The Cheapest Auto Insurance in Alabama in 2023

Alabama, like most states in the country, requires drivers to carry auto insurance. Since you have to carry insurance, getting the best coverage at the cheapest price makes sense. Knowing where to shop for the best car insurance can make the quoting process easier.

We compared dozens of insurers in Alabama to find the cheapest car insurance. We’ll also provide tips on saving on Alabama auto insurance and tell you which companies we think are the best in the Yellowhammer State.

Key Takeaways:

• In Alabama, the average cost of car insurance for full coverage is $266 per month, while state-minimum coverage averages $100 monthly, according to Compare.com data.
• COUNTRY Financial, Travelers, Nationwide, and GEICO are among the cheapest Alabama car insurance companies for minimum and full coverage.
• If you have a speeding ticket, DUI, or at-fault accident on your record, Cincinnati Insurance and COUNTRY Financial may offer the best rates in Alabama.

Alabama’s Cheapest Car Insurance Companies

While Alabama’s average car insurance rates are $266 for full coverage and $100 for minimum coverage per month, you still have savings options available.

Although the cheapest car insurance company can differ by driver, we found that COUNTRY Financial, Travelers, and Cincinnati Insurance are among the most affordable in Alabama.

Insurance companies use multiple factors to determine your auto insurance rate, including age, coverage level, driving history, and location. We compared dozens of insurers to find Alabama’s most affordable car insurance for different driving profiles.

The Average Cost of Alabama Car Insurance

Wondering how much the average Alabama driver pays for auto insurance? The rates below show how Alabama stacks up, both to the national average rates for drivers across the country, as well as neighboring states.

The average cost of Alabama car insurance is $100 for state-minimum coverage and $266 for full coverage per month. The average rates in the state are at least 10% lower than the national average and neighboring states Florida and Georgia. Although Alabama’s average full-coverage rates are lower than those of Mississippi and Tennessee, its minimum-coverage prices are slightly higher.

Alabama has mostly rural areas with low population density, which could contribute to its lower-than-average car insurance rates.

Cheapest Car Insurance Rates for State-Minimum Insurance: Cincinnati Insurance

The coverage level you select is one factor that determines how much you pay for car insurance.

When you buy state-minimum coverage, there’s no physical damage protection for your car, which is why it’s cheaper than full coverage. If you’re only interested in the most basic coverage, you might find the cheapest Alabama auto insurance rates through Cincinnati Insurance, COUNTRY Financial, or Travelers.

Cheapest Car Insurance Rates for Full-Coverage Insurance: COUNTRY Financial

Full coverage is a general term insurance companies use to include liability insurance for others and physical damage coverage for your vehicle. It usually includes other coverages, like uninsured and underinsured motorists and medical payments.

Although full coverage costs more because of the extra coverage options, it can provide better financial protection if you’re involved in a car accident, injured, or both.

For full coverage, we found that COUNTRY Financial, Travelers, and Safeway Insurance offer the most affordable car insurance for Alabama drivers. Nationwide and GEICO are also top contenders but may be more expensive depending on your individual driver profile.

Cheapest Auto Insurance Rates by Age

One of the most critical factors affecting auto insurance rates is age. Drivers with more experience and better driving habits typically pay the least for car insurance. We compared rates across the state to find the companies with the cheapest car insurance for different age groups.

Cheapest car insurance for Alabama teens: COUNTRY Financial

Teenagers have the least experience behind the wheel, and they make the riskiest decisions, making them the most expensive age group to insure. Vehicle fatalities account for nearly half of non-medical deaths in Alabamans age 18 and under, according to Alabama Public Health.

The table below shows rates for 18-year-old drivers and is sorted by liability-only rates.

We found COUNTRY Financial, Cincinnati Insurance, and Travelers to offer Alabama teens the cheapest liability-only car insurance. COUNTRY Financial, GEICO, and Travelers have cheap car insurance in Alabama for full coverage.

Cheapest car insurance for young drivers in Alabama: Cincinnati Insurance

As long as their driving record stays clean, young drivers typically see rates drop significantly once they turn 25. The rates below are for 25-year-old drivers and are sorted by the cheapest liability-only coverage.

