Best Cheap Car Insurance in Alabama

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With a population of 4.8 million and about 3.9 million licensed drivers, Alabama is a mixture of rural and urban areas. The state’s transportation history includes the first electric trolley system in the US, which went into operation in the state capitol of  Montgomery in 1886. Now long gone, the trolley system helped initiate early suburban development, by enabling residents to commute to homes outside the city center.

Factors such as age, driving record, and credit history all can make for a wide range of rates, and we found a broad range of rates between the major insurance companies included in our survey. All these variables make it important to shop around for the best rate for you. Our survey results can help you make the right choice. 

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Cheapest Car Insurance Companies in Alabama

• USAA: $828.31
• Travelers: $913.64
• Geico: $1,101.65
• Allstate: $1,232.97
• Nationwide: $1,284.19
• Progressive: $1,422.93
• Farmers: $1,528.70
• State Farm: $1,572.24

How We Found the Cheapest Car Insurance in Alabama

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our ranking in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Cheapest Car Insurance Rankings. 

Our Study Rates

For this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the 10 largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford-F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

To get the state-wide study rates shown here, we computed the mean rate for male and female drivers ages 25, 35 and 60 who drive 12,000 miles per year, have medium coverage, good credit and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

How Much Does Car Insurance Cost in Alabama?

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At about $1,236 per year, car insurance representative rates in Alabama fall slightly below the national average of $1,323 per year. We found the study rates could vary widely (by hundreds of dollars per year) depending on a profile's age, credit history, or driving record.

Alabama Car Insurance Rates by Age

To determine the average rates based on gender and age, we created driver profiles for males and females in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for driving up to 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

The 25-year-old male and female profiles had the highest representative rates in our study, at $1,474 and $1,375, respectively. These study rates dropped to about $1,200 for the 35-year-old profiles, and fell further still to around $1,100 for the 60-year-old profiles.

Alabama Car Insurance Rates by Credit Score

Our study verified that credit score also affects car insurance rates using male and female driver profiles with ages of 25 years, 35 years, and 60 years. We created a profile for each level of credit score (good, fair, and poor) and assigned the profiles a clean driving record, a good credit score, a medium level of insurance coverage, and up to 12,000 miles driven per year. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

In Alabama, our study found a wide range in representative rates between our profiles that had a good credit score and those with poor credit. The average study rate for the profile with good credit was about $1,200, while the average study rate jumped by about $1,000 for the profile with poor credit. State Farm penalized a poor credit rating especially harshly . Its study rate increased from about $1,600 with good credit to around $4,500 with poor credit.

Alabama Car Insurance Rates by Driving Record

As you might expect, a person's driving record has a large impact on insurance rates, according to our study. To find out just how much of an effect, we made driving profiles with a clean record, with one speeding violation, with one accident, and with one instance of driving under the influence (DUI). These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

The average study rate for a profile with a clean driving record in Alabama was about $1,240. For the profile with a speeding violation, the representative rate increased to about $1,510. The profiles with an accident and a DUI had even higher study rates, at around $1,670 and $1,880, respectively. Many companies showed the highest representative rates for the profile with a DUI, while a few (like Progressive and State Farm) had higher study rates for the profile with an accident than for the one with a DUI.

Alabama Auto Insurance Minimum Coverage Requirements

Alabama requires three types of liability car insurance, and drivers are required to present either written or electronic proof of insurance to law enforcement on demand. Minimums are as follows: 

• $25,000 bodily injury liability per person.
• $50,000 for all bodily injuries for any one accident.
• $25,000 for property damage per accident.

Other types of insurance are not required by law, but your bank or lending institution may require additional coverage if you finance your vehicle. It is likely your lender will require collision coverage to cover the cost of repairs, and comprehensive coverage for damage from storms, fire, vandalism, or theft. 

Even if you don’t finance or lease, adding additional coverage would be a good idea if your budget allows it. Car repairs aren’t cheap, and with the ever increasing cost of medical care even a short hospital stay could easily cost tens of thousands of dollars. 

Our survey found that adding additional coverage is not that expensive. Most companies in our survey only charged between $150 more annually for high coverage limits than low.

Cheapest Car Insurance in Alabama

To find which car insurance company offers the lowest rates in Alabama, our study used representative driver profiles with good credit, medium insurance coverage, a clean driving record, and 12,000 miles of annual mileage. Our profiles included males and females with the ages of 25, 35, and 60. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

We found that USAA had the cheapest car insurance in Alabama overall, at an average representative rate of $828, and Travelers is also a good choice, with an average representative rate of $914. Finding the best company for you will depend on your specific circumstances. Some companies are more affordable than others, and focusing on companies with low average study rates across the board is a good place to start, but bear in mind that even some of the companies with the lowest average may charge significantly more for some demographics.

Why Car Insurance Rates Vary in Alabama 

Other factors that have nothing to do with your age, driving record, credit history, or vehicle can have an impact on rates. What part of Alabama you live in makes a big difference. Densely populated areas with more cars and traffic tend to be more expensive than rural areas, simply because the odds of colliding with another vehicle are higher when you’re surrounded by more of them. Areas of higher crime also tend to have higher rates. 

