Best Cheap Car Insurance in Alabama for 2022

Whether you call it the Heart of Dixie, Cotton State or Yellowhammer State, Alabama is serious about their car insurance requirements. 

One good thing about living in Alabama is that things don’t cost a lot. The cost of living is low, houses are pretty affordable, and (this is the part we love) car insurance is cheap!

Here’s our detailed guide to finding affordable Alabama car insurance. But if you don’t have time to read all this, you can go ahead and start getting your own personalized quotes right now. We make it easy to compare auto insurance prices in Alabama and get the best rates you possibly can.

Alabama Car Insurance Requirements

Alabama has certain car insurance requirements that you must meet in order to drive legally. 

Here are their bodily injury liability and property damage liability minimum car insurance requirements. 

• $25,000 in bodily injury liability per person and $50,000 per accident. If someone gets hurt in an accident you’re legally liable for, bodily injury liability pays for their medical treatment and damages. It also can cover your legal expenses if you get sued.
• $25,000 in property damage liability. This coverage pays for damage to other people’s property (like their cars) in an accident you’re responsible for.

Alabama Car Insurance Penalties

If you drive without insurance in Alabama you could get in a lot of trouble. Alabama recently tightened its enforcement efforts for uninsured drivers. If you’re convicted of driving without insurance, you’ll be fined up to $500 for your first offense and up to $1,000 for each offense after that.

On top of all that, your vehicle registration will be suspended, and you’ll have to pay $200 to reinstate it the first time. Drive uninsured a second time, and you’ll have to pay a $400 reinstatement fee after a mandatory four-month suspension.

Don’t risk driving uninsured or underinsured. If you think you can’t afford car insurance because you have a tight budget, we can help you get insured for less. Compare car insurance quotes in Alabama today by entering your zip code below. 

Cheapest Car Insurance for Teen Drivers in Alabama

Searching for affordable car insurance can be a challenge for drivers of any age, but it’s even more complicated to find cheap car insurance for teen drivers. Insurance companies place drivers in this age range in a high-risk group, making them expensive to insure. But don’t give up just yet! You’ll be happy to know that you can find cheap car insurance in Alabama for the teen drivers in your family. 

The cheapest insurance company for teen drivers in Alabama is Gainsco, coming in at $128/mo for liability insurance. Following close behind at just $5 more is Acceptance, with a monthly premium of $133. After this, there’s a $35 jump in price with SafeAuto ($168/mo).

Although these companies offer some of the lowest rates in Alabama for teen drivers, this doesn’t mean your teen is guaranteed to get the same rates. Since there are several factors that insurance companies consider when determining rates, it’s best to shop around to find the cheapest rates for your family.  

Cheapest Car Insurance for Young Drivers in Alabama

There’s no getting around it – younger drivers will pay more for car insurance, no matter where they live. However, cheaper car insurance is in their future. Once a driver turns 25, they will see a decrease in the cost of auto insurance. Until then, here are the cheapest car insurance companies for drivers  18-24 years old in Alabama. 

Young drivers in Alabama will enjoy the cheapest rates from Assurance America, with rates averaging $85/mo for liability insurance. The next most affordable option is Answer Financial ($102/mo), with Gainsco close behind ($104/mo).

These are listed as the cheapest insurers for drivers in this age range, but you can still benefit from doing your own research. College and university students may get additional discounts for being in a sorority, fraternity, or having good grades. Check with each insurance company to see who has the most affordable rates. 

Cheapest Car Insurance for Retired Drivers in Alabama

Once people retire, they feel that they are embarking on a new journey in life. They have time to travel, spend time with family and grandkids, and try new hobbies like gardening or swimming. However, rising car insurance rates may damper their new endeavors. 

When drivers get older, car insurance companies start to see them as a higher risk, driving car insurance rates up. If you’re a retired driver in Alabama, don’t fret! You can find cheap car insurance in “The Heart of Dixie.”

Gainsco offers the cheapest car insurance for retired drivers with monthly premiums of $51/mo.  Direct Auto follows behind with a $16 increase to a monthly premium of $67. Liberty Mutual is next with a jump to $75/mo. 

Although you may feel that all three options are on the affordable end of the spectrum, you should still shop around to see what other companies are out there. Other insurers may present cheaper rates depending on your location, vehicle, or driving history. Compare car insurance quotes from several companies to find the best policy for your needs. 

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Cheapest Car Insurance for Married Drivers in Alabama

Whether you’ve just returned from your honeymoon or you’re celebrating year 1, 5, 10 or 20, getting married often results in a decrease in car insurance for many drivers. 

We’ve compiled a list of affordable car insurance options for married drivers below:

The table reveals that Assurance America and Gainsco tie for cheapest car insurance provider with monthly premiums of $45. Next in line is Answer Financial with a monthly premium of $51/mo, and Acceptance averaging $60/mo.  

Although Assurance America and Gainsco only differ from Answer Financial by $6, this can add up. In a year, you’ll pay $72 more in car insurance! 

