What are my choices for affordable auto insurance in Alabama? (2021) – MarketWatch

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Auto insurance in Alabama is slightly cheaper than the national average, but not all companies offer the cheapest rates or the best coverage. Our own rate estimates show Geico, USAA, and Nationwide can be affordable options for Alabama drivers. Read on to find out more about the cheapest companies for different types of drivers.

We encourage you to seek free car insurance quotes from several leading providers to find the best option for your needs.

In this article:

  • Cheapest Auto Insurance in Alabama

  • 5 auto insurances in Alabama

  • Auto Insurance Requirements in Alabama

  • How to Get Auto Insurance in Alabama

  • frequently asked Questions

  • Our methodology

Cheapest Auto Insurance in Alabama

Our rate estimates show that the USAA is the cheapest auto insurance in Alabama overall, at $ 809 per year. After that, Geico, Nationwide, Travelers, and State Farm are affordable options. Our rate estimates apply to fully comprehensive insurance for a 35-year-old driver with a good credit rating and a clean driving report.

We'll also look at the cost of different driving situations below.

Car insurance company

Estimated annual cost*

USAA

$ 809

Geico

$ 993

Nationwide

$ 1,025

traveler

$ 1,269

District farm

$ 1,349

Allstate

$ 1,372

Car owner

$ 1,377

Progressive

$ 1,384

What is the cost of auto insurance in Alabama?

According to data from the National Association of Insurance Commissioners (NAIC), auto insurance in Alabama is slightly cheaper than the national average. In 2018, Alabama drivers paid about $ 905 for auto insurance, while the national average was $ 1,057. These numbers include both minimum and full coverage policies.

In order of cost, Alabama ranked 31st out of 50 states. Some states have average rates that are 50% higher than Alabama's. The level of insurance coverage naturally depends on your personal situation.

Cheapest Auto Insurance in Alabama for Young Drivers

Based on our full coverage estimates, Geico is typically the most affordable option for drivers in their early 20s in Alabama. Young drivers with good driving performance can find prices from the company as low as $ 1,116 a year. We found USAA was even slightly more expensive than Geico.

Car insurance company

Estimated annual cost*

Geico

$ 1,116

USAA

$ 1,141

traveler

$ 1,540

Allstate

$ 1,610

Nationwide

$ 1,652

Cheapest auto insurance in Alabama for drivers with a parking ticket

If you have a current speeding ticket, increase your car insurance rates. For Alabama drivers with speeding tickets, USAA is typically much cheaper than the competition, our research found. After that, Geico, Nationwide, State Farm, and Allstate offer affordable rates.

Car insurance company

Estimated annual cost*

USAA

$ 927

Geico

$ 1,224

Nationwide

$ 1,326

District farm

$ 1,470

Allstate

$ 1,524

Cheapest auto insurance in Alabama for drivers with a recent accident

USAA is also typically cheaper than many other companies for Alabama drivers who have recently had an accident. Our rate estimates show it can cost up to $ 1,178 while other providers start at around $ 1,600.

Car insurance company

Estimated annual cost*

USAA

$ 1,178

Geico

$ 1,609

District farm

$ 1,652

traveler

$ 1,756

Nationwide

$ 1,757

Cheapest auto insurance in Alabama for drivers with bad credit

Aside from a DUI, almost nothing can increase car insurance rates as much as poor credit. Not all states allow lending to affect your rates, but Alabama does. USAA is generally the cheapest option here for full coverage, followed by Geico and Nationwide.

Car insurance company

Estimated annual cost*

USAA

$ 1,361

Geico

$ 1,514

Nationwide

$ 1,619

traveler

$ 2,230

Allstate

$ 2,262

5 auto insurances in Alabama

When choosing car insurance, price is important, but so are factors such as reputation and customer service. Here we reviewed five options for auto insurance in Alabama.

Auto Insurance in Alabama

Overall rating

Coverage Rating

Cost evaluation

1. Geico

9.1

8.5

8.5

2. USAA

9.1

8.5

9.5

3. Nationwide

8.2

9.0

7.0

4. Travelers

8.0

9.0

7.5

5. Liberty Mutual

8.5

8.5

7.5

* Our research team takes national factors into account when evaluating providers. The ranking of providers in this table relates specifically to auto insurance in Alabama.

1. Geico

Geico is one of the cheapest insurance options for many drivers in Alabama. The company has high industry ratings and offers a wide variety of auto insurance discounts that apply to many drivers. With Geico, you can get all of the standard auto insurance options plus extras such as classic car insurance, mechanical breakdown insurance and ridesharing insurance.

