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Danny Smith is a licensed property and casualty insurance agent who has written for Compare.com since 2024. A former insurance editor, he specializes in auto, home, and pet insurance. He works to translate his insurance expertise into digestible, easy-to-understand content for drivers, homeowners, and pet owners alike.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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The average cost of car insurance in Alabama is $100 per month, according to Compare.com data. That breaks down to $60 per month for liability coverage and $140 for full coverage.
Alabama requires drivers to have car insurance before getting behind the wheel, so it’s important to understand what goes into a policy. This guide will explain how much coverage you need and what to look for. We’ll also explore the cheapest car insurance companies in Alabama and the various ways to save on insurance.
Auto-Owners is the cheapest car insurance company in Alabama, with an overall average monthly rate of 40.
Alabama requires drivers to have liability insurance with limits of 25/50/25 to legally drive in the state.
Auto-Owners has the cheapest car insurance rates for senior drivers in Alabama.
The average cost of car insurance in Alabama is $100 per month, according to Compare.com data — but this is just an average. How much you end up paying depends on your driver profile and how much coverage you buy.
The table below highlights Alabama’s liability and full-coverage rates and how they compare to the national average.
Location | Average Monthly Premium: Liability | Average Monthly Premium: Full Coverage | Average Monthly Premium: All Policies |
|---|---|---|---|
| Alabama | $60 | $140 | $100 |
| National average | $107 | $197 | $152 |
The average cost of liability car insurance in Alabama is $60, and full coverage runs around $140 per month. You may pay less or more, depending on factors like your driving record and age.
Below, we’ll explore how your rates can vary based on these factors.
Compare personalized quotes from dozens of the state's top companies.
Even though average rates are relatively affordable in Alabama, you can still take advantage of a few ways to save money on your auto policy. The most effective way is to compare car insurance quotes from multiple companies before choosing a policy.
Check out the table below to see the cheapest insurers in Alabama, according to Compare.com data.
Company ▲▼ | Average Monthly Premium ▲▼ |
|---|---|
| Auto-Owners | $40 |
| State Farm | $40 |
| USAA | $40 |
| Allstate | $44 |
| COUNTRY Financial | $45 |
| National General | $55 |
| Travelers | $55 |
| Direct Auto | $55 |
| GEICO | $60 |
| Nationwide | $69 |
| Progressive | $73 |
| Root | $73 |
| Farmers | $74 |
| Clearcover | $78 |
| Foremost | $88 |
| Bristol West | $92 |
| AssuranceAmerica | $95 |
| Safeco | $98 |
| GAINSCO | $104 |
| Liberty Mutual | $183 |
Auto-Owners has the cheapest average rates in Alabama, with an average monthly rate of $40. But keep in mind that even though it has the cheapest average rate, it might not be the cheapest option for you. Every insurance company determines rates differently, so it’s crucial that you compare quotes from several insurers to find the right one for you.
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While there’s no one best car insurance company for every driver, some drivers will fit with certain companies better than others. The insurer with the cheapest rates isn’t always the best choice, either. The best option for you depends on your coverage needs, budget, and how you use your car.
We’ve chosen a few of the best car insurance companies for certain drivers in Alabama based on a combination of rates, coverages, discounts, and reviews offered in the state.
Average full-coverage premium: $70 per month
Compare.com Rating: 4.43 out of 5
Some of the cheapest rates in Alabama
Numerous available discounts
Online quotes not available
Poor customer satisfaction ratings
Auto-Owners offers some of the cheapest car insurance rates in Alabama, with an average monthly full-coverage rate of $70, according to our data. The company stands out because of its purchase price guarantee. It also earned an AM Best financial strength rating of A++ (Superior), indicating that it’s capable of paying claims.
Unfortunately, Auto-Owners ranks below average in Alabama for customer satisfaction, according to J.D. Power’s 2024 U.S. Auto Insurance Study.
