Buy Cheap Alabama Auto Insurance in 2024

With beautiful coasts and southern hospitality, Alabama has a lot to offer, including affordable car insurance. Alabama drivers pay about 10% less than the rest of the country.

Although companies like Geico and USAA are often the cheapest options for car insurance in the U.S., Travelers usually has the lowest rates for Alabama drivers. However, factors like your age, driving record, and credit score might make another company more affordable.

Read on to learn about Alabama auto insurance and how to find the cheapest company. Then, compare quotes with as many companies as possible to ensure you get the lowest rates.

Which insurance companies in Alabama are the cheapest?

Insurance companies look at several factors when determining how much you should pay for car insurance. The cheapest company for you will change based on your current situation.

However, Travelers auto insurance often comes with the lowest average rates in Alabama. While you should always compare quotes with multiple companies, Travelers is an excellent place to start looking for car insurance.

You can explore the average rates for car insurance based on a variety of factors below. Remember that these prices are just averages, and the exact amount you’ll pay might be different.

Minimum Insurance Rates in Alabama

The minimum car insurance requirements in each state are different. Alabama’s minimum car insurance requirements are simple to understand. The Yellowhammer State requires the following coverage amounts:

• Bodily injury liability — $25,000 per person
• Bodily injury liability — $50,000 per accident
• Property damage liability — $25,000 per accident

While some states require more, Alabama only requires that you be able to cover the damage you cause to other drivers in an accident with liability auto insurance.

When your budget is tight, minimum insurance is the cheapest car insurance option in Alabama. Check below to see how much insurance companies charge for Alabama minimum insurance.

Average Monthly Minimum Coverage Auto Insurance Rates for the Top Auto Insurance Companies

As you can see, Geico auto insurance offers the cheapest rates by more than $100. Even USAA — which typically has lower rates than competitors — can’t compare with Geico.

If you have more money to spare for car insurance, it might be a good idea to look into more coverage. Liability insurance only pays for damage you cause to other cars. It won’t help with your car repairs, medical bills, or other related expenses.

Full Coverage Rates in Alabama

Alabama does not require drivers to carry full coverage auto insurance, but you might need it if you have a car loan or lease.

Full coverage bundles liability, comprehensive, collision, uninsured/underinsured motorist, and medical payments. It offers enough coverage to protect your car from just about anything that can damage it, but it comes at a higher cost than minimum insurance.

Average Monthly Full Coverage Rates for the Top Auto Insurance Companies

Travelers might not be as big as some competitors, but it offers Alabama’s lowest average full coverage rates.

While full coverage is enough insurance for most drivers, there are add-ons you can purchase to increase your protection. Here are the most commonly purchased add-ons in the Yellowhammer State:

• GAP insurance
• Rental car reimbursement
• Roadside assistance

Add-ons are usually affordable, but they can add up. You should only buy what you need to make sure your rates don’t get too expensive. If you’re unsure of what you need, an insurance representative can help.

Alabama Car Insurance Rates by Age

Insurance companies look at many factors to determine how much you should pay for coverage. These factors include your location, marital status, and credit score. One of the most impactful is your age.

Young drivers tend to behave more recklessly behind the wheel and cause more accidents. Because of this increased risk of filing a claim, auto insurance for teenage drivers comes with the highest rates.

The good news is that you won’t be stuck with high rates forever. Young drivers who avoid adding incidents to their driving record will see their rates drop by around age 25.

Full Coverage Auto Insurance Monthly Rates by Age & Gender

Travelers auto insurance as well as Geico auto insurance beats out USAA for the cheapest Alabama car insurance for young drivers. However, USAA isn’t too far behind, so it might be a better choice based on other factors. USAA auto insurance is only available to military members and their families, so not everyone is eligible for coverage.

The high rates that young drivers pay for Alabama auto insurance highlights why comparing quotes is essential. Young people should also search for car insurance savings, like good student or driver education discounts.

Alabama Car Insurance Rates by Credit Score

Your credit score affects a lot of things in your life. One area you might not realize is affected by your credit score is your car insurance rates.

Finding cheap car insurance in Alabama is harder when you have a low credit score — drivers pay up to 61% more for insurance than people with higher scores. If you need auto insurance for drivers with bad credit, comparing companies is vital in finding affordable rates.

Full Coverage Auto Insurance Monthly Rates by Credit Score

Geico is the company most forgiving of low credit scores, with an average monthly rate of $160. The most expensive company in Alabama is State Farm, with rates over $450 per month.

You can improve your rates by improving your credit score. Raising your score by even a single level can drastically reduce how much you pay for insurance.

Alabama Car Insurance Rates After an Accident

Although there is a great variety in the factors that insurance companies look at, they’re trying to determine one thing — how likely you are to file future claims.

A great way to determine that riskiness is to look at your driving record for past at-fault accidents. Statistically, a driver with one at-fault accident is more likely to cause another in the future.

