Key Takeaways
- Travelers is the best car insurance in Alabama for its strong coverage options and affordable average rates.
- Good drivers in Alabama pay about $48 per month or $572 per year for minimum coverage and $171 per month or $2,048 per year for full coverage.
- Alabama requires drivers to carry $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident and $25,000 property damage liability insurance.
Alabama car insurance is a bit cheaper than the national average, but that doesn’t mean every company in the state offers a good deal or the best coverage. For example, one company might be a better option for families with teens, while another could be better for single drivers.
Our team ranked the state’s providers head to head to find the best car insurance in Alabama. Our recommendations for the best car insurance all offer strengths in different areas so you can determine the best option for you.
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Best Auto Insurance in Alabama
Our picks for the best auto insurance in Alabama are Travelers, State Farm, Geico, USAA and Progressive. Below, you can see a comparison of our recommendations for the best Alabama car insurance:
| Best Car Insurance in Alabama | Our Score | Reputation | Availability | Coverage | Cost | Customer Experience |
|---|---|---|---|---|---|---|
| 1. Travelers | 9.5 | 9 | 10 | 10 | 9.6 | 9 |
| 2. State Farm | 9.2 | 9.2 | 9.6 | 9.4 | 8.8 | 9.1 |
| 3. Geico | 9.3 | 9.5 | 10 | 9.1 | 9.5 | 9 |
| 4. USAA | 9.3 | 8.9 | 8 | 9.7 | 9.8 | 9 |
| 5. Progressive | 9.4 | 9.7 | 10 | 9.7 | 8.9 | 8.8 |
Customer Experience
A reliable customer experience is one of the most important things to look for in a car insurance company. Our customer experience rating is made up of our own secret shopping experiences from the company, reviews from the Better Business Bureau (BBB) and Trustpilot and multiple J.D. Power studies. We also surveyed almost 2,000 car insurance customers in April 2024 and considered their insights.
Best Car Insurance Companies in Alabama
Keep in mind that the cheapest car insurance in Alabama might not be the best for you. We weighed several factors in our industry study to determine the best car insurance in the state. To get a better look at regional and national performance, we considered:
- Each provider’s average cost in Alabama: For context, the average cost of insurance in Alabama is $572 per year for minimum liability and $2,048 per year for full coverage, which is lower than the national average of $869 per year for minimum liability and $2,681 for full coverage.
- Scores from the J.D. Power 2024 U.S. Auto Insurance Study℠: This survey polled customers in different areas of the U.S. on their satisfaction with insurers’ billing, claims, policy offerings and price. The industry average score for the Southeast region, which includes Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee, is 663/1,000.
- NAIC complaint index score: The National Association of Insurance Commissioners (NAIC) calculates a complaint index score based on the number of national customer complaints a provider receives relative to its market share. The average score is 1.0, so a score below that is ideal.
- Ratings from our in-house customer satisfaction survey: In April 2024, we polled almost 2,000 policyholders on their satisfaction with their providers’ affordability, discounts, coverage, shopping process, online services and claims. For this article, we’ll give overall satisfaction scores.
- AM Best financial strength scores: These measure the providers’ ability to pay out claims.
If you’re looking for the best auto insurance companies in Alabama, we recommend comparing quotes from the providers below.
#1 Travelers: Best for Most Alabamians
9.5/10
Annual Alabama car insurance cost: $419 for minimum coverage, $1,414 for full coverage
Alabama J.D. Power rating: 642/1,000
NAIC complaint index score: 0.94
Our survey rating: 4.1/5
AM Best financial strength rating: A++
Why We Picked Travelers Insurance
We picked Travelers Insurance as our overall choice for Alabama drivers because it offers affordable coverage for many different types of drivers, especially those that are younger. It also provides a wide range of unique coverage options, including new car replacement, rideshare coverage and accident forgiveness. In addition, Travelers also has positive industry ratings from the Better Business Bureau (BBB) and AM Best, and was awarded the top spot on our list of the best car insurance companies.
Cost and Coverage
Travelers is a great choice for cheap car insurance coverage in Alabama. Its minimum coverage rates cost an average of $419 per year or $35 per month, while full coverage averages $118 per month or $1,414 per year. Both rates are more affordable than the average costs for the state.
In terms of coverage, Travelers offers all the standard car insurance options you’d expect from a major company:
- Liability insurance: Compensates other people when you cause an accident
- Collision insurance: Repairs your car after an accident (requires a deductible)
- Comprehensive insurance: Repairs your car after hitting a stationary object and covers environmental damage, theft and vandalism (requires a deductible)
- Medical payments: Covers your medical bills after an accident
- Personal injury protection: Covers your health costs, lost wages and death benefits after an accident
- Uninsured/underinsured motorist: Covers your repair and medical bills if someone without enough insurance causes an accident
Travelers also offers a few add-ons like roadside assistance and rental car coverage. You can get gap insurance to cover the difference between your car’s market value and what you owe on a loan after a total loss. You can also purchase a new car replacement to cover the value of a new vehicle if your car is totaled within the first five years of ownership. In addition, Travelers offers accident forgiveness and rideshare insurance. And its usage-based program, IntelliDrive®, gives discounts based on your driving habits.
