Best car insurance in Alabama for 2025
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Best car insurance companies in Alabama
According to our research, on average, Alabama auto insurance costs $2,079 per year for full coverage and $501 per year for minimum coverage. These rates are quite a bit lower than the national average premiums, which are $2,678 and $799, 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.
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|---|---|---|---|
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4.3
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$1,614
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$328
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4.4
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$1,975
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$400
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4.3
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$2,222
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$529
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4.3
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$1,815
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$423
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3.8
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$3,095
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$997
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Geico
Best for discounts
4.3
Avg. full coverage premium
$134/mo
Avg. full coverage premium
$1,614/yr
Customer satisfaction
651/1,000
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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.
Progressive
Best for easy shopping
4.4
Avg. full coverage premium
$165/mo
Avg. full coverage premium
$1,975/yr
Customer satisfaction
637/1,000
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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.
State Farm
Best for local agents
4.3
Avg. full coverage premium
$185/mo
Avg. full coverage premium
$2,222/yr
Customer satisfaction
673/1,000
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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.
USAA
Best for military-focused coverage
4.3
Avg. full coverage premium
$151/mo
Avg. full coverage premium
$1,815/yr
Customer satisfaction
759/1,000
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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.
Farmers
Best for coverage add-ons
3.8
Avg. full coverage premium
$258/mo
Avg. full coverage premium
$3,095/yr
Customer satisfaction
676/1,000
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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.
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 methodologyThe insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers the information they need to make educated decisions when shopping for a policy.
78
years of industry experience
9
licensed staff
34.5K
ZIP codes examined
120
carriers reviewed
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.
Related content:
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Powered by Coverage.com (NPN: 19966249)
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 much is car insurance in Alabama?
Based on average premium data sourced by analytics company Quadrant Information Services, Alabama car insurance averages $2,079 per year for a full coverage policy and $501 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 $4,210 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.
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Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze March 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:
Bodily injury liability
$100,000 per person$300,000 per accident
Property damage liability
$50,000 per accidentPersonal injury protection
$100,000 per accidentUninsured motorist bodily injury
$100,000 per person$300,000 per accident
Collision deductible
$500Comprehensive deductible
$500To 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.
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Cost & ratings 50%
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Coverage & savings 30%
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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.