Home Car insurance Car insurance rates by state Low-cost car insurance in Alabama Low-cost car insurance in Alabama Nationwide offers the lowest car insurance rates in Alabama, based on our data. View Carriers Please enter valid zip Compare top carriers in your area Written by Shivani Gite Shivani Gite Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. | Reviewed by Nupur Gambhir Nupur Gambhir Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant. | Updated on: September 23, 2025 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Drivers in Alabama can find the cheapest average premium with Nationwide, at $1,345 per year. By comparison, the statewide average monthly cost is $155. Keep in mind that rates vary for each driver depending on factors like driving record, ZIP code, and vehicle type. Since auto insurance laws differ by state, Alabama requires drivers to carry at least $25,000 in bodily injury coverage per person, $50,000 in bodily injury per accident, and $25,000 for property damage liability.For broader protection, full coverage may be a smart option. It combines liability, collision, and comprehensive insurance, giving you coverage not only for other drivers but also for your own vehicle if it’s damaged in a crash, stolen, or affected by severe weather.Here’s how different insurers stack up for drivers in Alabama, depending on your situation. Key Takeaways Nationwide has the cheapest average premium in Alabama, coming in at $1,345 per year – about 28% compared to the state average.For drivers with an at-fault accident on their record, Travelers offers the lowest rates, with annual costs averaging $2,026.The 36352 ZIP code is the least expensive area in Alabama for car insurance, with an average yearly premium of $1,640. Low-cost car insurance businesses in AlabamaWhen comparing insurers in Alabama, Nationwide leads the pack with an annual average of $1,345. That’s 28% less than the statewide average. Individual premiums vary depending on your driving record, vehicle type, age, and ZIP code.To make sure you’re getting the best price, it’s always smart to check quotes from multiple carriers.Here are the annual averages from the most affordable insurance companies in Alabama.CompanyAverage annual ratesNationwide$1,345Travelers$1,428GEICO$1,625Country Financial$1,694State Farm$1,790Auto-Owners$2,134Allstate$2,178Progressive$2,402Farmers$2,542USAA*$1,458*USAA is only available to military community members and their families.Powered by:How we choose low-cost car insurance companies in Alabama 170+ Carriers reviewed 53M+ Quotes analysed 34K+ ZIP codes examined ZIP codes with the cheapest car insurance in AlabamaDrivers in 36352 benefit from the lowest average premium in the state, at $1,640 per year. See the table below to find other ZIP codes in Alabama where insurance tends to be cheaper.ZIP codeCityAverage annual rates36352Dothan$1,64036362Fort Rucker$1,66436360Ozark$1,66935661Muscle Shoals$1,66935671Tanner$1,67236344Hartford$1,67435640Hartselle$1,67535660Sheffield$1,67536303Dothan$1,67636376Webb$1,677Powered by: You might find interesting Alabama car insurance calculatorAverage car insurance cost in AlabamaCar insurance calculator for teens in AlabamaCheapest SR-22 insurance in AlabamaDo you need insurance to register a car in Alabama?How much is gap insurance in AlabamaNon-owner auto insurance in Alabama: Which company has the cheapest rates?The best, cheapest car insurance in AlabamaBest and cheapest companies for home and auto bundles in Alabama Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.Car insurance rates in Alabama by cityBirminghamHuntsvilleMobile Our agents make it hassle-free to get the right quote. Call (844) 814-8854 Ethan Available Now Jack Available Now Robbie Available Now Ellie Available Now Low-cost car insurance in Alabama by ageTeenagers pay significantly more for car insurance than adults in Alabama. For instance, a 16-year-old driver pays $5,643 more on average than a 40-year-old.The following table shows car insurance rates by age group in Alabama.Age groupFull coverage annual premiumsTeens (16-19)$5,995Young Adults (20-24)$2,813Adults (25-60)$1,855Seniors (65-75)$1,835Powered by:Low-cost car insurance in Alabama by driver historyInsurers weigh your driving record heavily when setting premiums. You can expect your rates to rise if you’re ticketed or at fault in an accident. On the other hand, drivers with clean records are considered lower risk and usually qualify for cheaper coverage.Low-cost car insurance after a speeding ticket in AlabamaA single speeding ticket in Alabama can push your rates up by 39%, or about $734. Along with the fine, that makes speeding a costly mistake. Here are a few insurers that still provide lower-priced coverage after a ticket.CompanyAverage annual premiumNew rate after accident% Increase$ IncreaseState Farm$1,790$1,9348%$144Travelers$1,428$2,00240%$574Nationwide$1,345$2,07454%$729Allstate$2,178$2,41411%$236Auto-Owners$2,134$2,72628%$592GEICO$1,625$3,00585%$1,380Progressive$2,402$3,06528%$663Farmers$2,542$4,03059%$1,488USAA*$1,458$1,68516%$227*USAA is only available to military community members and their families.Powered by:Low-cost car insurance after an accident in Alabama Travelers offers the lowest car insurance rates to drivers after an at-fault accident at $2,026 a year. If