Compare Cheap Auto Insurance in Alabama

USAA has the cheapest full coverage insurance rates in Alabama for military-affiliated drivers at $1,390 annually on average. That’s 36 percent cheaper than the state average. Nonmilitary drivers can find affordable coverage from Travelers and State Farm, with average annual rates of $1,599 and $1,631 per year, respectively.

Cincinnati Insurance has the cheapest average rates for minimum coverage at $323 per year. USAA (for military-affiliated drivers) and State Farm have the next cheapest average rates at $464 and $509 per year, which is 41 and 36 percent cheaper than the state average: $791.

Households with teen drivers in Alabama can find affordable average rates from USAA (if eligible) and Travelers, at $3,992 per year and $4,670 per year, respectively. Travelers’ average premium is quite a bit more than USAA’s, but it’s still 22 percent less than the state average.

USAA and State Farm offer the best auto insurance rates for Alabama drivers with a speeding ticket, at $1,538 per year and $1,761 per year. These rates are 36 percent and 27 percent cheaper than the state average, respectively.

State Farm offers the cheapest rates for Alabama drivers with an at-fault accident at $1,869 per year on average, which is 34 percent below the state average. Travelers ($1,998/year) and USAA ($2,045/year) also have rates cheaper than the state average.

Travelers has the cheapest average rates for drivers with a DUI in Alabama at $2,129 annually — almost 35 percent below the state average. State Farm and USAA also offer competitive rates for drivers in this situation at $2,476 per year and $2,798 per year, respectively.

For military-affiliated drivers in Alabama, USAA offers the best rates, with an average annual premium of $1,965. That’s 43 percent cheaper than the state average. Travelers and Progressive also offer competitive rates for nonmilitary drivers at $2,703 per year and $2,943 per year, respectively.

State Farm and USAA score highly in J.D. Power surveys of customer and claims satisfaction in the southeast, and they also have some of the cheapest rates.

Regional insurer Alfa also scored highly on J.D. Power’s survey in the southeast, and ranked second out of 91 insurers nationally on CRASH Network’s Insurer Report Card. Data on average rates isn’t available for the company—which only sells policies in Alabama, Georgia, and Mississippi—so it’s worth getting a quote to see how much you’ll pay.

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 $2,353.

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: $100,000 per accident
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible