Low-cost car insurance in Alabama

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Drivers in Alabama can find the cheapest average premium with Travelers, at $1,677 per year. By comparison, the statewide average monthly cost is $176. 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

Travelers has the cheapest average premium in Alabama, coming in at $1,677 per year – about $430 compared to the state average.
For drivers with an at-fault accident on their record, Travelers offers the lowest rates, with annual costs averaging $2,379.
The 36352 ZIP code is the least expensive area in Alabama for car insurance, with an average yearly premium of $1,850.

Low-cost car insurance companies in Alabama

Travelers offers the lowest car insurance rates in Alabama, with an average annual premium of $1,677 per year. It’s $430 less expensive than the average car insurance cost in Alabama. Your actual rate will vary based on factors such as your driving history, age, ZIP code and the make and model of your car.

When shopping for auto insurance, compare rates from multiple companies to make sure you’re getting the best deal.

Below are the annual rates from low-cost car insurance companies..

Company	Average annual rates
Travelers	$1,677
GEICO	$1,709
Country Financial	$1,840
Nationwide	$1,963
Auto-Owners	$2,227
Progressive	$2,452
Allstate	$2,524
Farmers	$3,024
USAA*	$1,556

*USAA is only available to military community members and their families.

How we choose low-cost car insurance companies in Alabama

170+

Carriers reviewed

78M+

Quotes analysed

34K+

ZIP codes examined

ZIP codes with the cheapest car insurance in Alabama

In Alabama, drivers living in the 36352 ZIP code enjoy the lowest average annual premium at $1,850. Check the table below to see which other ZIP codes in the state have more affordable rates.

ZIP code	City	Average annual rates
36352	Dothan	$1,850
36303	Dothan	$1,865
36320	Cottonwood	$1,866
36301	Dothan	$1,868
36376	Webb	$1,868
36312	Ashford	$1,874
36321	Cowarts	$1,878
36305	Dothan	$1,882
36330	Enterprise	$1,883
36360	Ozark	$1,903

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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

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Low-cost car insurance in Alabama by age

Teenagers pay significantly more for car insurance than adults in Alabama. For instance, a 16-year-old driver pays $7,092 more on average than a 40-year-old.

The following table shows car insurance rates by age group in Alabama.

Age group	Full coverage annual premiums
Teens (16-19)	$7,082
Young Adults (20-24)	$3,217
Adults (25-60)	$2,104
Seniors (65-75)	$2,033

Low-cost car insurance in Alabama by driver history

Insurers 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 Alabama

Just one speeding ticket in Alabama can raise your rates by 39% – $831 more per year. Along with the ticket fine, that makes speeding an expensive mistake. The table below shows insurers offering lower-cost options even with a violation.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
Travelers	$1,677	$2,351	40%	$674
Allstate	$2,524	$2,797	11%	$273
Auto-Owners	$2,227	$2,844	28%	$617
Nationwide	$1,963	$3,028	54%	$1,065
Progressive	$2,452	$3,129	28%	$677
GEICO	$1,709	$3,162	85%	$1,452
Farmers	$3,024	$4,793	59%	$1,769
USAA*	$1,556	$1,798	16%	$242

*USAA is only available to military community members and their families.

Low-cost car insurance after an accident in Alabama

Being at fault in an accident will drive your premiums up, but some insurers remain more affordable than others. Travelers is the lowest-cost option for these drivers, with an average annual premium of $2,379.

If you’ve had an accident, comparing quotes can help you avoid overpaying. See the table below for the cheapest companies after one at-fault accident.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
Travelers	$1,677	$2,379	42%	$702
Auto-Owners	$2,227	$2,813	26%	$586
GEICO	$1,709	$2,993	75%	$1,284
Nationwide	$1,963	$3,262	66%	$1,300
Allstate	$2,524	$3,916	55%	$1,392
Progressive	$2,452	$4,026	64%	$1,574
Farmers	$3,024	$5,078	68%	$2,054
USAA*	$1,556	$2,359	52%	$802

*USAA is only available to military community members and their families.

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.

Company	Average annual premium	New rate after accident	$ Increase	% Increase
Travelers	$1,677	$2,544	$867	52%
Progressive	$2,452	$2,940	$488	20%
Allstate	$2,524	$3,359	$835	33%
GEICO	$1,709	$3,680	$1,970	115%
Nationwide	$1,963	$4,124	$2,161	110%
Auto-Owners	$2,227	$4,154	$1,927	87%
Farmers	$3,024	$6,296	$3,273	108%
USAA*	$1,556	$3,302	$1,746	112%

*USAA is only available to military community members and their families.

Average cost of car insurance Alabama

Full coverage costs more than liability-only, but for most drivers, the additional protection is worth it. Liability-only policies cover injuries and damage you cause to others, but don’t pay for your own vehicle. Full coverage adds collision and comprehensive, protecting you against accidents, theft, weather damage, and more.

In Alabama, the average cost of full coverage is $406 less compared to the national average

We recommend carrying coverage limits of 100/300/100 – $100,000 in bodily injury per person, $300,000 per accident, and $100,000 in property damage liability. These higher limits help protect you financially in severe accidents.

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 protected

When it comes to car insurance, everyone is looking for ways to save. However, skimping on coverage to save a few dollars now could end up costing you more down the road.

Ensure you’re adequately protected and consider your specific needs before buying an auto insurance policy. Car insurance rates vary, so compare quotes from at least three different companies to find low-cost 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 violations 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 At-fault property damage accident over $2K
1 At-fault property damage accident under $2K
At-fault bodily injury accident
Poor credit
DUI/DWI first offense
Speeding 30+ over limit
Speeding ticket 1-10 MPH over limit
Speeding ticket 11-29 MPH over the limit

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

Shivani Gite

Contributing 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.