Who Has the Cheapest Car Insurance in Alabama

If you are looking for the cheapest car insurance in Alabama, you might be wondering which company offers the best rates and coverage for your needs. Car insurance is a legal requirement in Alabama, but it can also protect you from financial losses in case of an accident or theft. However, not all car insurance policies are created equal, and the price you pay can vary depending on many factors, such as your age, driving history, location, vehicle type and more.

In this article, we will compare the average car insurance rates in Alabama from different companies and scenarios, based on data from Bankrate, The Zebra, MoneyGeek and Progressive. We will also explain the minimum car insurance requirements in Alabama, as well as some discounts and tips that can help you save money on your premium.

What are the minimum car insurance requirements in Alabama?

According to the Alabama Department of Insurance, every driver in Alabama must carry liability insurance that covers at least:

  • $25,000 for bodily injury or death per person
  • $50,000 for bodily injury or death per accident
  • $25,000 for property damage per accident

These are the minimum limits required by law, but they may not be enough to cover the full costs of a serious accident. If you are found at fault for an accident that causes damages or injuries beyond these limits, you could be sued for the difference and have to pay out of your own pocket. That is why many experts recommend increasing your liability coverage or adding other types of coverage, such as collision, comprehensive, uninsured/underinsured motorist and medical payments.

How much does car insurance cost in Alabama?

The average cost of car insurance in Alabama is $1,843 per year for full coverage and $441 per year for minimum coverage, according to Bankrate. However, these are only averages based on a sample driver profile of a 35-year-old single male with a clean driving record and a 2020 Toyota Camry. Your actual rates may differ depending on your personal and vehicle information, as well as the company you choose.

To give you an idea of how much car insurance costs in Alabama from different companies and scenarios, we have compiled the following tables based on data from various sources. Note that these are only estimates and not guaranteed quotes. To get the most accurate and personalized rates, you should compare quotes from multiple companies online or by phone.

Cheapest car insurance companies in Alabama for full coverage

Full coverage car insurance includes liability, collision and comprehensive coverage. It can pay for damages to your own vehicle as well as others’ in case of an accident or other covered event. Full coverage is usually required if you are leasing or financing your vehicle, but it can also be a good option if you want more protection and peace of mind.

According to The Zebra2, the cheapest car insurance companies in Alabama for full coverage are:

CompanyAverage annual premium
Travelers$1,921
Geico$1,330
Nationwide$1,344
USAA$1,400
Allstate$1,593

Cheapest car insurance companies in Alabama for minimum coverage

Minimum coverage car insurance only includes liability coverage. It can pay for damages or injuries that you cause to others in an accident, up to your policy limits. Minimum coverage is the cheapest option available, but it also offers the least protection. If you have a low-value vehicle or no assets to protect, minimum coverage may be enough for you. However, if you have a newer or more expensive vehicle or significant assets to protect, minimum coverage may not be sufficient.

According to MoneyGeek, the cheapest car insurance companies in Alabama for minimum coverage are:

CompanyAverage annual premium
Geico$301
USAA$312
Progressive$321
State Farm$323
Nationwide$331

Cheapest car insurance companies in Alabama by age

Your age is one of the factors that affect your car insurance rates. Generally speaking, younger drivers pay more than older drivers because they are considered more risky and inexperienced behind the wheel. However, as you get older and gain more driving experience and a clean record, your rates may decrease over time.

According to Bankrate, the cheapest car insurance companies in Alabama by age group are:

Age groupCompanyAverage annual premium
20-year-oldsGeico$2,198
30-year-oldsGeico$1,330
40-year-oldsGeico$1,330
50-year-oldsGeico$1,250
60-year-oldsGeico$1,250

Cheapest car insurance companies in Alabama for higher-risk drivers

Your driving record is another factor that affects your car insurance rates. If you have a history of accidents, tickets, DUIs or other violations, you may be considered a higher-risk driver and pay more for your car insurance. However, not all companies charge the same for higher-risk drivers, and some may offer discounts or programs to help you lower your rates over time.

According to The Zebra, the cheapest car insurance companies in Alabama for higher-risk drivers are:

ScenarioCompanyAverage annual premium
With a speeding ticketGeico$1,330
With an at-fault accidentGeico$1,330
With a DUITravelers$1,281
With poor creditNationwide$1,344

Cheapest car insurance companies in Alabama for military drivers

If you are a current or former member of the military or a family member of one, you may be eligible for special discounts and benefits from some car insurance companies. USAA is one of the most popular and affordable options for military drivers, as it offers exclusive rates and services to its members. However, USAA is not available to everyone, and other companies may also offer competitive rates and discounts for military drivers.

According to Bankrate, the cheapest car insurance companies in Alabama for military drivers are:

CompanyAverage annual premium
USAA$1,400
Geico$1,330
Nationwide$1,344
Allstate$1,593

Cheapest car insurance companies in Alabama by city

Your location is another factor that affects your car insurance rates. Different cities and ZIP codes may have different levels of traffic, crime, weather and other risks that can influence the frequency and severity of claims. Therefore, your rates may vary depending on where you live and park your vehicle.

According to Bankrate, the cheapest car insurance companies in Alabama by city are:

CityCompanyAverage annual premium
BirminghamGeico$1,330
HuntsvilleGeico$1,330
MobileGeico$1,330
MontgomeryGeico$1,330

How to save money on car insurance in Alabama

Besides comparing quotes from different companies and choosing the right coverage level for your needs, there are other ways to save money on your car insurance in Alabama. Here are some tips and discounts that can help you lower your premium:

  • Maintain a good driving record: Avoiding accidents, tickets and violations can help you qualify for good driver discounts and lower rates over time.
  • Improve your credit score: Having a good credit score can show insurers that you are financially responsible and less likely to file claims. You can improve your credit score by paying your bills on time, keeping your balances low and checking your credit report regularly.
  • Bundle your policies: If you have more than one vehicle or other types of insurance, such as home, renters or life, you can bundle them with the same company and get a multi-policy discount.
  • Pay in full or online: Some companies offer discounts if you pay your premium in full or online instead of monthly or by mail.
  • Choose a higher deductible: A deductible is the amount you pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premium, but it also means you will pay more in case of a claim.
  • Drive less or use public transportation: Some companies offer discounts based on how much you drive or if you use public transportation instead of driving. You can also enroll in usage-based programs that track your driving habits and reward you for safe and low-mileage driving.
  • Take advantage of discounts: There are many discounts available from different companies for various reasons, such as being a student, a senior, a loyal customer, a safe driver, a military member or having certain safety features on your vehicle. Ask your agent or company about the discounts they offer and how to qualify for them.

The bottom line

Car insurance is not only a legal requirement but also a smart investment in Alabama. It can protect you from financial losses in case of an accident or theft. However, finding the cheapest car insurance in Alabama can be challenging, as there are many factors that affect your rates and many companies that offer different prices and coverages.

The best way to find the cheapest car insurance in Alabama is to compare quotes from multiple companies online or by phone. You should also consider the quality of service, customer satisfaction and coverage options that each company offers. Additionally, you should look for ways to save money on your premium by choosing the right coverage level for your needs, maintaining a good driving record and credit score, bundling your policies and taking advantage of discounts.

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