Geico highlights include:

  • 16 discounts

  • A + rating from the Better Business Bureau (BBB)

  • A ++ financial rating from AM Best

2. USAA

Our price estimates show that USAA tends to be the cheapest provider in Alabama. However, not everyone is qualified for coverage. You can get USAA auto insurance if you are a military member, veteran, or have close family members on duty.

USAA is known for its reliable customer service and ranks in a number of industry studies by J.D. Power off well. USAA's usage-based program, SafePilot®, is also available in Alabama. The program can be a good option for people who work from home or who rarely drive a car.

USAA highlights include:

3. Nationwide

Nationwide offers affordable rates in Alabama, especially for drivers with a recent parking ticket or bad credit. In Alabama, you can download the Nationwide SmartRide® app for discounts based on safe driving habits. According to the company's website, you can get a 10% discount for signing up and up to 40% discount if you are a good driver. Nationwide additional coverage options include accident forgiveness, roadside assistance, and gap insurance.

The nationwide highlights include:

  • 9 discounts

  • A + rating with accreditation from the BBB

  • A + financial rating from AM Best

  • Above average score in the J.D. Power Auto Claims Satisfaction Study

4. Travelers

Our price estimates show that, overall, Travelers is an affordable option, especially for young drivers in Alabama. The company offers many additional options such as new car replacement, carpooling, breakdown assistance and accident forgiveness. Travelers also has strong industry ratings from BBB and AM Best.

The highlights of the travelers include:

  • 12 discounts

  • A + rating from BBB

  • A ++ financial rating from AM Best

5. Liberty Mutual

Liberty Mutual can be a great option for motorists in Alabama. Liberty Mutual offers additional insurance options including new car replacements, better car replacements, gap coverage and genuine parts replacement.

Liberty Mutual highlights include:

  • 17 discounts

  • A + rating with accreditation from the BBB

  • Financial rating of A from AM Best

  • In the J.D. Power Insurance Shopping Study Proven # 1 Major Auto Insurer

Auto Insurance Requirements in Alabama

According to the Alabama Department of Insurance, all drivers must have liability insurance with a minimum limit of 25/50/25. This translates to $ 25,000 personal injury liability, $ 50,000 personal injury liability per accident, and $ 25,000 property damage liability.

Motor vehicle liability insurance does not cover your vehicle if you cause an accident or bump into a stationary object. It also doesn't cover any of your medical bills if you cause an accident. After all, it doesn't help if an uninsured or underinsured driver causes an accident and cannot cover the damage. To cover these situations you should add the following:

How to Get Auto Insurance in Alabama

Geico, USAA, and Nationwide are all great options for auto insurance in Alabama. However, what is best for someone else may not be best for you. Compare car insurance rates from different providers to see which offers the best coverage and prices.

frequently asked Questions

How much does car insurance cost in Alabama per month?

According to our rate estimates, full insurance in Alabama for good drivers can cost $ 70 to $ 100 per month, depending on the company. The monthly costs can go beyond this depending on the situation.

What auto insurance is required in Alabama?

The state of Alabama requires drivers to have 25/50/25 liability insurance. This insurance covers personal injury and property damage for third parties in the event of accidents that you cause. It does not cover damage to your car or injuries that occur after a culpable accident.

How can I get auto insurance in Alabama?

To get auto insurance in Alabama, you can shop online at any major retailer. You can also contact insurance company intermediaries or independent intermediaries who can compare companies for you.

Our methodology

We have created a rating system to formulate our auto insurance company rankings. We collected data from dozens of auto insurance providers to rank the companies on a variety of ranking factors. The end result was an overall rating for each provider.

Our ratings take the following factors into account:

  • call: Our research team considered market share, industry expert reviews, and years in business in awarding this rating.

  • Availability: Auto insurance companies with greater government availability and fewer licensing requirements performed best in this category.

  • cover: Companies that offer a variety of insurance options are more likely to meet consumer needs.

  • costs: Auto insurance rate estimates and discount opportunities generated by Quadrant Information Services were both considered.

  • Customer experience: This rating is based on the volume of complaints reported by NAIC and J.D. Power reported customer satisfaction ratings. We also considered the responsiveness, friendliness and helpfulness of each insurance company's customer service team based on our own buyer analysis.

* Data correct at the time of publication.

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