In a Nutshell
We crunched the data for different driver profiles in Alabama to find some of the lowest-cost insurers for basic coverage in the state. Car insurance costs can vary depending on individual circumstances, such as vehicle, age, driving history and credit score.Note from our editor: Maybe you’re searching for car insurance for the first time or want to do some insurance shopping to help lower your monthly premium? This article can serve as a starting point for your car insurance research. There are a lot of factors when it comes to the cost of car insurance, so while you may not see the exact premiums we’ve researched, they can give you an idea of some of the insurers offering the cheapest rates in your state.
If you’re a driver in Alabama, it’s important that you and your vehicle are protected by the right car insurance. We shopped around in Alabama to calculate the average cost of coverage and find out which companies offer the cheapest rates for minimum coverage.
Unless otherwise noted, we based our calculations on a relatively neutral driver profile — for example, no tickets, accidents or claims — to evenly compare and get a baseline view of insurers’ rates (see our full methodology).
Your rates may be higher or lower given your driving history and other factors that affect car insurance, like your age, vehicle type, mileage and coverage options.
Read on to learn about Alabama’s average car insurance rates and our findings for the cheapest options on basic coverage in the state.
- Cost of car insurance in Alabama
- 5 cheapest car insurance companies in Alabama
- Cheapest state-minimum car insurance in Alabama
- Cheapest car insurance for good credit in Alabama
- Cheapest car insurance for poor credit in Alabama
- Cheapest car insurance for drivers with multiple claims in Alabama
- Cheapest car insurance for young drivers in Alabama
- Alabama auto insurance requirements
- Is usage-based insurance available in Alabama?
- FAQs about the cheapest car insurance rates in Alabama
- Methodology
Cost of car insurance in Alabama
On average, monthly premiums for car insurance in Alabama range from just over $50 up to more than $100, depending on the type of coverage and driver profile.
Average monthly auto insurance premiums in Alabama
| Driver or coverage | Avg. monthly cost |
|---|---|
| State-minimum car insurance in Alabama | $51.25/month |
| Drivers with poor credit in Alabama | $87.10/month |
| Drivers with multiple claims in Alabama | $111.15/month |
| Young drivers in Alabama | $83.71/month |
5 cheapest car insurance companies in Alabama
We set a standard Alabama driver profile to help us compare rates across insurers. Unless otherwise noted, this Alabama driver has a good credit score (between 680 and 719), is 36 to 45 years old, has no tickets or coverage gaps and drives a car that costs $20,000 to $30,000. The five insurers below offer the cheapest car insurance for this driver for basic coverage in Alabama.
1. Geico
For as low as $26.68 per month, Geico offers the cheapest car insurance for our Alabama driver profile. In addition to minimum coverage, Geico offers all the standard car insurance coverages and an impressive array of discounts. It also has a full-service app where drivers can access their IDs, request roadside assistance and generate a repair estimate.
Read our full review of Geico auto insurance.2. Safeway
Safeway Insurance, founded in 1959, is the country’s largest privately held family-owned insurance company. Safeway sells insurance through regional offices. For somebody who fits our Alabama driver profile, it offers basic car insurance for as little as $27.83 per month. Customers can also get coverage for vehicle repairs, medical expenses, theft and accidents with an uninsured driver, and help with legal actions resulting from an accident.
3. Nationwide
Our Alabama driver profile could see minimum coverage from Nationwide for about $30.04 per month. Nationwide also offers a wide selection of coverage options, plus extras including towing and labor coverage, rental car expense, gap coverage and roadside assistance. Plus, the On Your Side review will help you assess whether you’ve got the right coverages for your needs and ensure you’re claiming all the discounts you’re eligible for.
Check out our full review of Nationwide auto insurance.4. Cincinnati Insurance
With Cincinnati Insurance, our Alabama driver profile could pay as low as $31.25 monthly for basic car insurance. Cincinnati sells insurance through local agents. Drivers can also choose coverage options beyond standard insurance with the Personal Auto Plus Endorsement, which includes airbag and lock replacement, roadside assistance, deductible waiver and more.
5. Auto-Owners Insurance
Auto-Owners Insurance rounds out this list, offering our Alabama driver profile minimum coverage for as little as $38.33 per month. Auto-Owners also sells insurance through local agents and offers a full range of coverage options. Standouts include at-fault accident forgiveness and a typical loss deductible.
Cheapest state-minimum car insurance in Alabama
State-minimum coverage is the insurance drivers must carry to drive legally in the state. It’s usually the least expensive kind of insurance you can buy.
