Shopping for Alabama auto insurance? Read on for a full look at some of the top providers in the state.
We’ve reviewed the best car insurance companies nationally, and now we’ll apply our findings specifically to the state of Alabama. We’ll also review some specifics for driving in Alabama, such as the average cost of Alabama car insurance and state minimum requirements for coverage.
Of course, the best way to find the cheapest insurance option in any state is to compare personalized quotes across providers. Use the tool below to get free Alabama car insurance quotes from top-rated providers.
In this article:
- Cheapest Car Insurance Companies In Alabama
- 5 Best Car Insurance Companies In Alabama
- Alabama Auto Insurance Requirements
- What To Know About Driving In Alabama
- Final Thoughts
- FAQ: Auto Insurance In Alabama
Cheapest Car Insurance Companies In Alabama
According to our cost estimates, USAA, Geico, and Nationwide are among the cheapest full-coverage providers in Alabama.
|Car Insurance Provider||Average Annual Cost Estimate|
Cost Of Alabama Auto Insurance
The average premium for Alabama auto insurance was $905 in 2018 when the NAIC issued its most recent insurance cost report. Here’s a breakdown of average annual premiums for Alabama auto insurance:
|Type Of Coverage||Average Annual Expenditure|
*To calculate average expenditures, NAIC assumed that all insured vehicles would carry liability coverage but not necessarily collision or comprehensive. Total cost per year measures what consumers actually spent.
The average insurance premium across all states for the same year was $1,056. This means that Alabama auto insurance is relatively cheaper than auto insurance policies in other states.
Alabama Car Insurance Rates By Age
Young drivers can pay significantly more for car insurance in Alabama.
|Age||Alabama Annual Car Insurance|
Alabama Car Insurance Rates By Gender
According to our rate estimates, gender doesn't affect car insurance costs in Alabama much.
|Gender||Alabama Annual Car Insurance|
Alabama Car Insurance Rates For Drivers With Bad Credit
Drivers in Alabama with poor credit can pay almost twice as much as drivers with good credit.
|Credit Rating||Alabama Annual Car Insurance|
Alabama Car Insurance Rates For Bad Drivers
Speeding tickets, accidents, and DUIs can all raise your car insurance rates a significant amount.
|Driving Record||Alabama Annual Car Insurance|
5 Best Car Insurance Companies In Alabama
To determine the best Alabama car insurance providers, we looked at our top-ranked nationwide providers through the lens of Alabama laws, average rates, and J.D. Power satisfaction ratings for the Southeast region, which includes Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee.
Based on this analysis, we’ve compiled a list of the top five Alabama auto insurance providers below.
|Best Alabama Auto Insurance||Motor1 Rating||Average Cost|
|1. Geico Car Insurance||4.5||$993|
|2. USAA Car Insurance||5.0||$809|
|3. AAA Car Insurance||4.0||N/A|
|4. Progressive Car Insurance||4.5||$1,385|
|5. Nationwide Car Insurance||4.0||$1,025|
*Not all companies were included in our rate estimates for each state. You may also notice that some car insurance companies are listed above those with higher star ratings. This is because our star ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Alabama.
#1 Geico: Best Overall Provider
We named Geico the best overall provider in any state, and the company holds up for Alabama drivers. In the J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM for the Southeast region, Geico scored 857 out of a possible 1,000 points. This score ranked it in the top five providers for the state and above the regional average of 849.
Geico offers some of the lowest car insurance rates in Alabama and has a simple and fast claims process. The high number of discount opportunities make Geico a low-cost option for most drivers. These discounts include:
- Good driver discount
- Good student discount
- Defensive driving discount
- Discounts for airbags, anti-lock brakes, and anti-theft devices
- Multiple vehicle discount
- Multiple policy discount
- Military and federal employee discounts
Geico even has a usage-based insurance option, and with the DriveEasy® mobile app, customers can reduce rates by driving less and driving safely when they do drive.
|Geico Pros||Geico Cons|
|Many choices for coverage||Average quotes experience|
|High level of customer satisfaction||Usage-based app not available in all states|
|Superior financial strength rating and A+ rating from the BBB|
|Available in 50 states|
Learn more about Geico by reading our full Geico auto insurance review.
#2 USAA: Best Customer Satisfaction
With 909 out of a possible 1,000 points, USAA scored the highest for the Southeast region in the J.D. Power Satisfaction Study. However, because it is only available to military members and their families, it was not eligible for formal ranking in the survey.
For those who can purchase a USAA policy, it is one of the best options in any state and a strong contender for the best Alabama auto insurance. USAA offers some of the lowest premiums in the industry and has an exceptional customer service reputation.
Along with the standard types of auto insurance, USAA customers can also purchase:
- Roadside assistance plans
- Rental reimbursement
- Accident forgiveness
- Glass coverage
- Guaranteed asset protection (GAP) coverage
- Car replacement assistance (CRA)
With an A++ financial strength rating from AM Best, USAA is one of the most reliable and well-regarded insurers in the country.
|USAA Pros||USAA Cons|
|Affordable rates and numerous discounts||Only available for military members and their families|
|Good choice for military service members|
|Superior financial strength rating and A- rating from the BBB|
To learn more about the company, check out our USAA auto insurance review.
#3 AAA: Best For AAA Club Members
AAA started as the American Automobile Association in 1902 and now operates over 1,000 travel agencies, rates lodgings and restaurants, publishes tour guides, and provides discounts for club members at thousands of businesses.
Each local AAA club has unique coverage options. For example, AAA car insurance plans through Auto Club South come in three varieties: Essential, Advantage, and Ultimate.
Additionally, you have the option to add these AAA auto insurance services:
- Enhanced total loss replacement: This option expands your collision coverage to pay for a new model car replacement if your car is totaled, instead of the market value of your car.
