Cheapest Car Insurance Companies in Birmingham, Alabama (2022)

State Farm is the cheapest car insurance company in Birmingham at $99 a month for full coverage. Compare quotes to get your best rate.

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Key Takeaways

  • State Farm has the cheapest car insurance rates in Birmingham for all driver and coverage categories.
  • Car insurance rates in Birmingham are higher than the state averages for minimum coverage ($158 a month) and full coverage ($176 a month).
  • Birmingham drivers with a speeding ticket pay 18% more for car insurance than they would with a clean driving record. Drivers with an at-fault accident pay 42% more.

In this article

The cheapest car insurance companies in Birmingham, Alabama

State Farm is the cheapest car insurance company for drivers in Birmingham, according to our survey of the city’s top providers.

State Farm has Birmingham’s:

  • Cheapest minimum- and full-coverage car insurance for adults with clean driving records
  • Cheapest car insurance for drivers with violations
  • Cheapest senior car insurance
  • Cheapest teen car insurance

USAA, Progressive and Allstate also offer affordable car insurance to Birmingham drivers.

To find your best and cheapest rates in Birmingham, compare auto insurance quotes from several companies.

Birmingham car insurance minimums

Alabama state law requires all drivers to carry liability car insurance coverage, which must meet the following minimum requirements:

  • $25,000 for bodily injury per person
  • $50,000 for all bodily injuries during an accident
  • $25,000 for property damage

Full-coverage car insurance, which usually includes collision and comprehensive coverage as well as liability, isn’t a requirement in any state, but some lenders and lessors insist on it. It’s also not a bad idea if your car is new or especially expensive.

Cheapest minimum-coverage auto insurance rates in Birmingham: State Farm

Most drivers in Birmingham will find the best car insurance rates at State Farm. On average, the provider charges $89 a month for minimum coverage.

USAA is a better deal, charging just $84 per month, but the group’s policies are only for military members and their families.

The average cost of minimum-coverage car insurance in Birmingham is $167 a month.

Insurance company Monthly rate
State Farm $89
Progressive $123
Allstate $151
City average $167
Nationwide $168
ALFA $234
GEICO $317
USAA $84
Rates are for minimum-coverage car insurance for a 35-year-old male with a good driving record.

A minimum-coverage car insurance policy meets the state’s requirements for bodily injury and property damage liability coverage. Liability coverage pays for injuries and property damage you cause to others, but it doesn’t pay for your own medical bills or car repairs.

Cheapest full-coverage auto insurance rates in Birmingham: State Farm

State Farm also leads the way for full-coverage auto insurance in Birmingham. Most of the city’s drivers will get the best deal with State Farm, which has an average monthly rate of just $99.

Progressive, Allstate and Nationwide are competitive options, too, as all three companies offer premiums below the citywide average cost of $186. USAA also is an affordable choice for those who qualify.

The average cost of full-coverage car insurance in Birmingham is $186 a month.

Insurance company Monthly rate
State Farm $99
Progressive $145
Allstate $160
Nationwide $183
City average $186
ALFA $262
GEICO $358
USAA $93
Rates are for full-coverage car insurance for a 35-year-old male with a good driving record.

Full coverage usually includes liability, collision and comprehensive coverages, in addition to other optional coverages for car rentals, towing or other costs.

Cheapest car insurance for drivers with a prior incident

State Farm has the cheapest auto insurance for Birmingham drivers with incidents on their records, based on our data. This includes the cheapest rates for drivers with a speeding ticket, an at-fault accident and a DUI.

Cheapest for drivers with a speeding ticket: State Farm

Most drivers with speeding tickets should turn to State Farm. The company offers the most affordable full-coverage car insurance for Birmingham drivers with one speeding ticket on their record — an average rate of $108 per month.

State Farm’s rates for drivers with a speeding ticket are only 9% higher than they are for drivers with clean records. That’s a great deal considering the city average in this situation, which is 18%.

Insurance company Monthly rate
State Farm $108
Allstate $179
Progressive $198
USAA $107
Rates are for full-coverage car insurance for a 35-year-old male with one speeding ticket on his driving record.

Cheapest for drivers with an at-fault accident: State Farm

State Farm is the cheapest car insurance option for Birmingham drivers with an accident on their record, too. The provider’s average premium in this case is $122 a month for full coverage, which is less than half the citywide average of $265.