With this in mind, married couples should take time to shop around and find the best policy. Compare rates between insurers to ensure you’re getting the best deal, and check for any discounts you now enjoy as a married couple. One common discount married couples take advantage of is the multi-car discount allowing you to save on your insurance by insuring multiple vehicles under the same policy.

Cheapest Car Insurance for Single Drivers in Alabama

While married drivers do save money on car insurance, this doesn’t mean single drivers are doomed to overpay.The following auto insurance companies offer cheap car insurance to single drivers in Alabama.

Assurance America offers the most affordable auto insurance rates for single drivers in Alabama with an average monthly premium of $54/mo for liability insurance. Following close behind is Gainsco with a slight increase to $59/mo, Answer Financial ($62/mo), and Arrowhead ($66/mo).

On average, single drivers tend to pay more for auto insurance than married couples. To find affordable rates, make sure to do your homework. Compare car insurance rates and check for discounts that can help you save money on your insurance premiums. 

Cheapest Car Insurance for Men vs. Women in Alabama

When calculating your car insurance rates, insurance companies take your gender into account. Here are the most affordable options for men and women in Alabama. 

Cheap Car Insurance for Men in Alabama

Cheap Car Insurance Companies for Women in Alabama

 When comparing the cheapest rates for men and women in Alabama, you’ll see that Assurance American offers the cheapest rates for men at $52/mo, while women will pay slightly more at $54/mo for liability insurance. 

Gainsco is the second cheapest company for both genders, with men paying a monthly premium of $58/mo, while women will pay $57/mo. Overall, female drivers in Alabama will pay less for car insurance than male drivers. 

Besides your gender, insurance companies use a plethora of factors to calculate your final monthly premium. Both male and female drivers should compare rates between auto insurance companies before making a final decision. 

Cheapest Car Insurance for Alabama Drivers with Spotty Records

We all try our best to be careful drivers. However, sometimes life gets the best of you and you may end up being involved in an accident or getting a ticket. If you fall into this category, you may wonder if it’s possible to find affordable car insurance in Alabama with spotty records. The good news is we know the companies that offer cheap car insurance no matter your driving record. 

Cheap Car Insurance for Drivers with a Ticket on their Record

Cheap Car Insurance for Drivers with Multiple Tickets on their Record

As you can see, drivers with a single ticket on their record, will typically pay less than drivers with multiple tickets. However, there isn’t much of a difference between the two. 

Drivers with one ticket on their record who choose Gainsco ($69/mo) are only paying $3 less per month than drivers who have multiple tickets on their record who choose Gainsco ($72/mo). In addition, drivers with one ticket who choose Direct Auto ($96/mo)  as their insurer pay just as much as drivers with multiple tickets who choose Good2Go as their auto insurer. 

If you’re a person with a spotty driving record, you can find affordable car insurance. You’ll need to set aside time to search for and compare car insurance rates to avoid breaking the bank. Since your driving record is only one of the factors insurance companies consider, you can possibly save money in another area, such as with a driving education course or good grades. 

We make the research process easy as can be. Just enter your zip code below for personalized rates from over 60 car insurance companies. 

Cheap Car Insurance for Drivers with an Accident on their Record

Cheap Car Insurance for Drivers with Multiple Accidents on their Record

In Alabama, drivers with multiple accidents on their record will pay more for car insurance than drivers who’ve only been in one accident. With Gainsco, a driver with a single accident will pay $77/mo for liability insurance. In contrast, a driver with multiple accidents will pay $121/ mo. That’s a difference of $44 per month! In one year, the driver with multiple accidents will pay over $500 more in car insurance. 

For drivers who have accidents on their record, try to shop around for car insurance often. Regularly compare car insurance rates and search for discounts that can help lower your monthly premium. This way, you can save money until the accidents drop off your record in a few years. 

Cheapest Alabama State Minimum Coverage

Drivers who only want the state minimum coverage for their vehicle can also find cheap car insurance in Alabama.  The following auto insurance companies offer the most affordable state minimum coverage for drivers looking to save money on car insurance. 

You can get state minimum coverage in Alabama for as low as $43/mo when you choose Gainsco as your auto insurance company. Assurance America ($45/mo) and Answer Financial ($49/mo) aren’t far behind, but there’s a slight jump in price with Direct Auto ($56/mo).

While these rates are great, If you want to get the most bang for your buck, dive into the world of car insurance and start comparing rates. Once you find the company that can give you the best rate without sacrificing quality coverage, check with them to see if you qualify for additional savings. 

Cheapest Full Coverage Car Insurance in Alabama

Are you a driver who relies on full coverage car insurance to sleep better at night? Or is your car currently leased or financed and your lender requires comprehensive and collision coverage? No matter your situation, while full coverage is nice, paying through the nose for it is not. 

Thankfully, Alabama has several options for affordable full coverage car insurance. These companies offer the cheapest options for full coverage car insurance in Alabama. 

