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According to Insure.com’s analysis, Nationwide has the cheapest car insurance rates for most drivers in Alabama at $1,345 annually. However, your rates may be higher or lower based on personal factors such as your driving record, ZIP code and vehicle type.

To comply with Alabama’s car insurance laws, drivers must carry at least the minimum liability coverage required. It consists of $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.

However, many vehicle owners prefer to invest in full-coverage car insurance for better coverage and added protection.

Below, you’ll find which insurance companies are the most affordable for different categories.

Cheapest overall: Nationwide
$1,345/year
National avg. rate
Cheapest for at-fault accident: Travelers
$2,026/year
Avg. rate after an at-fault accident
Cheapest for speeding ticket: State Farm
$1,934/year
Avg. rate after speeding ticket

Key Takeaways

  • Nationwide has the cheapest car insurance in Alabama, with an average annual cost of $1,345, which is 28% less than the state average.
  • Travelers offers affordable car insurance at $2,026 per year to Alabama drivers with a history of at-fault accidents.
  • 36352 is the cheapest ZIP code for auto insurance rates in Alabama at $1,640 annually.

Cheap car insurance companies in Alabama

Nationwide offers Alabama’s most affordable car insurance rates, at $1,345 per year, 28% less than the state’s annual cost. However, your rate may differ based on personal factors like your driving history, ZIP code and vehicle type.

When looking for auto insurance, make sure to compare quotes from at least three different companies to ensure you’re getting the best coverage.

The table below shows the most affordable car insurance companies and their average annual premiums.

CompanyAverage annual rates
Nationwide$1,345
Travelers$1,428
GEICO$1,625
Country Financial$1,694
State Farm$1,790
Auto-Owners$2,134
Allstate$2,178
Progressive$2,402
Farmers$2,542
USAA*$1,458

*Note: USAA only offers coverage to military members, veterans and their families.

How we choose the cheapest car insurance companies in Alabama

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170+

Carriers reviewed
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53M+

Quotes analysed
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34K+

ZIP codes examined

Cheapest ZIP codes for car insurance in Alabama

The cheapest ZIP code for car insurance in Alabama is 36352, with an average annual cost of $1,640. Find below the most affordable ZIP codes for auto insurance rates in Alabama.

ZIP codeCityAverage annual rates
36352Dothan$1,640
36362Fort Rucker$1,664
36360Ozark$1,669
35661Muscle Shoals$1,669
35671Tanner$1,672
36344Hartford$1,674
35640Hartselle$1,675
35660Sheffield$1,675
36303Dothan$1,676
36376Webb$1,677

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 city

Cheapest car insurance in Alabama by age

In Alabama, young drivers often face higher insurance premiums than adults due to their higher likelihood of being involved in accidents and filing claims. According to an analysis by Insure.com, a 16-year-old driver pays $5,643 more for insurance than a 40-year-old driver.

Below are the cheapest auto insurance rates for Alabama drivers of different ages.

Age groupFull coverage annual premiums
Teens (16-19)$5,995
Young Adults (20-24)$2,813
Adults (25-60)$1,855
Seniors (65-75)$1,835

Cheapest car insurance in Alabama by driver history

Insurers consider your driving history to be one of the most important factors in setting insurance rates. If you’re involved in an at-fault accident or convicted of a traffic violation, your premiums may increase. On the other hand, having a clean record makes you a low-risk driver and can lead to cheaper car insurance.

Cheapest car insurance after a speeding ticket in Alabama

Here are the top three companies that offer cheap car insurance after a speeding ticket:

  • State Farm: $1,934 per year
  • Travelers: $2,002 per year
  • Nationwide: $2,074 per year

According to Insure.com data, a single speeding ticket can increase your rates by 39% or $734 in Alabama.

Getting a speeding ticket can be costly. You will have to pay a fine, and your insurance rates may go up. If you’re looking for the cheapest car insurance costs in Alabama, below are some insurers that offer cheap car insurance after a speeding ticket.

