Cheap Car Insurance in Alabama (2023)

If you live and drive in the Heart of Dixie, your car insurance rates won’t be the highest in the nation — but they’ll also be far from the lowest. Alabama is the 18th least-expensive state for car insurance, where drivers pay an average of $185 per month for car insurance. 

When you’re in the market for car insurance, shopping around for quotes from multiple providers can ensure you find cheap car insurance. With an online comparison tool, you can simply enter your ZIP code and other driving profile information to compare quotes.

Best cheap car insurance in Alabama: State Farm

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State Farm

Best Cheap Car Insurance

State Farm offers the cheapest premiums for drivers in Alabama, at an average monthly rate of $87. On average, Alabama drivers spend $185 per month for coverage, so State Farm presents a cost-effective option. Additional companies with similar low rates include USAA, Allstate, and GEICO.

Learn More: Best Car Insurance Companies

Insurify Composite Score (ICS)

To calculate the Insurify Composite Score, a proprietary rating, Insurify data scientists and insurance experts weigh multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include J.D. Power ratings, Consumer Reports customer satisfaction surveys and customer complaints, mobile app reviews, user-generated company reviews, and financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch.

How much car insurance you’ll need in Alabama

Alabama requires insurance for all motor vehicles operated or parked on state roadways. You must carry proof of insurance in your car at all times and have it available when:

• Law enforcement requests it 

• You renew your vehicle registration

• The vehicle is involved in a car accident

The minimum liability insurance requirements for private passenger vehicles in Alabama are:^[1]

• $25,000 per person/$50,000 per accident for bodily injury: As a major part of your liability insurance, bodily injury coverage covers medical bills for people other than the policyholder who are injured during an accident. Alabama is an at-fault state, meaning the driver who is responsible for the collision is also responsible for paying for any resulting expenses, either through their car insurance provider or out of pocket.

• $50,000 per accident for property damage: If authorities determine an insured driver is at fault for an accident, this coverage pays for repairs to the property of the other involved parties. Additionally, property damage coverage can cover legal costs if the insured driver is involved in a lawsuit following the accident.

Alabama DMV information

The Alabama Law Enforcement Agency (ALEA) issues driver’s licenses, vehicle registration, and vehicle tags. Many services are available online, making it convenient for Alabama drivers to renew documentation. The Alabama Department of Revenue maintains motor vehicle records, issues vehicle titles, manages mandatory liability insurance, and more.^[2]

Tips for getting cheap car insurance in Alabama

The best thing you can do to find cheap car insurance rates is to shop around and compare quotes from several companies to find the perfect combination of low rates, good service, and a financially healthy company. An online comparison tool will pull together great rates from all the top insurers in Alabama, making it quick and easy for you to compare policies.

You may also qualify for certain discounts, such as:

• Bundling your home and auto insurance with the same company

• Good student discount

• Loyalty discount

• Safe driver discount

• Paying in full, rather than monthly

Liability-only vs. full-coverage auto insurance in Alabama

If you live in Alabama, you can opt to carry liability-only auto insurance, which pays for expenses related to injuries and damage to the other party’s car if you cause an accident. Each state sets its own minimums for how much liability insurance it requires drivers to carry. Liability-only insurance can make sense if:

• You have a low-value vehicle.

• You can afford to repair or replace your car out of your own pocket.

• Getting the cheapest insurance possible is your top priority.

For a higher level of protection, you can choose full-coverage insurance, which includes basic liability plus collision and comprehensive coverage. Collision coverage pays for damages to your car, even if you’re at fault for an accident. Comprehensive coverage pays for damages caused by events out of your control, like vandalism, weather, and animals. Auto lenders and leasing companies typically require drivers to carry full coverage on a car they’ve financed. 

You may also opt for full coverage if:

• You have a high-value vehicle.

• You wouldn’t be able to afford to repair or replace your car out-of-pocket.

• Your car’s actual cash value (the payout you’d likely get if your car is totaled) exceeds your annual premium to carry full coverage.

