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The Best Alabama Auto Insurance Company

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    To find the best car insurance in Alabama, it’s important to know the type of coverage required by the state and what kind of policy would be best, based on your area. Not all insurance carriers provide vehicle policies to Alabama residents. After examining dozens of insurance providers and comparing different coverage options, prices and discounts available, we narrowed the list down to four best car insurance companies in Alabama.

    The 4 Best Auto Insurance Companies in Alabama

    Compare the Best Car Insurance Companies in Alabama

    Average Price for State Minimum* Average Price for Full Coverage* Reviews.com Score A.M Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. J.D. Power Overall Customer Satisfaction J.D. Power scores are based on surveys for customer satisfaction and product quality.
    Pin State Farm$1,253.08$2,957.154.2/5A++835/1,000
    Pin Progressive$756.30$2,726.184.4/5A+848/1,000
    Pin Allstate$685.42$2,097.844.2/5A+846/1,000
    Pin Alfa$764.11$2,649.803.4/5A+858/1,000

    Information accurate as of 11/17/2020 *Data provided by Coverage.com

    State Farm

    Best for Safe Drivers

    Why we chose it

    Providing insurance since 1922, State Farm offers safe drivers several ways to save money.
    • 4.4 Reviews Score
    • $1,681* Average Premium Pricing data comes from our partners at Coverage.com.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 835** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Providing insurance since 1922, State Farm offers safe drivers several ways to save money.

    Pros

    • Discounts for safe drivers of all ages through several programs
    • The largest, most financially stable insurance carrier in the country

    Cons

    • Priced higher than other insurance carriers
    • Not as many discounts available
    • Limited insurance coverage
    Read More

    Types of Coverage Offered

    • Collision and comprehensive
    • Property damage
    • Rental car and travel expenses
    • Rideshare
    • Roadside assistance
    • Uninsured/underinsured motorist

    Discounts Available

    • Accident-free
    • Anti-theft devices
    • Defensive driving course
    • Drive Safe & Save app
    • Driving training
    • Good driver
    • Good student
    • Multi-car
    • Multi-policy
    • Passive restraint system
    • Steer Clear app
    • Student away at school

    * Data provided by Coverage.com, price based on the state minimum required policy.**J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Southeast region. Based on a 1,000-point scale.

    Further Reading on State Farm:

    Progressive

    Best Discounts and Savings

    Why we chose it

    You can name your price with Progressive Insurance and take advantage of nearly 20 discounts to save.
    • 4.4 Reviews Score
    • $756.30* Average Premium Pricing data comes from our partners at Coverage.com.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 848** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    You can name your price with Progressive Insurance and take advantage of nearly 20 discounts to save.

    Pros

    • Name Your Price lets you set a budget and see what coverage is available
    • Compare auto insurance rates from several carriers while getting a quote
    • Wide range of coverages

    Cons

    • Ranks low in claims satisfaction
    • Below-average customer satisfaction
    Read More

    Types of Coverage Offered

    • Custom parts and equipment
    • Deductible savings bank
    • Gap insurance
    • Rideshare
    • Rental car reimbursement
    • SR-22 policies

    Discounts Available

    • Automatic payments
    • Continuous insurance
    • Distant student
    • Good student
    • Insurance bundles
    • Multi-vehicle
    • Online quote
    • Paperless billing
    • Pay in full
    • Snapshot® safe driver program
    • Teen driver

    *Data provided by Coverage.com, price based on the state minimum required policy. **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Southeast region. Based on a 1,000-point scale.

    Further Reading on Progressive:

    Allstate

    Best for Wide Coverage Options

    Why we chose it

    Insuring Americans since 1931, Allstate offers car insurance for everyone from classic cars to rideshare drivers.
    • 4.2 Reviews Score
    • $685.42* Average Premium Pricing data comes from our partners at Coverage.com.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 855** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Insuring Americans since 1931, Allstate offers car insurance for everyone from classic cars to rideshare drivers.

    Pros

    • Insurance coverage for high-value, classic cars and rideshare drivers
    • Full-featured mobile app
    • Nationwide agent network and a 24/7 call center
    • Above-average customer satisfaction

    Cons

    • Discounts not as comprehensive as their coverage options
    Read More

    Types of Coverage Offered

    • Classic cars
    • Collision and comprehensive 
    • Rental reimbursement
    • Roadside coverage
    • Sound system insurance
    • Uninsured and underinsured motorist coverage

    Discounts Available

    • Anti-lock brakes
    • Anti-theft devices
    • Automatic payments
    • Multi-policy
    • New car
    • Paperless
    • Pay-in-full
    • Responsible payer
    • Safe driver
    • Smart student

    *Data provided by Coverage.com, price based on the state minimum required policy. **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Southeast region. Based on a 1,000-point scale.

