What are my options for cheap car insurance in Alabama? (2021) – MarketWatch

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Car insurance in Alabama is a bit cheaper than the national average, but not all companies offer the cheapest rates or the best coverage. Our own rate estimates show that Geico, USAA and Nationwide can be affordable options for Alabama drivers. Read on to learn about the cheapest companies for different types of drivers.
We recommend getting free car insurance quotes from several leading providers to find the best option for your needs.
In this article:
Our rate estimates show USAA tends to be the cheapest car insurance in Alabama overall, with costs of $809 per year. After that, Geico, Nationwide, Travelers and State Farm are all affordable options. Our rate estimates apply to full coverage insurance for a 35-year-old driver with good credit and a clean driving record.
We’ll also look at costs for different driving situations below.
According to data from the National Association of Insurance Commissioners (NAIC), car insurance in Alabama is a bit less expensive than the national average. In 2018, Alabama drivers paid about $905 for car insurance, while the national average was $1,057. These numbers include both minimum coverage and full coverage policies.
In order of cost, Alabama ranked in 31st place out of 50 states. Some states have average rates that are 50% higher than Alabama’s. Of course, what you pay for coverage depends on your personal situation.
According to our full coverage rate estimates, Geico is typically the cheapest option for drivers in their early 20s in Alabama. Young drivers with good driving records may find prices as low as $1,116 a year from the company. We found USAA was only slightly more expensive than Geico, as well.
Having a recent speeding ticket will increase your auto insurance rates. For Alabama drivers with a speeding ticket, USAA tends to be substantially cheaper than the competition, our research revealed. After that, Geico, Nationwide, State Farm and Allstate offer affordable rates.
USAA is also typically cheaper than many other companies for Alabama drivers who have a recent accident on their record. Our rate estimates show it can be as cheap as $1,178, while other providers tend to start at around $1,600.
Aside from having a DUI, almost nothing can increase car insurance rates as much as having a poor credit score. Not all states allow credit to affect your rates, but Alabama does. USAA is generally the cheapest full coverage option here, followed by Geico and Nationwide.
When choosing a car insurance provider, price is important, but so are factors such as reputation and customer service. Here we have reviewed five options for car insurance companies in Alabama.
*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in Alabama.
Geico is among the cheapest options for an insurance policy for many types of drivers in Alabama. The company has high industry ratings, and it provides a wide selection of car insurance discounts that apply to many drivers. With Geico, you can get all the standard car insurance coverage options plus extras including classic car insurance, mechanical breakdown insurance and rideshare insurance.
Geico highlights include:
2. USAA
Our rate estimates show USAA tends to be the cheapest provider overall in Alabama. However, not everyone qualifies for coverage. You can get USAA car insurance if you are a military member or a veteran, or if you have close family in the service.
USAA is known for providing reliable customer service, and it scores high in a number of J.D. Power industry studies. 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 drive infrequently.
USAA highlights include:
Nationwide offers affordable rates in Alabama, especially to drivers with a recent speeding ticket or poor credit. In Alabama, you can get the Nationwide SmartRide® app to get discounts based on safe driving habits. According to the company’s website, you can get 10% off for signing up and up to 40% off for being a good driver. Additional coverage options from Nationwide include accident forgiveness, roadside assistance and gap insurance.
Nationwide highlights include:
Our rate estimates show Travelers is an affordable option overall, especially for young drivers in Alabama. The company offers many extra options, such as new car replacement, rideshare coverage, roadside assistance and accident forgiveness. Travelers also has strong industry ratings from the BBB and AM Best.
Travelers highlights include: 
Liberty Mutual can be a good option for drivers in Alabama. Liberty Mutual offers extra coverage options including new car replacement, better car replacement, gap coverage and original parts replacement.
Liberty Mutual highlights include: 
According to the Alabama Department of Insurance, all drivers need to carry liability coverage with minimum limits of 25/50/25. This means $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident and $25,000 of property damage liability.
Liability car insurance does not cover your vehicle if you cause an accident or run into a stationary object. It also doesn’t cover any of your medical bills if you cause an accident. Finally, it won’t help out if an uninsured or underinsured driver causes an accident and can’t cover the damage. To cover these situations, consider adding:
Geico, USAA and Nationwide are all great options for car insurance in Alabama. However, what’s best for someone else might not be the best for you. Compare car insurance rates from multiple providers to see which one offers the best coverage and prices.
According to our rate estimates, full coverage Alabama car insurance can cost $70 to $100 a month for good drivers depending on the company. Monthly costs can go beyond that depending on your situation.
The state of Alabama requires drivers to carry liability insurance in the amounts of 25/50/25. This insurance covers injuries and property damage for other parties in accidents that you cause. It doesn’t cover damage to your car or injuries that happen after an at-fault accident.
To get car insurance in Alabama, you can shop online with any major provider. You can also contact agents at insurance companies or independent agents who can compare companies for you. 
We created a rating system to formulate our rankings of car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider.
Here are the factors our ratings take into account:
*Data accurate at time of publication.
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Home Media researches products and services to help consumers make more informed decisions. This team is an external partner of the MarketWatch editorial staff.

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