What is the cheapest car insurance company in Alabama?

The cheapest car insurance companies will be different for every driver. Car insurance companies all have different methods for calculating premiums, which is why it's generally a good idea to ask several companies for quotes when you are looking for the cheapest Alabama car insurance companies. Keep in mind that affordable price may only be one factor to consider. You may also want to pay attention to the companies that score well on J.D. Power's annual Customer Satisfaction Index. It's also a good idea to compare companies for factors such as the number of discounts they offer or what kind of endorsements are available to customize your policy.

How do I file a car insurance claim in Alabama?

Filing a car insurance claim isn't usually difficult. In many cases, you can do it via your insurer's mobile app or website. If these digital tools are not available, a call to your local agent is likely all that you will need to file your claim. Before you make the call, ensure that you have all the information needed, which can include a police report, photos of the damage, your name and policy number and any other information to help your insurer process the claim quickly and efficiently.

What car insurance coverage options are Alabama drivers required to purchase?

Alabama requires you to carry at least the minimum amount of liability insurance, but does not require car owners to purchase no-fault insurance like personal injury protection (PIP). This is because Alabama is not a no-fault insurance state. In addition to liability coverage, car insurance companies offer many other types of car insurance coverage that policyholders may add to their auto policies. For instance, some drivers may want comprehensive coverage, which typically covers damages from vandalism, inclement weather, theft, fire or hitting an animal. Collision insurance covers damages from colliding with another driver or object. Uninsured motorist coverage covers your damages and medical bills if the driver that hit you doesn’t have insurance. Most insurance agents recommend that drivers purchase more than just the minimum required coverage in order to help protect themselves from major financial losses.

Why is my Alabama car insurance so expensive?

In general, Alabama drivers pay less for their car insurance than the national average. But you may have a higher-than-average rate for a number of reasons. Insurers take a broad range of factors into account when determining what you will pay for coverage. Your age, gender and even your credit rating will play a role, as well as your car's age, make and model. One significant element in determining your rate is your driving history. Statistically speaking, drivers with a clean record pay more affordable rates than those with an at-fault accident on their records. Other moving violations, such as speeding tickets or DUIs can also push your rates up. Your ZIP code also matters, with those in urban areas often paying more due to the increased risk of accidents on crowded city streets and highways.

Best Car Insurance in Alabama for 2025

Best car insurance companies in Alabama

According to our research, on average, Alabama auto insurance costs $2,076 per year for full coverage and $500 per year for minimum coverage. These rates are quite a bit lower than the national average premiums, which are $2,670 and $773, respectively.

However, through our experience as licensed agents and consumers, we know that drivers who want the best car insurance companies in Alabama aren’t just looking for the cheapest rates. For these shoppers, we also considered third-party customer satisfaction scores issued in the J.D. Power 2024 U.S. Auto Insurance Study, along with other factors like digital tools and coverage options. Based on this information and more — all compiled into our Bankrate Scores out of 5 possible points — along with premium data provided by Quadrant Information Services, you might find the best auto insurance in Alabama by shopping with Geico, USAA, Progressive, State Farm and Farmers.


Geico	4.3 Rating: 4.3 stars out of 5	$1,613	$328
Progressive	4.4 Rating: 4.4 stars out of 5	$1,973	$400
State Farm	4.3 Rating: 4.3 stars out of 5	$2,217	$528
USAA	4.3 Rating: 4.3 stars out of 5	$1,815	$423
Farmers	3.8 Rating: 3.8 stars out of 5	$3,095	$998

Geico

Best for discounts

4.3

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Geico review Get a quote

Avg. full coverage premium

$134/mo

Avg. full coverage premium

$1,613/yr

Customer satisfaction

651/1,000

Why Geico made our list: Geico tied for first place in the 2024 Bankrate Auto Awards for Best Auto Insurance Company Overall and Best Budget Auto Insurance Company, and also won for Best Company for Young Drivers. Geico offers the cheapest average rates out of all the Alabama auto insurance companies we analyzed. In addition to these lower-than-average rates, Geico has a long list of discounts that could save you even more. You could earn a discount for being a military member, a government employee, for taking a defensive driving class or enrolling in Geico’s telematics program DriveEasy.

