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Last updated: December 3, 2025Best Cheap Car Insurance in Birmingham
Travelers, GEICO, Alfa, State Farm, and USAA are our top picks for car insurance in Birmingham.
Cheapest
Editor's Rating:4.1/5
Average Cost in Birmingham
- Full Coverage Monthly: $135
- Minimum Coverage Monthly: $90
Best for Online Purchasing
Editor's Rating:4.2/5
Average Cost in Birmingham
- Full Coverage Monthly: $142
- Minimum Coverage Monthly: $98
Best for Military/Veterans
Editor's Rating:5/5
Average Cost in Birmingham
- Full Coverage Monthly: $107
- Minimum Coverage Monthly: $66
Key Takeaways
- The cost of full coverage car insurance in Birmingham is $1,936 on average per year, which is slightly less than the Alabama average. Minimum coverage costs an average of $965 per year, which is higher than the Alabama average.
- Travelers offers the cheapest widely available full coverage insurance in the city at $1,621 annually. Alfa Insurance has the best customer service record.
- The rates you are quoted will likely differ from the averages listed here and will depend on individual factors, such as your driving record and the car you drive.
Our Top Picks for the Best Cheap Auto Insurance in Birmingham
- Cheapest: Travelers
- Best for Online Purchasing: GEICO
- Best for Military and Veterans: USAA
- Best Regional Insurer: Alfa
- Best for Households with Teens: State Farm
Compare the Best Cheap Auto Insurance in Birmingham
| Company | Full Coverage Annual Avg. | Minimum Coverage Annual Avg. | Southeast Customer Satisfaction (J.D. Power) |
|---|---|---|---|
| Travelers | $1,621 | $1,080 | Below average |
| GEICO | $1,700 | $1,176 | Above average |
| USAA | $1,279 | $792 | Above average |
| Alfa | $1,796 | Data unavailable | Above average |
| State Farm | $1,765 | $792 | Above average |
| Birmingham | $1,936 | $965 | – |
Detailed List of the Best Cheap Providers in Birmingham
1. Cheapest - Travelers
What We Like Most:
- Cheapest full coverage rates
- Wide range of affinity discounts
- Non-owner insurance policies
Why we chose it
Travelers has the lowest full coverage auto insurance rates in Birmingham (after USAA, whose availability is limited to the military community), making it an ideal choice for drivers with cost as their main priority.
The company offers many discounts to help drivers save, including for bundling auto and property policies, owning a home, having continuous insurance, and buying a new car.
It also sells a variety of coverage add-ons, allowing drivers to customize their policy to their needs. These include gap coverage, new car replacement, and accident forgiveness.
Who it’s best for
Drivers interested in full coverage, those with a DUI, drivers on a budget (Travelers’ customer service ratings are below average in the region)
Travelers Birmingham Pricing
| Travelers | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $135 | $90 |
| Annually | $1,621 | $1,080 |
| Difference from Birmingham average | -16% | +12% |
2. Best for Online Purchasing - GEICO
What We Like Most:
- Easy online quotes and purchasing
- Competitive rates
- Military and federal worker discounts
Why we chose it
GEICO offers below-average full coverage rates in Birmingham and has above-average customer satisfaction ratings from J.D. Power.
The company allows customers not only to get quotes but to complete the purchase process online. You can easily enter your information, see your quote, and buy a policy right then and there if you’re satisfied with it.
GEICO also has more discounts than most competitors, including for military members, deployed drivers, and safe drivers.
Who it’s best for
Drivers who want to purchase auto insurance online, active or retired military who prefer not to use USAA
GEICO Birmingham Pricing
| GEICO | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $142 | $98 |
| Annually | $1,700 | $1,176 |
| Difference from Birmingham average | -12% | +22% |
3. Best for Military and Veterans - USAA
What We Like Most:
- Coverage designed for military members
- Cheapest rates in Birmingham
- Excellent customer service ratings
Why we chose it
USAA provides insurance and financial products and services exclusively for the military community, including veterans and family members.
It has the cheapest average rates in Birmingham for both minimum and full coverage policies, as well as the highest customer satisfaction score from J.D. Power for the Southeast region.
In addition, it offers two telematics programs to help drivers save further, including one catering to low-mileage drivers.
