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Best Cheap Car Insurance in Alabama for 2019

March 19, 2019
Auto Insurance, Insurance
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If you’re looking for cheap car insurance in Alabama, shopping around will help. Insurance rates vary among companies and factor in your age, driving record, credit and other criteria.

To help Alabamians get the best deal possible, NerdWallet researched rates from the six largest insurers in the state and found the cheapest options for the following types of drivers:

Cheapest for good drivers

The cheapest auto insurer we found for good drivers with clean credit in Alabama is Allstate, which had an average monthly price of $107. Alfa and State Farm were second and third, respectively.

InsurerAverage priceGet your rate
*Alfa is not rated because there is not enough data to evaluate it against larger companies.
3.5 NerdWallet rating

$1,287/year

$107/month


NerdWallet rating: Not rated*

$1,522/year

$127/month

4.0 NerdWallet rating

$1,657/year

$138/month

For this calculation, NerdWallet averaged rates for 40-year-old men and women with a clean driving record and good credit. With the exception of age, a large portion of drivers are closest to this profile, which carries standard "full coverage" insurance, including state-required coverage.

Cheapest for drivers with poor credit

Allstate was the cheapest carrier we found for Alabamians with blemished credit, at an average of $173 per month. Alfa and Geico also make the cheap list, with all three coming in under $200 per month, on average.

InsurerAverage priceGet your rate
*Alfa is not rated because there is not enough data to evaluate it against larger companies.
3.5 NerdWallet rating

$2,070/year

$173/month


NerdWallet rating: Not rated*

$2,138/year

$178/month

3.5 NerdWallet rating

$2,345/year

$195/month

Poor credit can have a bigger effect on car insurance premiums than even a DUI conviction or a recent accident. To calculate these figures, NerdWallet averaged rates for 40-year-olds with a clean driving record, poor credit as reported to their insurer, and standard "full coverage" insurance.

Cheapest for drivers with one at-fault crash

For Alabama drivers who have caused a wreck recently, Alfa was the cheapest insurance company we found, with an average rate of $148 per month. Allstate and State Farm also made the cut for this group.

InsurerAverage priceGet your rate
*Alfa is not rated because there is not enough data to evaluate it against larger companies.

NerdWallet rating: Not rated*

$1,780/year

$148/month

3.5 NerdWallet rating

$1,816/year

$151/month

4.0 NerdWallet rating

$2,223/year

$185/month

To get these figures, we averaged rates for 40-year-olds with one recent at-fault crash and the typical "full coverage" insurance. Your rates will remain high for three to five years after you cause an accident or have a moving violation. If you fall into this category, be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Cheapest for low-mileage drivers

Allstate came in cheapest for Alabama drivers who clock few annual miles, at $107 per month, on average — the same rate it had for higher-mileage drivers. However, Alfa and State Farm had lower rates for this group, and came in second and third, respectively.

InsurerAverage priceGet your rate
*Alfa is not rated because there is not enough data to evaluate it against larger companies.
3.5 NerdWallet rating

$1,287/year

$107/month


NerdWallet rating: Not rated*

$1,348/year

$112/month

4.0 NerdWallet rating

$1,502/year

$125/month

Whether you're retired, work at home or often use public transportation, you may be able to get cheaper car insurance simply because you drive less. The rates above are for 40-year-olds with typical "full coverage" insurance and a clean driving record who drive 5,000 miles per year instead of the standard 12,000.

Cheapest for minimum coverage

Minimum coverage car insurance in Alabama can be found for $50 or less per month, our data indicates. The cheapest was Alfa at an average rate of $45 per month, with Geico and State Farm not far behind.

InsurerAverage priceGet your rate
*Alfa is not rated because there is not enough data to evaluate it against larger companies.

NerdWallet rating: Not rated*

$537/year

$45/month

3.5 NerdWallet rating

$550/year

$46/month

4.0 NerdWallet rating

$574/year

$48/month

We calculated these numbers by averaging rates for 40-year-old good drivers who have only the minimum mandatory insurance in their state. Such light coverage isn't typically recommended, since it might not cover all the bills resulting from a car accident, but it's better than nothing — especially if you can't afford much more.

Cheap for military families


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Get a quote USAA is available only to active military members, veterans and their families

 

Minimum car insurance requirements in Alabama

Alabama drivers are required to purchase liability insurance, which kicks in if you cause a crash to pay for others’ injury treatment and property damage.

The minimum limits you must select are:

  • $25,000 bodily injury liability coverage per person.
  • $50,000 bodily injury liability coverage per crash.
  • $25,000 property damage liability coverage per crash.

It’s typically smart to get more than the bare minimum, however, as these limits may not be enough to fully cover costs if the incident is serious.

Visit NerdWallet’s guide to car insurance requirements by state for more detail on how the required and optional coverages of your auto policy work.

Alternative car insurance in Alabama

If you’ve been denied car insurance on the voluntary market because of violations, poor credit or other factors, you can apply for coverage through the Alabama Automobile Insurance Plan.

Drivers searching for cheap car insurance in Alabama can also try NerdWallet’s auto insurance quotes comparison tool to easily review estimates.

Here’s a summary of where you’ll find the cheapest insurance, by category:

Cheapest car insurance in Alabama

CategoryCheapest option
Good driversAllstate
Drivers with poor creditAllstate
Drivers with one at-fault crash
Alfa
Low-mileage driversAllstate
Minimum coverageAlfa
Cheap for military familiesUSAA
For our base-profile driver with good credit and a clean driving history, NerdWallet averaged rates from the largest insurers for 40-year-old men and women in 20 ZIP codes. The policy includes:

  • $100,000 bodily injury liability coverage per person.
  • $300,000 bodily injury liability coverage per crash.
  • $50,000 property damage liability coverage per crash.
  • $100,000 uninsured motorist bodily injury coverage per person.
  • $300,000 uninsured motorist bodily injury coverage per crash.
  • Collision coverage with $1,000 deductible.
  • Comprehensive coverage with $1,000 deductible.

We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with poor credit, we adjusted the credit tier from “good” to “poor.”
  • For drivers with one at-fault crash, we added a single at-fault crash.
  • For low-mileage drivers, we adjusted the miles driven from 12,000 per year to 5,000.
  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.

We used a 2015 Toyota Camry in all cases. These are rates generated through Quadrant Information Services. Your own rates will be different.

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