USAA has the cheapest car insurance in Alabama. On average, a full coverage policy from USAA costs $84 per month. But only drivers who are in the military or a part of a military family can get coverage through USAA, which means it isn’t an option for every Alabama driver.
The cheapest car insurance companies in Alabama for drivers who aren’t affiliated with the military are Travelers, COUNTRY Financial, and GEICO, at an average of $102 per month. But average rates don’t necessarily reflect what you would pay, so you should compare rates to find which company is the cheapest for you.
Company | Average monthly cost | Average annual cost |
|---|---|---|
USAA | $84 | $1,002 |
Travelers | $102 | $1,218 |
COUNTRY Financial | $102 | $1,218 |
GEICO | $102 | $1,219 |
State Farm | $105 | $1,265 |
Methodology & why you can trust our rates
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:
Bodily injury liability: $50,000 per person/$100,000 per accident
Property damage liability: $50,000
Uninsured/underinsured motorist: $50,000 per person/$100,000 per accident
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by state or insurer.
Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.
Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Cheapest car insurance companies in Alabama
USAA is one of the most reliably cheap car insurance companies in the country. It also has a long-standing reputation for great customer service. Unlike other providers, USAA is only offered to drivers who are affiliated with the military.
Pros
Offers coverage in every state and the District of Columbia
Usually has some of the cheapest car insurance rates of any company
Drivers can use discounts to lower their rates
Consistently high customer satisfaction
Cons
Limited options for adding extra coverage
Only available to members of the military, veterans, and their families
Read our full USAA auto insurance review
USAA is the cheapest car insurance company in Alabama. On average, drivers in Alabama who are a part of the military or a military family can get car insurance from USAA for $84 per month. That’s $726 less per year than the statewide average.
Travelers has cheaper-than-average car insurance rates (and a long list of discounts). It also offers useful coverage add-ons. But Travelers has weaker claims satisfaction and complaint scores than other providers.
Pros
Lower-than-average rates
Offers useful endorsements like new car replacement, gap coverage
Has a range of discounts that can save drivers money
Coverage is available to all drivers in most states
Cons
Customer service scores are lower than some competitors
Read our full Travelers car insurance review
Travelers has the second-cheapest car insurance in Alabama. On average, Travelers offers car insurance for $102 per month, or $1,218 per year. Travelers also has some of the cheapest car insurance in Alabama for drivers with a DUI on their records.
COUNTRY Financial only offers car insurance in 19 states, but it’s often one of the best and cheapest companies where it’s available. Besides its affordable rates, COUNTRY Financial also has high satisfaction ratings compared to other big insurers.
Pros
Lower-than-average rates
One of the cheapest companies for young drivers
Offers new car replacement and personal effects coverage
Cons
Coverage not available in every state
Read our full COUNTRY Financial auto insurance review
COUNTRY Financial is tied for the second-cheapest car insurance in Alabama. On average, car insurance from COUNTRY costs $102 per month. That’s $510 cheaper per year than Alabama’s statewide average.
We also found that COUNTRY has some of the cheapest insurance rates for young drivers in Alabama.
GEICO is nationally available and often has some of the cheapest rates. GEICO gets fewer service complaints than average, even though claims satisfaction can be mixed. Drivers can also customize their car insurance from GEICO with a few useful add-ons.
Pros
Available in every state and the District of Columbia
Usually has some of the cheapest rates
Gets fewer complaints than expected for its service
Allows drivers to add different types of useful coverages to a basic policy
Cons
Mixed reputation for claims satisfaction
Read our full GEICO car insurance review
GEICO has the third-cheapest car insurance in Alabama. On average, GEICO costs slightly more than $102 per month — it’s just $1 more expensive per year than Travelers and COUNTRY Financial.
As the country’s biggest car insurance company, State Farm makes it easy for drivers to get coverage, make claims, and stay in contact. Also, State Farm is one of the cheapest insurers for most drivers, and tends to have great customer service.
