Cheapest Car Insurance in Alabama (2024)
State Farm has the cheapest car insurance in Alabama for most drivers. It charges an average of $313 a year for liability-only car insurance, and $1,025 a year for full coverage.
However, Progressive is cheapest for drivers with bad credit or with a DUI on their record.
Cheapest full-coverage car insurance in Alabama: State Farm
State Farm offers the cheapest full-coverage car insurance for most Alabama drivers. Its quotes average $1,025 a year, or just over $85 a month. Along with affordable rates, State Farm has a good selection of car insurance discounts and has a high customer satisfaction score from J.D. Power.
USAA has even cheaper full-coverage rates than State Farm, but USAA is only available to current and former military members and their immediate families.
| Company | Annual rate | LendingTree score |
|---|---|---|
 State Farm | $1,025 |  |
 Travelers | $1,725 | |
 Progressive | $1,829 |  |
 Allstate | $2,030 |  |
 Farmers | $2,873 | |
 Geico | $3,115 |  |
 USAA* | $1,258 | |
The average cost of full-coverage car insurance in Alabama is $1,979 a year, or $165 a month.
Be aware that the actual price you pay will depend on factors such as:
- Your driving record and credit history
- Your age and ZIP code
- The type of car you drive
- Any discounts you may be eligible to receive
Since each auto insurance company weighs these factors differently, you may get a much lower rate from one company than you do from others. This is why you should compare quotes from multiple companies when you shop.
Alabama’s cheapest liability-only car insurance: State Farm
State Farm also offers the cheapest liability-only auto insurance in Alabama, at $313 a year, or about $26 a month. This is about $400 cheaper than Alabama’s average for liability-only coverage.
The next-best rates are available from Progressive ($517 a year) and Travelers ($638 a year).
| Company | Annual rate |
|---|---|
| State Farm | $313 |
| Progressive | $517 |
| Travelers | $638 |
| Allstate | $944 |
| Farmers | $1,090 |
| Geico | $1,130 |
| USAA* | $386 |
Liability-only insurance vs. full coverage
Liability-only auto insurance satisfies the state’s minimum insurance requirements. Liability covers injuries and property damage you cause to others in a car accident, but not injuries or damage to you or your car.
Full coverage includes collision and comprehensive, which cover your car for damage and theft. Although collision and comprehensive coverage aren’t required by law, you usually need them if you have a car loan or lease.
Cheapest rates for young drivers in Alabama: State Farm
State Farm has the cheapest liability-only and full-coverage car insurance quotes for young drivers in Alabama.
For liability-only policies, State Farm’s rates for 18-year-olds average $1,078 a year, or $90 a month. The next-best rates are available from Travelers at $1,819 a year. Travelers’ also offers some great optional coverages, which includes a new car replacement coverage. If you have a new car, this coverage replaces it with a new car of the same make and model if it’s totaled in the first five years you own it.
Cheapest liability-only car insurance for 18-year-olds
| Company | Annual rate |
|---|---|
| State Farm | $1,078 |
| Travelers | $1,819 |
| Progressive | $2,438 |
| Geico | $2,795 |
| Allstate | $2,941 |
| Farmers | $4,229 |
| USAA* | $880 |
For full-coverage, State Farm offers rates for 18-year-olds at an average rate of $2,985 a year, or $249 a month.
The next-best rates are available from Travelers ($4,478 a year), followed by Allstate ($6,511 a year).
Cheapest full-coverage car insurance for 18-year-olds
| Company | Annual rate |
|---|---|
| State Farm | $2,985 |
| Travelers | $4,478 |
| Allstate | $6,511 |
| Geico | $6,668 |
| Progressive | $8,743 |
| Farmers | $10,333 |
| USAA* | $2,428 |
Insurance companies consider teens to be risky to insure because they tend to have higher crash rates than other age groups. This translates into high auto insurance rates for young drivers.
If you’re a teen, you can usually get a lower rate by getting added to a parent’s policy rather than taking out a policy on your own.
Many insurance companies also offer good student discounts to young drivers who maintain a B average or better in school.
Cheapest car insurance rates after a ticket in Alabama: State Farm
State Farm has the cheapest car insurance quotes for Alabama drivers with a speeding ticket. Its rates for this category average $1,109 a year (about $92 a month) for full coverage.
In Alabama, a speeding ticket increases the average price of auto insurance by 20% to $2,372 a year, or $198 a month.
| Company | Annual rate |
|---|---|
| State Farm | $1,109 |
| Travelers | $2,188 |
| Progressive | $2,217 |
| Allstate | $2,231 |
| Farmers | $3,662 |
| Geico | $3,747 |
| USAA* | $1,450 |
Cheapest rates after an accident in Alabama: State Farm
State Farm has the cheapest auto insurance rate for Alabama drivers with a prior at-fault accident, $1,234 a year, or $103 a month.
Alabama drivers with an accident pay an average of $2,870 a year ($239 a month) for car insurance — roughly 45% more than those with a clean record.
| Company | Annual rate |
|---|---|
| State Farm | $1,234 |
| Travelers | $2,405 |
| Progressive | $2,741 |
| Allstate | $3,122 |
| Farmers | $3,982 |
| Geico | $4,800 |
| USAA* | $1,803 |
Best car insurance for Alabama drivers with a DUI: Progressive
Progressive has the best auto insurance rates for Alabama drivers with a DUI (driving under the influence) conviction, at $2,212 a year, or about $184 a month.
The next-cheapest rates are available from Travelers, followed by State Farm.
