Find out who offers the best auto insurance in the Yellowhammer State.

 

 

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:

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 Customer Service Affordability Coverage
1. Geico Car Insurance 4.5 4.0 4.0 4.0
2. USAA Car Insurance 5.0 5.0 4.5 4.5
3. Erie Insurance 4.0 4.5 4.5 4.0
4. Progressive Car Insurance 4.5 3.5 3.5 4.0
5. Nationwide Car Insurance 4.0 3.5 3.5 4.5
 

*You may 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

Geico Insurance logo

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
A+ rating from the BBB
and A++ financial strength rating from AM Best
Average quotes experience
Many choices for coverage  
High level of customer satisfaction  
 

Learn more about Geico by reading our full Geico auto insurance review.

 


 

#2 USAA: Best Customer Satisfaction

USAA Insurance logo

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 option for young drivers  
Superior financial strength rating from AM Best  
 

To learn more about the company, check out our USAA auto insurance review.

 


 

#3 Erie Insurance: High Customer Satisfaction For Alabama Drivers

Erie Insurance logo

Erie insurance scored third-highest in the J.D. Power Satisfaction Study for the Southeast region, behind USAA and Farm Bureau Insurance - Tennessee. Since the former is only available to military members and their families and the latter is only available in Tennessee, Erie insurance can be considered to have the highest customer satisfaction of any insurer widely available to drivers in Alabama. It scored 871 out of a possible 1,000 points.

High customer satisfaction isn’t the only reason to pick Erie. The company has an A+ financial strength rating from AM Best and offers comprehensive coverage options. In addition to standard insurance coverage, Erie customers can also purchase:

  • Pet coverage
  • Personal item coverage
  • Auto glass repair
  • Roadside and rentals bundle
  • Locksmith services

With Erie rate lock, Erie drivers can even guarantee that their rates will not increase after filing a claim. And Erie Auto Plus can be purchased for $30 more per year, which provides customers with the following benefits:

  • A diminishing deductible
  • $10,000 death benefit
  • Additional transportation expense coverage
  • Waived deductible in some cases
  • Increased coverage limits for things like locksmith costs, personal items, and non-owned trailers

Like our other recommended providers for Alabama auto insurance, Erie offers several discounts for customers who drive safely, bundle policies, and pay their premium annually.

Erie Insurance Pros Erie Insurance Cons
A+ rating from the BBB and A+ rating
in financial strength from AM Best
Mixed customer service reviews regarding the claims process
High customer satisfaction  
Comprehensive coverage options  
Variety of auto insurance discounts available  
 

Learn more by reading our full Erie insurance review.

 


 

#4 Progressive: Best For High-Risk Drivers

Progressive Insurance logo

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
One of the top auto insurers in the U.S. Average claims process
A+ financial strength rating from AM Best Mixed customer service reviews
Great choice for high-risk drivers  
Several money-saving features  
 

Learn more in our Progressive auto insurance review.

 


 

#5 Nationwide: Affordable Option For Alabama Auto Insurance

Nationwide Insurance logo

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
A+ financial strength rating from AM Best
and A+ rating from the BBB
Mixed customer reviews in Alabama
Many choices for coverage Difficult quotes process
Usage-based insurance options  
Relatively low rates for Alabama drivers  
 

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
Vehicle impoundment
$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
Vehicle impoundment
$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.

 


 

Cost Of Alabama Auto Insurance

The average premium for Alabama auto insurance was $856.67 in 2017, 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
Liability coverage $478.68
Collision coverage $366.12
Comprehensive coverage $169.90
Total cost $856.67
 

*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 $1,004.68. This means that Alabama auto insurance is relatively cheaper than auto insurance policies in other states.

 


 

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.

 


 

Final Thoughts

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.

 

 


 

FAQ: Auto Insurance In Alabama

Who has the cheapest car insurance in Alabama?

There is no one cheapest provider for the entire state of Alabama. Insurers use many factors to determine Individual rates, including your vehicle, age, gender, marital status, and more. Based on our research, we’ve determined that USAA, Geico, and Nationwide may offer some of the cheapest auto insurance rates in Alabama.

Why is car insurance so expensive in Alabama?

Alabama drivers pay a lower average annual premium than drivers in other states. However, Alabama does have a higher driver fatality rate and a higher number of total miles driven annually, which may make policies in Alabama relatively expensive.

Can you go to jail for no insurance in Alabama?

You can go to jail for driving in Alabama without at least the state minimum auto insurance coverage in place. A first offense can result in a three-month prison sentence, and subsequent offenses can result in up to a six-month prison sentence.

What is the penalty for not having car insurance in Alabama?

The penalty for driving in Alabama without insurance can range anywhere from a $500 fine to up to six months in prison, depending on the offense and the discretion of the prosecutor and judge.