    Further Reading on Allstate:

    Alfa

    Best for Drivers on a Budget

    Why we chose it

    The Cotton State is Alfa’s headquarters, providing the best auto insurance in Alabama at an affordable price.
    • 3.4 Reviews Score
    • $764.11* Average Premium Pricing data comes from our partners at Coverage.com.
    • A AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 858** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    The Cotton State is Alfa’s headquarters, providing the best auto insurance in Alabama at an affordable price.

    Pros

    • Ranks third in the region for customer satisfaction
    • Policies provide reimbursement for lost wages
    • Several discounts for teen drivers and adults under 24

    Cons

    • Customer service unavailable Sundays
    • Limited insurance coverage options
    Read More

    Types of Coverage Offered

    • Collision and comprehensive 
    • Loss of income
    • Loss of use
    • Medical payments
    • Uninsured and underinsured motorist

    Discounts Available

    • Defensive driver
    • Driver training
    • Occupational
    • Safety equipment
    • Young driver
    • Youth safety

    *Data provided by Coverage.com, price based on the state minimum required policy. **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Southeast region. Based on a 1,000-point scale.

    The average cost of car insurance in Alabama

    According to Coverage.com, the best car insurance in Alabama costs an average of $435 for minimum liability coverage and $1,513 for full coverage. If you own a newer-model vehicle or finance one, full coverage is your best option since it pays to repair or replace your vehicle besides covering the damages and injuries to others if you’re at fault in a crash. The cheaper car insurance rate of $435 is for the minimum amount of coverage you’ll need to legally drive in the state, but only protects you against damages to others. 

    The rates presented are an average and can vary depending on many factors. A clean driving record, good credit score and a claims-free history means you’ll likely pay less for car insurance. To find the lowest price, it’s always best to get several car insurance quotes before you choose from the best car insurance companies in Alabama.

    Top 3 Cheapest Car Insurance Companies in  Alabama

    CompanyAverage Annual Premium
    Geico$480.70
    Standard Fire Insurance Company$523.74
    USAA$584.49

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Most Expensive Car Insurance Companies in Alabama

    CompanyAverage Annual Premium
    State Farm$1,253.08
    Alfa$764.11
    Progressive$756.30

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Cheapest Cities for Car Insurance in Alabama

    CityAverage Annual Premium*
    Opp$535.52
    Andalusia$546.21
    Hamilton$568.96

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Most Expensive Cities for Car Insurance in Alabama

    CityAverage Annual Premium*
    Center Point $848.53
    Tarrant$838.62
    Birmingham $836.16

    * Data provided by Coverage.com, price based on the state minimum required policy.

    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.
    • Liability insurance of 25/50/25 is the minimum.
    • 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 score before it insures you.

    Car Insurance Add-Ons That Will Further Protect You 

    Flooding, tornadoes and hurricanes happen in Alabama. If you only have basic minimum liability insurance and your car is flooded or a tree branch falls on your vehicle, basic liability insurance doesn’t protect your property — only the other party’s. You would need to pay for  repairs out-of-pocket if you don’t have full coverage. The best car insurance in Alabama options include:

    • Comprehensive insurance: Comprehensive coverage will pay to repair or replace your car if it’s damaged or lost from weather, fires or theft.
    • Uninsured/underinsured insurance: Alabama has a high percentage of uninsured drivers (close to 12%). Underinsured/uninsured motorist coverage will help cover your repair costs if you’re in an accident with an uninsured driver. 
    • Collision insurance: You don’t have to insure your own vehicle in Alabama. But if you drive a newer model, collision coverage will pay for repairs or replacement to your vehicle if you cause a crash.

    Alabama Minimum Insurance Requirements

    Alabama requires 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 coverage per person
    • $50,000 bodily injury coverage per accident
    • $25,000 property damage coverage per accident

    Methodology

    Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the best car insurance in Alabama, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company and averaged the scores to produce our very own Reviews.com score. These scores were created with our readers in mind and are meant to be a helpful tool to simplify the process of choosing which car insurance company is best for you. 

    As for average pricing, we used Coverage.com’s data of car insurance in Alabama, based on the profiles of a 30-year male and female. For full coverage, the details used were the following:

    • $100k bodily injury liability per person
    • $300k bodily injury liability coverage per crash
    • $100k property damage liability coverage per crash
    • $500 collision coverage deductible
    • $500 comprehensive coverage deductible

    Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting five days a week and driving 12,000 miles per year. Since auto insurance rates vary widely among different profiles, we encourage you to compare options that fit your specific needs.

    About the Authors

    Cynthia Paez Bowman is a contributing writer for Reviews.com. Over the last two years, she has covered insurance, home security and more. She has been featured in MSN, Bankrate, Coverage.com, The Simple Dollar and GOBankingRates. She has dual bachelors degrees in International Business and Journalism from American University in Washington, D.C. “Is It Getting Harder to Get Home Insurance in High-Risk Areas?” is Cynthia’s favorite story on Reviews.com.