Compare Cheap Auto Insurance in Alabama

• Full coverage auto insurance in Alabama costs $1,883 annually on average, while minimum coverage costs $779 annually on average.
• USAA, Travelers, and State Farm offer the lowest average rates for most driver categories in Alabama.
• Auto-Owners also tends to have below-average rates for many drivers.

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• Cheapest full coverage auto insurance in Alabama: USAA ($1,308 annually) and Travelers ($1,420 annually)
• Cheapest minimum coverage: USAA ($438 annually) and State Farm ($509 annually)
• Cheapest with a teen driver: USAA ($3,222 annually) and Travelers ($4,019 annually)
• Cheapest with a speeding ticket: USAA ($1,312 annually) and State Farm ($1,405 annually)
• Cheapest with an at-fault accident: State Farm ($1,562 annually) and USAA ($1,649 annually)
• Cheapest with a DUI: Travelers ($2,067 annually) and State Farm ($2,476 annually)
• Cheapest with low credit: USAA ($1,965 annually) and Travelers ($2,549 annually)

Farmers is one of the more expensive providers in Alabama on average, but it has higher customer satisfaction ratings than most of their competitors. It may be worth paying more for better customer service, depending on your needs and budget. State Farm also has a strong customer service record in Alabama and is much cheaper on average, which could be the best of both worlds, and the same is true for USAA, for those eligible.

1. Compare rates periodically: The cheapest companies on average may not necessarily be the ones that offer you the best rates. Always get multiple quotes, being sure to request the same coverage and limits, to compare and get the best rate.
2. Bundle policies: If you purchase another type of insurance policy from the same company in addition to auto, such as home or renters insurance, you may be able to get a discount. Bundling discounts may be up to 25 percent off, so it’s worth checking with the providers you’re interested in to see what they offer.
3. Drop unneeded coverages: The fewer coverages you have, the cheaper your policy will be. While it’s generally not advised to lower your coverage unless you absolutely have to, there are cases where it might make sense. For example, if you have an older vehicle with low value, you may no longer want to pay for collision and comprehensive coverages.
4. Maintain good credit: Having poor credit can increase your premiums more than a DUI can. To maintain low rates, keep your credit in good standing or work to improve it to get better rates over time.

The most expensive city for auto insurance in Alabama is Birmingham, with an average annual rate of $2,069 — 10 percent higher than the state average. Meanwhile, Tuscaloosa and Huntsville have below-average rates at $1,871 per year and $1,779 per year, respectively.

In Alabama, drivers must carry auto insurance policies with at least the following limits to adhere to state law:

• Bodily injury liability: $25,000 per person/$50,000 per accident
• Property damage liability: $25,000 per accident⁴

These minimum limits may not be enough to cover you if you get into a serious accident. We recommend increasing your limits to at least 100/300/100 if you’re able to, as well as adding full coverage to help pay for damage to your own vehicle.

We analyze average auto insurance premiums in Alabama for full and minimum coverage for good drivers with good credit as well as other driver profiles, including teenagers and those with DUIs, accidents, and low 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