Cheapest car insurance in Alabama for 2024 (2024)

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Updated Sep 01, 2024

Rate data from Quadrant Information Services suggests that drivers pay an average of $481 for state-mandated minimum coverage and $1,994 for full coverage car insurance in Alabama. Your own rate, however, will likely differ from these averages. Bankrate knows how important finding cheap auto insurance in Alabama is for drivers on a budget, which is why we’ve done the legwork for you. Based on our insurance editorial team’s research and analysis, we discovered that companies like Geico, Travelers and USAA may be good choices for those looking for the cheapest Alabama car insurance.

Key takeaways

• Cheapest company for minimum coverage: Geico
• Cheapest company for full coverage: Travelers
• Cheapest company for drivers with prior incidents: Geico and Travelers
• Cheapest company for young drivers: Travelers and Geico

Like most states, Alabama requires drivers to carry a certain amount of car insurance in order to drive legally. Minimum requirements here consist of liability-only coverage, which helps pay for property damage and medical costs the other driver incurs in an accident you cause. Minimum coverage does not provide financial protection for you or your vehicle, though. For that, you’ll need full coverage insurance.

While minimum coverage car insurance can lead to more out-of-pocket costs following an accident, it is still an attractive option for drivers looking to pay a cheaper monthly premium. Bankrate analyzed the most recent rate data available from Quadrant Information Services and found that Geico has the lowest average premium for minimum coverage in Alabama.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Minimum coverage requirements for Alabama drivers

Driving without insurance in Alabama is illegal and can result in drivers facing serious consequences. Drivers in Alabama are required to meet state minimum requirements for car insurance. This includes having at least:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Uninsured motorist coverage must be offered but can be declined by the driver in writing.

While having the state minimum requirements fulfilled by your policy means you are in compliance with Alabama car insurance laws, it can be beneficial to purchase higher amounts of liability or add-on coverage options for better financial protection. Additional coverage types like medical payments, comprehensive, collision and uninsured motorist coverage can help ease the financial impact of causing an accident.

Keep in mind that if you lease or finance your vehicle, you’ll likely be required to purchase comprehensive and collision coverage by your financial institution. You might also consider purchasing gap insurance, which can help pay the difference between your vehicle’s value and the remaining loan balance if your vehicle were to be totaled.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

In general, individuals with clean driving records earn the best cheap car insurance in Alabama. Because they have no previous infractions, insurers view safe drivers as less of a risk to insure. If you have an infraction or two on your license, you may pay a higher rate, although it's important to remember that other factors — such as your age, credit rating and the make and model of your car — also play a role in determining your premium.

• Cheapest car insurance for drivers with a ticket: Geico
• Cheapest car insurance for drivers with an at-fault accident: Travelers
• Cheapest car insurance for high-risk drivers: Travelers

Cheapest insurance companies for drivers in Alabama with a speeding ticket: Geico

Speeding in Alabama is considered a risky driving practice. Even a single speeding ticket conviction can increase your car insurance rates. Every car insurance company has its own proprietary method of determining rates, so shopping around to see if another company offers a lower rate may help you save.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Cheapest car insurance for drivers in Alabama with an at-fault accident: Travelers

Being involved in an at-fault accident can impact your premium for three to five years, depending on your insurer’s guidelines and the severity of the accident. Comparing quotes from multiple insurers may help you see which one offers you the best rate, taking into account any marks in your driving history. Bankrate's research indicates Travelers has the lowest average rates for these drivers.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Cheapest car insurance in Alabama for high-risk drivers: Travelers

Situations that could label a driver as high-risk include multiple accidents or tickets in a set period of time, experiencing a lapse in insurance coverage or receiving a DUI conviction. High-risk drivers may have more limited options for managing car insurance costs and might even no longer qualify for coverage with some companies. If you are considered a high-risk driver, it could be a good idea to look into cheap car insurance companies offering non-standard car insurance. The table below showcases the cheapest car insurance companies in Alabama for drivers with a single DUI conviction, with Travelers offering the best rates. But, talking to a company directly is the best way to determine your eligibility for coverage.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Bankrate’s take:If you have had your license suspended or revoked, you will need to obtain SR-22 insurance in order to have your license reinstated. An SR-22 isn't actually a separate type of coverage, but instead is a certificate that willing insurers can file on your behalf with the DMV. It states that you have insurance that meets or exceeds the minimum required coverage for Alabama. The catch is that not all insurers will give you the option of filing an SR-22. If that is the case, you may need to switch to a new provider.