Although we found Cincinnati Insurance has the cheapest average liability-only rates, its full-coverage rates are among the highest for young drivers. COUNTRY Financial’s rates are slightly higher for liability only but much lower for full coverage. Travelers is $1 cheaper, on average, than COUNTRY Financial for liability only and ties with Nationwide for the next-cheapest full-coverage pricing.

Cheapest car insurance for Alabamans in their 40s: Cincinnati Insurance

Drivers in their 40s typically pay some of the lowest rates, as rates stabilize with age and driving experience. The table below shows car insurance costs for 40-year-old drivers, sorted by cheapest liability-only rates.

While Cincinnati Insurance may offer 40-year-old drivers the cheapest liability-only coverage, it’s the most expensive for full coverage. COUNTRY Financial offers the most affordable full-coverage rate and is only a few dollars higher, on average, than Cincinnati Insurance for liability-only coverage. Safeway Insurance, Travelers, and Nationwide also offer cheap car insurance in Alabama for both coverage types.

Cheapest car insurance for Alabama retirees: Cincinnati Insurance

The cheapest age group for car insurance might be senior drivers and those near retirement age. These drivers may see even cheaper premiums after retiring if they drive less than they did commuting to work.

The rates in the table below are for 65-year-old drivers and are sorted by the cheapest company for liability-only coverage.

Cincinnati Insurance, the cheapest insurer for liability only, is the second-most expensive for full coverage. COUNTRY Financial’s rates average $5 more than Cincinnati Insurance for liability only, but it’s the most affordable option for full coverage. Travelers may have one of the higher rates for liability only, but it’s only $10 higher, on average, than COUNTRY Financial for full coverage.

Compare Alabama Auto Insurance Rates by Driving Record

Your driving record may be the most important factor determining your auto insurance rates. Causing accidents and getting speeding tickets, DUIs, or other convictions can increase your cost of car insurance — sometimes substantially.

We analyzed rates for Alabama car insurance companies to find the cheapest options for different driving infractions.

Cheapest car insurance for good drivers in Alabama: Cincinnati Insurance

People without tickets or moving violations, at-fault accidents, or DUIs on their driving record get the best car insurance rates. The table below includes average rates for drivers without any driving infractions or at-fault accidents on their record, sorted by the cheapest liability-only rates.

Cincinnati Insurance’s average liability-only rates are the cheapest, but its full-coverage rates are the most expensive of the companies you see here for good drivers. If you only need liability-only coverage, consider Cincinnati Insurance, COUNTRY Financial, or GEICO. But if you want full coverage, COUNTRY Financial, Travelers, or Nationwide may offer the cheapest car insurance in Alabama for drivers with a clean record.

Cheapest car insurance for Alabama drivers with a ticket: Cincinnati Insurance

Getting a single speeding ticket conviction in Alabama can cause your car insurance rates to increase. The amount can vary by company, but the national average increase is 23%, according to Compare.com data.

The table below, sorted by cheapest liability-only insurance company, shows average rates for a driver with one speeding ticket.

Drivers with a speeding ticket on record who’re shopping for full-coverage insurance might find affordable car insurance rates from COUNTRY Financial, Safeway Insurance, or Cincinnati Insurance. The most affordable options for liability only may be Cincinnati Insurance, COUNTRY Financial, or GEICO. Though Travelers isn’t the most expensive option for liability only, it is for full coverage, according to our analysis.

Cheapest car insurance for Alabama drivers after an at-fault accident: COUNTRY Financial

An at-fault accident, which is one you cause, can also increase your car insurance rates. The average national rate increase is 43% after an at-fault accident, according to Compare.com data.

The rates shown below are sorted by the cheapest liability-only insurance company for drivers with one at-fault accident.

Our data shows COUNTRY Financial offers Alabama’s cheapest liability-only and full-coverage auto insurance rates after a car accident. Cincinnati Insurance, Travelers, and Nationwide are other cheap options for liability-only coverage. The same companies also offer affordable auto insurance rates, but Nationwide and Travelers have cheaper full-coverage rates than Cincinnati Insurance.

Cheapest car insurance in Alabama after a DUI: COUNTRY Financial

The most severe driving infraction, a DUI conviction, can cause rates to go up by a national average of 92%, according to Compare.com data. Besides having some of the highest car insurance rates, if you’re an Alabama driver with a DUI you can face license suspension, which could cause your insurance company to cancel your policy. You may also be required to keep an SR-22 form on file with the state for a certain period of time, which proves that you meet the minimum insurance requirements.

