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Best car insurance in Alabama for 2024
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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.
Best car insurance companies in Alabama
According to our research, on average, Alabama auto insurance costs $1,994 per year for full coverage and $481 per year for minimum coverage. These rates are quite a bit lower than the national average premiums, which are $2,329 and $633, 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 2023 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.
Insurance company |
Bankrate score
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C.
|
Average full coverage rate | Average min coverage rate |
---|---|---|---|
4.4
|
$1,635
|
$322
|
|
4.4
|
$2,160
|
$553
|
|
4.3
|
$1,850
|
$433
|
|
4.2
|
$1,765
|
$393
|
|
3.8
|
$2,905
|
$968
|
Geico
Best for discount opportunities
4.4
4.4
Avg. full coverage premium
$136/mo
Avg. full coverage premium
$1,635/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 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 streamlined shopping
4.4
4.4
Avg. full coverage premium
$180/mo
Avg. full coverage premium
$2,160/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 third-highest score in the shopping category in the J.D. Power 2023 U.S. Insurance Digital Experience Study. 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 agencies
4.3
4.3
Avg. full coverage premium
$154/mo
Avg. full coverage premium
$1,850/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 won fourth place in the service category in the J.D. Power 2023 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
4.2
4.2
Avg. full coverage premium
$147/mo
Avg. full coverage premium
$1,765/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 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 customizable coverage
3.8
3.8
Avg. full coverage premium
$242/mo
Avg. full coverage premium
$2,905/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.
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 methodologyTo 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
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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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 $1,994 per year for a full coverage policy and $481 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 $3,451 per year). On the other hand, Tennessee’s average full coverage premium ($1,956 per year) is much 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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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.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze the latest rates in August 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate changes filed by insurance companies that affect our profile. These revised rates are then weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.