    2.2
    4.7

    ★★★★★ 4/5

    Get Quotes
    Nationwide
    A+
    814/1000
    2.08
    2.3

    ★★★★★ 4/5

    Read review

    Travelers
    A+
    820/1000
    3.28
    2

    ★★★★★ 4/5

    Read review

    Auto Club Exchange
    A+
    NR
    NR
    1.4

    ★★★★★ 4/5

    Get Quotes

    Cheapest car insurance rates in Alabama

    CompanyAverage annual rateLearn more
    USAA$231Get a quote Read review
    Alfa$289
    Allstate$313Get a quote Read review
    Safeco$415
    Metromile$521Get a quote Read review
    Country Financial$600Read review
    Progressive$830Get a quote Read review
    21st Century$920Read review
    Auto-Owners$921
    State Farm$926

    Which city has the cheapest car insurance in Alabama?

    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.

    Car insurance quotes in Birmingham

    CompanyAnnual car insurance rate
    Allstate$361
    21st century$1211
    Metromile$701
    Progressive$883
    Geico$873

    Car insurance quotes in Montgomery

    CompanyAnnual car insurance rate
    Allstate$363
    21st century$1069
    Metromile$624
    Progressive$924
    Geico$870

    Car insurance quotes in Madison

    CompanyAnnual car insurance rate
    Allstate$313
    21st century$1025
    Metromile$703
    Progressive$844
    Geico$785

    Car insurance quotes in Mobile

    CompanyAnnual car insurance rate
    Allstate$417
    21st century$1280
    Metromile$758
    Progressive$982
    Geico$845

    Car insurance quotes in Tuscaloosa

    CompanyAnnual car insurance rate
    Allstate$342
    21st century$1053
    Metromile$668
    Progressive$826
    Geico$793

    Compare car insurance providers in Alabama

    Name Product Gap insurance Homeowner discount Telematics Has an app?
    Allstate
    Yes
    Yes
    Drivewise
    Yes
    Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.

    Speak to an agent: 877-526-1527

    Progressive
    loan/lease coverage
    Yes
    Snapshot
    Yes
    Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
    Pretected
    Yes
    Depends on provider
    No
    No
    Get your most compatible insurance options via a "smart matching" method aimed at finding you value.
    The AARP Auto Insurance Program from the Hartford
    Yes
    Yes
    No
    No
    Enjoy low rates for mature drivers, plus perks like new car replacement and lifetime repair guarantees. Only for drivers over age 50.
    Root
    No
    Yes
    Telematics only
    Yes
    Track your driving to receive a low rate that reflects your driving skills, and enjoy a fully app-based policy experience.
    Branch
    Yes
    No
    Yes
    Yes
    Benefit from this online-based startup’s steep savings and convenient online quotes and claims.
    USAA
    No
    Yes
    SafePilot
    Yes
    Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
    Metromile
    No
    No
    Telematics only
    Yes
    Pay only for the miles you drive, plus enjoy app services you won’t find everywhere like claims and car health updates.
    Liberty Mutual
    Yes
    Yes
    RightTrack
    Yes
    Earn free accident forgiveness after five years claims-free and customize your policy anytime.

    Speak to an agent: 877-336-0538

    Nationwide
    Yes
    No
    Yes
    Yes
    Nationwide is among the nation’s top ten car insurance providers, offering the full range of service and a promise to be “on your side” with stellar service.
    Savvy
    Yes
    Depends on provider
    No
    Yes
    Get quotes in 30-seconds from 100+ companies, and save an average of $800 or more per year. Requires online login to your existing insurance.
    AAA
    Yes
    Yes
    No
    Yes
    Member benefits extend beyond car insurance to offer discounts, bike coverage and more. For drivers in AK, AZ, CA, MT, NV, UT and WY.
    Elephant
    loan/lease coverage
    Yes
    No
    No
    Get a great deal online with steep discounts and some of the highest liability limits available.
    State Farm
    No
    Yes
    Drive Safe and Save
    Yes
    Work with a dedicated agent to find the right coverage for you, including bundling other policies for the best value.

    Speak to an agent: 877-745-0232

    Allied
    Yes
    Yes
    Nationwide SmartRide
    No
    Finding the right auto insurance doesn’t have to be confusing. Allied Insurance has a network of independent agents to help you get customized coverage for your unique needs.
    Assurance
    Yes
    Yes
    No
    Yes
    This broker shines with over 600 positive customer reviews, more top ratings than any broker we've compared.
    loading

    Compare up to 4 providers

    In Alabama, the driver at fault pays for damage

    Alabama is an at-fault state, which means that the driver responsible for the accident pays for the damage. The insurance companies and legal authorities will determine who’s at fault.

    However, Alabama law won’t let you receive any payment from the other driver if you’re found partially at fault, according to the legal website Nolo.

    For instance, if the other driver is 95% at fault and you’re 5% at fault, you won’t get reimbursed for any damage by the other driver. Instead, you’d file under your own collision or personal injury protection if you bought these optional types of coverage.

    Bottom line

    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.

    Frequently asked questions about car insurance in Alabama

    Where do I register my vehicle in Alabama?

    You can register most motor vehicles through your local county title or registration office.

    How does the state confirm insurance coverage?

    Using a state database, Alabama’s Department of Revenue randomly selects motor vehicle registrations to determine if owners are maintaining liability insurance according to the law. Your proof of insurance will also be checked anytime a police officer pulls you over.

    Does credit score affect car insurance rates in Alabama?

    In Alabama, your credit score can help or hurt you when it comes to car insurance rates. In 47 US states, including Alabama, insurers are allowed to use your credit history to assess risk when they quote you a policy rate. This move is illegal in three states: California, Hawaii, and Massachusetts. Coincidentally, independent studies have shown that drivers with poor credit scores are more likely to be involved in accidents than drivers with excellent credit.

    Your credit score is often one of the biggest factors in determining insurance rates, along with your driving record and your age. So if you really want to take a chunk out of your monthly insurance cost, raising your credit will put you on the right track.

    More guides on Finder

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site