CompanyAverage annual premiumNew rate after accident% Increase$ Increase
State Farm$1,790$1,9348%$144
Travelers$1,428$2,00240%$574
Nationwide$1,345$2,07454%$729
Allstate$2,178$2,41411%$236
Auto-Owners$2,134$2,72628%$592
GEICO$1,625$3,00585%$1,380
Progressive$2,402$3,06528%$663
Farmers$2,542$4,03059%$1,488
USAA*$1,458$1,68516%$227

*Note: USAA only offers coverage to military members, veterans and their families.

Cheapest car insurance after an accident in Alabama

Here are the top three companies that offer cheap car insurance after an accident:

  • Travelers: $2,026 per year
  • State Farm: $2,151 per year
  • Nationwide: $2,235 per year

Travelers offers the cheapest car insurance rates to drivers after an at-fault accident at about $2,026 a year.

If you are in an accident and are at fault, you will probably see your car insurance premiums increase. However, this does not mean you can’t shop around to find better rates.

Below, you’ll see which companies have cheap car insurance for drivers with one accident on their record.

CompanyAverage annual premiumNew rate after accident% Increase$ Increase
Travelers$1,428$2,02642%$598
State Farm$1,790$2,15120%$361
Nationwide$1,345$2,23566%$890
Auto-Owners$2,134$2,69626%$562
GEICO$1,625$2,84575%$1,220
Allstate$2,178$3,37955%$1,201
Progressive$2,402$3,94464%$1,542
Farmers$2,542$4,26968%$1,727
USAA*$1,458$2,21052%$752

*Note: USAA only offers coverage to military members, veterans and their families.

Cheapest car insurance after a DUI conviction in Alabama

Below, you’ll find the top three companies that offer cheap car insurance after a DUI conviction:

  • State Farm: $1,934 per year
  • Travelers: $2,166 per year
  • Nationwide: $2,825 per year

If you’ve been convicted of a DUI, you may wonder how it will affect your car insurance rates. Most insurers will view you as a high-risk driver and will charge you higher rates.

The table below shows the insurance companies offering cheap car insurance rates to drivers after a DUI conviction.

CompanyAverage annual premiumNew rate after accident$ Increase% Increase
State 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%

*Note: USAA only offers coverage to military members, veterans and their families.

Average car insurance cost in Alabama

Full coverage insurance typically costs more than minimum liability insurance, but for most drivers, the additional expense is worthwhile. On average, full coverage car insurance in Alabama is $35 less than the national average.

Full coverage limits vary, but getting a policy with limits of 100/300/100 is recommended for added protection.

What is full coverage car insurance in Alabama?

Full coverage car insurance covers bodily injury liability, property damage liability, collision and comprehensive coverage. Collision insurance helps pay for repairs if your car is damaged in an accident, while comprehensive insurance protects against damage from non-collision events like theft or natural disasters.

In Alabama, if you’re leasing or financing your car, your lender might require you to purchase collision and comprehensive insurance on top of the state-required liability coverage.

Final thoughts

When it comes to car insurance, everyone is looking for ways to save on premiums. However, cutting back on coverage to save a little money now could result in much higher costs later.

Before purchasing an auto insurance policy, consider your specific needs to ensure you purchase adequate insurance coverage. Since car insurance rates differ, it’s important to compare quotes from various companies to find the most affordable coverage in Alabama.

Methodology

Insure.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 applied

  1. 1 At-fault property damage accident over $2K
  2. 1 At-fault property damage accident under $2K
  3. At-fault bodily injury accident
  4. Poor credit
  5. DUI/DWI first offense
  6. Speeding 30+ over limit
  7. Speeding ticket 1-10 MPH over limit
  8. Speeding ticket 11-29 MPH over the limit

These are sample rates, and your exact rates may vary.

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Shivani Gite
Contributing Writer

 
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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.

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