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Last updated: December 4, 2025Best Auto Insurance in Alabama of 2025
State Farm, USAA, Alfa Insurance, Travelers and Country Financial are our top picks in Alabama.
Best Value
Editor's Rating:4.9/5
Average Cost in Alabama
- Full coverage: $136 monthly
- Minimum coverage: $42 monthly
Best for Military/Veterans
Editor's Rating:5/5
Average Cost in Alabama
- Full coverage: $116 monthly
- Minimum coverage: $39 monthly
Best for Customer Service
Editor's Rating:4.9/5
Average Cost in Alabama
- Full coverage: N/A
- Minimum coverage: N/A
Key Takeaways
- State Farm is our top pick for the best value car insurance in Alabama. Alfa Insurance, Travelers, Country Financial, and USAA also make our list for different categories.
- The average cost of full coverage car insurance in Alabama is $2,169 annually, which is cheaper than the national average, while minimum coverage costs around $791 annually, or about $150 more than the national average.
- Average rates are helpful when comparing companies’ ballpark pricing, but remember that your rates will likely differ based on individual factors like your age and driving record.
Summary of the Best Auto Insurance in Alabama
- Best Value: State Farm
- Best for Military/Veterans: USAA
- Best for Customer Service: Alfa
- Best for Poor Credit: Travelers
- Best for Farmers: COUNTRY Financial
Compare the Best Cheap Auto Insurance in Alabama
| Company | Full Coverage Monthly Avg. in AL | Minimum Coverage Monthly Avg. in AL | Southeast customer satisfaction (J.D. Power) |
|---|---|---|---|
| State Farm | $136 | $42 | Above average |
| USAA | $116 | $39 | Above average |
| Alfa Insurance | Data not available | Data not available | Above average |
| Travelers | $133 | $46 | Below average |
| Country Financial | $155 | $60 | N/A |
| Alabama | $181 | $66 | – |
Breaking Down the Best Cheap Auto Insurance in Alabama
1. Best Value - State Farm
What We Like Most:
- Affordable rates for full and minimum coverage
- Largest provider in Alabama
- Below-average premiums for high-risk drivers
Why we chose it
State Farm has some of the cheapest auto insurance rates for Alabama drivers for both full and minimum coverage. In addition, it ranks above average for customer satisfaction in J.D. Power’s most recent Auto Insurance Study for the Southeast region. State Farm also offers competitive rates for drivers with violations, particularly at-fault accidents. Drivers with an accident on their record pay almost $500 more per year for auto insurance than the average driver in Alabama, so finding affordable rates is key.
DID YOU KNOW?
According to the most recent data from the Alabama Department of Transportation, cell phone distractions contributed to at least 65 traffic fatalities in 2024, which represents about 7 percent of all traffic deaths that year.1
State Farm offers incentives for safe driving, so you can save on car insurance while practicing good driving habits. These include two telematics programs, which can provide significant discounts on premiums: Steer Clear and Drive Safe & Save. For both programs, State Farm will track your driving habits through an app and reward you with a discount at renewal.
Who it’s best for
Those looking for the best mix of affordability and quality customer service, people with a bad driving record, parents with a teen driver.
State Farm Alabama Pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $136 | $42 |
| Annually | $1,631 | $509 |
| Difference from Alabama average | -25% | -36% |
2. Best for Military/Veterans - USAA
What We Like Most:
- Cheap rates for most driving profiles
- Military-specific discounts
- Stellar customer satisfaction ratings
Why we chose it
USAA serves active military, veterans, and their families, offering some of the lowest rates in Alabama. If you’re one of the many military members, family members, or veterans in the Cotton State, expect stellar customer service and military-specific discounts, including storage and military on-base discounts.
Among the major providers on our list, USAA consistently receives top rankings for customer satisfaction. It has the highest score from J.D. Power for the Southeast region (749 points), 82 points higher than the region’s average. USAA also scored second-highest in J.D. Power’s 2025 U.S. Auto Claims Satisfaction study.
Who it’s best for
Military members, veterans and families; teens and parents of teens; USAA-eligible drivers with bad credit or a speeding ticket
Fun Fact:
Alabama has over 300,000 veterans, making it the 20th-highest veteran population in the U.S.2 It also has almost 40,000 active duty military members, including 26,472 National Guard and reserve members.3
USAA Alabama Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $116 | $39 |
| Annually | $1,390 | $464 |
| Difference from Alabama average | -36% | -41% |
3. Best for Customer Service - Alfa
What We Like Most:
- Strong customer service ratings
- Occupational discounts
- Dozens of local-based agents across Alabama
Why we chose it
Alfa is a regional provider operating primarily in Alabama, Georgia, and Mississippi, offering localized coverage and expertise in these states. It ranked fifth for Southeast customer satisfaction in J.D. Power’s study and also ranked fifth nationally in the CRASH Network report card, earning a spot on the Honor Roll with an A- grade — the highest of any insurer on our list.