Here are the five lowest estimated rates for state-minimum coverage in Alabama.
5 cheapest car insurance companies in Alabama for state-minimum coverage
| 1 | Geico | $26.68/month |
| 2 | Safeway | $27.83/month |
| 3 | Nationwide | $30.04/month |
| 4 | Cincinnati Insurance | $31.25/month |
| 5 | Auto-Owners Insurance | $38.33/month |
Cheapest car insurance for good credit in Alabama
Good credit may help you save money on your car insurance policy. If your credit score is 720 or above, you may be able to get basic car insurance in Alabama for less than $25 a month.
5 cheapest car insurance companies in Alabama for those with good credit
| 1 | Geico | $24.77/month |
| 2 | Nationwide | $24.95/month |
| 3 | Cincinnati Insurance | $26.69/month |
| 4 | Auto-Owners Insurance | $26.94/month |
| 5 | Safeway | $27.83/month |
Cheapest car insurance for poor credit in Alabama
While it isn’t the only factor that plays into your credit-based auto insurance score, having poor credit may make your premium more expensive.
The following companies offer the cheapest car insurance policies, on basic coverage, for Alabama drivers with poor credit.
5 cheapest car insurance companies in Alabama for those with poor credit
| 1 | Safeway | $27.83/month |
| 2 | Geico | $36.48/month |
| 3 | Nationwide | $38.49/month |
| 4 | Cincinnati Insurance | $50.73/month |
| 5 | Travelers | $70.75/month |
Cheapest car insurance for drivers with multiple claims in Alabama
The cleaner your driving record is, the lower your car insurance bill is likely to be. That means people with multiple accidents or claims on their record tend to pay more for car insurance.
Here are the five cheapest car insurers, for basic coverage, for Alabama drivers with multiple claims.
5 cheapest car insurance companies in Alabama for multiple claims
| 1 | Safeway | $61.00/month |
| 2 | Nationwide | $63.98/month |
| 3 | Auto-Owners Insurance | $65.50/month |
| 4 | Cincinnati Insurance | $67.17/month |
| 5 | Geico | $73.05/month |
Cheapest car insurance for young drivers in Alabama
Insurers tend to believe that younger drivers are more likely to get into accidents or engage in risky driving behavior than older drivers. That means younger drivers may have to pay more for car insurance until they age out or establish a safe driving record.
For drivers between the ages of 18 and 21, the following five insurers offer the cheapest rates on minimum coverage in Alabama.
5 cheapest car insurance companies in Alabama for 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 |
Alabama auto insurance requirements
Alabama law requires 25/50/25 liability coverage. That means drivers must maintain $25,000 bodily injury liability per person, $50,000 liability per accident and $25,000 for property damage.
Is usage-based insurance available in Alabama?
Usage-based insurance, or UBI, is vehicle insurance that allows customers to pay premiums based on their driving skills. Drivers in Alabama may be able to save money by participating in usage-based insurance programs through their insurer.
FAQs about the cheapest car insurance rates in Alabama
If you want to save money on your car insurance, shop around to ensure you get the best deal and qualify for as many discounts as possible. You may also consider asking for a higher deductible or reducing the amount of coverage you buy, particularly if you’re insuring an older car.
On average, monthly premiums for car insurance in Alabama range from just over $50 up to more than $100, depending on the type of coverage and driver profile.
We found Geico auto insurance to be the cheapest for several Alabama driver profiles, including young drivers, drivers with good credit and drivers who want state-minimum insurance.
Methodology
This article’s estimated rates are the lowest based on the profile of a driver age 36 to 45 living in Alabama. Unless otherwise noted, the rates displayed assume a single driver on the insurance policy with no tickets on their driving record and no claims or coverage lapses. The vehicle used in this estimate is valued between $20,000 and $30,000 and has annual mileage of 12,000 to 15,000. Estimated rates for insurance for good credit apply to scores 720 or higher. Estimated rates for insurance for poor credit apply to scores from 350 to 579. Estimated rates for young drivers include those age 18 to 21. Estimated rates for those with multiple claims are calculated based on two claims.
Note that the rates are provided every six months by Quadrant Information Services. Quadrant Information Services doesn’t include all insurance companies in its rate data. These are estimated rates meant only to provide a frame of reference and comparison. Your rate may vary depending on various factors, such as age, vehicle driving habits and history.
Average monthly premium for full coverage car insurance includes bodily injury, property damage, uninsured motorist, personal injury protection, collision and comprehensive coverages. Average monthly premium for state-minimum car insurance includes Alabama-mandated 25/50/25 insurance policy.