Who Geico may be good for: If you’re a budget-conscious driver looking for a fairly basic, no-frills auto insurance policy, Geico may be worth checking out.
Pros
Above-average J.D. Power customer satisfaction score in the Florida region

Low average rates and lots of discount opportunities
Cons
Limited local agencies for those who want in-person support

Not as many endorsement options as some competitors

Progressive

Best for easy shopping

4.4

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Progressive review Get a quote

Avg. full coverage premium

$164/mo

Avg. full coverage premium

$1,973/yr

Customer satisfaction

637/1,000

Why Progressive made our list: Progressive provides a streamlined shopping experience with its Name Your Price Tool. This online tool allows shoppers to key in how much they’d like to spend on insurance, and the company’s website will present coverage packages that meet (or comes as close to meeting) your budget. Progressive will even show you other carriers’ estimated quoted premiums so you can quickly determine how competitive its rates are. This may be why, out of all the companies we analyzed, Progressive earned the top spot in the service category in the J.D. Power 2024 U.S. Insurance Digital Experience Study and an above-average ranking in the shopping category. Progressive also earned the 2024 Bankrate Award for Best Car Insurance Company for High-Risk Drivers.

Who Progressive may be good for: Because Progressive makes shopping for car insurance online so easy, new drivers or those unfamiliar with car insurance coverage options might find the company’s website especially helpful. However, these drivers might want to be prepared to spend more on their policy, as Progressive doesn’t offer the cheapest car insurance in AL, based on our study of average rates in the state.
Pros
Progressive’s Snapshot telematics program could bring hefty car insurance savings

Plenty of local agents spread throughout Alabama
Cons
Rates may differ between online and agency quotes

Scored below-average in the 2024 J.D. Power Property Claims Study, which may deter those interested in bundling

State Farm

Best for local agents

4.3

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read State Farm review Get a quote

Avg. full coverage premium

$185/mo

Avg. full coverage premium

$2,217/yr

Customer satisfaction

673/1,000

Why State Farm made our list: State Farm is known for its local agencies, and for good reason — the company has hundreds of agency locations throughout Alabama. These agents could be more in-tune with the local market than agents in a contact center since they live in the community they serve. In addition to local agents, State Farm has a strong digital presence through its mobile app. In fact, State Farm earned an above-average ranking in the service category in the J.D. Power 2024 U.S. Insurance Digital Experience Study. Whether you prefer the personal touch of a neighborhood agent or like to take the hands-on approach with online tools, State Farm has options.

Who State Farm may be good for: Drivers looking for car insurance in Alabama that is sold and serviced by a member of their own community might want to contact State Farm for a quote, as long as they don’t mind fairly basic policy options.
Pros
Scored above average in the Southeast region for overall customer satisfaction, according to J.D. Power scores

Young drivers may save with the State Farm’s Steer Clear discount program
Cons
Accident forgiveness is not available for purchase

No gap insurance

USAA

Best for military-focused coverage

4.3

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read USAA review Get a quote

Avg. full coverage premium

$151/mo

Avg. full coverage premium

$1,815/yr

Customer satisfaction

759/1,000

Why USAA made our list: Based on third-party scores, USAA might offer the best customer service of all the carriers on our list. USAA membership is limited to military members, veterans and eligible families, but Alabama has five military bases — so many Alabama residents might qualify for coverage. Due to these strict membership requirements, J.D. Power does not include USAA in its official ranking. However, unofficially, USAA earned the number one spot in the Southeast region for overall customer satisfaction in J.D. Power’s most recent auto insurance study.

Who USAA may be good for: If you’re eligible for coverage with USAA and prioritize customer service, USAA might be an excellent option. That is, as long as you don’t mind doing business over the phone and online, as USAA does not have any brick-and-mortar insurance agencies.
Pros
Consistently high satisfaction scores, according to J.D. Power

USAA membership comes with perks, such as discounts on hotels, rental cars, tax software and more
Cons
Not the cheapest car insurance company in Alabama

Customer service is not available 24/7

Farmers

Best for coverage add-ons

3.8

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Farmers review Get a quote

Avg. full coverage premium

$258/mo

Avg. full coverage premium

$3,095/yr

Customer satisfaction

676/1,000

Why Farmers made our list: Outside of standard coverage types like comprehensive and collision, Farmers offers a wide range of coverage options in Alabama, including new car replacement, accident forgiveness, full windshield and glass coverage and more. Farmers even offers spare parts coverage, which could pay up to $750 to replace spare parts damaged or destroyed in a loss. Although Farmers has some of the highest average rates of the companies we analyzed, the company offers an initial discount once you download its Signal app and complete ten trips. Signal is a usage-based telematics program that tracks your driving and can provide additional discounts for safe driving.