In Alabama, drivers with a DUI pay an average of $3,135 a year, or $261 a month, for car insurance. This is 58% more than the amount drivers with a clean record pay for car insurance.
| Company | Annual rate |
|---|---|
| Progressive | $2,212 |
| Travelers | $2,514 |
| State Farm | $2,627 |
| Allstate | $2,645 |
| Farmers | $3,830 |
| Geico | $5,478 |
| USAA* | $2,638 |
Cheap car insurance for Alabama drivers with poor credit: Progressive
Progressive has the best car insurance quotes for Alabama drivers with poor credit, $2,867 a year, or roughly $239 a month.
In Alabama drivers with poor credit pay an average of 76% more for car insurance than those with good credit.
| Company | Annual rate |
|---|---|
| Progressive | $2,867 |
| Travelers | $2,975 |
| Allstate | $3,386 |
| State Farm | $3,897 |
| Farmers | $4,440 |
| Geico | $4,706 |
| USAA* | $2,169 |
The credit inquiries that auto insurers use to prepare quotes are known as soft pulls, which do not affect your credit score.
Insurance companies see factors such as your payment history and the type of credit you use as indicators of how risky you may be to insure.
Alabama auto insurance rates by city
Birmingham is Alabama’s most expensive city for auto insurance. Its rates average $2,231 a year for full coverage.
Enterprise is the state’s cheapest city for car insurance, with an average rate of $1,793 a year, while Dothan is right behind it at $1,794 a year.
Huntsville, the state’s largest city by population, has the ninth-lowest car insurance rate, $1,906 a year.
| City | Annual rate |
|---|---|
| Alabaster | $1,977 |
| Athens | $1,854 |
| Auburn | $1,850 |
| Bessemer | $2,132 |
| Birmingham | $2,231 |
| Daphne | $1,920 |
| Decatur | $1,851 |
| Dothan | $1,794 |
| Enterprise | $1,793 |
| Florence | $1,876 |
| Gadsden | $2,014 |
| Homewood | $2,138 |
| Hoover | $2,108 |
| Huntsville | $1,906 |
| Madison | $1,884 |
| Mobile | $2,172 |
| Montgomery | $2,064 |
| Northport | $2,033 |
| Opelika | $1,886 |
| Pelham | $2,088 |
| Phenix City | $2,047 |
| Prattville | $1,966 |
| Trussville | $2,149 |
| Tuscaloosa | $2,024 |
| Vestavia Hills | $2,086 |
Alabama auto insurance laws
Alabama requires you to have auto insurance to register your vehicle and renew your registration each year.
The state also uses an online system to verify your insurance status.
This makes it important to make sure your name, vehicle identification number (VIN) and other details are printed accurately on your insurance documents. Otherwise, the system may flag you as being uninsured.
The penalties for driving without insurance include fines and a suspension of your vehicle registration. You also have to pay a reinstatement fee and file an SR-22 certificate to restore your driving privileges.
Minimum car insurance requirements in Alabama
The minimum amounts of insurance required by Alabama law are:
- Bodily injury liability: $25,000 per injured person/$50,000 per accident
- Property damage liability: $25,000
If an accident victim’s medical or car repair bills exceed your liability limits, you can be held personally responsible for the shortfall in an accident you cause. Since this can put your savings or future earnings at risk, you should consider liability limits at or above your net worth.
The following auto insurance coverages are available on an optional basis for more protection:
- Uninsured/underinsured motorist: Covers injuries you and your passengers suffer in an accident caused by a driver with no insurance or not enough insurance to cover your medical bills.
- Medical payments: Covers injuries you and your passengers suffer in a car accident, regardless of fault.
- Collision: Pays to repair or replace your car after a collision with an object or other vehicle, or if it overturns.
- Comprehensive: Covers your vehicle for theft or damage from non-collision causes such as fire, flood, falling objects and vandalism.
How SR-22 insurance works in Alabama
You usually have to get SR-22 insurance to restore your driving privileges after certain offenses, including DUI, reckless driving and driving without insurance.
An SR-22 is a certificate that your car insurance company files for you with the state. Many companies add a small filing fee for this to your bill, usually about $25.
The actual rate you pay for SR-22 insurance depends largely on the offense that leads to the filing requirement. You can expect to pay more for SR-22 insurance after a DUI or reckless driving conviction than you will after getting caught driving without insurance.
Consider adding The General and Dairyland to the companies you contact for SR-22 car insurance quotes. Both specialize in drivers with multiple tickets and/or accidents.
Methodology
LendingTree uses insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Rates are based on an analysis of thousands of car insurance quotes for a typical driver. Prices are shown for comparative purposes only. Your own rates may be different.
Unless noted otherwise, quotes are for a full-coverage policy for a 30-year-old man with good credit and a clean driving record who drives a 2015 Honda Civic EX.
Minimum-liability policies provide liability coverage with the state’s required minimum limits.
Full-coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured motorist bodily injury: $50,000 per person, $100,000 per accident
- Uninsured motorist property damage: $25,000
- Collision: $500 deductible
- Comprehensive: $500 deductible
*USAA is only available to current and former members of the military and their families.
Overall satisfaction ratings are from the J.D. Power 2023 U.S. Auto Insurance Study.
Frequently asked questions
The average cost of car insurance in Alabama works out to $60 per month for minimum-liability policies and $165 a month for full coverage.
The fine for a no-insurance ticket in Alabama is $500 for a first offense and $1,000 for each subsequent offense.
You also have to pay a $200 fee to reinstate your vehicle registration after a first offense. The reinstatement fee for subsequent offenses is $400.
Yes, Alabama is an at-fault state. If you cause a car accident, you are financially responsible for injuries to other people and damage to their vehicles and/or property.