Reputation and Customer Reviews
Travelers maintains an A rating from the BBB, which shows it resolves nearly all complaints from customers in a timely manner. The BBB notes that Travelers has left three complaints unresolved at this time, but all complaints were answered.
Pros and Cons of Travelers Insurance
Pros Cheapest full-coverage rates in Alabama 12 car insurance discounts Strong industry ratings Cons Mixed customer reviews on the BBB
#2 State Farm: Affordable Rates for High-Risk Drivers
9.2/10
Annual Alabama car insurance cost: $538 per year for minimum coverage, $1,937 for full coverage
Alabama J.D. Power rating: 673/1,000
NAIC complaint index score: 0.78
Our survey rating: 4.2/5
AM Best financial strength rating: A++
Why We Picked State Farm
State Farm can be a solid option in Alabama if you are looking for a company that offers a wide range of affordable coverage options. The provider offers some of the cheapest full-coverage rates in the state for high-risk drivers, especially those with a DUI or recent accident.
Cost and Coverage
Alabama drivers can expect to pay around $1,937 per year or $161 per month for a full-coverage policy with State Farm, while minimum coverage averages $538 per year or $45 per month. Both types of coverage are slightly below the state average.
State Farm offers a wide range of coverage options in Alabama. You can get all the standard options like liability or full coverage, of course. Beyond that, State Farm offers rental car coverage, travel coverage when you have an accident far from home, roadside assistance and rideshare coverage.
Teens can participate in the Steer Clear® educational program and receive a discount after completion. Having good grades also gives students under 25 years old a discount. Finally, State Farm’s usage-based program, , can help good drivers save money.
Reputation and Customer Reviews
State Farm has high ratings on multiple J.D. Power surveys. It ranks above average for the Southeast region on the Auto Insurance Study, and comes in fourth place in the J.D. Power U.S. 2024 Insurance Shopping Study℠, which polled customers on their experiences comparing and buying insurance.
That said, the company has a C- rating from the BBB for not resolving several customer complaints on the platform. Learn more in our full State Farm insurance review.
Pros and Cons of State Farm
Pros Cheap rates for high-risk drivers in Alabama Good discounts and programs for young drivers A++ financial strength rating from AM Best Cons Low BBB score
#3 Geico: Affordable Coverage for SUVs and Trucks
9.3/10
Annual Alabama car insurance cost: $445 per year for minimum coverage, $1,602 per year for full coverage
Alabama J.D. Power rating: 651/1,000
NAIC complaint index score: 0.55
Our survey rating: 4.1/5
AM Best financial strength rating: A++
Why We Picked Geico
As a national provider of auto insurance, Geico tends to be one of the cheapest options on average for Alabama drivers, especially for those who own an SUV or truck. We like the company because of its strong financial strength ratings, standing in consumer studies, and the way it handles the claim process, often negotiating thoroughly with repair shops for claims coverage.
Cost and Coverage
Based on our rate data from Quadrant Information Services, Geico policyholders tend to pay an average annual rate of $1,602 per year or $134 per month for full coverage. Minimum coverage averages around $445 per year or $37 per month. Both annual coverages are far below the state average.
While the average annual full-coverage insurance cost in Alabama is $1,756 for SUVs and $1,837 for trucks, Geico’s averages are more affordable, at $1,409 and $1,487 respectively.
Geico only offers a few add-ons. These include roadside assistance and rental car reimbursem*nt, which are standard for most companies. The unique option is mechanical breakdown insurance. This covers electrical and mechanical breakdowns, like a power window motor failing. Coverage works similar to an extended warranty, except you don’t have to sign a long contract.
Geico has a usage-based program called DriveEasy that can award discounts based on your driving habits.
Reputation and Customer Reviews
Geico’s A+ rating on the BBB shows it responds to customer issues on time. Geico also ranks below average on the J.D. Power Auto Insurance Study for the Southeast region. These ratings suggest you can find better service from other companies in the state, but Geico is still worth checking out for its low minimum coverage rates.
Pros and Cons of Geico Insurance
Pros Cheap rates for SUVs and trucks 16 available discounts Offers mechanical breakdown insurance Cons Below average rating on J.D. Power Auto Insurance Study for the Southeast
#4 USAA: Great for Military Members in Alabama
9.3/10
Annual Alabama car insurance cost: $376 per year for minimum coverage, $1,696 per year for full coverage
Alabama J.D. Power rating: 759/1,000*
NAIC complaint index score: 1.35
Our survey rating: 4.5
AM Best financial strength rating: A++
*USAA wasn’t eligible for ranking due to eligibility restrictions, but still received a score.
