Best car insurance companies in Alabama

Country Financial is the best car insurance company in Alabama, based on an analysis by Insurance.com, with an overall rating of 3.44. Travelers is the second-best auto insurance company in Alabama with an overall rating of 3.34.

Below is a full list of the top Alabama insurance companies based on price, NAIC complaint ratio, and AM Best financial ratings. The total Insurance.com score is calculated out of five using these factors.

Best car insurance in Alabama
Company AM BestAvg. Annual PremiumJD PowerNAICInsurance.com score
Country FinancialA+$1,6948280.343.44
TravelersA++$1,4288510.493.34
Auto-OwnersA++$2,1348590.53.27
NationwideA+$1,3458180.643.14
State FarmA++$1,7908070.73.06
GeicoA++$1,6258470.913.03
AllstateA+$2,1788160.652.55
ProgressiveA+$2,4028280.652.37
FarmersA$2,5428570.82.15

Data refreshed as of May 2024
Read our full methodology

Cheapest car insurance companies in Alabama

Don't just go with the first insurer you come across. Comparison shopping is the key when it comes to finding the best deal on auto insurance. Get quotes from several different insurers and compare their rates. You may be surprised at how much difference there can be in rates from one company to another.

We have gathered price quotes from all the major insurance providers in Alabama and put together a list of the cheapest car insurance companies. Based on a rate analysis by Insurance.com, Nationwide offers the cheapest full coverage car insurance in Alabama with rates of $1,345 annually or $112 a month, on average.

Cheapest car insurance in Alabama
Company State minimum liability50/100/50 liability100/300/100 liability with $500   deductible
Nationwide$487$617$1,345
Travelers$403$558$1,428
USAA$316$431$1,458
Geico$363$523$1,625
Country Financial$313$475$1,694
State Farm$340$511$1,790
Auto-Owners$416$618$2,134
Allstate$576$752$2,178
Progressive$450$718$2,402
Farmers$667$1,186$2,542

Data refreshed as of May 2024
Read our full methodology

Average cost of car insurance in Alabama

The average car insurance rate in Alabama is $1,860 a year for afull coverage policy with a coverage level of 100/300/100 for a driver age 40, according to a recent rate analysis. For state minimum coverage, the average annual cost in Alabama is $433.

Auto insurance calculator

Average auto insurance rates in Alabama
30
16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 55 60 65 70 75
Male
Male Female
36110 - Montgomery
For a 30-year-old male
$43 State minimum
$167 Full coverage
$60 Liability only

Most & least expensive ZIP codes for auto insurance in Alabama

Most Expensive

Zip CodeCityHighest Rate
35218Birmingham$186
35207Birmingham$185
35204Birmingham$185
35208Birmingham$184

Least Expensive

Zip CodeCityLowest Rate
36352Dothan$143
36303Dothan$146
36362Fort Rucker$146
35661Muscle Shoals$146
Data refreshed as of May 2024
Read our full methodology

Alabama car insurance requirements

The minimum car insurance required in Alabama is 25/50/25. The average cost of the state minimum liability insurance is $426 annually or $36 monthly. 

Minimum liability insurance requirements for Alabama:

  • Bodily injury liability (BI): $25,000 per person, $50,000 per accident
  • Property damage liability (PD): $25,000 per person

Cheapest car insurance companies for minimum liability coverage in Alabama

According to the data analysis, Country Financial provides the most affordable state minimum liability-only car insurance coverage, averaging $320 annually or $27 per month. Although USAA offers the lowest rates, it's important to note that there are eligibility criteria associated with their coverage.

The table below shows the cheapest car insurance companies for minimum coverage in Alabama. 

State minimum auto insurance coverage in AL
Company Liability insurance premiumMonthly liability insurance premium
USAA*$316$26
Country Financial$320$27
State Farm$340$28
Geico$346$29
Travelers$410$34
Auto-Owners$416$35
Progressive$446$37
Nationwide$479$40
Allstate$565$47
Farmers$622$52

Data refreshed as of May 2024
Read our full methodology

*USAA offers coverage only to military veterans and their family

Cheapest car insurance in Alabama by age

Country Financial
Cheapest for teens
$3,260/yr
Learn more
company_name
Cheapest for adults
$1,330/yr
Learn more
company_name
Cheapest for seniors
$1,240/yr
Learn more

In Alabama, car insurance rates are higher for teenagers (16- to 19-year-olds) as they are more prone to accidents due to their lack of experience on the road.