Here’s a look at the cheapest auto insurance in Alabama by policy type.

How your driving history affects your Alabama car insurance rates

Your driving history is the factor that most influences your car insurance costs. Good drivers — whose records are free of serious traffic violations like speeding tickets or reckless driving — tend to get the best car insurance rates in Alabama. But infractions like driving under the influence or at-fault accidents can significantly increase insurance costs.

Here’s a look at average monthly quotes for the cheapest car insurance in Alabama based on driving and accident history.

See More: High-Risk Car Insurance Alabama

See More: DUI Car Insurance Alabama

SR-22 insurance in Alabama

An SR-22 form is for drivers who have committed a high-risk driving offense, like a DUI, hit-and-run, or reckless driving. The form is filed by your insurance provider and confirms that your insurance meets Alabama’s minimum requirements. These are some of the companies that offer SR-22s in Alabama.

How credit score affects Alabama car insurance quotes

Alabama is one of many states that allow insurers to consider credit scores when setting car insurance rates. Insurers consider poor credit an indicator of higher risk, while good and excellent credit is viewed as a sign of lower risk. Generally, people with excellent or good credit scores can qualify for lower car insurance premiums than people with average or poor credit scores. 

The table below illustrates average monthly quotes based on credit scores in Alabama.

See More: Bad Credit Car Insurance Alabama

How your city affects Alabama insurance quotes

Even something as simple as your ZIP code can affect how much your car insurance costs. More densely populated metropolitan areas tend to see higher rates than suburban areas or smaller towns. We analyzed the average car insurance rates for these major Alabama cities. Find the average rate based on where you live in the chart below.

How age affects Alabama car insurance rates

Because insurers generally equate age with experience level, your age will significantly affect how much you pay for car insurance. New drivers, who tend to be teens or people in their early 20s, typically pay more for insurance than drivers 25 and older. 

The following table gives a high-level view of how age can affect insurance rates.

Cheapest car insurance in Alabama for young drivers

Young drivers (25 or younger) typically have the highest insurance rates, regardless of the type of coverage they choose. Here’s a look at average monthly rates for basic and full coverage options for young drivers in Alabama, and for young drivers with some common violations.

Cheapest car insurance in Alabama for middle-aged drivers 

Drivers between the ages of 25 and 65 generally enjoy the lowest car insurance premiums for both liability-only and full coverage car insurance. However, accidents and violations like speeding tickets can increase rates for middle-aged drivers. Here’s a look at average monthly rates for middle-aged drivers in Alabama.

Cheapest Alabama car insurance for senior drivers

While drivers in their 60s, 70s, and 80s typically have the lowest average insurance rates, costs do start to go up for motorists in their 70s and 80s. Factors like the type of coverage and any driving infractions can also affect the cost of car insurance for Alabama seniors. The table below shows average monthly rates for senior drivers in Alabama. 

Alabama car insurance FAQs

Insurify Insights

How Alabama Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Alabama below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Alabama drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Nissan Altima

Most Popular Car in Alabama

#15

State with the Most Speeding Tickets Rank

#15

State with the Moving Violations Rank

#44

State with the Most DUIs Rank

#23

State with the most Suspended Licenses

• Accidents in Alabama

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Alabama is the #12 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #12
  • Percent of drivers in Alabama with an accident: 9.9%
• DUIs in Alabama

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Alabama is the #44 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #44
  • Percent of drivers in Alabama with a DUI: 0.9%
• Reckless Driving in Alabama

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Alabama is the #35 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #35
  • Percent of drivers in Alabama with a reckless driving offense: 1.1%
• Rude Driving in Alabama

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Alabama is the #35 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #35
  • Percent of drivers in Alabama with a rude driving violation: 1.2%
• Speeding in Alabama

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Alabama is the #15 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #15
  • Percent of drivers in Alabama with a speeding ticket: 10.3%
• Failure to Yield Rates in Alabama

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Alabama is the #33 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #33
  • Percent of drivers in Alabama with a failure to yield violation: 0.1%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.