The table below shows the cheapest car insurance companies after one DUI conviction, sorted by liability-only rates.

COUNTRY Financial and Travelers may offer the cheapest Alabama car insurance rates for liability only and full coverage after a DUI. Though Cincinnati Insurance’s liability-only rates average only $1 more than Travelers, its full-coverage rates are among the most expensive. Allstate may be a better option for full coverage, as its average rates are only $29 higher than Travelers’.

The Cheapest Cities for Car Insurance in Alabama

The Alabama city you live in can affect how much you pay for car insurance. Multiple factors can determine pricing differences by city, including weather, accident rates, traffic density, auto laws and vehicle repair, and medical and legal costs, according to the National Association of Insurance Commissioners (NAIC).

Based on our research, Scottsboro, Roanoke, Alexander City, Moulton, and Valley are the cheapest cities in Alabama by average liability-only car insurance rates. Larger cities, like Birmingham, Jackson, and Mobile, are among the most expensive.

Although the insurer rates in the table above are similar for liability-only coverage, rate differences could be more significant when buying full coverage, since the policy type and coverage amounts you choose can cause pricing variations.

Factors That Determine the Cost of Car Insurance in Alabama

Car insurance companies use proprietary algorithms when setting premium costs, which can weigh factors differently, causing rate differences for the same driving profile and coverages.

The main factors that determine car insurance costs in Alabama include:

• Age: With age comes wisdom, driving experience, and maturity, which increases a driver’s safe driving behaviors and lowers the cost of car insurance.
• Gender: Just like younger drivers can make poor driving decisions, males are statistically more likely to make the same decisions, increasing their chances of causing an accident or getting a ticket.
• Location: Where you live within your state matters, since population density, crash statistics, repair costs, and other factors determine auto insurance rates by ZIP code.
• Driving record: The longer you go without a ticket, DUI, or at-fault accident, the lower your car insurance rates can be.
• Insurance history: Letting your insurance lapse can increase your rates because it shows a lack of responsibility and increased risk. Plus, you could face fines, license suspension, and have to pay to reinstate your vehicle registration.

5 Ways to Get Cheaper Car Insurance in Alabama

Alabama is the 24th-cheapest car insurance company, according to NAIC data. But you still have ways to save on car insurance.

1. Maintain a good driving record. “The best way to get a better car insurance rate is with time and a proven history of safe driving,” says Hunter Garnett, founder and managing partner of Garnett Patterson Injury Lawyers in Huntsville, Alabama.
2. Drive a cheaper car. Avoid buying a sports car or high-performance vehicle, especially for young drivers, advises Garnett. Choosing a cheaper car to insure instead can help you get more affordable car insurance in Alabama.
3. Keep teen drivers on their parents’ policy. If you’re a parent, keeping your teen on your car insurance policy can also help keep costs down compared to getting them their own policy.
4. Consider usage-based insurance. Allowing your insurance company to track your driving habits through a telematics program rewards you for safe driving. Pay-per-mile insurance may be a good idea if you don’t drive much.
5. Shop regularly for free quotes. Comparing rates from different insurance companies can also ensure you’re getting the best deal, says Garnett. It might also give you access to discounts that might not be available through your current insurer.

The best car insurance discounts in Alabama

The best way to save on car insurance while getting the coverage you need is through discounts. Insurance companies don’t advertise all their discounts, which means you could miss out on even lower premiums if you don’t ask about which discounts you may qualify for.

Some money-saving discounts for Alabama car insurance include:

• Multi-policy: You can typically save the most by bundling your auto insurance with your home, condo, or renters insurance through the same insurance company.
• Good student: Drivers younger than 24 and in school full time who maintain at least a “B” average may be eligible for this discount.
• Safe driver: Avoid tickets and at-fault accidents to qualify for this discount.
• Driver education: Taking approved defensive driving or other education courses can make you a safer driver and increase your auto insurance savings.
• Multi-car: If there’s more than one car in your household, most insurance companies offer a discount if you insure the vehicles with the same company.