Who it’s best for
Current USAA members or active military members, veterans, and family members who are eligible for membership
USAA Birmingham Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $107 | $66 |
| Annually | $1,279 | $792 |
| Difference from Birmingham average | -34% | -18% |
4. Best Regional Insurer - Alfa
What We Like Most:
- High customer satisfaction ratings
- Online quotes
- Loss of income coverage
Why we chose it
Alfa Mutual Insurance only operates in Alabama, Georgia, and Mississippi, and offers below-average full coverage rates in Birmingham.
It ranked above average for customer satisfaction in J.D. Power’s Auto Insurance Study (and second out of companies available in Alabama) and earned an A- rating from the CRASH Network Report Card, ranking fifth.
Alfa has limited add-on coverages, but one of them is loss-of-income coverage, which will pay 85 percent of your monthly income or up to $750 per month, whichever is less, for up to one year after an accident if you are injured and unable to work.
Who it’s best for
Drivers prioritizing customer service, those who prefer working with a smaller regional insurer
Alfa Birmingham Pricing
| Alfa | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $150 | Data unavailable |
| Annually | $1,796 | Data unavailable |
| Difference from Birmingham average | -7% | – |
5. Best for Households with Teens - State Farm
What We Like Most:
- Strong customer service record
- Highly-rated digital tools
- Telematics program specifically for young drivers
Why we chose it
State Farm has high customer satisfaction ratings across the board, especially when compared to other major national insurers. It sells policies exclusively through local agents, giving you the opportunity to ask questions and make sure applicable discounts are added to your policy.
In Alabama, State Farm has some of the cheapest rates for teen drivers (along with USAA and Travelers) at an average of $395 monthly, or 20 percent below the state average.
It also has two telematics programs, one of which is specifically for young drivers called Steer Clear. Drivers under 25 without moving violations within the last three years are eligible to participate in the program, which includes driving tracking via the State Farm app as well as online training modules. Those who successfully complete it are eligible for a discount.
Who it’s best for
Customers who like working with a local agent, drivers with teens on their policy, drivers with a recent speeding ticket
DID YOU KNOW?
On average, teens pay 150 percent more than the national average for car insurance, given that they pose a much higher risk to insurers. Finding discounts for teens and adding them to an existing policy is key to saving money.
State Farm Birmingham Pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $147 | $66 |
| Annually | $1,765 | $792 |
| Difference from Birmingham average | -9% | -18% |
Birmingham Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Southeast1 | CRASH Network Report Card2 | J.D. Power Claims Satisfaction3 | NAIC Complaint Index4 |
|---|---|---|---|---|
| Travelers | 606 | C | 691 | 1.97 |
| GEICO | 670 | C- | 697 | 1.95 |
| USAA | 749 | D+ | 749 | 2.74 |
| Alfa | 685 | A- | Not rated | 1.95 |
| State Farm | 677 | C- | 716 | 2.13 |
| Average | 667 (out of 1,000) | C+ | 700 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
Cheapest Full Coverage Car Insurance in Birmingham
USAA offers the cheapest full coverage auto insurance in Birmingham, by far, with an average annual premium of $1,279 — 34 percent below the city average. However, USAA eligibility is restricted to members of the military and their families. Travelers and Auto-Owners have the next-cheapest rates, at $1,621 and $1,648, respectively.
| Company | Annual Birmingham Average | Monthly Birmingham Average |
|---|---|---|
| USAA | $1,279 | $107 |
| Travelers | $1,621 | $135 |
| Auto-Owners | $1,648 | $137 |
| GEICO | $1,700 | $142 |
| State Farm | $1,765 | $147 |
| Alfa | $1,796 | $150 |
| Safeway | $1,826 | $152 |
| COUNTRY Financial | $1,830 | $153 |
| Allstate | $1,904 | $159 |
| Progressive | $2,160 | $180 |
| Nationwide | $2,244 | $187 |
| Farmers | $2,424 | $202 |
| Birmingham average | $1,936 | $161 |
| Alabama average | $2,169 | $181 |
| U.S. average | $2,356 | $196 |
Cheapest Minimum Coverage Car Insurance in Birmingham
Drivers looking for minimum coverage car insurance in Birmingham will find the lowest average rates from USAA (if they are affiliated with the military), State Farm, and Auto-Owners. The three companies are tied for the cheapest rates, with an average annual premium of $792. That’s 18 percent below the city average. Allstate and Progressive also have competitive minimum coverage rates.