Pros
Coverage available in nearly every state (along with in-person offices)
Cheap car insurance, including for some high-risk drivers
Consistently high customer service ratings
Some discounts, especially for good drivers
Cons
Doesn’t offer as many coverage options as some competitors
Read our full State Farm car insurance review
We found that State Farm also has some of the cheapest car insurance in Alabama. Drivers in Alabama can get car insurance from State Farm for $105 per month. That’s $463 cheaper per year than average. Less than $40 separates State Farm from the other cheapest insurance companies in Alabama.
Best car insurance companies in Alabama
The best car insurance company in Alabama is USAA, according to the most recent J.D. Power Auto Insurance Study, which ranks companies based on how real customers feel about factors like price, transparency, and overall satisfaction. [1]
Auto-Owners Insurance, Alabama-based Alfa and State Farm also made the list of best car insurance companies in Alabama, based on the J.D. Power scores for companies in the Southeast (the average score for the region was 849).
USAA and State Farm are the only two car insurance companies that cracked the top five on the J.D. Power list and had among the cheapest car insurance rates in Alabama, which means they’re both good options for drivers who value affordability and customer service.
Rank | Company | J.D. Power score |
|---|---|---|
1 | USAA | 886 |
2 | Auto-Owners Insurance | 871 |
3 | Alfa | 862 |
4 | State Farm | 855 |
5 | Nationwide | 850 |
Cheapest car insurance companies by age in Alabama
Age is one of the most important factors when it comes to car insurance costs. The younger and more inexperienced you are as a driver, the more you’ll pay for car insurance. But rates typically fall as you age, and by 25, young drivers age-out of the highest-risk age group.
We found that COUNTRY Financial or USAA has the cheapest car insurance rates for younger drivers in Alabama.
Age | Cheapest company | Average cost |
|---|---|---|
16 | COUNTRY Financial | $2,917 |
18 | USAA | $2,261 |
21 | USAA | $1,502 |
25 | USAA | $1,288 |
30 | USAA | $1,063 |
35 | USAA | $1,009 |
45 | USAA | $933 |
55 | USAA | $894 |
60 | USAA | $902 |
65 | USAA | $934 |
70 | USAA | $1,001 |
Choosing the right car insurance company in Alabama
Shopping for the right car insurance policy can seem overwhelming, but it doesn't have to be. It all comes down to figuring out the most important factors and seeing how your options stack up.
Cost: Different companies charge different rates for similar coverage, that's why it's important to compare quotes from multiple car insurance companies to find the best rate
Coverage: Make sure the company you choose offers the coverage you need. Remember, the higher you set your limits, the better protected you’ll be
Customer service: Do a little research on the insurance company itself. Read customer reviews and check claims satisfaction ratings to see how the companies stack up
If you're ready to start shopping, Policygenius can help you compare quotes from top car insurance companies so you can choose the option that’s right for you.
Car insurance rates for drivers with driving violations in Alabama
Companies typically consider the past three to five years of your driving history when calculating rates. Any recent driving violations can have a negative impact on your car insurance rates, but driving violations that involve alcohol typically have the biggest impact.
We found that State Farm often has the cheapest car insurance for drivers in Alabama who have a past violation on their records.