Who Farmers may be good for: Alabama drivers who value robust coverage options over customer service might find Farmers appealing.
Pros
Rideshare insurance available

Ability to customize personal insurance policies
Cons
May not be the cheapest option for drivers seeking a minimum coverage policy in Alabama

Scored below average for overall customer satisfaction for the Southeast region in the J.D. Power 2024 U.S. Auto Insurance Study

How Bankrate chose the best car insurance companies in Alabama

To find the best car insurance in Alabama, Bankrate analyzed each company’s average annual premiums in Alabama using the latest premium data from Quadrant Information Services. Since most drivers care about more than just how much they pay for their premium, we also analyzed third-party financial strength ratings, customer satisfaction rankings, available discounts and more to create an individualized Bankrate Score. Each Score is calculated on a 5.0 scale. Our Bankrate Score presents a holistic view of each company’s performance across these important measures.

Why you can trust Bankrate

Read our full methodology

To help Alabama drivers find the best car insurance, Bankrate’s insurance editorial team reviewed some of the largest insurers by market share. We based our picks on a well-rounded analysis of several metrics related to each company.

46

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

Compare auto insurance rates

Answer a few questions to see personalized rates from top carriers.

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

How to find the best car insurance in Alabama

The best car insurance in Alabama will depend on your individual needs. However, the following steps may allow you to find the best provider to help financially protect you and your family.

When looking for car insurance, Alabama residents will likely want to consider the state’s insurance regulations. In every state except New Hampshire and Virginia, drivers must comply with carrying at least their state’s minimum insurance requirements. To review Alabama’s minimum auto insurance requirements, you can visit the Alabama Department of Insurance website or familiarize yourself with Alabama’s insurance laws.
Lenders or lienholders often require you to have full coverage insurance for leased vehicles, which includes collision and comprehensive coverages that are typically optional. If the car you’re leasing is badly damaged or destroyed, your lender wants to ensure funds are available to repair or replace it. Gap insurance is a common form of car insurance that pays the difference between what your newer leased car is worth in the current market and what you owe on it.
Life events can affect which insurance provider might be best for you. For instance, if you have a mark on your driving record, such as a DUI conviction in the state of Alabama or a speeding ticket, you may want to find a provider that offers car insurance to high-risk drivers. If you’ve recently added a teen driver to your car insurance, you may want to find a company that offers competitive student discounts.

How much is car insurance in Alabama?

Based on average premium data sourced by analytics company Quadrant Information Services, Alabama car insurance averages $2,076 per year for a full coverage policy and $500 for minimum coverage. Although these rates are lower than the national average, Alabama is in the middle of the pack when compared to nearby states.

For instance, Alabama’s average full coverage premium is much lower than Florida’s (an eye-popping $4,143 per year). On the other hand, Tennessee’s average full coverage premium ($2,090 per year) is cheaper than Alabama’s. These averages make sense when considering one of the most significant risk factors in the Southeast — hurricanes. Hurricanes impact both Alabama and Florida, but Florida is at much higher risk for severe damage. Tennessee does get its share of severe weather, but hurricanes are not much of a threat due to its more northern and inland location.

Estimate your car insurance cost in Alabama

Finding the best car insurance in Alabama can be challenging, so Bankrate created this estimator tool to help give you a benchmark figure to start your search. By inputting a few key facts below you will receive an estimate for what you are likely to pay for your car insurance.

Calculate your monthly car insurance payment

Get a quick estimate to make sure you're not overpaying.

Are you insuring multiple vehicles?

Yes No

Any incidents in the past 3 yrs?

An incident means you were at-fault for an accident, ticketed or summoned to court.

Yes No

Age

Please select age

ZIP Code

Your information is secure

Credit Score

Not sure? Your best guess works just fine.

Please select credit score

These factors have the largest impact on your payment and are used to provide a personalized estimate. Based on the state you live in, some rating factors may not apply.

