Find the Best Car Insurance Quotes and Options in Alabama
The average cost of car insurance in Alabama is $1,320 per year. That makes car insurance costs in Alabama very close to the national average of $1,311 per year. But everyone’s car insurance rates will be different, based on where they live and their personal characteristics.
What’s more, it’s important to purchase sufficient coverage so that if you have to file a claim, your policy will cover it. While this can cost more, it can make a huge difference when you need it most.
An independent insurance agent can help you find the right car insurance for your needs and budget. Here, we’ll explain some important facts about car insurance in Alabama.
Best Car Insurance Companies in Alabama
You can purchase car insurance in Alabama from numerous insurance companies. Where should you even start? We’ve done some of the hard work for you and selected some of the best car insurance companies in Alabama to help you get started. Perhaps one of these top carriers will be the best for your needs.
- Best Alabama car insurance company overall: USAA
- Best Alabama car insurance company for minimum liability: Travelers
- Best Alabama car insurance company for full coverage: Travelers
- Best Alabama car insurance company for young drivers: Travelers
- Best Alabama car insurance company for accident history: Travelers
An independent insurance agent can help you determine if any of these companies have the right car insurance policy for your needs and budget.
Best Alabama Car Insurance Company Overall: USAA
Our pick for the best overall car insurance company in Alabama is USAA. The carrier ranks high for claims satisfaction, ease of interaction, customer service, trust, and affordable policies.
USAA was founded in 1922 by 25 Army officers who decided to insure each other's vehicles. Over time, the organization grew to serve millions in the military community, offering a variety of personal insurance products as well as other financial products and services.
USAA’s net worth has surpassed $40 billion. The carrier has more than 13 million members and 37,000 employees. USAA consistently receives high marks for financial stability, including an "A++" rating from AM Best, the highest available.
Unfortunately, not everyone can take advantage of USAA’s superior performance. Only active duty and retired military members and select family members are eligible for USAA membership and insurance coverage.
| Average Monthly Insurance Cost: Car Insurance Policy | Average Annual Insurance Cost: Car Insurance Policy |
| $117 | $1,400 |
Best Alabama Car Insurance Company for Minimum Liability: Travelers
If you’re looking for minimum liability coverage, Travelers is a top choice for Alabama residents. In Alabama, the average cost for a minimum coverage policy is $40 per month, or $478 per year. Travelers offers minimum coverage policies in Alabama at an average of $36 per month, or $428 per year.
Travelers was founded in 1853, making it one of the oldest insurance companies in the US. It is a leader in both personal and business insurance with approximately 30,000 employees. The company works with a network of 13,500 independent insurance agents and brokers across the United States, Canada, and the United Kingdom.
Travelers generated approximately $35 billion in revenues in 2021. The carrier was awarded an "A++" rating from AM Best, reflecting its superior position as a financially stable and reliable company.
| Average Monthly Insurance Cost: Minimum Liability | Average Annual Insurance Cost: Minimum Liability |
| $36 | $428 |
Best Alabama Car Insurance Company for Full Coverage: Travelers
The best car insurance company in for full coverage in Alabama is Travelers. The insurance company offers affordable full-coverage policies with premiums starting at just $160 per month. In addition to cheaper-than-average prices, Travelers offers a wide range of discounts and policy extras that make it a great option for drivers looking for full coverage auto insurance in Alabama.
| Average Monthly Insurance Cost: Full Coverage Policy | Average Annual Insurance Cost: Full Coverage Policy |
| $160 | $1,921 |
Best Alabama Car Insurance Company for Young Drivers: Travelers
Drivers between the ages of 16 and 25 typically pay very high car insurance rates because of the extra risk presented by their inexperience behind the wheel. While insuring a teen driver is never cheap, Travelers is one of the best insurance companies for teen drivers in Alabama.
In Alabama, teen drivers pay about $4,773 per year, which is more than twice as much as a typical Alabama driver. With Travelers, car insurance for young drivers in Alabama can cost around $294 per month. The company also offers several discounts for young drivers including a good student discount and a student away-at-school discount, as well as a driver training discount upon completion of a safe driver education course.
| Average Monthly Insurance Cost: Young Drivers | Average Annual Insurance Cost: Young Drivers |
| $294 | $3,526 |
Best Alabama Car Insurance Company for Accident History: Travelers
Your driving record is one of the most important factors in what you pay for car insurance in Alabama. All insurance companies want to know if you’ve been at fault for an accident in the past in order to determine how risky you might be to cover.
In these cases, Travelers again earns a spot on our list of top picks. Travelers is one of the best Alabama car insurance companies for drivers with an accident history. The company is highly rated for its claims response and for offering affordable policies for drivers with bad records. If you’ve had an at-fault accident, you can get a car insurance policy in Alabama for about $141 per month.
