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Best & Cheapest Alabama Car Insurance as Rated by Customers in 2020

4.67 ★★★★★
4579 customer reviews
rated their claim's experience positively
4.20 ★★★★★
207 customer reviews
rated their claim's experience positively
4.19 ★★★★★
461 customer reviews
rated their claim's experience positively
4.13 ★★★★★
16886 customer reviews
rated their claim's experience positively
4.09 ★★★★★
2059 customer reviews
rated their claim's experience positively
4.05 ★★★★★
2230 customer reviews
rated their claim's experience positively
4.03 ★★★★★
7149 customer reviews
rated their claim's experience positively
3.96 ★★★★★
1333 customer reviews
rated their claim's experience positively
3.93 ★★★★★
746 customer reviews
rated their claim's experience positively
3.89 ★★★★★
143 customer reviews
rated their claim's experience positively
3.78 ★★★★★
163 customer reviews
rated their claim's experience positively
3.74 ★★★★★
545 customer reviews
rated their claim's experience positively
3.69 ★★★★★
90 customer reviews
rated their claim's experience positively
3.58 ★★★★★
239 customer reviews
rated their claim's experience positively
2.57 ★★★★★
126 customer reviews
rated their claim's experience positively
2.16 ★★★★★
133 customer reviews
rated their claim's experience positively
2.06 ★★★★★
38 customer reviews
rated their claim's experience positively
1.78 ★★★★★
56 customer reviews
rated their claim's experience positively

With so many car insurance advertisements, it’s hard to know which is the best Alabama car insurance company for you. At Clearsurance, we want to simplify the process for you and help you quickly identify the best car insurance companies in Alabama. With thousands of car insurance reviews from unbiased policyholders, we have reviews and rankings for hundreds of car insurance companies so you can evaluate and compare the best Alabama car insurance companies.

In the table above, you can sort through all the Alabama car insurance companies ranked on Clearsurance. The rating next to each company — the insurer’s Clearsurance score — is based exclusively on the ratings provided by customers. Note: Only those companies with at least 25 car insurance reviews are eligible to appear in the best Alabama car insurance rankings.

Looking for more information about one of these Alabama car insurance companies? By visiting a company’s profile page, you can learn about discounts the company offers, other coverages available and read car insurance reviews to learn from the experiences of other policyholders.

On this page:

Who offers the cheapest teen car insurance rates in Alabama?

Among the five largest car insurance companies in Alabama, Alfa Insurance is the cheapest auto insurance company for male teen drivers. Geico Insurance is the cheapest car insurance option for female teen drivers out of the five companies.

Below is a look at the Alabama teen car insurance rates for male and female drivers.

Company Female teen rates Male teen rates
Alfa Insurance $1,633 $2,151
Allstate Insurance $1,963 $2,132
Geico $1,696 $1,675
Progressive $2,657 $3,019
State Farm Insurance Company $1,773 $2,088

These rates are based on profiles for 18-year-old male and female drivers in Alabama. The car used was a 2015 Honda Civic EX. We used the minimum car insurance state limits. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.

Who offers the cheapest car insurance rates for a married couple in Alabama?

For a married couple with two vehicles on a car insurance policy, Geico offers the cheapest average car insurance rates among the five largest auto insurance companies in the states.

Company Married couple rates
Alfa Insurance $1,985
Allstate Insurance $1,619
Geico $1,223
Progressive $2,080
State Farm Insurance Company $2,172

These rates are based on a 35-year-old married couple with two drivers and two vehicles on a policy. The cars used were two 2015 Toyota Highlander LEs. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had 1 driving incident within the past 3 years and they both have a good credit score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.

Who offers the cheapest senior car insurance rates in Alabama?

Among the five largest car insurance companies in the state, Allstate offers the cheapest car insurance rates for senior drivers in Alabama.

Company Female senior rates Male senior rates
Alfa Insurance $1,221 $1,221
Allstate Insurance $930 $958
Geico $1,152 $1,331
Progressive $962 $1,014
State Farm Insurance Company $1,062 $1,062

These rates are based on profiles for 65-year-old male and female drivers. The car used for each was a 2015 Toyota Camry LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had zero incidents within the past three years and a good credit score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.

10 Cheapest areas in Alabama for car insurance

There are many things that affect your car insurance rates, such as the state you live in. But did you know the Alabama city and even neighborhood within the city you live in affects your rates also? In the table below, you can see the top 10 cheapest areas in Alabama for car insurance for single adults.