Assurance America offers full coverage to drivers for a monthly rate of $89/mo.  The next affordable option sees a jump of $10 to Direct Auto ($99/mo) and a jump of $17 for Answer Financial ($106/mo). Although these changes in price may seem small, they will add up over time. If you’re searching for full coverage in Alabama, make sure to shop around and compare rates to find the best option. 

The Best Rated Car Insurance Companies in Alabama

Each year J.D. Power conducts a customer satisfaction survey to identify the top-rated auto insurance companies based on a 1,000 point scale.

These are the best-rated car insurance companies in Alabama this year:

State Farm – 859 points

GEICO – 843 points 

Allstate – 838 points

Liberty Mutual – 831 points

Nationwide – 831 points

Travelers – 831 points

Progressive – 828 points

Safeco – 820 points

Farmers – 818 points

National General – 803 points 

As you can see from the list, State Farm comes in first place with 859 points. Popular insurance companies GEICO (843 points) and AllState (838 points) follow behind. The scoring system was based on a combination of interaction, price, customer service, policy offerings, policy information, claims, and the billing process. 

Alabama Car Insurance Discounts

One way to save on car insurance in Alabama is to take advantage of car insurance discounts you qualify for. While each insurer offers different discounts, here are some common auto insurance options offered in Alabama: 

• Good Driver Discount: Do you have great driving habits? If so, your insurance company will reward you for your good driving with a discount of up to 40%. Some insurance companies choose to install a telematics device in your vehicle to track your habits, but you’ll qualify for the discount if you meet their standards. 
• Driver Education Discount: Taking a driver’s education course isn’t a desirable activity for many people, but drivers in Alabama may want to give it a second thought. Taking a state-approved defensive driving course can help you save anywhere between 5%-10% on your insurance premium. 
• Good Student Discount: If you’re currently a high school, college, or university student, maintaining good grades might qualify you for the good student discount. To get the discount, you’ll need a B average (3.0 GPA).
• Usage-Based Discount: If you drive less than 7,500 miles a year, you could be eligible for a usage-based discount, or pay-per-mile coverage. With this policy, your insurer gives you a low monthly rate, and you only pay for the miles you drive.  
• Anti-Theft System Discount: Insurers offer discounts for drivers who equip their cars with anti-theft systems. You can save anywhere from 15%-20% on your premium.
• Safety Feature Discount: Features like anti-lock brakes and electronic stability control can help you qualify for this discount with your insurer. 
• Paid-in-Full Discount: Pay for your entire yearly payment in one or two lump sums to enjoy savings and be free from pesky monthly payments. 
• Continuous Insurance Discount: Drivers who’ve been continuously insured for six months or more can enjoy savings on their insurance premiums. You can save anywhere between 5%-25% with this discount. 

Compare Car Insurance Rates by Alabama Cities

The area you live in directly impacts how much or how little you’ll pay for car insurance. If your area has a lot of traffic or a high crime rate, you may pay more. If you live in a rural area, you’ll pay less. To help you understand how much rates vary from city to city, check out our comparison table below. 

Click on the name of each city in the table above to find detailed breakdowns on all the factors that go into calculating your monthly premium. Here, you’ll find all the information you need on how things like driving record, age, gender, vehicle make and model, and more will affect how much you pay for car insurance in each locality.

And if you want to jump right in and see how much you’ll pay, simply enter your ZIP code below and find your best rate in minutes!

Alabama Vehicle Registration Fees and Other Costs

If you’re in the market for a new or used car, you’ll need to budget for more than just the vehicle’s sticker price. You’ll be on the hook for basic DMV fees like title, license plate, and registration fees no matter where and how you purchase your new car, truck, or SUV, as well as buying a new car insurance policy for your vehicle. But some buyers will find themselves with additional fees such as sales tax, documentation fees, personal property tax, emissions and inspection fees, hybrid and electric vehicle fees, lien recording fees, and a slew of other costs.

Check out Compare.com’s comprehensive vehicle costs breakdown to make sure you account for all the added fees you might be on the hook for when buying a car in Alabama.

Alabama Auto Insurance FAQs

What car insurance is required in Alabama?

In Alabama, the minimum car insurance requirements are:

• Bodily Injury Liability: $25,000 for injury/death to one person; $50,000 for one accident  
• Property Damage Liability: $25,000

How much is car insurance in Alabama? 

Alabama’s insurance rates vary between drivers, but the average auto insurance rate is $74/mo.

What happens if you drive without car insurance in Alabama?

Drivers caught driving without insurance are fined up to $500 for their first offense and up to $1,000 for each offense after. Along with the hefty fines, your vehicle registration is suspended. You’ll need to pay $200 to have it reinstated for the first offense and $400 for the second offense after a four-month suspension. 

Does Alabama require full coverage insurance?

Alabama doesn’t need its drivers to have full coverage insurance. However, many drivers choose to purchase additional coverage with a combination of liability, comprehensive, and collision insurance.