It's not surprising that your age impacts the rate you pay for your car insurance. Carriers look at the age groups that are most likely to be involved in accidents, and are likely to charge more if you are in a high-risk age group. Since statistics show that young drivers have the highest number of accidents, this age group tends to pay more for their policies. As they enter their 20s, their rates will start to go down. It is possible, however, to find reasonably priced policies for young drivers by shopping around.

• Cheapest car insurance for insuring a teen driver: Travelers
• Cheapest car insurance for teens with a ticket: Travelers
• Cheapest car insurance for teens with an at-fault accident: Travelers
• Cheapest car insurance for young drivers with a DUI: Travelers

Cheapest Alabama car insurance for insuring a teen driver: Travelers

Teenagers who have just earned their licenses are some of the most expensive drivers to insure, due to inexperience behind the wheel and a higher likelihood of accidents. Car insurance companies will typically charge the highest rates for this age group to compensate for the greater risk of a claim being filed. However, this can be offset by leveraging common potential discounts for teen drivers, including a good student discount. If you’re looking for cheap car insurance in Alabama with a teen on your policy, you might consider getting a quote from one of the carriers listed below.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Bankrate’s take:Bankrate's average rates were determined based on a 16-year-old driver on their parents’ policy. Insurers perceive teens of this age to be a higher risk because statistics show that they have more accidents than any other age group and are more likely to engage in risky driving behavior. Because they are more likely to file claims than other age groups, insurers compensate by charging more. The good news is that, as long as they maintain a clean driving record, their rates should decrease over time.

Cheapest Alabama car insurance for teens with a ticket: Travelers

As is true for adult drivers, a teen who earns a ticket is likely to see an increase in their rates when their policy (or their parents' policy) comes up for renewal. Multiple tickets may result in an even greater increase or may move the teen into the high-risk driver category. Bankrate found that Travelers has the best average rate for a teen with a ticket on their record.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Cheapest Alabama car insurance for teens with an at-fault accident: Travelers

A teen who is involved in an at-fault accident may want to consider taking a defensive driving course to hone their skills. Successful completion of the course may also earn them a discount, which could be welcome since their rates are likely to increase after the accident. A serious accident may lead insurers to place the teen in the high-risk category, which also has implications for their insurance rate. Once again, Travelers had the lowest average rate based on our research.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Bankrate’s take:One coverage option that parents with teen drivers may want to consider is accident forgiveness. This endorsem*nt, or add-on, "forgives" a driver for one at-fault accident, meaning your premium typically won't increase after you file a single claim (so long as you maintain a clean driving record). Keep in mind, however, that you will still face any state penalties incurred from the accident and not all insurers offer this type of coverage.

Cheapest Alabama car insurance for young drivers with a DUI: Travelers

Few infractions on your license are as serious as a DUI in Alabama. For young drivers who already face high premiums, earning a DUI is likely to send those rates even higher. In addition to an increased rate, a driver with a DUI will also need to pay state penalties, which may include fines, license suspension and legal costs. Some insurers, such as Travelers, will not write policies for drivers who have had a DUI, and others will place them in the high-risk category, where they are unlikely to find cheap rates.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

If you are wondering how to save on car insurance in Alabama, you may want to take advantage of auto insurance discounts. Here are some common ways to save on car insurance in Alabama:

• Young driver discounts: Young, inexperienced drivers face some of the highest average rates. Many insurers offer discounts to young drivers based on good grades, driving courses and more.
• Safe driver discounts: Many insurers will reward drivers who go for enough years (often three) without filing a claim or being charged with a traffic violation. Some insurers will automatically apply such discounts, while others may require you to inquire before it is added to your account.
• Payment-related discounts: It’s become increasingly common for insurers to reward full payment upfront and paperless billing. Depending on your insurer, either or both of these approaches to payment could net you a discount.
• Professional discounts: Some insurers offer discounts to specific professions. Depending on your insurer, you could receive a discount if you work as ahealth care professional, teacher or engineer. The specific professions offered discounts will depend on the insurance provider.
• Vehicle safety discounts: Many insurance companies will give discounts based on vehicle safety devices. Having anti-lock brakes, systems to detect and prevent collisions or even anti-theft devices can earn you a discount with many providers.
• Loyalty discounts: Insurers incentivize customer loyalty with several types of discounts, such as bundling discounts for drivers who purchase multiple lines of insurance (like home and auto). Multi-car discounts are also possible with some insurers, as are continuous policyholder ones.

Methodology

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These are sample rates and should only be used for comparative purposes.