Average full-coverage premium: $70 per month
Compare.com Rating: 4.90 out of 5
Many available discounts
Wide network of local agents
Expensive rates for high-risk drivers
Limited coverage options
State Farm is the largest auto insurance company in the U.S., which allows it to offer both affordable coverage and a wide variety of discounts. Drivers looking to stack savings through discounts should look no further — State Farm offers discounts for defensive driving, good driving, vehicle safety, and more.
The insurer also ranked above average for customer satisfaction in the J.D. Power 2024 U.S. Auto Insurance Study. But it doesn’t have the most affordable rates for high-risk drivers.
Average full-coverage premium: $69 per month
Compare.com Rating: 4.91 out of 5
Affordable rates
Military-focused discounts
Gap insurance not available
Claims processing issues
USAA offers some of the lowest rates in Alabama and is one of the best car insurance companies in the state for military members, veterans, and their families. The company earns high customer satisfaction ratings and has AM Best financial strength rating of A++ (Superior).
Unfortunately, coverage is only available to military members and not the general public. But if you qualify for coverage, you can take advantage of discounts for things like parking your car on a military installation.
Compare quotes and get the best insurance for your unique needs
Your coverage level has a major effect on your car insurance rates. The more coverage you have, the more expensive your rate will be. Liability-only insurance at the state’s minimum limits is always going to be the cheapest policy, but it leaves you vulnerable. It only covers medical expenses and property damage of other drivers in an accident — not your own.
The chart below shows five of the cheapest companies for state-minimum car insurance in Alabama, according to our research.
Although the above companies offer great rates for liability insurance, most experts recommend purchasing more than your state’s minimum coverage. Plus, if you’re still paying off your car, your lender will likely require you to buy full coverage.
That said, let’s see how much full coverage costs in Alabama.
Full-coverage car insurance typically refers to policies that include collision and comprehensive coverage on top of liability insurance. Comprehensive insurance and collision coverage take care of your repairs after an accident or non-collision incident.
But that extra protection comes with extra costs — full coverage is more expensive than liability coverage. Still, you may be able to find a policy for cheaper than the average liability policy — depending on where you look.
Here are the five cheapest car insurance companies in Alabama for full coverage, according to Compare.com data.
Insurers look at numerous factors to determine your rate, including your age and driving record. That’s why comparing rates is so important for ensuring you get the best policy for you at the best rate.
Now, let’s take a look at how your age affects rates in Alabama.
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Your age affects your rates significantly — especially if you’re a young driver. Insurers see younger drivers as much riskier than older drivers, and almost always charge them higher rates. But as you age and gain more driving experience, your rates should go down.
Check out the table below to see how your age can affect your monthly car insurance premium in Alabama, according to Compare.com data.
Age Group | Statewide Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| Teens | $197 | COUNTRY Financial | $71 |
| 40s | $96 | USAA | $37 |
| 60s | $76 | Auto-Owners | $30 |
Teens pay the highest car insurance rates of any age group because insurers consider them the riskiest drivers on the road. Young drivers have a fatal crash rate about three times higher than drivers older than 20, according to the Centers for Disease Control and Prevention (CDC).
Alabama teens can find the cheapest auto insurance with COUNTRY Financial. The insurer’s average monthly rate for teen drivers is $71 per month, according to our analysis.
Senior drivers pay some of the lowest rates of any age group because they often have plenty of driving experience and tend to drive less often. But older drivers can see their rates increase again as age-related impairments begin to set in around age 70, increasing their risk for accidents.
Auto-Owners has the cheapest car insurance rates for Alabama seniors. Its average monthly rate is $30, according to our data.
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Your driving record has arguably the most significant effect on your auto insurance rates because it most directly tells insurers how you drive. Typically, drivers with clean records pay much less than drivers with tickets and other infractions.
Even one speeding ticket or accident can cause an insurer to charge you higher premiums to account for the increased risk.
The table below shows how much Alabama drivers pay for car insurance based on different driving records and the cheapest insurer for each driving record, according to Compare.com data.