Country Financial offers the cheapest car insurance for teen drivers in Alabama at $3,260 per year for a full coverage policy.  

Car insurance rates will decrease as teens age and keep a good driving record. Car insurance rates for adults 25+ and seniors 60+ are lower than those for teens and young adults. 

In Alabama, Nationwide offers the cheapest full coverage car insurance for adult drivers (25-55 year-olds) and senior drivers (60-75 year-olds)  at $1,330 per year and $1,240 per year, respectively. 

In Alabama, car insurance rates are higher for teenagers (16- to 19-year-olds) as they are more prone to accidents due to their lack of experience on the road.

Compare car insurance rates by age

Select your age group and age below to see the insurance company and its
average annual and average monthly premium rates.

Age group
Teen
Age
16
Table
Graph
Country Financial$3,817$318
Nationwide$5,425$452
Geico$5,523$460
USAA$5,850$488
Travelers$5,869$489
State Farm$5,914$493
Auto-Owners$6,737$561
Allstate$10,144$845
Progressive$11,470$956
Farmers$14,282$1,190
Yearly premium

Data refreshed as of May 2024
Read our full methodology

Cheapest car insurance companies in Alabama by driver profile

company_name
Cheapest for at-fault accident
$2,026/yr
Learn more
company_name
Cheapest for DUI
$1,934/yr
Learn more
company_name
Cheapest for speeding ticket
$1,934/yr
Learn more

Accidents and tickets can negatively affect car insurance rates. Drivers who have accidents or tickets are considered a higher risk and will pay more. 

However, the severity and frequency of the incidents will also play a role in the insurance rates. For instance, drivers with a single minor accident may see a smaller increase in their rates compared to those with multiple major accidents.

Below are average Alabama rates by company for drivers with accidents and tickets on their driving record. 

CompanyClean recordAccidentSpeeding Ticket
State Farm$1,790$2,151$1,934
USAA$1,458$2,210$1,685
Nationwide$1,345$2,235$2,074
Auto-Owners$2,134$2,696$2,528
Geico$1,625$2,845$3,005
Allstate$2,178$3,379$2,414
Progressive$2,402$3,944$3,065
Farmers$2,542$4,269$4,029

Data refreshed as of May 2024
Read our full methodology

Compare auto insurance rates by city in Alabama

Auto insurance rates in your city can differ significantly from the state average due to factors such as population density, increased instances of auto theft or accidents, and a few other factors. It's best to compare quotes from various insurance providers to find the most competitive rates for your specific city in Alabama.

CityAnnual insurance premium
Birmingham
$2,040
Alpine
$1,818
Bessemer
$1,996
Decatur
$1,700
Montgomery
$1,926
Data refreshed as of May 2024
Read our full methodology

Insurance.com commissioned Quadrant Information Services in 2023 to field rates from major insurers in every state across most ZIP codes. Driver profile: male, age 40, driving a 2023 Honda Accord LX with full coverage of 100/300/100 with comprehensive and collision; $500 deductible.

The car insurance rates for drivers with accidents and tickets are averaged based on rates for the following accidents and tickets: 

Accidents: 

  • 1 at-fault property damage accident over $2k
  • 1 at-fault property damage accident under $2k
  • At-fault bodily injury accident 
  • Single vehicle accident 

Tickets: 

  • Distracted driving ticket
  • Speeding ticket 1- 10 MPH over limit 
  • Speeding ticket 11- 29 MPH over limit 
  • Talking on cellphone ticket 
  • Texting ticket 

Insurance.com analyzed rates from more than 34,000 ZIP codes, 56 million quotes, and 136 companies. Rates sourced from Quadrant Data Services are for comparison purposes only; your rates may differ.  

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