Key Takeaways
- State Farm has the cheapest average car insurance rates for most Alabama drivers.
- The average cost of car insurance in Alabama is just under the national average rate.
- USAA offers the state's lowest rates overall, but it only provides insurance to military members and their families.
In this article
The cheapest car insurance companies in Alabama
Cheapest overall: State Farm
Best discounts: Progressive
State Farm has the cheapest rates for both minimum-coverage and full-coverage car insurance in Alabama, with an average rate of $49 a month for minimum coverage and $102 a month for full coverage. To compare, the average rate for minimum coverage in Alabama is $80 a month, and the average rate for full coverage is $176.
Progressive has the second-best rates for minimum auto insurance in Alabama, with an average rate of $63 a month. It also has the best discount offers, helping to reduce your car insurance costs even more. These discounts include:
Multi-car: Cover more than one car on your Progressive auto insurance policy and save an average of 12% on your premium.
Online quote: Get a car insurance quote from Progressive online and save an average of 7% on your premium. Save another 9%, on average, for signing your policy documents online.
Bundling: If you bundle your home and auto insurance with Progressive, you can save an average of 5%.
In order to find your best coverage at the best price, make sure to compare car insurance quotes from multiple providers.
Alabama car insurance minimum limits
Alabama state law requires drivers to carry the following minimum-coverage car insurance limits:
| Coverage type | State requirements |
|---|---|
| Bodily injury liability | $25,000 per person/$50,000 per accident |
| Property damage liability | $25,000 |
| Source: Alabama Department of Insurance | |
These limits may seem adequate, but a major accident can result in these limits being hit quickly if court costs and medical expenses are involved. To avoid paying out of pocket once you reach your policy limits, we recommend raising your liability limits to:
- Bodily injury per person: $100,000
- Bodily injury per accident: $300,000
- Property damage liability per accident: $100,000
Cheapest minimum-coverage auto insurance rates in Alabama: State Farm
State Farm has the cheapest minimum-coverage car insurance in Alabama, with an average rate of $49 a month. This is 39% cheaper than the state average of $80 a month.
Minimum-coverage auto insurance covers repair and medical costs of others if you cause an accident.
| Company | Average monthly rate |
|---|---|
| State Farm | $49 |
| Progressive | $63 |
| Travelers | $69 |
| Nationwide | $82 |
| Allstate | $85 |
| GEICO | $126 |
| Alfa | $130 |
| USAA | $34 |
| Rates are for minimum-coverage car insurance for a 35-year-old male with a good driving record. | |
Cheapest full-coverage auto insurance rates in Alabama: State Farm
State Farm has the cheapest rates for full-coverage car insurance in Alabama, with an average of $102 a month. Travelers offers the second-cheapest full-coverage rate of $134 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $102 |
| Travelers | $134 |
| Allstate | $147 |
| Nationwide | $151 |
| Progressive | $211 |
| GEICO | $268 |
| Alfa | $320 |
| USAA | $77 |
| Rates are for full-coverage car insurance for a 35-year-old male with a good driving record. | |
The average rate for full-coverage car insurance in Alabama is $176 a month. State Farm comes in 42% cheaper
Full-coverage auto insurance is an excellent investment, as minimum coverage only pays for the repairs and injuries of others. To get your own losses covered, you need full coverage.
Cheapest car insurance in Alabama for drivers with bad credit: Nationwide
Nationwide has the lowest average full-coverage rate of $211 a month for most Alabama drivers with poor credit. Travelers comes in second, at $238.
Some car insurance companies see poor credit as a risk factor when calculating your quote. Some states are starting to forbid credit ratings to be used in premium calculations.
| Company | Average monthly rate |
|---|---|
| Nationwide | $211 |
| Travelers | $238 |
| Allstate | $241 |
| Progressive | $323 |
| State Farm | $327 |
| Alfa | $371 |
| GEICO | $406 |
| USAA | $130 |
| Rates are for full-coverage car insurance for a 35-year-old male with poor credit and a good driving record. | |
Cheapest car insurance for drivers with prior incidents
After an offense such as a speeding ticket, accident or DUI, you'll likely see your rates increase. State Farm offers the cheapest insurance rates for Alabama drivers with driving offenses. Here's the breakdown across various incidents.
Cheapest for drivers with a speeding ticket: State Farm
If you have a speeding ticket on your insurance record, State Farm is the cheapest car insurance option, at $111 a month for full coverage. Allstate is the next-cheapest, at $163.
| Company | Average monthly rate |
|---|---|
| State Farm | $111 |
| Allstate | $163 |
| Travelers | $171 |
| Nationwide | $188 |
| Progressive | $252 |
| GEICO | $327 |
| Alfa | $399 |
| USAA | $89 |
| 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
After an accident, Alabama drivers can find the most affordable car insurance from State Farm, with an average premium of $124 a month. Nationwide is the next-cheapest, at $151 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $124 |
| Nationwide | $151 |
| Travelers | $182 |
| Allstate | $238 |
| Progressive | $318 |
| Alfa | $432 |
| GEICO | $439 |
| USAA | $114 |
| Rates are for full-coverage car insurance for a 35-year-old male with one at-fault accident on his driving record. | |
An accident stays on your insurance record for three to five years, and usually results in a rate increase. If you file another claim in this time period, you could see your rates go even higher.
