To find the best car insurance in Alabama, it’s important to know the type of coverage is required by the state and what kind of coverage would be best for your needs. After examining dozens of insurance providers and comparing different coverage options, prices and discounts available, we narrowed the list down to four of the best car insurance companies in Alabama.
The 4 Best Auto Insurance Companies in Alabama
- State Farm: Best for Safe Driving Discounts
- Progressive: Best for Savings Opportunities
- Allstate: Best for Coverage Options
- Alfa Insurance: Best for Local Coverage
Compare the Best Car Insurance Companies in Alabama
Information accurate as of February 2022
*Premium data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Satisfaction Study rating for the Southeast region. Based on a 1,000-point scale.
State Farm
Best for Safe Driving Discounts
WHY WE CHOSE IT
Why we chose it
Pros
- Discounts for safe drivers through several programs
- The largest insurance carrier in the country by market share
Cons
- Higher-than-average NAIC complaint index
- Not as many digital tools as some other carriers
OTHER POLICIES OFFERED
- Home
- Manufactured home
- Boat
- Life
STANDOUT DISCOUNTS AVAILABLE
- Defensive driving course
- Drive Safe & Save
- Accident-free
- Steer Clear
MORE STATE FARM INSURANCE REVIEWS
Progressive
Best for Savings Opportunities
WHY WE CHOSE IT
Why we chose it
Pros
- Name Your Price lets you shop by budget level
- Numerous discounts available
Cons
- Lower-than-average claims satisfaction from J.D. Power
- Below-average J.D. Power customer satisfaction
OTHER POLICIES OFFERED
- Home
- Condo
- Flood
- Mexico auto
STANDOUT DISCOUNTS AVAILABLE
- Online quote
- Paperless billing
- Continuous insurance
- Snapshot
MORE PROGRESSIVE INSURANCE REVIEWS
Allstate
Best for Coverage Options
WHY WE CHOSE IT
Why we chose it
Pros
- Numerous insurance options available
- Above-average customer satisfaction
Cons
- Fewer discounts than competitors
- Lower-than-average claims satisfaction from J.D. Power
OTHER POLICIES OFFERED
- Home
- Renters
- Motorcycle
- Life
STANDOUT DISCOUNTS AVAILABLE
- Automatic payments
- New car
- Responsible payer
- Safe driver
MORE ALLSTATE INSURANCE REVIEWS
Alfa
Best for Local Coverage
WHY WE CHOSE IT
Why we chose it
Pros
- Founded and headquartered in Alabama
- Several discounts for teen drivers and adults under 24
Cons
- Lower-than-average J.D. Power Customer satisfaction score
- Limited insurance coverage options
OTHER POLICIES OFFERED
- Home
- Life
- Farm
- Business
STANDOUT DISCOUNTS AVAILABLE
- Military and first responders
- State or federal employees
- Youth honor student
- Homeownership
*Data provided by Bankrate.com.
**J.D. Power 2021 Auto Insurance Satisfaction Study rating for the Southeast region. Based on a 1,000-point scale.
The Average Cost of Car Insurance in Alabama
According to 2021 data from Bankrate.com, car insurance in Alabama costs an average of $469 per year for minimum coverage and $1,623 per year for full coverage. If you own a newer-model vehicle or finance one, full coverage may be required by your lender since it helps pay to repair or replace your vehicle in addition to covering the damages and injuries to others if you’re at fault in a crash. The cheaper car insurance rate of $469 is the average for the minimum required coverage amount you’ll need to legally drive in the state, but that only helps financially protect you against damages and injuries you cause to others.
The rates presented are an average and vary depending on many factors. A clean driving record, and a claims-free history means you’ll likely pay less for car insurance than other drivers. To find the lowest price, it’s always best to get several car insurance quotes before choosing the best car insurance company for your needs.
Top 3 Cheapest Car Insurance Companies in Alabama
| Company | Average Annual Full Coverage Premium* |
| Travelers | $1,071 |
| USAA | $1,230 |
| Allstate | $1,313 |
* Data provided by Bankrate.com.
Top 3 Most Expensive Car Insurance Companies in Alabama
| Company | Average Annual Full Coverage Premium* |
| American Independent | $3,110 |
| Alfa | $2,138 |
| Safeway | $1,825 |
* Data provided by Bankrate.com.
Top 3 Cheapest Cities for Car Insurance in Alabama
| City | Average Annual Full Coverage Premium* |
| Hartselle | $1,496 |
| Daleville | $1,498 |
| Ozark | $1,499 |
* Data provided by Bankrate.com.
Top 3 Most Expensive Cities for Car Insurance in Alabama
| City | Average Annual Full Coverage Premium* |
| Fairfield | $1,822 |
| Center Point | $1,808 |
| Midfield | $1,802 |
* Data provided by Bankrate.com.
Guide to Alabama Car Insurance
If you’re new to Alabama, you’ll need to visit the Alabama DMV to change your driver’s license or register your vehicle. You’ll have 30 days to register an out-of-state car.
In 2018, Governor Kay Ivey signed an expanded bill requiring Alabama drivers to pull into the passing lane if they see a vehicle with flashing or emergency lights on the side of the road. If it isn’t safe to pull into the passing lane — or if you’re on a two-lane highway with traffic going in both directions — you are required to drop your speed to 15 mph below the posted limit or drive 10 mph if the speed is 20 mph or below.
Other things you should know about car insurance in Alabama are:
- Car insurance is mandatory in Alabama.
- Alabama drivers must carry at least a minimum amount of car insurance.
- Alabama is an at-fault state — the driver who caused the crash is financially liable.
- It’s legal for an insurance company to check your credit-based insurance score before it insures you.
Alabama Minimum Insurance Requirements
Alabama requires that drivers carry at least 25/50/25 liability insurance. It’s the minimum amount of insurance required to legally drive in the state.
Minimum liability required in the state of Alabama is divided as follows:
- $25,000 bodily injury liability coverage per person
- $50,000 bodily injury liability coverage per accident
- $25,000 property damage liability coverage per accident
Uninsured motorist coverage must also be offered but can be declined in writing. Most insurance agents recommend that you consider purchasing higher limits for more financial protection.
Car Insurance Coverage Options
Flooding, tornadoes, and hurricanes happen in Alabama. If you only have minimum coverage and your car is flooded, or a tree branch falls on your vehicle, you won’t have coverage. Minimum coverage doesn’t provide any coverage for damage to your vehicle — only damage you cause to the other party. You would need to pay for repairs out of pocket if you don’t have comprehensive and collision coverage. For more protection, you may want to consider some additional coverage types:
- Collision insurance: Collision coverage could pay for repairs or replacement to your vehicle if the damage is caused by a collision, regardless of who is at fault.
- Comprehensive insurance: Comprehensive coverage is designed to pay to repair or replace your car if it’s damaged by non-collision events like weather, fire, animals, or theft.
- Uninsured and underinsured insurance: Alabama has a high percentage of uninsured drivers (close to 20%). Underinsured and uninsured motorist coverage could help cover your repair costs if you’re in an accident with an uninsured driver or a driver who doesn’t have enough coverage to pay for your damages.
Frequently Asked Questions
Methodology
Reviews.com reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s data of car insurance in Alabama, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
About the Authors
Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.