Travelers also offers perks like accident forgiveness along with optional coverage like roadside assistance coverage, new car replacement coverage, and rental car reimbursement coverage.
| Average Monthly Insurance Cost: Drivers With Accident History | Average Annual Insurance Cost: Drivers With Accident History |
| $141 | $1,694 |
Alabama Car Insurance Requirements
Drivers in Alabama must purchase a car insurance policy that meets the state's minimum coverage requirements. In Alabama, you must have the following coverage, at a minimum, in order to comply with state law and avoid penalties.
- Bodily injury liability coverage: Protects you if you injure or kill someone else while driving your car. It covers an injured party's claims for damage, including medical expenses, lost wages, and pain and suffering. It also covers your legal defense fees if another party involved in the accident sues you. In Alabama, you must have this coverage in the amount of $25,000 for one person and $50,000 for two or more persons, at a minimum.
- Property damage liability coverage: Pays for any damage that you cause to the property of others (e.g., another’s driver’s car) and for your legal defense if you are sued. In Alabama, you must have this coverage in the amount of at least $25,000.
Optional car insurance coverages in Alabama include:
- Uninsured motorist coverage: Protects you if you are hit by a hit-and-run driver or a driver who does not have auto liability coverage. It takes the place of liability insurance that the other driver should have but does not.
- Underinsured motorist coverage: Protects you if another motorist is at fault for a collision but does not have enough insurance to cover your losses.
- Medical payments coverage (or personal injury protection): Helps pay for medical, dental, and funeral expenses for you or your passengers, regardless of who is at fault for an accident.
- Collision coverage: Covers the cost to repair or replace your vehicle if it is damaged or totaled in a collision, regardless of fault.
- Comprehensive coverage: Covers the cost to repair or replace your vehicle if it is damaged or totaled by a non-collision event such as a hailstorm or theft.
- Roadside assistance coverage: Pays for help if you are locked out of your vehicle, run out of gas, or face some other type of problem while out on the road. Your insurance company will help you contact tow trucks, locksmiths, or other forms of assistance as needed, and will reimburse you for the costs of these services up to certain limits.
- Rental reimbursement coverage: Provides payment for a rental car if your vehicle is damaged and you must rent a vehicle while it is being repaired.
- Loan/lease or gap coverage: Pays the difference between what you owe on a vehicle and its cash value if it is totaled.
An independent insurance agent will help you find a car insurance policy that includes the coverage you need.
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Average Cost of Car Insurance in Alabama
The average cost of car insurance in Alabama is $1,320 per year, which is slightly more than the national average of $1,311 per year. Everyone’s car insurance costs are a little different depending on your personal risk factors (e.g., your age, gender, accident history, etc.) and the types and amounts of coverage you select. You can find ways to reduce your car insurance costs in Alabama by taking advantage of discounts that you may be eligible for.
Average Alabama Car Insurance Costs by City
The city you live in is one of the most important factors in what you’ll pay for car insurance in Alabama. This is because the city’s crime rate, severe weather frequency, traffic density, and more can all impact how at risk you and your car are at for being in an accident, being stolen, or being subject to some other kind of damage (e.g., hail damage).
The highest car insurance rates in Alabama can be found in Mobile. Residents there pay an average of $1,812 per year for car insurance. But Alabama residents can find cheaper rates elsewhere. Drivers who live in Demopolis, AL, for example, pay only $1,142 per year on average for car insurance coverage.
Finding Car Insurance Discounts in Alabama
One of the best ways to save on car insurance in Alabama is to make sure that you take advantage of any car insurance discounts for which you may be eligible. One of the most common discounts is the multi-policy discount, which rewards you with savings if you have more than one policy with the same carrier (e.g., home and auto). Some of the common auto insurance discounts offered in Alabama include the following:
- Student driver discounts: If you have a student driver in your household, you may be able to take advantage of a good student discount if your child gets a B average or better. Many insurance companies also offer away-at-school discounts for students who won’t be using their parents’ cars while they are away at school. Your young driver may also be able to receive a discount by participating in an insurance-company-approved or sponsored safe driving course.
- Safe driver discount: Drivers who maintain a clean driving record over a period of time may be able to receive an ongoing discount from their insurance company.
- Anti-theft device discount: Some insurance companies offer discounts when your car has certain anti-theft devices installed.
- Military discount: Active or retired members of the military can often qualify for auto insurance discounts.
- Paperless billing discount: Many insurance companies offer a discount for policyholders who agree to receive paperless billing statements.
- Other car insurance discounts: Being a member of a particular group, such as an employment union, may make you eligible for a car insurance discount specifically for members.
Your independent insurance agent in Alabama can help you find all of the car insurance discounts that you qualify for.