| Company | Annual Birmingham Average | Monthly Birmingham Average |
|---|---|---|
| USAA | $792 | $66 |
| State Farm | $792 | $66 |
| Auto-Owners | $792 | $66 |
| Allstate | $864 | $72 |
| Progressive | $876 | $73 |
| COUNTRY Financial | $876 | $73 |
| Travelers | $1,080 | $90 |
| GEICO | $1,176 | $98 |
| Nationwide | $1,344 | $112 |
| Farmers | $1,464 | $122 |
| Birmingham average | $965 | $80 |
| Alabama average | $791 | $66 |
| U.S. average | $722 | $60 |
How Many Car Accidents Happen in Birmingham?
Data on car accidents in Birmingham is not available, as the Alabama Department of Transportation only releases data on a state and county level. In Jefferson County, where most of Birmingham is located, there were 16,773 intersection-related crashes and 10,159 non-intersection-related crashes in 2023.5
In addition, there were 114 total traffic fatalities, and 16 with apparent drug or alcohol involvement.
Minimum Auto Insurance Requirements in Alabama
Alabama requires that all drivers carry auto insurance by law. Its minimum coverage limits are as follows:
- Bodily injury liability: $25,000 per person/$50,000 per accident
- Property damage liability: $25,000 per accident6
While minimum coverage is the cheapest option, it only offers limited coverage and may not be enough if you get into an accident. In addition, it does not cover damage to your own car. If this coverage is important to you, you’ll need full coverage, which includes collision and comprehensive coverages.
Frequently Asked Questions
USAA offers the cheapest car insurance in Birmingham, Alabama, for both full and minimum coverage, with average annual premiums of $1,279 and $792, respectively. However, it is only available to members of the military. Non-military drivers will find the cheapest average rates from Travelers for full coverage and from State Farm and Auto-Owners for minimum coverage.
In Birmingham, State Farm is one of the cheapest providers for minimum coverage, but Auto-Owners and USAA are tied for the lowest average rate. For full coverage policies, several companies have cheaper average rates, including USAA, Travelers, Auto-Owners, and GEICO.
Technically your credit score doesn’t directly affect your car insurance, but your credit history does. In most states, insurers can use your credit information to calculate a credit-based insurance score, which is meant to estimate the likelihood that you will file a claim. This score, in turn, affects the rate you’re quoted.
There are several ways you can decrease your car insurance cost. If you have a violation on your record, this will likely cause your rates to increase, and the best way to lower your costs in the future is to avoid future violations.
In addition, it’s always good to check what discounts might be available to you, and consider participating in a telematics program if your insurer has one. If you really need to lower your premium, consider dropping certain coverages that you no longer need or lowering your coverage limits, but be sure to think through this carefully before doing so.
Methodology
At AutoInsurance.com, we evaluate auto insurance providers based on four key factors:
- Price (40%): We analyzed average premiums for full and minimum coverage in Birmingham, Alabama, for safe drivers with good credit. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
- Claims handling (25%): Insurance companies are expected to provide a clear, efficient, and fair claims resolution process. We evaluate various companies’ claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Auto Claims Satisfaction Study, and financial strength from sources like AM Best and S&P.
- Customer experience (25%): We look at how easy it is for customers to get quotes, buy coverage, make updates, and find important documents. We also evaluate online and agent support, plus the quality of each insurer’s website and mobile app. Our analysis uses insights from J.D. Power, the NAIC Complaint Index, BBB ratings, and app store reviews.
- Coverage options (10%): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like accident forgiveness, gap coverage, rideshare coverage, and more.
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Sources
Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, J.D. Power Finds. J.D. Power. (2024, June 11).
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
https://www.crashnetwork.com/irc/Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, J.D. Power Finds. J.D. Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-studyResults by Complaint Index. NAIC. (2024).
https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=24112&:refresh2023 Crash Facts. Alabama Department of Transportation. (2023).
https://www.dot.state.al.us/publications/Design/pdf/safetyPlanning/2023FactsBook.pdfAutomobile Insurance FAQs. Alabama Department of Insurance. (2025).
https://aldoi.gov/consumers/AutoFAQ.aspx
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