Driving Record | Statewide Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| Clean record | $100 | Auto-Owners | $40 |
| Speeding ticket | $155 | State Farm | $55 |
| At-fault accident | $165 | USAA | $58 |
| DUI | $185 | USAA | $70 |
A speeding ticket causes rates to increase by an average of 27% nationwide, according to Compare.com data. Getting a ticket shows insurers that you’re not a careful driver, so companies will usually raise your rates to account for the increased risk of insuring you.
We found that State Farm is the cheapest car insurance company for Alabama drivers with a speeding ticket, with an average monthly rate of $55.
An at-fault accident almost always results in a rate increase (unless you have accident forgiveness). Insurers increase rates by an average of 34% nationally after an at-fault accident, according to Compare.com data.
Alabama drivers with an at-fault accident can find the cheapest coverage with USAA, at $58 per month.
If you’re pulled over for driving under the influence (DUI), your rates will increase dramatically. A DUI is one of the worst driving infractions you can commit — and insurers don’t want to be liable for someone drunk behind the wheel. In fact, average rates go up by 50% nationwide after just one DUI, according to Compare.com data.
Alabama drivers with a DUI will find the cheapest rates with USAA, at $70 per month.
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State law requires drivers in Alabama to buy a minimum level of liability insurance. 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 injures others or damages their property. But state minimum requirements are “insufficient coverage to protect a driver in the event of a crash,” warns Hunter Garnett, founder and managing partner of Garnett Patterson Injury Lawyers in Huntsville, Alabama.
He and most financial experts recommend buying as much liability coverage as you can afford. If you cause more damage than your liability limits, the state could hold you personally liable for the rest.
You can face several penalties for driving without auto insurance in Alabama. On top of a fine, you could also face a license and registration suspension. The latter requires a fee and proof of insurance for reinstatement, and costs increase with subsequent offenses, as outlined in the table below.
Offense ▲▼ | Fine ▲▼ | License Suspension ▲▼ | Registration Reinstatement Fee ▲▼ |
|---|---|---|---|
| First offense | $500 | Possible six-month suspension | $200 |
| Second and subsequent offense | $1,000 | Possible six-month suspension | $400 |
An SR-22 form isn’t actually insurance. It’s a certificate you may need if the authorities catch you driving without insurance or you 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 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 (Triple-I).
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Alabama has the 24th-cheapest car insurance in the country, according to National Association of Insurance Commissioners (NAIC) data. But you still have ways to save on car insurance. These include:
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 Garnett.
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.
Keep teen drivers on their parents’ policies. 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.
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.
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.
Compare personalized quotes from the cheapest insurers in Alabama.
If you still have questions about Alabama auto insurance, check out these answers to common questions below.
Auto-Owners is the cheapest auto insurance company in Alabama, with an average monthly rate of $40, according to Compare.com data.
Car insurance costs an average of $100 per month in Alabama, according to Compare.com data. Drivers pay an average of $60 per month for liability coverage and $140 per month for full coverage.
Alabama drivers must have at least $25,000/$50,000 in bodily injury liability insurance, as well as $25,000 in property damage liability insurance to legally drive in the state.
Auto-Owners has the cheapest full-coverage car insurance in Alabama, with an average monthly rate of $70, according to Compare.com data.
J.D. Power, “2024 U.S. Auto Insurance Study,” accessed November 18, 2024.
Centers for Disease Control and Prevention, “Risk Factors for Teen Drivers,” accessed November 18, 2024.
AM Best, “AM Best Affirms Credit Ratings of Auto-Owners Insurance Company and Subsidiaries,” accessed November 18, 2024.
National Association of Insurance Commissioners, “Consumer Insurance Search Results,” accessed November 18, 2024.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates 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 the rates listed in this article have been collected 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 readers with insights into how auto insurance companies determine their premiums.
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Danny Smith is a licensed property and casualty insurance agent who has written for Compare.com since 2024. A former insurance editor, he specializes in auto, home, and pet insurance. He works to translate his insurance expertise into digestible, easy-to-understand content for drivers, homeowners, and pet owners alike.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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