- Loan/lease gap: This gap insurance covers the difference in price between your totaled car and the amount you have left on your loan or lease.
- Enhanced exterior repair: With this option, exterior parts on your car will be replaced with parts from the original manufacturer, not aftermarket parts. This excludes mechanical parts – the only way to get replacement original equipment manufacturer (OEM) mechanical parts is through coverage like the factory Jeep warranty.
- Transportation Network Company: This provides rideshare insurance for people who use their cars in the gig economy.
AAA also provides a wide variety of discounts such as a member discount, safety inspection discount, safe driver discount, and multiple car discount. Each AAA club has a different page for ratings and reviews but ACSC and Auto Club Group, two of AAA's largest clubs, both hold an A+ on the BBB.
|AAA Insurance Pros||AAA Insurance Cons|
|Roadside assistance||Only available to AAA members|
|Excellent financial strength rating and A+ rating from the BBB||Coverage and service can vary by location|
|High customer satisfaction|
Learn more by reading our full AAA car insurance review.
#4 Progressive: Best For High-Risk Drivers
Progressive is one of the top auto insurers in the United States, having written over $31 billion in premiums in 2019, according to the National Association of Insurance Commissioners (NAIC). The company has an A+ financial strength rating from AM Best and an established reputation for paying customer claims.
While Progressive customer service scores are not as high as our top-ranking Alamaba auto insurance providers, Progressive may offer lower rates, especially to high-risk drivers. Progressive’s money-saving features include:
- Deductible savings bank: Every six months you go without an accident or ticket, Progressive rewards you with $50 toward your next deductible.
- Policy bundling: If you bundle your auto policy with another type of coverage (like home insurance), you can save up to five percent on your auto policy.
- Snapshot® app: If you allow Progressive to monitor your driving habits with a mobile app or a plug-in device, your rate could be lowered for things like driving less frequently and driving safely.
- Name Your Price® tool: This feature allows you to set the rate you wish to pay and finds you an insurance policy within your budget.
Progressive has an A+ rating from the BBB and a relatively low volume of complaints considering the high number of customers that the company serves.
|Progressive Pros||Progressive Cons|
|Good choice for high-risk drivers||Average customer satisfaction|
|Easy quotes process||Higher rates than some competitors|
|Superior financial strength rating and A- rating from the BBB|
Learn more in our Progressive auto insurance review.
#5 Nationwide: Affordable Option For Alabama Auto Insurance
Our research indicates that Nationwide may offer some of the cheapest options for Alabama auto insurance. Nationwide made our list of the best auto insurance providers in the nation because of its numerous coverage options and strong industry reputation.
In addition to standard liability, collision, and comprehensive car insurance coverage, Nationwide also offers:
- Roadside assistance
- Rental car reimbursement
- GAP coverage
- Accident forgiveness insurance
- Vanishing deductible
- Total loss deductible waiver
Though Nationwide scored lower in the J.D. Power Satisfaction Study for the region than our other recommendations, the company has received many positive customer satisfaction scores. Nationwide has an A+ rating from the BBB and many customer reviews praising its customer service. However, it’s also gotten a share of complaints about unhelpful claims representatives.
If you are looking for cheap Alabama auto insurance, it’s worth getting a quote from Nationwide. Available money-saving features include:
- Bundling discounts
- Usage-based policies
- Accident-free discount
- Good student discount
- Safe driver discount
- Defensive driver discount
- Anti-theft equipment discount
- Pre-pay policy discount
- Membership discount for joining partner organizations
Nationwide customer service representatives are charged with providing customers with an annual On Your Side® review. This means a service agent checks with customers once a year to ensure that drivers fully understand their policies.
|Nationwide Pros||Nationwide Cons|
|Superior financial strength rating and A+ rating from the BBB||Mixed customer reviews in Alabama|
|Available in 47 states||Difficult quotes process|
Read more about this provider in our Nationwide auto insurance review.
Alabama Auto Insurance Requirements
Car insurance requirements vary by state. Drivers in Alabama must maintain the following insurance policies at a minimum:
- $25,000 per person bodily injury liability
- $50,000 per accident bodily injury liability
- $25,000 per accident property damage liability
Alabama auto insurance requirements do not mandate that drivers maintain comprehensive, collision, or medical insurance. However, it is generally a good idea to purchase full coverage auto insurance regardless of state requirements.
Customers who are caught driving without the minimum Alabama auto insurance requirements may face the following penalties:
|First offense||Fine up to $500
Imprisonment up to 3 months
45-day vehicle registration suspension
$200 registration reinstatement fee
|Second offense and beyond||Fine up to $3,000
Imprisonment up to 6 months
6-month license suspension
4-month registration suspension
$400 registration reinstatement fee
You should never drive without at least the state minimum coverage, as the cost in fines and reinstatement fees will hurt your bank account more than the cost of insurance premiums.
What To Know About Driving In Alabama
Statistics provided by the Alabama Department of Transportation show that the average number of miles driven in Alabama in 2018 was 17,394. This is a bit higher than in other states. The same report shows that there were 159,925 crashes resulting in 953 fatalities that same year. This makes 1.34 deaths per 100 million vehicle miles traveled in 2018, which is relatively high compared to other states.
Compared to most states, Alabama’s minimum auto insurance requirements are relatively low. Plus, despite a relatively high auto fatality rate, average premiums are lower in Alabama than average. There are several well-regarded providers in the state, but based on our research, Geico may be your best bet.
Of course, the only way to find the lowest rate and best policy for your needs is to compare quotes from multiple providers. You can use the free tool below to get started finding Alabama auto insurance quotes.
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews auto insurance rate estimates generated by Quadrant Information Services for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.