you’re in an accident and are at fault, you will see your car insurance premiums increase. However, this doesn’t mean you can’t shop around to find better rates.Below, you’ll see which companies offer low-cost car insurance for drivers with one accident on their record.CompanyAverage annual premiumNew rate after accident% Increase$ IncreaseTravelers$1,428$2,02642%$598State Farm$1,790$2,15120%$361Nationwide$1,345$2,23566%$890Auto-Owners$2,134$2,69626%$562GEICO$1,625$2,84575%$1,220Allstate$2,178$3,37955%$1,201Progressive$2,402$3,94464%$1,542Farmers$2,542$4,26968%$1,727USAA*$1,458$2,21052%$752*USAA is only available to military community members and their families.Powered by:Low-cost car insurance after a DUI in Alabama]A DUI often places drivers in the high-risk driver category, resulting in much higher rates. Still, some companies in Alabama keep their premiums lower than others. The table below shows the most affordable options available after a DUI.CompanyAverage annual premiumNew rate after accident$ Increase% IncreaseState Farm$1,790$1,934$1448%Travelers$1,428$2,166$73852%Nationwide$1,345$2,825$1,480110%Progressive$2,402$2,880$47820%Allstate$2,178$2,899$72133%GEICO$1,625$3,498$1,873115%Auto-Owners$2,134$3,981$1,84787%Farmers$2,542$5,293$2,751108%USAA*$1,458$3,093$1,635112%*USAA is only available to military community members and their families.Powered by:Average cost of car insurance AlabamaFull coverage insurance costs more than minimum liability insurance, but the extra cost is worth it for most drivers. That’s because minimum liability only pays for injuries or damage you cause to others, leaving you to cover repairs or replacement of your own car out of pocket. Full coverage, on the other hand, includes collision and comprehensive insurance, so your vehicle is protected in situations like accidents, theft, storms, or vandalism.The average cost of full coverage car insurance in Alabama is $35 less than the national average car insurance rates in the U.S.We recommend that you carry at least coverage limits of 100/300/100 – that’s $100,000 in bodily injury coverage per person, $300,000 per accident, and $100,000 in property damage coverage. These limits provide a better safety net if you’re involved in a serious accident where costs could quickly exceed minimum requirements.What is full coverage car insurance?Full coverage car insurance includes bodily injury liability and property damage liability coverage, as well as comprehensive and collision coverage. Collision insurance covers your vehicle if it’s damaged or destroyed in an accident, while comprehensive insurance provides protection against damage that is caused by something other than collisions, such as hail or theft.If you lease or finance your car in Alabama, your lender may ask you to purchase collision and comprehensive insurance beyond the state-mandated liability coverage.The bottom line on saving and staying protectedIt’s natural to look for ways to lower your insurance costs, but cutting corners on coverage can leave you financially vulnerable after an accident.Make sure you choose a policy that balances affordability with protection. Always compare quotes from at least three companies to find low-cost car insurance in Alabama.MethodologyInsure.com gathered data from Quadrant Information Services to get car insurance rates in Alabama. The rates are based on a sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles.We analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes nationwide.To determine car insurance rates for high-risk drivers with a history of traffic violations, we used a sample profile of a 40-year-old male and female driver who own a Honda Accord LX.We also used sample profiles of drivers from different age groups: Teen drivers (Age 16-19), young drivers (Age 20-24), adult drivers (Age 25-60) and senior drivers (Age 65-75)We determined the premiums for a high-risk driver with the following incidents applied1 At-fault property damage accident over $2K1 At-fault property damage accident under $2KAt-fault bodily injury accidentPoor creditDUI/DWI first offenseSpeeding 30+ over limitSpeeding ticket 1-10 MPH over limitSpeeding ticket 11-29 MPH over the limitThese are sample rates, and your exact rates may vary. Shivani GiteContributing Writer | . .Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.Find cheapest car insurance in other statesAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashington D.C.WashingtonWest VirginiaWisconsinWyomingShow more In case you missed it The most expensive and cheapest cars to insure in 2025 Do you have to add a teenage driver to your car insurance policy? Teenage car insurance rates: How much is car insurance for teens? 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How much used car insurance costs: Most and least expensive models to insure Average car insurance rates by age and gender 1/1 On this page Low-cost car insurance businesses in AlabamaHow we choose low-cost car insurance companies in AlabamaZIP codes with the cheapest car insurance in AlabamaLow-cost car insurance in Alabama by ageLow-cost car insurance in Alabama by driver historyAverage cost of car insurance AlabamaWhat is full coverage car insurance?The bottom line on saving and staying protectedMethodology ZIP Code Please enter valid ZIP See rates (844) 645-3330