Cheapest for drivers with a DUI: State Farm
If you have a DUI, your lowest average auto insurance rate in Alabama is with State Farm, at $111 a month. The next-cheapest option is Allstate, at $197.
| Company | Average monthly rate |
|---|---|
| State Farm | $111 |
| Allstate | $197 |
| Travelers | $200 |
| Progressive | $254 |
| Nationwide | $334 |
| Alfa | $389 |
| GEICO | $485 |
| USAA | $160 |
| Rates are for full-coverage car insurance for a 35-year-old male with one DUI on his driving record | |
If you are pulled over and found to have a blood alcohol content (BAC) of 0.08% or higher, you are considered to be driving under the influence (DUI). The penalties for a first-offense DUI in Alabama are a fine of $600 (mandatory) to $2,100, and/or jail time of up to one year.
A DUI will likely lead to an increase in your rates. Auto insurance companies see a DUI to be an extreme risk factor, and may discontinue your policy or not offer you coverage at all.
Cheapest car insurance for senior drivers: State Farm
Senior drivers in Alabama pay the cheapest car insurance rates with State Farm, at an average rate of $111 a month. Allstate is next, at $197 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $111 |
| Allstate | $197 |
| Travelers | $200 |
| Progressive | $254 |
| Nationwide | $334 |
| Alfa | $389 |
| GEICO | $485 |
| USAA | $160 |
| Rates are for full-coverage car insurance for a 65-year-old male with a clean driving record. | |
Senior drivers often pay higher auto insurance rates than most younger demographics. This is mostly due to the risk that may occur due to response-time loss that happens with age. Seniors with clean driving records still pay lower premiums than teen drivers.
Cheapest car insurance for young drivers: State Farm
State Farm has the lowest minimum-coverage car insurance rates for teen drivers in Alabama, with an average of $225 a month. Travelers is the next-cheapest, at $283 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $225 |
| Travelers | $283 |
| Nationwide | $378 |
| Allstate | $381 |
| GEICO | $483 |
| Progressive | $657 |
| Alfa | $1,053 |
| USAA | $120 |
| Rates are for minimum-coverage for an 18-year-old male with a clean driving record. | |
Teen drivers looking for full-coverage car insurance can get the cheapest rate with State Farm, at $309 a month. Travelers is next, at $378 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $309 |
| Travelers | $378 |
| Allstate | $503 |
| Nationwide | $507 |
| GEICO | $656 |
| Progressive | $1,020 |
| Alfa | $1,469 |
| USAA | $163 |
| Rates are for full-coverage for an 18-year-old male with a clean driving record. | |
Due to their relative inexperience behind the wheel, teens usually pay the highest rates for auto insurance to offset the risk. However, we found that teens on a parent's insurance policy pay 48% less for car insurance. If you have a teen driver, adding them to your car insurance will still raise your premium, but it will probably be cheaper than if you each have separate policies.
Cheapest car insurance for married drivers: Allstate
Married drivers pay the lowest rates in Alabama with Allstate, at an average rate of $140 a month. Car insurance companies sometimes view married drivers as a lower claim risk and give them cheaper rates as a result.
| Company | Average monthly rate |
|---|---|
| Allstate | $140 |
| Alfa | $297 |
| GEICO | $259 |
| Nationwide | $150 |
| Progressive | $166 |
| State Farm | $102 |
| Travelers | $134 |
| USAA | $68 |
| Rates are for full-coverage car insurance for a married 35-year-old male with a good driving record. | |
Frequently asked questions
How much is car insurance in Alabama?
The average cost of minimum-coverage car insurance in Alabama is $80 a month. Full-coverage car insurance costs an average of $176 a month.
Who has the cheapest car insurance in Alabama?
State Farm has the lowest rates for all age brackets, regardless of insurance history. Allstate has the cheapest rates for married drivers.
What are Alabama's car insurance requirements?
Alabama law requires that drivers registered in the state carry the following car insurance minimum limits:
- Bodily injury per person: $25,000 for bodily injury
- Bodily injury per accident: $50,000 for bodily injury
- Property damage: $25,000
Methodology
The rates shown in this article are based on an analysis of more than 300,000 auto insurance quotes obtained from Quadrant Information Services for sample drivers from across Alabama.
Unless otherwise noted, our sample driver is a single 35-year-old with good credit. All sample drivers own a 2012 Honda Accord LX that they drive for an average of 13,500 miles per year.
Our senior base driver is a 65-year-old male with a good driving record. Our young base driver is an 18-year-old male with a good driving record.
Minimum-coverage rates reflect the cost of policies meeting the minimum liability limits required by the state.
Full coverage policies include the following coverages, limits and deductibles:
- Bodily injury liability: 100,000 limit per person/$300,000 limit per accident
- Property damage liability: $100,000 limit
- Collision: $500 deductible
- Comprehensive: $500 deductible
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