Most Birmingham drivers pay 42% more for car insurance with an accident on their records than they would if they had a clean record. With State Farm, the increase is only 23%.

Insurance company Monthly rate
State Farm $122
Nationwide $183
Allstate $262
USAA $138
Rates are for full-coverage car insurance for a 35-year-old male with one at-fault accident on his driving record.

Cheapest for drivers with a DUI: State Farm

Drivers with a DUI should turn to State Farm for cheap car insurance. For those with one DUI on their record, the company charges just $108 for full coverage.

A DUI greatly increases the cost of car insurance in Birmingham. For example, the citywide average for all drivers is $186 per month. For drivers with a DUI, that number jumps to $329.

Insurance company Monthly rate
State Farm $108
Progressive $200
Allstate $219
USAA $193
Rates are for full-coverage car insurance for a 35-year-old male with one DUI on his driving record.

Where you buy your car insurance after a DUI can make a big difference, though. State Farm only charges drivers with a DUI car insurance rates that are 9% higher than they are for those with clean driving records. Citywide, the average rate increase is 77%.

Cheapest car insurance for senior drivers: State Farm

State Farm offers the cheapest car insurance for senior drivers in Birmingham. There, seniors will find average rates of $92 a month for full coverage.

In our survey, senior drivers were defined as 60-year-olds with clean driving records. That means no accidents, speeding tickets or DUIs.

Insurance company Monthly rate
State Farm $92
Progressive $118
Allstate $156
USAA $87
Rates are for full-coverage car insurance for a 60-year-old male with a clean driving record.

USAA is a better alternative, but only for those who qualify. Beyond that, Progressive and Allstate are the next-best options.

Cheapest car insurance for young drivers: State Farm

The majority of teen drivers in Birmingham will also find the best deal on car insurance from State Farm. There, an 18-year-old with a clean driving record pays an average of $277 per month for minimum coverage.

Allstate and Nationwide are also solid options, offering policies for less than the citywide average of $577. USAA, with a rate of $195 per month, offers an even stronger choice for those who qualify.

Insurance company Minimum coverage Full coverage
State Farm $277 $313
Allstate $493 $527
Nationwide $534 $597
USAA $195 $219
Rates are for an 18-year-old male with a clean driving record.

When it comes to full coverage, State Farm also has the cheapest car insurance for most teen drivers. For 18-year-olds with clean driving records, State Farm charges $313 per month.

In Birmingham, the average cost of full-coverage car insurance for teens is far greater than the overall city average. The mean cost for teens is $660, while it’s just $186 for all drivers citywide.

Birmingham car insurance FAQ

What is the average cost of car insurance in Birmingham?

The average cost of minimum-coverage car insurance in Birmingham is $167 per month. That figure is just slightly higher than the statewide average of $158.

Drivers in Birmingham pay slightly more than average for full coverage, too. In Birmingham, the average cost of full-coverage car insurance is $186 per month. Statewide, it’s $176 per month.

Who has the cheapest car insurance in Birmingham, Alabama?

State Farm has the cheapest car insurance in Birmingham for both minimum and full coverage. State Farm’s average rate for minimum coverage is $89 a month, while its average rate for full coverage is $99 a month.

What are Birmingham’s car insurance requirements?

In Alabama, drivers must carry at least 25/50/25 car insurance. This means all policies need, at a minimum:

  • $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

Methodology

We obtained non-binding quotes from Quadrant Information Services for a typical driver in every Birmingham ZIP code to find the cheapest car insurance companies and rates. Unless otherwise noted, the driver is a 35-year-old male with a clean driving record. He owns a 2012 Honda Accord LX and drives an average 13,500 miles a year.

The teen driver in this article is 18 years old but otherwise fits the same profile as the 35-year-old driver above. The same is true of our senior driver, who is 60.

Minimum-coverage car insurance rates highlighted on this page are based on a policy that meets Alabama’s minimum liability requirements. Full-coverage rates are based on a policy with the following limits and deductibles:

  • $100,000 bodily injury liability coverage per person
  • $300,000 bodily injury liability coverage per accident
  • $100,000 property damage liability coverage
  • $500 deductibles for both collision and comprehensive coverage

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