Why We Picked USAA
If you’re a veteran or an active military stationed at an Alabama base, USAA is worth considering as it offers some of the lowest rates and ranks consistently well in consumer studies. The company provides coverage exclusively for military members, veterans and their immediate family members.
Cost and Coverage
Military members, veterans and their families in Alabama tend to pay an average of $1,696 per year or $141 per month for a full-coverage car insurance policy. Minimum coverage averages around $376 per year or $31 per month.
USAA really only offers a few options beyond the basics. You can get roadside assistance and rental reimbursem*nt during an approved claim. You can also get car replacement assistance to cover 20% more than your car is worth if it gets totaled.
USAA also offers a usage-based program called SafePilot® that can award discounts of up to 30% based on your driving habits.
Reputation and Customer Reviews
USAA has one of the best reputations as an auto insurance company. It frequently scores high in J.D. Power surveys, even though it isn’t officially ranked because of its membership restriction. USAA was the highest scoring provider on the Auto Insurance Study for the Southeast region and the second-highest on the Insurance Shopping Study.
If you’re a military member looking for coverage with the best service, USAA is definitely the company to check out.
Pros and Cons of USAA Insurance
Pros Cheap minimum- and full-coverage rates for military members, veterans and their families High customer service ratings A++ financial strength rating from AM Best Cons Not available for everyone
#5 Progressive: Best for Tech-Savvy Drivers
9.4/10
Annual Alabama car insurance cost: $599 per year for minimum coverage, $2,305 for full coverage
Alabama J.D. Power rating: 637/1,000
NAIC complaint index score: 0.89
Our survey rating: 4.2/5
AM Best financial strength rating: A+
Why We Picked Progressive
Progressive rounds out our list of the best car insurance companies in Alabama. The insurance provider stands out for its usage-based program, Snapshot®, and its many optional coverage add-ons, like trip interruption coverage, roadside assistance and loan/lease payoff.
Cost and Coverage
Overall, Progressive is very on par with the average car insurance rates for the state. A full-coverage car insurance policy costs around $2,305 per year or $192 per month, while minimum coverage averages $599 per year or $50 per month. State averages for a full-coverage policy are $2,048 per year and minimum coverage is $572 per year.
Progressive stands out for offering many coverage add-ons. Here’s the rundown:
- Loan/lease payoff: Covers the balance of your auto loan after a total loss (up to 25% of the vehicle value)
- Rental car reimbursem*nt: Covers a rental car up to a limit during a claim
- Roadside assistance: Covers towing, lockout assistance, spare tire installation, fuel delivery and battery service
- Trip interruption: Covers up to $100 per day ($500 per occurrence) for food and lodging if your car breaks down over 100 miles from home
- Vehicle protection: Covers major systems and minor dents and dings on newer vehicles
- Custom parts and equipment: Covers aftermarket modifications usually up to $5,000
- Rideshare coverage: Covers the gap when you’re logged into a rideshare app waiting to accept a trip
- Deductible Savings Bank®: Subtracts $50 from your deductible every six months you go without a ticket or accident
- Pet injury coverage: Pays up to $1,000 of your vet bills if your pet is injured in an accident
We ranked Progressive as the Best for Tech-Savvy Drivers for its usage-based program, Snapshot, which is a mobile app and usage-based program that can save you an average of $231 per year for practicing safe driving habits, according to its website.
Reputation and Customer Reviews
Progressive has an A rating from the BBB. It performed slightly below average on the J.D. Power Auto Insurance Study for the Southeast and slightly above average in the Insurance Shopping Study. The majority of customers have had a neutral or positive experience, but some have had issues with communication during claims, according to BBB reviews. Learn more in our full Progressive insurance review.
Pros and Cons of Progressive
Pros Good usage-based program Many coverage add-ons A+ financial strength rating Cons Mixed reviews from customers
How To Find the Best Car Insurance in Alabama
There are a few steps to finding the best car insurance in Alabama. These include knowing insurance laws, deciding what coverage you need and shopping around.
Alabama Car Insurance Requirements
Alabama requires drivers to carry minimum liability insurance in the coverage limits of 25/50/25. This means:
- $25,000 of bodily injury liability coverage per person
- $50,000 of bodily injury liability coverage per accident
- $25,000 of property damage liability coverage per accident
Liability coverage only pays other people for damages you cause. It doesn’t fix your car or cover your medical bills in any way.
Lender Requirements
If you have an auto loan, your lender will require you to have a full-coverage auto insurance policy, which adds collision and comprehensive coverage to the mix. You can decide whether to get medical coverage like personal injury protection (PIP).