How to Find the Best Car Insurance Quote in Alabama
Finding the best car insurance quote in Alabama requires comparing several insurance companies and making an informed choice. But you don’t have to go it alone. An independent insurance agent in Alabama can help you obtain and review quotes from multiple insurance companies and choose the one that offers the best coverage for your needs and budget. An independent agent works for you, free of charge, to help you through the process.
How to File a Car Insurance Claim in Alabama
Filing a car insurance claim in Alabama is always going to be a little stressful. But if you know what to do in advance, it can help the process to go more smoothly. If you’re in a car accident, here are some tips for filing your insurance claim:
- Check for and tend to injuries: Check yourself, your passengers, and anyone else involved in the accident for injuries. Seek immediate medical treatment for anyone who is injured.
- Call the police: Filing a police report ensures that your accident is on-the-record and all appropriate information has been collected. That way, your insurance company will have a reliable source for information about the details of your accident.
- Contact your independent insurance agent: Your Arizona independent insurance agent can start the process by connecting you with your insurance company or even filing the claim for you. Your agent can guide you throughout the claims process.
- Schedule an appointment with an adjuster: Your insurance company will likely want to evaluate the damage before you seek repairs for your car. That means you’ll likely need to set up an appointment with an adjuster who works for your carrier.
- Get repairs: If necessary, get your vehicle repaired from a reputable auto body shop or from a shop recommended by your insurance company.
- Get a rental vehicle: If you’re without your car for a while as it's being repaired, consider getting a rental vehicle. If you have rental reimbursement coverage, you’ll have some help paying for the cost of your rental car.
An independent insurance agent in Alabama can help you through the claims process and answer your questions about how best to file your claim.
How does your city measure up to the national average?
National average time spent commuting 26.9 Min
National average car thefts per 1,000 2.3 Year
National average car insurance cost $1,311 Year
| City | Commute time (min) | Annual insurance cost |
| Alabaster | 31.7 | $1,464 |
| Anniston | 24.9 | $1,728 |
| Athens | 22.6 | $1,213 |
| Auburn | 20.2 | $1,500 |
| Birmingham | 21.9 | $1,728 |
| Daphne | 26.2 | $1,368 |
| Decatur | 19.0 | $1,554 |
| Demopolis | 17.9 | $1,142 |
| Dothan | 19.5 | $1,572 |
| Florence | 18.9 | $1,182 |
| Foley | 21.4 | $1,332 |
| Ft. Payne | 18.9 | $1,686 |
| Guntersville | 22.9 | $1,518 |
| Huntsville | 19.2 | $1,518 |
| Jackson | 21.1 | $1,332 |
| Mobile | 22.1 | $1,812 |
| Montgomery | 19.9 | $1,704 |
| Selma | 19.6 | $1,562 |
| Troy | 16.9 | $1,524 |
| Tuscaloosa | 19.0 | $1,428 |
Alabama Car Insurance FAQ
The average cost of car insurance in Alabama is $1,320 per year, or about $110 per month.
The state minimum car insurance in Alabama is as follows:
- $25,000 bodily injury liability coverage for one person injured in an accident
- $50,000 bodily injury liability coverage for two or more persons injured in an accident
- $25,000 property damage liability coverage
Alabama full coverage car insurance consists of bodily injury liability coverage, property damage liability coverage, uninsured motorist coverage, comprehensive coverage, and collision coverage.
About 18.4% of drivers in Alabama are uninsured. Nationwide, the average is 13%.
Yes, you must have car insurance in Alabama. State law requires that any vehicle designed to be used on a public road must be covered by a liability insurance policy.
Car insurance in Alabama usually follows the car, not the driver. Your coverage will apply if you lend your car to a friend who then causes an accident.
If the person who borrowed your car causes damage that exceeds your coverage limits, their car insurance policy may act as secondary coverage, but only after your coverage limit has been reached.
No. Alabama is an at-fault state for auto insurance. This means you are responsible for the medical and property damage costs of the other party or parties if you are at fault for an accident.
Alabama drivers are required to have certain amounts of liability insurance, at a minimum. Before your vehicle can be driven on public roads in Alabama, you must have bodily injury liability coverage and property damage liability coverage. Both of these pay for the losses of other parties if you are at fault for an accident.
Filing an auto insurance claim in Alabama doesn’t have to be difficult or stressful. First, make sure that everyone involved in the accident is safe and seek any necessary medical attention. If necessary, call the police and obtain a police report. This will help expedite your insurance claim because it will act as an official record of what happened.
As soon as you’re able, call your independent insurance agent and your insurance company to report the claim. Next, you’ll likely speak to a claims adjuster who works for your insurance company. The adjuster will assess the damage and begin to process your claim in accordance with your policy.