Area Car insurance rates
Hartselle $1,380
Ozark $1,383
Daleville $1,391
Falkville $1,395
Eva $1,396
Enterprise $1,396
Opp $1,396
Decatur $1,401
Florence $1,402
Ashford $1,402

These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.

10 Most expensive areas in Alabama for car insurance

Car insurance rates may be more expensive in some areas of Alabama based on a few factors: driving behavior in the area, frequency of accidents and crime rate. These can cause rates to be more expensive in some cities and even different neighborhoods within the city. The table below displays the top 10 most expensive areas in Alabama for car insurance for a single adult.

Area Car insurance rates
Fairfield $1,733
Dolomite $1,711
Mulga $1,695
Wilmer $1,691
Chunchula $1,684
Saint Elmo $1,681
Semmes $1,679
Oakman $1,677
Birmingham $1,676
Mobile $1,668

These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in Alabama will differ. Rate data is provided by Quadrant Information Services.

Minimum car insurance coverage and limits in Alabama

Alabama’s car insurance laws are similar to many other states in the country, as drivers are required to purchase bodily injury and property damage liability insurance. The minimum liability amounts required are listed below, but you should consider purchasing higher limits if you want to protect your assets in the event of a costly crash. You can learn more about different car insurance coverages and what the limits mean here.

If you are caught without the necessary car insurance in Alabama, you’ll be fined $500, and your license and registration will be suspended.

Alabama state minimum requirements:

Liability:

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

Bodily injury liability provides coverage for injuries sustained by the other vehicle’s driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims.

Property damage liability provides coverage in the event you damage someone else’s property in an automobile accident, most commonly the other vehicle, but also things like a home or fence.

Alabama’s uninsured motorist percentage

While uninsured motorist coverage is not required in Alabama, it would be a wise purchase for residents to consider. Alabama’s percentage of uninsured drivers is 18.4 — the sixth highest of any state in the country, according to 2015 data from the Insurance Information Institute.

Uninsured motorist coverage or underinsured motorist coverage offers you protection in the event you are involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough coverage.

How car insurance rates are calculated in Alabama

When searching and comparing quotes from the best auto insurance companies in Alabama, it can be frustrating trying to understand how your insurance rates are calculated. While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the price you pay for your insurance. Among the factors that car insurers consider are:

  • Your driving record
  • How much you drive
  • Location
  • Age
  • Marital status
  • Gender
  • Your car’s make, model and year
  • Your credit history
  • Amount of car insurance coverage (required coverage and optional add-ons, such as collision and comprehensive)

One of the biggest misunderstandings when it comes to insurance rates is that the history of drivers in your area also contributes to how much you pay. For instance, even if you go two years without an accident, if there were a lot of accidents near you recently, your rates might still go up. Why is that the case?

Insurance companies disperse risk across all policyholders so that when it comes time to pay a claim, they have enough money to pay out. But imagine a scenario where they only raised rates for drivers with an accident. For drivers who had an expensive claim, the drivers simply wouldn't be able to afford the raised rates that are based off how much their insurer had to pay after an accident. So instead, insurance companies slightly increase rates across the board to offset the costs, though of course the at-fault driver may see a larger increase.

How to save money on your car insurance in Alabama

At the end of the day, we’d all like to have the best coverage at a cheap, affordable price from one of the best Alabama car insurance companies. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance premium.

Here are six ways you may be able to lower your car insurance rates:

  • Bundle your car insurance with other policies
  • Consider raising your deductibles
  • Pay your car insurance policy in full
  • Try usage-based car insurance
  • Monitor price changes to your policy
  • Shop for better insurance rates

How Clearsurance rates and ranks the best car insurance companies in Alabama

Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:

  • Price
  • Customer Service
  • Claim service
  • Likelihood to renew

The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.

The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings.

Car insurance guide

Whether you’re buying your insurance direct or going through an agent, understanding the different car insurance coverage options is a must. Do you know what is covered by comprehensive coverage? Are you familiar with uninsured motorist coverage? Do you know how a deductible works?

We want to make sure you’re equipped with a proper knowledge of car insurance, so check out our car insurance guide. Looking for more educational information about car insurance? Check out our car insurance blog for more information and topics related to car insurance.