Cheapest Auto Insurance in Alabama (2025)
The cheapest car insurance company in Alabama is National General, with monthly liability-rates averaging $50.
Secure. Free. Easy-to-use.
Car insurance in Alabama is cheaper than the national average. Alabama’s comparatively low population density and its midsize population may contribute to the state’s lower car insurance costs.
On average, Alabama drivers pay $132 per month for full-coverage auto insurance and $64 per month for liability-only coverage.
Comparing quotes from several different companies is the best way to find a policy that meets your coverage needs and budget.
3 of the cheapest car insurance companies in Alabama
Which auto insurance company is right for you will depend on your individual situation and needs. But to help you jump-start your research, here are the top car insurance companies for Alabama drivers.
Direct Auto
National General
USAA
How to get the cheapest car insurance in Alabama
Many factors influence how much you pay for car insurance coverage in Alabama. If you’re curious about how to snag affordable car insurance in Alabama, consider these tips:
Drive safely. A clean driving record is key — avoid accidents and traffic violations to show insurance companies you aren’t likely to file claims.
Raise your deductible. Assess whether higher collision and comprehensive deductibles suit your financial situation, as a higher deductible leads to lower premiums.
Bundle policies. Maximize savings by bundling multiple policies (like home or life insurance) with a single insurance company.
Look into discounts. Ask about discounts tied to safety features, like anti-theft devices or airbags.
Shop around. Compare quotes from different insurers to see which company can offer you the amount of coverage you need for the best price.
Cheapest liability-only car insurance quotes in Alabama: National General
Liability-only coverage ensures protection against liability for injuries and damages you cause to others and excludes coverage for your vehicle and injuries.
This type of insurance typically includes bodily injury liability, covering medical expenses and legal fees resulting from injuries to others, and property damage liability, which handles repairs or replacement of damaged property.
Alabama drivers pay a monthly average of $64 for liability-only insurance.
If you’re interested in finding the insurance companies offering the cheapest average liability insurance policies in Alabama, here are the top companies in the state.
Cheapest full-coverage car insurance quotes in Alabama: USAA
Liability-only insurance covers damages and injuries you cause to others, while full-coverage insurance includes additional protection for your vehicle. Full-coverage insurance includes collision and comprehensive coverage, which covers repairs, theft, and non-collision incidents. Full-coverage car insurance is particularly beneficial for drivers with newer or higher-value vehicles.
Full-coverage policies cost $132 per month, on average, for Alabama drivers.
Here are the companies with the cheapest average full-coverage policies in Alabama.
Average cost of car insurance by age
The average cost of car insurance changes as you age. Teen drivers generally pay higher costs due to their lack of driving experience and higher accident risk.3
Rates typically decline around age 25 as drivers gain more experience and become less prone to accidents. But around age 70, senior drivers may see an uptick in their rates because of age-related risk factors, such as decreased vision, reaction time, and overall physical capabilities.4
The table below shows how much Alabama drivers pay for car insurance by age group.
Cheapest car insurance in Alabama by driving record
Some driving infractions can increase your insurance premiums significantly due to the concern that you’re more likely to file an auto insurance claim. These incidents include at-fault car accidents, speeding tickets, driving under the influence (DUI), and other moving violations. But some violations have a greater effect — if you’re convicted of a DUI, your company may not renew your policy.5
In Alabama, drivers with a clean record spend an average of $64 on a liability policy, while drivers with a DUI spend an average of $103 per month.
How car insurance rates have changed in Alabama
Full-coverage car insurance in Alabama rose to an average of more than $1,700 per year in 2024 — a 10% increase from 2023, an Insurify report found. Despite this increase, Alabama’s car insurance rates remain lower than the nationwide average.
In the chart below, you can see how car insurance rates have changed in Alabama over the past two years.