Alfa Insurance offers several discounts to help drivers save, including a discount for bundling home and auto policies, as well as for being a homeowner. It also has occupational discounts for military members, first responders, teachers, ministers, farmers, federal employees, and auto manufacturer employees. Young drivers can save with good student, driver training, and youth defensive driving discounts.
Who it’s best for
People looking for personal customer service, drivers who only need standard coverages, young drivers
4. Best for Poor Credit - Travelers
What We Like Most:
- Competitive rates for Alabama drivers with low credit
- 367 Travelers agencies in Alabama
- Great for business owners
Why we chose it
On average, Travelers offers the cheapest auto insurance in Alabama for drivers with low credit (after USAA, which only serves military members and families) at $2,703 annually, which is 21 percent cheaper than the state average. In Alabama, premiums can increase by an average of 58 percent if you have low credit, so it’s worth getting a quote from Travelers.
The company has agents in every major city and county across the state of Alabama, making it easy to find an agency near you. If you’re a business owner who owns vehicles used for business, you can also find a commercial auto insurance plan from Travelers.
Who it’s best for
Drivers with poor credit, homeowners, people who need commercial auto insurance
Travelers Alabama Pricing
| Travelers | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $133 | $46 |
| Annually | $1,599 | $547 |
| Difference from Alabama average | -26% | -31% |
5. Best for Farmers - COUNTRY Financial
What We Like Most:
- Regional provider
- Specialized coverage for farmers
- High bundling discount
Why we chose it
The food and agriculture industry accounts for over 600,000 jobs in Alabama, or around 27 percent of the state’s workforce.4 Country Financial provides auto and farm insurance options that can be tailored to the needs of agricultural operations — along with passenger vehicles and farm trucks, customers can also insure specialized equipment under one plan.
The provider also covers farm machinery, outbuildings, and other essential assets. With Country Financial, you can also get crop and livestock insurance for extra protection in the event of natural disasters. In addition, policyholders can enjoy an extensive list of discounts, including a 30 percent bundling discount, and plenty of savings opportunities for young drivers.
Who it’s best for
Farmers, people who want to bundle policies, teachers and first responders, young drivers.
Country Financial Alabama Pricing
| Country Financial | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $152 | $60 |
| Annually | $1,825 | $717 |
| Difference from Alabama average | -16% | -9% |
Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Southeast5 | CRASH Network Report Card6 | J.D. Power Claims Satisfaction7 | NAIC Complaint Index8 |
|---|---|---|---|---|
| State Farm | 677 | C- | 716 | 2.15 |
| Alfa Insurance | 685 | A- | Not rated | 0.10 |
| Travelers | 606 | C | 691 | 0.27 |
| Country Financial | Not rated | B- | Not rated | 0.87 |
| USAA | 749 | D+ | 741 | 2.74 |
| 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 |
Average Cost of Auto Insurance in Alabama
Full Coverage Rates in Alabama
Alabama’s average annual rate for full coverage is $2,169 per year or $181 per month. That’s about 10 percent cheaper than the national average.
| Category | Full coverage average (annual) | Full coverage average (monthly) |
|---|---|---|
| Alabama Average | $2,169 | $181 |
| National Average | $2,399 | $200 |
Minimum Coverage Rates in Alabama
Minimum coverage in Alabama costs an average of $791 annually, which is 25 percent higher than the national average of $635.
| Category | Minimum coverage average (annual) | Minimum coverage average (monthly) |
|---|---|---|
| Alabama Average | $791 | $66 |
| National Average | $635 | $53 |
Auto Insurance Costs by City in Alabama
If you’re looking to compare prices within the state, here’s what average premiums in Alabama look like by city. Auburn has the lowest average rates at $137 per month, while Hoover has the most expensive at $199 per month.
| City | Monthly average premium | Annual average premium |
|---|---|---|
| Auburn | $137 | $1,640 |
| Huntsville | $148 | $1,779 |
| Tuscaloosa | $156 | $1,871 |
| Montgomery | $159 | $1,911 |
| Mobile | $168 | $2,018 |
| Dothan | $171 | $2,052 |
| Birmingham | $172 | $2,069 |
| Hoover | $199 | $2,388 |
How Many Car Accidents Happen in Alabama?