Violation | USAA | Travelers | COUNTRY Financial | GEICO | State Farm |
|---|---|---|---|---|---|
At-fault accident | $1,546 | $1,748 | $1,660 | $2,011 | $1,556 |
Suspended license | $2,132 | $1,905 | $1,939 | $2,548 | $1,394 |
Open container | $1,625 | $1,660 | $1,687 | $2,548 | $1,394 |
Expired registration | $1,244 | $1,660 | $1,687 | $1,453 | $1,394 |
Driving without lights | $1,244 | $1,660 | $1,687 | $1,453 | $1,394 |
Running a red light | $1,244 | $1,660 | $1,687 | $1,453 | $1,394 |
Following too closely | $1,244 | $1,660 | $1,687 | $1,453 | $1,394 |
Hit and run | $2,371 | $1,905 | $1,939 | $2,548 | $1,394 |
Not-at-fault accident | $1,081 | $1,311 | $1,304 | $1,191 | $1,286 |
Passing a school bus | $1,625 | $1,905 | $1,687 | $1,453 | $1,394 |
Reckless driving | $1,625 | $1,905 | $1,939 | $2,548 | $1,394 |
→ Read more about finding SR-22 insurance in Alabama
Cheapest car insurance for drivers with a DUI in Alabama
Company | Rates for drivers with DUIs |
|---|---|
State Farm | $1,394 |
Travelers | $1,905 |
COUNTRY Financial | $1,939 |
USAA | $2,251 |
GEICO | $2,548 |
Cheapest car insurance for drivers with a speeding ticket in Alabama
Company | Rates for drivers with speeding tickets |
|---|---|
USAA | $1,244 |
State Farm | $1,394 |
Travelers | $1,683 |
COUNTRY Financial | $1,939 |
GEICO | $2,548 |
Cheapest car insurance for drivers with bad credit in Alabama
Credit score can also be a determining factor when looking for car insurance. Drivers who have lower credit scores should expect to see higher insurance rates, so if you know you have poor credit, it’s all the more important to shop around for coverage before you buy.
We found that Safeway Insurance has the best rates for drivers in Alabama with bad credit.
Company | Rates for drivers with bad credit |
|---|---|
Safeway Insurance | $1,632 |
COUNTRY Financial | $1,818 |
GEICO | $1,824 |
USAA | $1,839 |
Cincinnati Insurance | $2,193 |
Car insurance costs in Alabama cities
Where you live within Alabama will also have a big impact on what you’ll pay for car insurance coverage. Cities with more cars on the road or higher rates of car theft and vandalism will typically have higher average rates. Here's how the ten biggest cities in Alabama stack up:
Birmingham: $1,973
Montgomery: $1,751
Mobile: $1,855
Huntsville: $1,701
Tuscaloosa: $1,740
Hoover: $1,836
Dothan: $1,547
Decatur: $1,621
Auburn: $1,596
Madison: $1,632
Buying car insurance in Alabama
It's important to know and understand Alabama’s state minimum requirements for car insurance. Every driver in Alabama must have at least the following amount of car insurance coverage:
Bodily injury liability coverage per person: $25,000
Bodily injury liability coverage per accident: $50,000
Property damage liability coverage: $25,000
Alabama is an at-fault state, which means the car insurance company of the driver responsible for causing the accident will pay for the repair costs and medical bills of the other party (that’s what liability coverage is for). If you don’t set high enough liability limits, you could be left footing the bill yourself after an expensive accident.
How to get cheap car insurance in Alabama
If your car insurance seems too expensive, then consider some of these tried-and-true tips for making sure you’re getting the most affordable coverage possible:
Ask about discounts, like savings for safe drivers or certain professions
Bundle your auto and home or renters policies with the same company
Reduce coverage on older cars
Drive safely and avoid moving violations
Reshop your car insurance every year to make sure you’re still getting the best rates
Find car insurance in your city:
Frequently asked questions
What is the cheapest car insurance in Alabama?
The cheapest car insurance company in Alabama is USAA at $1,002 per year.
How much car insurance is required in Alabama?
Drivers in Alabama are required to have at least $25,000 of bodily injury liability insurance per person and $50,000 per accident. You also have to carry at least $25,000 of property damage liability coverage to drive in Alabama.
Can you go to jail for no insurance in Alabama?
It's possible. If you're caught driving without insurance in Alabama, you could pay a fine, have your license suspended, or go to jail for up to six months.
Who offers the cheapest car insurance for drivers in Alabama with bad credit?
Safeway offers the lowest rates for Alabama drivers with bad credit. Your final rate will depend on a number of other factors in addition to your credit score.