We checked our study's driver profiles in some of Alabama’s largest cities and towns to find out how city of residence can affect insurance rates. Our profiles are based on 25-, 35-, and 60-year-old males and females with a clean driving record, 12,000 miles of mileage per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Larger cities such as Birmingham and Mobile had the highest average representative rates in the state, at $1,369 and $1,360, respectively. Smaller communities including Dothan and Decatur were the cheapest at $1,133 and $1,152.

How to Get the Cheapest Car Insurance in Alabama

To find the cheapest insurance for you, the best bet is to start by focusing on companies with the lowest rates overall. From there, you can fine tune your choices by looking at which ones are most competitive for drivers in your area and age group, with a similar credit history and driving record. Then either talk to an insurance agent, company representative, or check websites to get competitive quotes. 

No matter what your age, driving record, credit score, or where you live in Alabama, there are ways to save on car insurance. Most insurance companies offer a discount for bundling your car insurance with another policy, such as homeowners or renters insurance. Some insurers offer lower rates for members of certain credit unions or other organizations. 

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Students who maintain good grades may be eligible for reduced rates, or parents may get a break if young drivers are away at school. And many insurers now offer discounted rates for drivers willing to install a device that tracks their behavior behind the wheel. 

The type of vehicle you drive is also likely to have an effect on rates. A convertible or high-performance model will often carry higher premiums than a sedan.

Another easy way to lower premiums is by opting for a higher deductible, which is the amount you pay for expenses after a crash before your insurance kicks in. Consider eliminating collision or comprehensive coverage if you have an older car that might not be worth repairing after even a fender bender.

Even if you’re happy with your current insurance company, it’s a good idea to shop around once a year. Your rates will change over time, especially if you move to a different community or take a new job with a shorter commute. You can also look at reducing or dropping some coverages as your vehicle ages and depreciates. Always ask your agent what discounts you might be eligible for, or check insurance company websites for details.

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Important Laws around Auto Insurance in Alabama

Insurance is required for all vehicles registered in Alabama, and must be presented before a vehicle is registered for use on public roads. In addition, either printed or electronic proof of insurance must be carried in the vehicle at all times. 

Three types of coverage are required, with the following minimums:

• $25,000 bodily injury liability per person.
• $50,000 for bodily injuries of all persons in any one accident.
• $25,000 for property damage per accident.

The penalty for driving without insurance is a fine of up to $500 for a first offense, and up to $1,000 for subsequent offenses. 

New residents are required to transfer their license, registration, and insurance to their Alabama address within 30 days. 

Alabama Driving Laws and Punishments

The use of any hand-held electronic device for texting behind the wheel is illegal in Alabama, punishable by a $25 fine for a first offense. A second offense carries a $50 fine, with fines rising to $75 for a third and subsequent offenses. In addition, drivers will be assessed two points on their license for each violation.

As of this writing, legislation to ban making or receiving voice calls is working its way through the Alabama State legislature. 

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Under Alabama law, It is illegal to operate a motor vehicle with a concentration of .08 percent or more alcohol in the blood, or while under the influence of alcohol or drugs. For drivers under the age of 21, school bus or daycare drivers, the limit is .02. Other commercial drivers have a limit of .04. 

A first conviction carries a fine of $600 to $2,100, a 90 day license suspension, and up to one year in jail. 

For a second offense, drivers face a fine of $1,100 to $5,100, a mandatory loss of license for one year, a minimum of 48 hours in jail or 20 hours community service, and up to one year in jail. 

A third offense means a fine of $2,100 to $10,100, three year loss of license, and a mandatory minimum of 60 days and up to one year in jail.

Fourth and repeat offenders face felony charges, with fines from $4,100 to $10,100, a five year license revocation, and a jail term of between one year and one day to ten years.  

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Alabama Car Insurance FAQs

Is car insurance required in Alabama?

Yes, with the following minimums: 

• $25,000 bodily injury liability per person.
• $50,000 for all bodily injuries for any one accident.
• $25,000 for property damage per accident.

Which cars are required to be insured in Alabama?

Any vehicle driven on the roads of Alabama must be registered and insured, with the exception of certain farm equipment.

When should I get car insurance in Alabama?

Proof of insurance is required before any vehicle can be registered in Alabama, and new residents have 30 days to transfer their license, registration, and insurance.

What happens if my car is not properly insured in Alabama?

Failing to maintain car insurance in Alabama will result in a $500 fine for a first offense, and  up to a $1,000 fine for second and subsequent offenses.

Is Alabama a no-fault state?

No, meaning that a driver found responsible for a crash is responsible for all damages. 

Do I need uninsured motorist coverage in Alabama?

No, uninsured motorist coverage is not required in Alabama.

Is liability insurance required in Alabama?

Yes, liability insurance is required, with the following minimums:

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

Does Alabama accept digital insurance cards?

Yes, either printed or electronic proof of insurance is acceptable.