Cheapest Auto Insurance in Alabama (2025)
The cheapest car insurance company in Alabama is National General, with monthly liability-rates averaging $49.
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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 $131 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.
Quick Facts
National General, Direct Auto, and USAA offer the cheapest car insurance coverage in Alabama.
A full-coverage car insurance policy costs Alabama drivers $1,570 per year, on average.
The minimum car insurance requirements in Alabama are $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident.
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
Direct Auto vs. National General and USAA
If you’re shopping for car insurance in Alabama, see how these three companies compare.
Data in this table has been sourced from Insurify’s users who have indicated they are insured with the listed providers
Alabama car insurance calculator
Car insurance premiums in Alabama depend on several factors, like your age, your credit history, and what type of vehicle you drive. Use the tool below to estimate how much you might pay for car insurance and see how your current rate compares to what similar drivers pay for coverage.
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 $131 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.
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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.
Many individual rating factors influence your car insurance premium, including your ZIP code. The table below shows how average car insurance rates compare in Alabama cities.
Alabama car insurance FAQs
If you’re looking for affordable car insurance in Alabama, this additional information may help. You can also check out Insurify’s guides on how to lower your car insurance premiums for more information on finding the cheapest insurance.
Car insurance in Alabama costs an average of $131 per month for full-coverage insurance and $64 per month for liability-only insurance.
National General, Direct Auto, and USAA have the cheapest average liability rates in Alabama, according to Insurify data. National General’s liability rates start as low as $49 per month, while Direct Auto and USAA offer rates as low as $56 and $59, respectively.
Even though these are the cheapest car insurance companies in the state, you should still compare quotes from multiple companies to see which one offers the best price for the coverage you need.
USAA, State Farm, and Auto-Owners are Insurify’s picks for best car insurance companies in Alabama. These insurers have high IQ Scores, above-average J.D. Power ratings, and affordable average rates.
No. Alabama is an at-fault state. Drivers who cause accidents, or carry the majority of the fault for an accident, are responsible for compensating other parties for injuries and property damage.7
Alabama requires insurance companies to include uninsured/underinsured motorist coverage in every policy they sell in the state, although drivers can opt out by rejecting it in writing.
But it’s a good idea to have UM/UIM coverage, which can help pay for your damages and medical costs if someone driving without insurance or with too little insurance causes an accident. It can also pay for costs associated with a hit-and-run accident.
In Alabama, 14.2% of drivers are uninsured, according to data from a 2022 Insurance Information Institute report.7
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