Note from the editor: Perhaps you are looking for car insurance for your first time, or you want to shop for insurance to lower your monthly premium. This article is a good starting point to your research on car insurance. There are many factors that affect the cost of car insurance. While you might not be able to see exact premiums, they will give you an idea about the best rates available in your area.
Alabama drivers need to ensure that their car and vehicle are covered by appropriate insurance. We looked around Alabama to find the lowest rates and minimum coverage.
We used a fairly neutral driver profile (no claims, tickets, or accidents) to calculate rates.
Your driving record and other factors that impact car insurance such as your age, vehicle type and mileage can affect your rates.
Continue reading to find out about Alabama’s average car-insurance rates. We also reveal our findings regarding the most affordable basic coverage options in Alabama.
Alabama car insurance rates
Alabama’s average monthly premiums for auto insurance range from $50 to $100 depending on what type of coverage is selected and the driver profile.
Monthly average auto insurance premiums in Alabama
|
Driver and coverage |
Avg. Monthly cost |
|---|---|
| Alabama’s state-minimum auto insurance | $51.25/month |
| Alabama drivers with bad credit | $87.10/month |
| Alabama Drivers with Multiple Claims | $111.15/month |
| Young drivers in Alabama | $83.71/month |
Based upon our standard driver profile for minimum coverage
Alabama’s cheapest car insurance companies
To help us compare rates between insurers, we created a standard Alabama driver profile. This Alabama driver, unless otherwise noted, has good credit scores (between 680-719), is between 36 and 45 years old, and drives a car that cost $20,000 to $3,000. For basic coverage in Alabama, the five below-listed insurers offer the lowest car insurance rates for this driver.
1. Geico
Geico offers Alabama drivers the lowest cost car insurance starting at $26.68 per monthly. Geico provides minimum coverage as well as all standard car insurance coverages. They also offer a wide range of discounts. Geico also offers a full-service app that allows drivers to access their IDs and request roadside assistance.
Check out our complete review of Geico auto coverage
2. Safeway
Safeway Insurance was established in 1959 and is the largest privately-owned family-owned insurance company in the country. Safeway also sells insurance through its regional offices. It offers basic car insurance starting at $27.83 per monthly for those who meet the Alabama driver profile. Customers can also be covered for vehicle repairs, medical expenses and accidents with uninsured drivers, as well as legal actions that result from an accident.
3. All over the country
For $30.04 per monthly, our Alabama driver profile could receive minimum coverage from Nationwide. Nationwide offers many coverage options including extras like towing and labor coverage and rental car expense coverage. Gap coverage is also available. The On Your Side review can help you determine if you have the right coverages and will also ensure that you are claiming any discounts.
See our complete review of Nationwide auto coverage
4. Cincinnati Insurance
Our Alabama driver profile could be eligible for Cincinnati Insurance and pay as little as $31.25 per month for basic car insurance. Cincinnati insurance is sold through local agents. With the Personal Auto Plus Endorsement (which includes roadside assistance, airbag replacement and roadside assistance), drivers can choose additional coverage options than standard insurance.
5. Auto-Owners insurance
Auto-Owners Insurance completes this list. They offer minimum coverage to Alabama drivers for as low as $38.33 per monthly. Auto-Owners Insurance also offers insurance through local agents, and offers a wide range of coverage options. The most notable features include the at-fault accident forgiveness option and the typical loss deductible.
Alabama’s lowest-cost state-minimum auto insurance
The minimum coverage required by the state for drivers to be able to drive legally in the State is called the state-minimum insurance. This is the cheapest type of insurance that you can purchase.
These are the five lowest rates available for Alabama state-minimum coverage.
5 lowest car insurance companies Alabama to provide state-minimum coverage
|
1 |
Geico | $26.68/month |
|
2 |
Safeway | $27.83/month |
|
3 |
All over the country | $30.04/month |
|
4 |
Cincinnati Insurance | $31.25/month |
|
5 |
Auto-Owners insurance | $38.33/month |
Based upon our standard driver profile, seeking minimum coverage for Alabama
Best car insurance for people with good credit in Alabama
Your credit score could help you save money on car insurance. Alabama basic car insurance can be purchased for $25 per month if your credit score is at least 720.
