Best Car Insurance in Alabama 2025
State Farm, Direct Auto, and USAA are among the best insurers for Alabama drivers, offering competitive rates and solid coverage options.
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Alabama has the third-cheapest average car insurance rates in the U.S., Insurify data shows. But with so much affordable coverage available, it can be a challenge to know which insurance company is best for your needs.
From flexible payment options and plenty of add-on coverages, to how a company handles claims, you have a lot to consider when shopping for car insurance in Alabama. You’ll need to decide what matters most to you.
To determine which insurers are best for Alabama drivers, Insurify analyzed more than 50 insurance companies. We considered pricing, available coverages, customer satisfaction, and more to arrive at these five recommendations.
Best car insurance companies in Alabama
More than 160 companies sold car insurance policies in Alabama in 2023, according to the Alabama Department of Insurance.[?] Companies range from national organizations with high brand recognition like State Farm, to regional providers like Alfa Mutual, which serves only Alabama and Georgia.
Here are the five best car insurance companies in Alabama based on Insurify’s research.
State Farm: Best overall
Direct Auto: Best for seniors
USAA: Best for active-duty military and veterans
COUNTRY Financial: Best for students
Auto-Owners: Best for drivers with DUIs
Our editorial team analyzed regional and national auto insurance companies that sell policies in Alabama to assess which offer the best rates, coverage options, customer service, and savings to drivers. We prioritized competitive rates, 24/7 customer service, low-mileage discounts or programs, safe driving discounts, homeownership discounts or bundling options, and specialty or supplemental coverages.
How to get the best car insurance in Alabama
Finding the right coverage involves evaluating your priorities and comparing insurance companies to find one that’s a good fit. These tips can help you find the right auto insurance with the features you need based on your driving record and budget.
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Average cost of car insurance in Alabama
Car insurance in Alabama costs an overall average of $97 per month — well below the overall national average of $138 monthly. But rates have been rising in Alabama for multiple years.
Factors such as rising accident frequency, escalating auto repair costs, and more accident claims pushed Alabama’s average cost of full coverage from $1,564 in 2023 to $1,722 in 2024, Insurify data shows.
Despite these increases, prices for an insurance policy in Alabama remain relatively affordable, in large part due to the state’s low population density. Alabama, unfortunately, has more motor vehicle fatalities per vehicle miles traveled than the nationwide average. Though it does have a smaller percentage of impaired driving fatalities and fewer vehicle thefts than many other locations.
Best car insurance in Alabama FAQs
Alabama has a competitive car insurance market, with plenty of options for affordable policies. With so many choices available, here’s some additional information to help you decide on the best car insurance company for your needs.
How much is car insurance in Alabama?
Full-coverage car insurance costs an average of $130 per month in Alabama, Insurify data shows. Liability-only coverage averages $65 per month in the state.
Your monthly rates could be higher or lower than average based on rating factors that are specific to you, such as your driving record, age, gender, and where you live.
What are the best car insurance companies in Alabama?
Insurify researched more than 50 car insurance companies in Alabama to find the best insurers for drivers in the state. Based on our research, State Farm is the best auto insurer in Alabama. Direct Auto and USAA are also worth considering for their competitive rates and coverage offerings.
Which company has the cheapest car insurance rates in Alabama?
National General has the cheapest liability-only rates in Alabama, at $47 per month.
USAA and Auto-Owners also offer low rates for Alabama drivers, with liability coverage as low as $54 and $54 per month, respectively.
What is the required auto insurance coverage amount in Alabama?
To drive in Alabama, you must have $25,000 in bodily injury coverage per person and $50,000 per accident. You must also have $25,000 property damage liability coverage per accident.
But insurance professionals typically recommend you buy more liability coverage than your state’s minimum for better financial protection from at-fault accidents.
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