In 2024, there were 140,118 car accidents in Alabama, according to data from the state Department of Transportation.9 These crashes included 893 fatal ones that caused 967 deaths. Sixty percent of those who died were not wearing a seatbelt.
Of the traffic fatalities, 120 were pedestrians, and eight were bicyclists. A further 36,601 people were injured in car accidents in 2024.
Minimum Auto Insurance Requirements in Alabama
Alabama state law requires that drivers carry auto insurance with at least the following limits:
- Bodily injury liability: $25,000 per person/$50,000 per accident
- Property damage liability: $25,000 per accident
Minimum coverage limits may not be enough to cover damages if you’re in an accident. While they offer a baseline level of coverage, we recommend increasing your liability limits and adding full coverage, especially if you have a newer car. Full coverage will help pay for damage to your vehicle.
Pro Tip:
Unsure what you should increase your limits to? Check out our guide on how much coverage you need to stay adequately protected on the road in Alabama.
Frequently Asked Questions
You do not need uninsured motorist coverage in Alabama. However, almost 17 percent of drivers do not have insurance in Alabama, higher than the national average (15 percent).10
Because of the high uninsured motorist rate, we highly recommend you add uninsured/underinsured motorist coverage to make sure your vehicle is covered if you get into an accident with an uninsured driver.
Alabama is an at-fault state, also known as a tort state, which means that the driver who is responsible for an accident is also responsible for paying for the other party’s damages and injuries.
Additionally, you can file a lawsuit to seek compensation in Alabama. However, the state’s contributory negligence law means that if you are even 1 percent responsible for an accident, you will be barred from suing the other driver.
Pay-per-mile coverage, which determines your premium based on how many miles you drive each month, can be a good idea in Alabama if you drive less than 8,000 miles per year.
Alabamians drive 14,388 miles per year on average, which is higher than the national average of 12,200.11 If you don’t drive often, if you share a car, or if you can find other means of transportation, pay-per-mile insurance may save you on your insurance policy.
According to Alabama’s statute of limitations for car accidents, you have two years to file a claim after an accident. After two years, you’ll be unable to file your claim and receive compensation.
Methodology
We evaluated Alabama auto insurance providers based on the following criteria:
Pricing (40%): Affordability is key. We compared average premiums statewide for both minimum liability and full coverage policies. Our analysis also considered differences tied to age, driving record, credit history, driving frequency, vehicle type, and bundled policies.
Claims Service (25%): When an accident happens, how smoothly a claim is handled matters most. To measure this, we relied on trusted sources such as J.D. Power, CRASH Network, AM Best, and S&P, which track insurer performance in processing and paying claims.
Customer Experience (25%): Insurance should be easy from start to finish. We evaluated customer satisfaction through complaint data and survey scores from the NAIC and J.D. Power, focusing on how drivers rated their experiences getting quotes, purchasing policies, and managing coverage.
Coverage Options (10%): The best insurers offer more than just the basics. We awarded higher marks to companies with benefits like accident forgiveness, roadside assistance, rental car coverage, rideshare insurance, and gap coverage.
Learn more about our ratings and methodology sources.
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
2024 Crash Facts. Alabama Department of Transportation. (2024).
https://ati.ua.edu/wp-content/uploads/2025/10/ALDOT-2024-Crash-Facts.pdfVeterans in Alabama. USAFacts. (2022).
https://usafacts.org/topics/veterans/state/alabama/Alabama. Military State Policy Source. (2025).
https://statepolicy.militaryonesource.mil/state/ALWhat is the Food and Agriculture Sector’s Impact in Your Community? Feeding the Economy. (2025).
https://feedingtheeconomy.com/It’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, Jun 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
https://www.crashnetwork.com/irc/Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, J.D. Power Finds. J.D. Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2025).
https://content.naic.org/cis_refined_results.htmStats & Facts. Drive Safe Alabama. (2025).
https://drivesafealabama.org/stats-facts/#crashfactsFacts + Statistics: Uninsured motorists. Insurance Information Institute. (2025).
https://www.iii.org/fact-statistic/facts-statistics-uninsured-motoristsAverage Miles Driven Per Year: Why It Is Important. Kelley Blue Book. (2025, July 07).
https://www.kbb.com/car-advice/average-miles-driven-per-year/
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