Alabama Auto Insurance Requirements

Drivers in Alabama must buy a minimum level of liability insurance, as required by law. The auto insurance requirements for Alabama are:

• $25,000 per person for bodily injury liability
• $50,000 per accident for bodily injury
• $25,000 per accident for property damage liability

Liability insurance is what protects you financially if you cause an accident that causes bodily injury or property damage to others. State minimum requirements are “insufficient coverage to protect a driver in the event of a crash,” warns Garnett.

He and most financial experts recommend buying as much liability coverage as you can afford. If you cause more damage than your liability limits, you could be held personally liable for the rest.

Penalties for Driving Without Auto Insurance in Alabama

Drivers can face several penalties for driving without auto insurance in Alabama. On top of a fine, you could also have your driver’s license suspended. The vehicle you’re driving could have the registration suspended, which requires a fee and proof of insurance for reinstatement. Costs increase with subsequent offenses, as outlined in the table below.

Other Common Types of Alabama Car Insurance

While you might only need liability-only or full-coverage auto insurance, you may find other common types of car insurance coverage valuable in Alabama.

Gap insurance can be worth it if you finance or lease your car. And, if the car’s newer, adding new-car replacement coverage may help you buy a different vehicle if yours is totaled.

If you don’t have access to another car if yours is in an accident, consider rental reimbursement. Adding roadside assistance to your insurance policy may be cheaper than getting coverage elsewhere, too.

Here are a few other coverages you need to know about if you live in Alabama.

SR-22 auto insurance in Alabama

An SR-22 form isn’t actually insurance. It’s a certificate  you may need if you’re caught driving without insurance or get a severe conviction, like a DUI. The SR-22 auto insurance requirement is for high-risk drivers in Alabama and may come with higher insurance premiums, advises Garnett.

Insurance companies provide the SR-22 directly to the Alabama Department of Revenue online insurance verification system (OIVS). Failure to comply could result in suspension of license and vehicle registration, fines, and reinstatement fees.

Uninsured and Underinsured motorist coverage in Alabama

Uninsured motorist coverage may pay if someone without insurance hits you or they hit and run. Underinsured motorist coverage can pay for your damages if someone hits you and doesn’t have enough coverage.

Although there isn’t an uninsured and underinsured motorist coverage requirement in Alabama, it may be worth the extra cost. Alabama has the seventh-highest rate of uninsured drivers, at 19.5%, according to the Insurance Information Institute.

Alabama Auto Insurance FAQs

If you’re shopping for car insurance in Alabama, this additional information may help as you consider your coverage options.

Who is the cheapest auto insurance company in Alabama?

The cheapest auto insurance company in Alabama depends on your coverage needs and driving profile. Our data shows some of the cheapest Alabama car insurance companies may be COUNTRY Financial, Travelers, Cincinnati Insurance, Safeway Insurance, and Nationwide Insurance.

How much is car insurance in Alabama monthly?

The average monthly cost of car insurance in Alabama is $100 for state-minimum coverage and $266 for full coverage. Your rates can differ depending on your driving profile, coverage choices and limits, and insurance company.

Which city has the cheapest car insurance in Alabama?

We found that several cities feature the cheapest car insurance in Alabama. Scottsboro has the cheapest liability-only rates, at $40 per month. Roanoke, Alexander City, Moulton, Valley, Arab, and Fort Payne are other cheap Alabama cities for auto insurance.

How much car insurance is required in Alabama?

Alabama requires you to carry 25/50/25 liability limits for car insurance. This means your coverage must be at least $25,000 per person and $50,000 per accident for bodily injury liability. For property damage liability, the minimum-coverage requirement is $25,000.

What happens if you get caught driving without insurance in Alabama?

You could get fined and have your license and vehicle registration suspended if you get caught driving without insurance in Alabama. The fine for your first offense is $500, and each subsequent offense is $1,000. Your license could also be suspended for six months for each occurrence.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources:

Alabama Department of Revenue. “How does the state confirm insurance coverage?” Accessed June 6, 2023.

Alabama Public Health. “Teen Driving.” Accessed June 6, 2023.

Be Sure to Insurance Alabama. “Alabama Mandatory Liability Insurance Law.” Accessed June 6, 2023.

Insurance Information Institute. “Facts + Statistics: Auto theft.” Accessed June 5, 2023.

Insurance Information Institute. “Facts + Statistics: Uninsured motorists.” Accessed June 6, 2023.