5 best car insurance companies in Alabama to those with good credit
|
1 |
Geico | $24.77/month |
|
2 |
All over the country | $24.95/month |
|
3 |
Cincinnati Insurance | $26.69/month |
|
4 |
Auto-Owners insurance | $26.94/month |
|
5 |
Safeway | $27.83/month |
Based upon our standard driver profile to provide minimum coverage, adjusted for Alabama drivers with a credit score of at least 720
Lowest car insurance in Alabama for people with poor credit
Poor credit can make your premium more expensive, even though it’s not the only factor that influences your auto insurance score.
These companies offer basic coverage and the lowest cost car insurance policies for Alabama residents with bad credit.
5 best car insurance companies in Alabama to those with bad credit
|
1 |
Safeway | $27.83/month |
|
2 |
Geico | $36.48/month |
|
3 |
All over the country | $38.49/month |
|
4 |
Cincinnati Insurance | $50.73/month |
|
5 |
Travelers | $70.75/month |
Based upon our standard driver profile, adjusted for Alabama drivers with a lower credit score than 580
Lowest car insurance in Alabama for drivers who have multiple claims
Your car insurance costs will be lower if you have a clean driving record. People with multiple claims or accidents on their records tend to pay more car insurance.
These are the five most affordable car insurances for Alabama drivers who have multiple claims.
5 best car insurance companies Alabama to cover multiple claims
|
1 |
Safeway | $61.00/month |
|
2 |
All over the country | $63.98/month |
|
3 |
Auto-Owners insurance | $65.50/month |
|
4 |
Cincinnati Insurance | $67.17/month |
|
5 |
Geico | $73.05/month |
Based upon our standard driver profile, adjusted for display rates for an Alabama driver who has two claims and not zero
Cheapest auto insurance for young drivers in Alabama
Insurers believe younger drivers are more likely than older drivers to cause accidents or engage in reckless driving behaviors. Younger drivers might have to pay more car insurance until they are older or develop a safer driving record.
The following five insurance companies offer minimum coverage at the lowest rates for drivers aged 18-21:
5 best car insurance companies in Alabama to young drivers
|
1 |
Geico | $45.16/month |
|
2 |
Safeway | $54.50/month |
|
3 |
Cincinnati Insurance | $55.17/month |
|
4 |
Country | $59.56/month |
|
5 |
Auto-Owners insurance | $63.38/month |
Based upon our standard driver profile. Adjusted to show rates for Alabama drivers aged 18-21 instead of 36-45
Alabama auto insurance requirements
Alabama law requires 25/50/25 coverage. This means that drivers must have $25,000 bodily injury liability for each person, $50,000 per accident liability and $25,000 property damage coverage.
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UBI (usage-based insurance) is vehicle insurance that allows customers the ability to pay premiums according to their driving skills. Alabama drivers may be eligible to participate in usage-based insurance programs offered by their insurer.
FAQs regarding the lowest car insurance rates for Alabama
How do I get affordable insurance in Alabama?
You can save money on car insurance by shopping around. If you have an older vehicle, you might consider raising your deductible or decreasing the coverage.
What is the monthly cost of Alabama car insurance?
Alabama’s average monthly premiums for auto insurance range from $50 to $100 depending on what type of coverage is selected and the driver profile.
Is Geico always cheaper?
Geico’s auto insurance was the most affordable for many Alabama drivers profiles. This includes young drivers and drivers with good credit.
Methodology
Based on the profile for a driver aged 36-45 living in Alabama, the estimated rates shown here are the lowest. The rates shown assume that there is only one driver on the policy, with no driving tickets and no claims. This estimate assumes that the vehicle is worth between $20,000 to $30,000 with an annual mileage of 12,000-15,000 and has an annual value of $20,000 to $30,000 Rates for insurance for good credit are based on scores of 720 and higher. Rates for insurance for people with poor credit range from 350 to 579. The estimated rates for young drivers are those aged 18-21. Rates for multiple claims are based on two claims.
Quadrant Information Services provides rates every six months. Quadrant Information Services does not include all insurance companies in the rate data. These rates are estimates and are not intended to be used as a comparison or frame of reference. Rates can vary depending on many factors such as vehicle driving habits, age, and past history.
The average monthly premium for full-coverage car insurance covers bodily injury, property damages, personal injury protection, collision, and comprehensive coverages. Alabama-mandated 25/50/25 policy is included in the average monthly premium for minimum car insurance.