Alabama Auto Insurance (2023)

Finding the cheapest auto insurance in Alabama requires a bit of groundwork. Still, you may be able to save hundreds of dollars each year by comparing the best auto insurance companies and understanding how insurance companies calculate rates.

It may be harder for drivers with infractions like DUIs and at-fault accidents to find cheap car insurance, but some companies may offer savings.

Read on to learn more about cheap auto insurance in Alabama, including which companies are the best for different types of drivers and required coverages.

Cheap Auto Insurance in Alabama

A company advertised as cheap isn’t necessarily the cheapest company for every driver. Some companies may charge more for bad credit or full coverage, so depending on your needs, you’ll need to sort through companies to find the best one for you.

To help you find the best company for Alabama car insurance, we’ve listed the cheapest companies by coverage, driving record, and more.

Cheapest for Minimum Liability

Purchasing just the required minimum liability insurance can significantly reduce your insurance rates. It’s a good option for drivers with old cars no longer worth much, though other drivers with newer cars should consider full coverage to avoid high bills.

However, if you want just minimum liability insurance, here is how average monthly rates in Alabama compare to the rest of the U.S.

Geico, State Farm, and Travelers have some of the cheapest average rates in Alabama, costing a few hundred dollars less than companies like Allstate and Farmers.

Cheapest for Full Coverage

Often, full coverage is the best choice for most drivers. While minimum liability insurance pays for other parties’ bills in an accident you cause, full coverage also pays for your bills if you cause an accident. It’s also important to compare rates to find the cheapest full coverage.

Our Allstate auto insurance review shows the company has some of the most expensive full coverage rates on average. On the other hand, companies like Geico and Travelers have some of the cheapest average rates for full coverage.

Cheapest for At-Fault Accidents

At-fault accidents can raise your rates substantially, so it’s important to check which companies have the cheapest Alabama auto insurance rates with an accident on your record. Based on the average monthly rates, you’ll probably save the most with American Family Auto Insurance.

While Progressive is one of the cheapest insurance companies initially, it’s one of the most expensive after an accident. Therefore, looking at companies based on your driving profile is essential.

Some insurance companies may offer accident forgiveness, where your first at-fault accident with the company won’t increase your rates. This feature can save you a lot of money after your first accident. It’s important to research and discover which insurance companies have accident forgiveness.

Cheapest for DUIs

DUIs can raise drivers’ rates by hundreds of dollars, like at-fault accidents, making it harder to find cheap car insurance in Alabama. However, State Farm tends to raise its rates the least, as does Progressive.

Some of the most expensive companies after a DUI are Allstate and Liberty Mutual. Both companies tend to be cheaper than most for drivers without DUIs, but you may want to shop around at other companies to find cheap auto insurance if you have a DUI in Alabama.

Cheapest for Bad Credit

Most insurance companies increase rates for drivers with bad credit since they’re more likely to miss payments. Unfortunately, this can lead to many other issues, such as canceled insurance coverage and driving illegally without insurance.

However, having bad credit doesn’t mean you can’t find savings. You can discover the best auto insurance companies for bad credit if you look specifically for companies who cater to people with poor credit scores.

Take a look at company rates by credit score below.

Geico and Nationwide are some of the best choices for drivers with poor credit scores, while Liberty Mutual and Allstate are some of the worst, costing thousands of dollars more than the cheapest companies.

Cheapest for Young Drivers

Young drivers should stay on their parent’s policy for the cheapest rates, but if that isn’t possible, they should take extra care when shopping for insurance. Young drivers tend to have some of the most expensive insurance rates, as seen below in the list of average company rates.

Young drivers pay up to three times more than other drivers, and there are many reasons why auto insurance costs more for young drivers. However, your choice of company could save you money on your rates.

Cheapest Major Cities

Location significantly affects how insurance companies calculate rates due to crime, weather, and traffic. Even within Alabama, you’ll see major rate changes from city to city.

Birmingham has some of the most expensive rates, costing a few hundred dollars more on average than cities like Huntsville. Getting car insurance quotes in Alabama can help you find the best auto insurance in Birmingham.

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Alabama Auto Insurance and DUI Laws

State insurance and DUI laws also affect how much you pay for insurance. For example, insurance in a state requiring higher coverage amounts will cost more than in a state with low coverage limits.

Read on to learn about Alabama’s insurance and DUI laws.

Required Alabama Auto Insurance Coverages

Every driver in Alabama must carry bodily injury and property damage liability auto insurance coverage. Not carrying these coverages is illegal and will result in fines, revoked licenses, and more.

The required limit amounts are as follows:

• Bodily injury liability insurance: $25,000 per person and $50,000 per accident
• Property damage liability insurance: $25,000 per accident

The above limits refer to the maximum amount your insurance will pay to other parties if you cause an accident. Since these amounts are rather low, we recommend carrying higher limits if you can afford them.

Optional Alabama Auto Insurance Coverages

Besides bodily injury and property damage liability insurance, most insurance coverages are optional. The exception is collision and comprehensive insurance, which your lender may require if you have a lease or loan on your car.

In most cases, though, you can choose whether you want to carry the following coverages:

• Comprehensive insurance
• Collision insurance
• GAP insurance
• Modified car insurance
• Non-owner car insurance
• Rental car reimbursement insurance
• Roadside assistance
• Uninsured motorist insurance
• Underinsured motorist insurance
• Umbrella insurance

Add-on coverages may seem excessive, but you’ll be better protected financially after an accident than if you just carried the required liability insurance. It’s important to find out how much auto insurance coverage you need.

Alabama DUI Penalties

In Alabama, drivers charged with DUIs face much more than just increased insurance rates that make it hard to find cheap auto insurance in Alabama.

DUI drivers may also face the following penalties:

• Fines
• Ignition interlock device (IID)
• Jail time
• License suspension
• Probation

The cost of installing an IID and other court costs can quickly add up to thousands of dollars, not counting your increased insurance rates. No matter what state you live in, a DUI is expensive. Drunk driving rates vary by state. Driving sober is the best way to keep your car insurance rates and other costs down.

Alabama SR-22 Insurance

In Alabama, high-risk drivers may need to provide the state with an SR-22 certificate, which is proof they’re carrying Alabama’s required insurance coverages.

Some of the drivers who may need an SR-22 certificate include:

• Drivers with a DUI
• Drivers caught driving with a suspended license
• Drivers caught driving without insurance

Your insurance company will file the SR-22 certificate, but you’re responsible for informing your insurance company.

Keep in mind that your current insurance company may drop you as a high-risk driver, so you may need to find a new insurance company after you require an SR-22 certificate. Drivers without an insurance company may need to pay an SR-22 filing fee when signing up with a new company.

You must purchase non-owner car insurance to file for cheap SR-22 auto insurance if you don’t have a car. Non-owner car insurance is extra liability insurance that meets Alabama’s state requirements for car insurance.

The Final Word on Cheap Alabama Auto Insurance

Finding cheap car insurance in Alabama may require time and effort, but drivers can save hundreds of dollars by doing the groundwork.

To find the cheapest car insurance company in Alabama for you, shop around for free quotes to compare rates. Use our free quote comparison tool to find the cheapest insurance rates in your area.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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