You might want to find the most affordable car insurance policy. In that case, think about minimum coverage or a full coverage policy with a high deductible. On the other hand, you might value a strong customer service reputation over the cheapest price.
Take a minute to decide the most important thing you want to find when you shop around for auto insurance coverage.
Compare Car Insurance Companies
Once you know what you’re looking for, the next step is to compare multiple companies. We recommend getting quotes from at least three providers, because you’ll find different add-ons and prices from each.
You can also use an insurance agent to compare rates on your behalf. It can cost slightly more to go this route, but it can be helpful in finding the right coverage. If insurance companies classify you as a high-risk driver based on poor credit history or poor driving history this may be a service worth taking advantage of.
Keep an Eye Out for Better Coverage
It’s important to know there’s no penalty for switching insurance companies as long as you maintain coverage on a registered vehicle. Just because you start a six-month insurance policy doesn’t mean you can’t switch after a couple of months. There are times when you need insurance right away, like when you purchase a new vehicle, but you can always change companies down the road to find the best rates and coverage.
Average Cost of Car Insurance in Alabama
Location plays a big part in how much car insurance costs, and our rate data shows Alabama drivers pay less than the national average. Good drivers in the state pay about $42 per month or $502 per year for minimum coverage and $148 per month or $1,775 per year for full coverage. These rates are cheaper than the national averages of $627 for minimum coverage and $2,008 for full coverage insurance premiums per year.
Alabama Car Insurance Costs by City
Where you live in the state can also affect what you pay for insurance. In general, cities with higher population density have higher car insurance costs. Below, you can see monthly and yearly full-coverage rates for 20 populous areas of the state.
| City | Monthly Average | Annual Average |
|---|---|---|
| Alabaster | $166 | $1,996 |
| Athens | $157 | $1,881 |
| Auburn | $161 | $1,936 |
| Bessemer | $195 | $2,335 |
| Birmingham | $188 | $2,259 |
| Daphne | $159 | $1,905 |
| Decatur | $158 | $1,896 |
| Dothan | $153 | $1,833 |
| Enterprise | $157 | $1,886 |
| Florence | $152 | $1,821 |
| Foley | $154 | $1,845 |
| Homewood | $180 | $2,159 |
| Hoover | $180 | $2,156 |
| Huntsville | $161 | $1,936 |
| Madison | $158 | $1,895 |
| Mobile | $182 | $2,188 |
| Montgomery | $175 | $2,096 |
| Opelika | $163 | $1,950 |
| Trussville | $184 | $2,208 |
| Tuscaloosa | $169 | $2,032 |
Car Insurance Discounts in Alabama
Common discounts you’ll find include bundling, safe driver and usage-based discounts.
Bundling Discounts
You can get bundling discounts for insuring multiple vehicles or having multiple types of insurance with the same company, like auto and homeowners. This can be useful for families with teen drivers or students to save on overall costs. You can find out what discount you’d get by bundling when you add vehicles and drivers during the quote process.
Safe Driving Discounts
Almost all companies give a discount for being a safe driver, but the requirements can vary. You might need to have five years of claim-free driving for one company and seven for another.
Whether a company has a safe driver discount or not, you’ll find higher average premiums if you have at-fault accidents, speeding tickets or DUIs on your record.
Usage-Based Discounts
Another way to get money off your annual premium is with usage-based discounts like State Farm’s Drive Safe & Save. You’ll find the best discounts if you avoid nighttime driving, hard braking and quick acceleration. Mileage is another factor, so you’ll save more if you have a short commute or work from home.
Best Alabama Car Insurance: The Bottom Line
To wrap up, our top picks for Alabama car insurance are Travelers, State Farm, Geico, USAA and Progressive. You can find reasonable rates and good coverage from any of these companies, so we recommend comparing a few car insurance quotes when you shop.
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Best Auto Insurance in Alabama: FAQ
Here are some frequently asked questions about the best car insurance in Alabama.
Our data shows Cincinnati Financial offers the cheapest minimum coverage in Alabama with rates of $26 per month, and Travelers offers the cheapest full coverage in the state with rates of $118 per month.
Travelers is the best option for a full-coverage insurance policy in Alabama because it offers the cheapest rates and also provides some additional coverage options like accident forgiveness and rideshare insurance.
Our data shows Cincinnati Financial, Country Financial and USAA have the best minimum-coverage rates while Travelers, Geico and USAA have the best full-coverage rates in Alabama. We recommend comparing rates from multiple companies to find your best option.
To be fully protected, we recommend carrying full-coverage insurance with liability limits of 100/300/100. This covers your vehicle and protects your finances in the worst-case scenario if you cause extensive damage or injuries to other people in an accident.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
