The best cheap car insurance in Alabama

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Alabama residents have car insurance costs well below the US national average. Car insurance in Alabama typically costs about $856 per year, according to the Insurance Information Institute, while the typical American pays around $935 in car insurance premiums per year. 

Factors like where you live, your driving history, and even your credit score can all affect the premium you see reflected on a car insurance quote. To get the best deal on car insurance, you'll have to shop around and get quotes from several different companies. Then, you'll want to compare the coverages to get the best insurance policy for your money. 

The most popular car insurance companies in Alabama 

The following are the most popular car insurance companies in Alabama, based on the percentage of insured Alabama drivers who use them:

CompanyMarket share (%)
State Farm22.95
Alfa Mutual Group13.58
GEICO11.23
Allstate10.86
Progressive9.35
USAA*7.47
National General Holdings3.12
Travelers2.25
Liberty Mutual2.11
Farmers Insurance2.11
Nationwide2.06
Auto-Owners Insurance1.65
COUNTRY Financial1.63
Safeway Insurance1.57
MetLife1.08
First Acceptance0.92
Auto Club Exchange0.79
The Cincinnati Insurance0.74
American Family Insurance0.72
Home State Insurance0.71

*USAA is only for active military, veterans, and their families.

Data from S&P Global Market Intelligence

The best car insurance in Alabama based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. According to J.D. Power, a consumer research company that surveys customers, these are the top car insurance companies in the Southeast region (which includes Alabama):

  1. Farm Bureau Insurance TN
  2. Erie Insurance
  3. Alfa Insurance
  4. GEICO
  5. Auto-Owners Insurance
  6. North Carolina Farm Bureau
  7. Kentucky Farm Bureau
  8. Region Average
  9. Progressive
  10. Allstate 
  11. Safeco
  12. State Farm
  13. Farmers
  14. National General
  15. Nationwide
  16. Travelers
  17. Liberty Mutual
  18. MetLife

The best cheap car insurance in Alabama based on credit score

Consumer Reports compiled data from car insurance companies across the US, and found what each company would charge for a single adult driver in each state at varying credit levels. Here are the companies it found were the cheapest in Alabama for each credit level. 

Drivers with excellent credit, a FICO score 800-850, will see the lowest costs of car insurance. 

  • USAA car insurance: $554 per year
  • GEICO car insurance: $581 per year 
  • Allstate car insurance: $1,064 per year. 

Drivers with good credit, a FICO score 670-739, will see decent premiums. 

  • GEICO car insurance: $687 per year
  • USAA car insurance: $732 per year
  • Progressive car insurance: $1,328 per year

Drivers with poor credit scores, a FICO score 300-579, will pay more for their insurance premiums.

  • GEICO car insurance: $1,015 per year
  • Allstate car insurance: $1,978 per year
  • USAA car insurance: $2,136 per year

The best car insurance for drivers with a clean record

For a driver in Alabama age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:

CompanyAverage monthly insurance premium 
State Farm$126
Bristol West$133
Progressive$138
GEICO$148
Liberty Mutual$149
Allstate$153
Esurance$159
USAA*$186
Travelers$189

*USAA is only for active military, veterans, and their families.

Above data obtained from Savvy, based on 1,366 policyholders in the state of Alabama 

Best car insurance for one or more accidents on record

For a driver in Alabama age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:

CompanyAverage monthly insurance premium 
Progressive$159
GEICO$160
Farmers$171
Esurance$179
Allstate$180
State Farm$205

Above data obtained from Savvy, based on 1,366 policyholders in the state of Alabama 

Alabama car insurance rates by city

Below is the estimated average annual premium of auto insurance policies per household in Alabama's most populous cities:

CityAverage annual insurance premium 
Birmingham$1,232
Montgomery$1,305
Huntsville$1,370
Mobile$1,284
Tuscaloosa$1,276
Hoover$1,519
Dothan$1,304
Auburn$1,313
Decatur$1,264
Madison$1,583
Florence$1,236
Phenix$1,293
Gadsden$1,229
Prattville$1,407
Vestavia Hills$1,577
Alabaster$1,477
Opelika$1,315
Enterprise$1,363
Bessemer$1,268
Daphne$1,455
Northport$1,376
Athens$1,298
Homewood$1,480
Pelham$1,525
Albertville$1,265
Anniston$1,220
Trussville$1,544
Oxford$1,372
Prichard$1,187
Mountain Brook$1,658
Troy$1,208
Helena$1,571
Foley$1,316
Selma$1,145
Fairhope$1,470
Tillmans Corner$1,363
Hueytown$1,325
Cullman$1,275
Center Point$1,293
Millbrook$1,432

Data from S&P Global Market Intelligence

Who gets the best car insurance rates in Alabama? 

In general, those who see the best premiums on car insurance are drivers with good credit histories and good driving records. However, other factors like the type of car you drive, where you live in Alabama, your gender, age, and even marital status could have an effect on what you pay. 

But there's one other thing that you can do to get the best rate: Shop around. Even within the same credit level, the differences between one company and another can be huge, highlighting the importance of getting more than one quote. Every insurance company assess your risk and prices your policy differently, so you'll want to see what several different companies will offer you. 

Once you have several quotes, you'll want to compare them. Don't just look at the premiums — look for the most coverage for your money, and consider the types and amounts of coverage each policy provides. Also consider the deductible, or the amount you'll have to pay for out of pocket if you get into an accident. Generally, the cheaper the plan, the higher the deductible.

Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. She is also a licensed attorney who practiced litigation and insurance defense.

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