Best Auto Insurance Rates in Alabama

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Find Cheap Car Insurance in Alabama

Travelers and USAA are the best companies for cheap car insurance in Alabama, according to a QuoteWizard survey of carriers that serve the state.

Alabama drivers pay an average of $361 per year when they buy the minimum amount of car insurance the state requires from USAA. They pay an average of $750 per year for a full-coverage policy when they buy it from Travelers.

These rates are quite a bit cheaper than the state averages for such car insurance policies. Based on our data, a typical driver in Alabama spends $633 per year on minimum coverage. That’s $272 per year more than USAA’s average rate. That same driver spends $1,278 per year on full coverage — $528 per year more than Travelers’ average rate.

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Where can I get cheap car insurance in Alabama?

USAA is the best company for cheap car insurance in Alabama if you want to buy state-minimum coverage. It offered our sample driver a $361 average annual premium.

Travelers is the cheapest place for car insurance in Alabama if you want full coverage. It offered our driver a $750 average annual premium.

These average premiums are based on rate quotes gathered for a typical driver.

Travelers and USAA aren’t the only companies that offer affordable car insurance to Alabama drivers. Several other carriers also provide low-cost coverage, our research shows.

Donegal is one example. The average premium it offered our sample driver for a full-coverage policy was $13 per month more than what Travelers offered — but $31 per month less than the state average.

cheapest full-coverage car insurance in alabama

Progressive, State Farm and Nationwide offer full-coverage car insurance that is cheaper than the Alabama average, too. The average premium Progressive sent our sample driver was $970 per year. The average premiums State Farm and Nationwide sent were $988 and $1,082, respectively.

The state average for this kind of policy — which often provides liability, collision and comprehensive coverage — is $1,278 per year.

State Farm and Progressive are two of the cheapest insurance companies in Alabama for state-minimum car insurance as well.

cheapest minimum car insurance in alabama

The average annual premium of $501 State Farm sent our sample driver for a state-minimum policy was about $12 per month more than what USAA sent. The average annual premium of $530 Progressive offered our driver for minimum coverage was $14 per month more than USAA’s.

If that sounds like a lot, consider that these premiums from State Farm and Progessive are still at least $9 per month cheaper than the state average for a full-coverage policy.

Something else to consider when you shop for car insurance in Alabama is that many rate factors determine what you pay for coverage, including your age, gender and occupation. As a result, the quotes these and other companies offer you might be more or less expensive than the ones highlighted here.

What are the best car insurance companies in Alabama?

Travelers and USAA are the best car insurance companies in Alabama for cheap coverage, according to our survey of the state’s providers.

Travelers: best cheap full-coverage car insurance in Alabama

Travelers offered our sample Alabama driver an average rate of $750 per year for full-coverage auto insurance. This amount is $528 per year cheaper than the state average for a full-coverage policy. That’s a difference of $44 per month.

If you or someone you know in Alabama are looking to buy state-minimum coverage, consider Travelers, too. It sent our driver an average rate of $404 per year for a minimum-coverage policy. That’s just $43 per year, or about $3.50 per month, more than what USAA offered.

USAA: best cheap minimum car insurance in Alabama

USAA sent our sample driver an average rate of $361 per year for state-minimum auto insurance. This amount is $272 per year cheaper than the Alabama average for a minimum-coverage policy. The difference in this case: nearly $23 per month.

What if you’d prefer full coverage? USAA is a good option here as well. It offered our driver an average rate of $836 per year for a full-coverage policy. That’s just $86 per year, or $7 per month, more than the rate Travelers provided.

State Farm is the most popular car insurance company in Alabama, according to S&P Global. It writes 23% of the state’s auto coverage.

USAA, our pick for best cheap minimum-coverage car insurance, writes 8% of the state’s policies. That’s enough for it to be fifth in terms of market share.

Insurance company Alabama market share
State Farm 23%
Alfa 15%
Allstate 12%
GEICO 11%
USAA 8%
Progressive 8%
National General 3%
Travelers 2%
Nationwide 2%
Liberty Mutual 2%
Source: S&P Global

Our best option for cheap full-coverage car insurance, Travelers, is the state’s eighth-largest carrier by market share. It writes 2% of auto policies in Alabama.

What are Alabama’s minimum auto insurance requirements?

In Alabama, state-minimum car insurance is commonly referred to as 25/50/25. This means all drivers must have at least:

  • $25,000 of bodily injury liability coverage per person.
  • $50,000 of bodily injury liability coverage per accident.
  • $25,000 of property damage liability coverage.

Penalties for driving without insurance in Alabama

If you’re convicted of a “Mandatory Liability Insurance” violation in Alabama, the state may:

  • Suspend your driver’s license for six months.
  • Suspend your vehicle registration.
  • Fine you up to $500 for a first violation, or up to $1,000 for a second or subsequent violation.

Also, Alabama drivers who are caught driving without insurance have to pay the following reinstatement fees:

  • $200 for a first violation.
  • $400 for a second or subsequent violation.

Methodology

We conducted a comprehensive study of auto insurance rates in Alabama through Quadrant Information Services. The quotes we collected were for a single, 35-year-old male who has an excellent credit score and a clean driving record. He owns a 2012 Honda Accord and drives it an average of 15,000 miles a year. His car insurance policy has 100/300/50 coverage limits and a $1,000 deductible, where applicable.

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