An at-fault accident can increase your rates by as much as 40%. Your car insurance rates change after an accident, but some companies are more forgiving.

Average Monthly Rates for the Top Insurance Companies for Drivers with an Accident

If you’ve recently caused an accident, Travelers might be your best bet for cheap auto insurance in Alabama. Geico is usually within the top three cheapest companies in Alabama but has much more expensive coverage after an accident.

Accidents don’t affect your rates forever, though. As long as you keep your record clean, accidents stop affecting your rates after about three years.

Alabama Car Insurance Rates After a DUI

Getting a DUI can raise your rates by as much as 70%, and some companies will refuse to work with you. Multiple DUIs will cause your rates to skyrocket, and you might have to shop with a high-risk auto insurance company.

While most companies will continue to offer auto insurance after a DUI, you’ll pay much higher rates than before a DUI conviction.

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Finding cheap car insurance in Alabama after a DUI is challenging, but Travelers and Allstate generally offer lower rates than other companies.

It’s important that you shop for new insurance after a DUI conviction because your rates might be much higher if you stick with your old company. For example, Geico has some of the highest rates after a DUI, even though they are cheaper in other categories.

There are many other reasons to avoid a DUI conviction beyond the cost of your insurance. Alabama imposes the following penalties for drivers after a DUI:

• First offense – up to one year in jail, $2,100 fine, license suspension for 90 days, and six months with an ignition interlock device (IID) in your car.
• Second offense – up to one year in jail, $5,100 fine, license suspension for a year, and two years with an IID.
• Third offense – up to one year in jail, $10,100 fine, license suspension for three years, and three years with an IID.

Additionally, any driver convicted of a DUI must complete a substance abuse education course and any requirements the court lays out for license reinstatement.

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Which cities in Alabama have the cheapest rates?

The place you call home plays a vital role in your insurance rates. Car insurance companies look at factors like the number of accidents, average price of cars, and crime rates by ZIP code to determine how much your coverage will cost.

While factors like more expensive car repairs and rising health care costs affect the entire country, Alabama’s rates are also impacted by the state’s high traffic fatalities.

Some cities in Alabama have higher insurance rates than the state average. For example, heavier traffic and theft rates in Birmingham and Montgomery lead to increased rates. Other cities, such as the coastal town of Mobile, have higher rates due to the risk of extreme weather.

Does Alabama have other car insurance laws?

Aside from minimum insurance requirements, Alabama has other laws you should be aware of. First, all drivers must carry proof of insurance with them whenever they drive. Proof can be in the form of a physical or digital insurance card, but you should always have it on you.

Driving without insurance is a serious offense, even for your first conviction. Penalties include the following:

• $500 fine for your first offense
• 45-day registration suspension for your first offense
• $200 reinstatement fee

You might also need to submit SR-22 insurance for up to three years or serve jail time, depending on the severity of the incident. Driving without insurance is also a red flag for car insurance companies, and your future rates will be higher.

Do you need SR-22 car insurance in Alabama?

Although you’ll probably see it advertised, SR-22 insurance isn’t actually a type of coverage. Instead, it’s a form you submit to the state that proves you carry Alabama’s minimum insurance. You might have to submit SR-22 forms for the following infractions:

• Driving without car insurance or with a suspended license
• DUI conviction
• Accumulating too many points on your license
• Extremely reckless driving

It’s more difficult to find cheap insurance in Alabama when you need to submit SR-22 forms. Insurance companies are wary of drivers who need SR-22 insurance, so your rates will be higher. Some insurance companies might refuse to cover you after an SR-22 order, but most will still work with you.

How do you get SR-22 car insurance in Alabama?

While finding cheap rates is challenging, buying SR-22 insurance is not a hard task in Alabama. For the most part, it works the same as shopping for a standard car insurance policy.

You should always compare quotes after a major event, even if you already have car insurance. If your current company still offers the cheapest rates, getting SR-22 insurance is as easy as calling a representative. They’ll adjust your policy and submit your SR-22 forms for you, usually for a small fee.

When you need to buy a new policy, make sure to let the company know you need SR-22 coverage. Your rates will be higher, and your application might be rejected, but you can get into serious legal trouble if you drive without SR-22 insurance.

When the state orders you to submit SR-22 insurance, they’ll revoke your license until you prove you have insurance. If you no longer have a car but need to get your license back, a non-owner policy is a great option.

Non-owner auto insurance covers you when you borrow someone else’s car. It also meets Alabama’s minimum insurance requirements, so you can submit your SR-22 form and get your license back.

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Find the Best Car Insurance Quotes in Alabama Today

Alabama drivers enjoy car insurance rates about 10% cheaper than the national average, but comparing rates is still important. Travelers is often the most affordable insurance company in the Yellowhammer State, but companies like USAA, Geico, and Allstate offer lower rates for certain drivers.

Since car insurance companies consider a variety of factors to craft your rates, looking at personalized quotes is the only way to find the lowest prices. Make sure to compare as many companies as possible to find the right policy for your needs.

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