Best Cheap Car Insurance in Alabama for 2017

Auto Insurance, Insurance

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:

Good drivers

Young drivers

Drivers with one at-fault crash

Drivers with poor credit

Retired drivers

Military families

Also in this article

Minimum car insurance requirements in Alabama

Alternative car insurance for high-risk drivers

Cheapest for good drivers

For drivers with no at-fault accidents, DUIs or moving violations.


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Price

  • $1,190/year

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Price

  • $1,195/year

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price

  • $1,214/year

Geico notched the cheapest average rate for good drivers at $1,190 per year, or roughly $99 a month. ALFA Insurance was next cheapest with nearly the same sample quote as Geico, and Allstate rounded out the list of the three most affordable options.

If you have a sparkling driving record, it’s wise to compare safety-oriented discounts companies offer, such as those for avoiding accidents or moving violations. The savings from these sorts of perks could influence which insurer is cheapest for you.

Cheapest for young drivers

For drivers in their early 20s.


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Price

  • $623/year

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Price

  • $628/year

NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Alex Glenn

price

  • $729/year

Young drivers usually don’t have as much to lose financially in a crash-related lawsuit as older motorists and can select less coverage as a result. We gathered quotes for drivers in their early 20s carrying the minimum required coverage limits, and found relatively cheap car insurance in Alabama.

For instance, ALFA Insurance had the best deal for this group at $623 per year. This was $567 cheaper than the lowest rate we found for 30-year-old good drivers, who carried fuller policies.

Cheapest for drivers with one at-fault crash


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Price

  • $1,327/year

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price

  • $1,701/year

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price

  • $1,764/year

Causing a crash typically leads to higher rates, either when you renew your policy or if you decide to test the waters by shopping around.

ALFA returned the cheapest average quote for drivers with an at-fault crash at $1,327 per year. That’s $137 higher than the best deal we found for motorists of the same age with no accidents. The most expensive rate we saw overall was over $2,900 per year, a reminder that it pays to compare prices among several companies, even if you have a poor driving record.

Cheapest for drivers with poor credit

For drivers placed in the “Poor Credit” tier.


NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Alex Glenn

Price

  • $1,435/year

NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Alex Glenn

Price

  • $1,668/year

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price

  • $1,877/year

Having poor credit often means facing higher car insurance rates than other drivers do. Based on our findings, Alabama insurers could penalize those with credit issues even more than drivers with an at-fault crash on their record.

For example, the cheapest rate we found for this group was $1,435 per year from Geico. This was $245 more per year than the best deal available for good drivers with no credit problems, and $108 higher than the cheapest quote for motorists who caused a crash.

Cheapest for retired drivers

For drivers in their mid- to late 60s who no longer use their car for commuting.


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Price

  • $872/year

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Price

  • $924/year

NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Alex Glenn

price

  • $1,121/year

Because retirees tend to drive less frequently once they give up the daily commute, they can find relatively cheap car insurance in Alabama.

We collected rates for drivers in their 60s who travel half as many miles in a year as other groups. Geico paced the field with an average quote of $872 per year, or about $73 a month. That’s roughly $26 a month cheaper than the lowest price we found for drivers half that age who commute.

Cheapest for drivers with a military connection


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

If you’re an active member of the military or a veteran — or have an immediate family member who is — chances are you’ll get a good rate with USAA, an option unavailable to the general public. In fact, USAA was by far the cheapest option for every driver type above in Alabama. USAA customers also benefit from the insurer’s top-rated customer service.

Minimum car insurance requirements in Alabama

Alabama residents 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 driversGeico
Young drivers
ALFA
Drivers with one at-fault crash
ALFA
Drivers with poor credit Geico
Retired drivers Geico
Drivers with a military connectionUSAA

Alex Glenn is a staff writer for NerdWallet, a consumer finance website. Email: aglenn@nerdwallet.com.

Updated Feb. 23, 2017.


METHODOLOGY

For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with the following coverage limits:

  • $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 a 2013 Toyota Camry in all cases. Our sample retired driver was age 67 and drove 50% fewer annual miles than other groups. Our sample young driver was age 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.