We calculated your estimate by comparing your provided details to data from similar drivers. Our estimate assumes 2020 Toyota Camry, 12,000 miles annually, and 100/300/50 liability limits with $500 comprehensive and collision deductibles.

Powered by Coverage.com (NPN: 19966249)

Advertising disclosure

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Insurance disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Powered by Coverage.com (NPN: 19966249)

Advertising disclosure

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Insurance disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Frequently asked questions

The cheapest car insurance companies will be different for every driver. Car insurance companies all have different methods for calculating premiums, which is why it's generally a good idea to ask several companies for quotes when you are looking for the cheapest Alabama car insurance companies. Keep in mind that affordable price may only be one factor to consider. You may also want to pay attention to the companies that score well on J.D. Power's annual Customer Satisfaction Index. It's also a good idea to compare companies for factors such as the number of discounts they offer or what kind of endorsements are available to customize your policy.
Filing a car insurance claim isn't usually difficult. In many cases, you can do it via your insurer's mobile app or website. If these digital tools are not available, a call to your local agent is likely all that you will need to file your claim. Before you make the call, ensure that you have all the information needed, which can include a police report, photos of the damage, your name and policy number and any other information to help your insurer process the claim quickly and efficiently.
Alabama requires you to carry at least the minimum amount of liability insurance, but does not require car owners to purchase no-fault insurance like personal injury protection (PIP). This is because Alabama is not a no-fault insurance state. In addition to liability coverage, car insurance companies offer many other types of car insurance coverage that policyholders may add to their auto policies.

For instance, some drivers may want comprehensive coverage, which typically covers damages from vandalism, inclement weather, theft, fire or hitting an animal. Collision insurance covers damages from colliding with another driver or object. Uninsured motorist coverage covers your damages and medical bills if the driver that hit you doesn’t have insurance. Most insurance agents recommend that drivers purchase more than just the minimum required coverage in order to help protect themselves from major financial losses.
In general, Alabama drivers pay less for their car insurance than the national average. But you may have a higher-than-average rate for a number of reasons. Insurers take a broad range of factors into account when determining what you will pay for coverage. Your age, gender and even your credit rating will play a role, as well as your car's age, make and model. One significant element in determining your rate is your driving history. Statistically speaking, drivers with a clean record pay more affordable rates than those with an at-fault accident on their records. Other moving violations, such as speeding tickets or DUIs can also push your rates up. Your ZIP code also matters, with those in urban areas often paying more due to the increased risk of accidents on crowded city streets and highways.

46

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

Bankrate utilizes Quadrant Information Services to analyze February 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits:

40 year old

Single male and female driver

2023 Toyota Camry

Primary vehicle

Good credit score

Clean driving record

Commutes 5 days

Bodily injury liability

$100,000 per person
$300,000 per accident

Property damage liability

$50,000 per accident

Personal injury protection

$100,000 per accident

Uninsured motorist bodily injury

$100,000 per person
$300,000 per accident

Collision deductible

$500

Comprehensive deductible

$500

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.

Bankrate Scores

Our 2025 Bankrate Score for auto insurance considers key variables that our insurance editorial team determined impact policyholders’ experiences with an insurance company. These factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

5

Overall Score

Cost & ratings 50%
Coverage & savings 30%
Support 20%

Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC).
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated the discount options listed on each company’s website.
Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.

Best car insurance in Alabama for 2025

Best car insurance companies in Alabama

Geico

Best for discounts

Overview

Pros and cons

Geico standout features

Progressive

Best for easy shopping

Overview

Pros and cons

Progressive standout features

State Farm

Best for local agents

Overview

Pros and cons

State Farm standout features

USAA

Best for military-focused coverage

Overview

Pros and cons

USAA standout features

Farmers

Best for coverage add-ons

Overview

Pros and cons

Farmers standout features

How Bankrate chose the best car insurance companies in Alabama

Compare auto insurance rates

How to find the best car insurance in Alabama

Consider minimum insurance requirements in Alabama

Consider lender requirements

Consider your individual needs

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How much is car insurance in Alabama?

Estimate your car insurance cost in Alabama

Calculate your monthly car insurance payment

Frequently asked questions

What is the cheapest car insurance company in Alabama?

How do I file a car insurance claim in Alabama?

What car insurance coverage options are Alabama drivers required to purchase?

Why is my Alabama car insurance so expensive?

Methodology

Bankrate Scores