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Compare car insurance in Alabama
Get the cheapest car insurance in Alabama for 2023
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
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
- $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
- $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.
Cheapest rates by age in Alabama
In this price analysis, Allstate brings on the cheapest prices for drivers under age 35 and those over age 54. Those ages 35-54 may want a quote from Progressive, although Progressive’s rates stay within dollars of other companies. As always, shopping around will tell you which company offers the best value for you.
| Age | Allstate | Progressive | Geico | USAA |
|---|---|---|---|---|
| 16-24 | $156.45 | $188.30 | $212.93 | $169.14 |
| 25-34 | $132.06 | $133.91 | $143.37 | $156.58 |
| 35-44 | $148.24 | $122.77 | $130.83 | $128.09 |
| 45-54 | $123.69 | $121.06 | $126.08 | $104.29 |
| 55-64 | $104.88 | $121.64 | $106.13 | – |
| 65+ | $101.54 | – | $106.58 | – |
Cheapest rates by gender in Alabama
Both men and women may get the best deal by choosing Allstate. The company costs $10-$20 less per month than the other major brands we analyzed.
| Company | Allstate | Progressive | Geico | USAA |
|---|---|---|---|---|
| Men | $132.14 | $141.81 | $145.57 | $151.55 |
| Women | $128.58 | $137.29 | $151.24 | $139.31 |
Sample rates in Alabama from major car insurance companies
In Alabama, you could get the best deal for car insurance with Allstate, based on Savvy cost data. And if you’re a safe or low-mileage driver, you could drop your rate lower by joining Allstate’s Drivewise or Milewise program.
| Company | Allstate | Progressive | Geico | USAA |
|---|---|---|---|---|
| Rate | $130.20 | $139.30 | $148.40 | $144.56 |
Best car insurance for Alabama
Our experts vetted car insurance companies in Alabama to bring you our top recommendations. We considered each company’s coverage, discounts and perks like local agents or a user-friendly app. Then, we checked the companies’ ratings from J.D. Power, Better Business Bureau, AM Best and the National Association of Insurance Commissioners.
Best value for coverage: Progressive
Progressive
Finder Rating: 4 / 5 ★★★★★
Progressive is a top option for Alabama drivers looking to balance cost and coverage because it's known for competitive pricing. You can go with standard coverage or choose extras that not every company offers, like gap and rideshare coverage.
Plus, Progressive rewards safe drivers by cutting up to a third of your car insurance bill if you have a claim-free history. Otherwise, you can join its Snapshot program to show off your safe driving and earn a discount up to 30%
| Telematics | Snapshot |
|---|---|
| Gap insurance | loan/lease coverage |
Best for low mileage: Nationwide SmartMiles
Nationwide
Finder Rating: 4 / 5 ★★★★★
SmartMiles is one of the few — and best — pay-per-mile insurance policies on the market. This unique policy sets a flat monthly rate plus a per-mile rate like five cents for every mile you drive. This type of policy is worth looking into if you drive less than 10,000 miles per year.
Why Nationwide? This brand has a solid A+ financial rating from AM Best and decades of experience to back your claims.
| Telematics | Yes |
|---|---|
| Gap insurance | Yes |
Best customer service: State Farm
State Farm
Finder Rating: 3.5 / 5★★★★★
State Farm makes customer service a top priority, and you can tell with its consistently high customer satisfaction ratings from J.D. Power. It's also the largest US auto insurance company, showing just how many people trust it for their insurance.
State Farm is also known for its personal support through local agents, giving you a familiar face to go to when you have questions or need to file a claim. Prefer self-service? The insurance giant also offers a user-friendly app. You can access proof of insurance, request roadside assistance, find a repair shop near you and file and track claims via the app
| Telematics | Drive Safe and Save |
|---|---|
| Gap insurance | No |
Best local company: Auto-Owners
Auto-Owners
Finder Rating: 4 / 5 ★★★★★
Auto-Owners may not be a national insurance brand, but its roots go back 100 years in the industry. It also ranks No. 5 for customer satisfaction in the Southeast, according to J.D. Power's 2021 auto insurance survey.
While you might not get the most advanced online services, you can connect with your local agent on all things insurance. In fact, its friendly agents are a top reason to choose Auto-Owners, especially if yours quotes you a competitive price.
| Telematics | TrueRide |
|---|---|
| Gap insurance | Yes |
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.
| Factor | How it affects your rates |
|---|---|
 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 | 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 | 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 | 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 | 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 | 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 | 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 | |
Geico | A+ | 832/1000 | 1.42 | 13.6 | ★★★★★ 4/5 | |
Progressive | A+ | 830/1000 | 1.05 | 13.3 | ★★★★★ 4/5 | Get Quotes |
Allstate | A+ | 827/1000 | 2.71 | 10.4 | ★★★★★ 4/5 | |
USAA | A+ | 884/1000 | 1.9 | 6.3 | ★★★★★ 4/5 | Get Quotes |
Farmers | A- | 820/1000 | 1.64 | 4.9 | ★★★★★ 4/5 | |
Liberty Mutual | A+ | 827/1000 | 2.2 | 4.7 | ★★★★★ 4/5 | Get Quotes |
Nationwide | A+ | 814/1000 | 2.08 | 2.3 | ★★★★★ 4/5 | |
Travelers | A+ | 820/1000 | 3.28 | 2 | ★★★★★ 4/5 | |
Auto Club Exchange | A+ | NR | NR | 1.4 | ★★★★★ 4/5 |
Cheapest car insurance rates in Alabama
| Company | Average annual rate | Learn more |
|---|---|---|
| USAA | $231 | Get a quote Read review |
| Alfa | $289 | |
| Allstate | $313 | |
| Safeco | $415 | |
| Metromile | $521 | |
| Country Financial | $600 | Read review |
| Progressive | $830 | Get a quote Read review |
| 21st Century | $920 | Read 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
| Company | Annual car insurance rate |
|---|---|
| Allstate | $361 |
| 21st century | $1211 |
| Metromile | $701 |
| Progressive | $883 |
| Geico | $873 |
Car insurance quotes in Montgomery
| Company | Annual car insurance rate |
|---|---|
| Allstate | $363 |
| 21st century | $1069 |
| Metromile | $624 |
| Progressive | $924 |
| Geico | $870 |
Car insurance quotes in Madison
| Company | Annual car insurance rate |
|---|---|
| Allstate | $313 |
| 21st century | $1025 |
| Metromile | $703 |
| Progressive | $844 |
| Geico | $785 |
Car insurance quotes in Mobile
| Company | Annual car insurance rate |
|---|---|
| Allstate | $417 |
| 21st century | $1280 |
| Metromile | $758 |
| Progressive | $982 |
| Geico | $845 |
Car insurance quotes in Tuscaloosa
| Company | Annual car insurance rate |
|---|---|
| Allstate | $342 |
| 21st century | $1053 |
| Metromile | $668 |
| Progressive | $826 |
| Geico | $793 |
Compare car insurance providers in Alabama
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.
- Average Premiums and Expenditures, NAIC, 2018
- Automobile Financial Responsibility Limits By State, III, October 2021
- Alabama Car Accident Laws, Nolo
- Motor vehicle theft rate in the United States in 2020, by state, Statista, 08 October 2021
- Top 10 Highest And Lowest States By Estimated Percentage Of Uninsured Motorists, 2019, III
- State Transportation by the Numbers, BTS
- Largest private auto insurers posted combined ratios under 100% in 2020, Spglobal, May 4 2021
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.
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