Cheap Auto Insurance in Montgomery, Alabama (2025)

Montgomery is the capital of Alabama and one of the state’s most populous cities, which contributes to the city’s higher-than-average car insurance rates. Montgomery drivers pay an average of $73 per month for liability insurance and $162 per month for full coverage. The state-level averages for Alabama are $132 for full coverage and $64 for liability-only policies.

But it’s still possible for drivers in Montgomery to find cheap premiums. Here’s what you need to know about finding the most affordable coverage in Montgomery.

Best car insurance companies in Montgomery

If you’re on the lookout for the best car insurance company, consider factors like your budget, driving record, coverage preferences, and personal needs. To help you get started, Insurify identified the best car insurance companies in Montgomery, based on AM Best ratings, average quotes, customer service reviews, and more.

Best insurer for full coverage: Auto-Owners

Best insurer for military and veteran drivers: USAA

Best insurer for bundling: State Farm

How to get the cheapest car insurance in Montgomery

You’ll need to put in some work to find the cheapest car insurance for your unique situation. These tips can help you land the best deal on an auto policy in Montgomery:

• Shop around. It may be tempting to choose a policy from the first car insurance company you come across. But if you’d like to save as much money as possible and secure the best rate, get quotes from at least three different companies and compare your insurance options.

• Ask about discounts. It’s typical for car insurance companies to offer various discounts. A few examples include the multi-car discount and loyalty discount. Visit an insurer’s website or ask an insurance agent to learn more about discounts you might qualify for.

• Bundle policies. You likely need more than one type of insurance policy. If this is true, you can usually secure a discount for bundling an auto policy with homeowners insurance, renters insurance, or even life insurance.

• Consider pay-per-mile insurance. If you’re an infrequent driver because you’re retired or work remotely, for example, pay-per-mile insurance may make sense. You’ll only pay for the number of miles you drive.

Alabama requires liability car insurance for all drivers. To drive legally, you must carry minimum limits of 25/50/25.2 A liability policy pays for the other party’s property damage and injury costs after an at-fault accident, but it doesn’t cover your own injuries or vehicle damages. It’s typically the cheapest type of car insurance policy drivers can purchase because it offers such limited coverage. Liability-only policies generally work best for drivers who have an older, less-expensive, and paid-off vehicle.

Here are the most affordable liability-only car insurance companies in Montgomery.

Cheapest full-coverage car insurance in Montgomery: USAA

Though more expensive than liability-only coverage, full-coverage car insurance may be worthwhile. It usually includes liability, collision, and comprehensive insurance, which extends coverage to pay for your vehicle damages, even after an at-fault accident. It may also include medical payments (MedPay) or personal injury protection (PIP) to cover your injuries.

Full-coverage insurance is especially beneficial for drivers with expensive vehicles or who live in theft- and accident-prone areas. And, if you lease or finance your car, your leasing company or lender will require you to buy full-coverage car insurance.

The table below shows the cheapest full-coverage car insurance companies in Montgomery.

Car insurance requirements in Alabama

Alabama is an at-fault state, also called a tort state. This means a driver who causes an accident is responsible for the medical expenses and property damage costs of the other parties. In addition, Alabama adheres to the contributory negligence rule — so if you’re partly at fault for an accident, you might not be able to recover damages. Drivers must also show proof of insurance while driving, or they may face legal and financial consequences.

Here are Alabama’s minimum car insurance requirements:2

If you’re looking for additional protection as a Montgomery driver, you may want to consider these optional car insurance policies:

Cheapest car insurance for drivers with an incident

Incidents like at-fault accidents, speeding tickets, and driving under the influence (DUI) convictions can increase your car insurance rates. Montgomery residents with clean driving records typically land the lowest prices. Fortunately, you can still find cheap car insurance, even if you have a spotty driving record. Here are the cheapest insurers in Montgomery for drivers with incidents on their records.

Cheapest car insurance for drivers with a speeding ticket: National General

In 2022, speeding was a leading factor in accidents in Alabama.3 Speeding can make it difficult to react quickly and take proper action in dangerous situations. Insurance companies consider drivers with speeding tickets to be high-risk and raise rates as a result, even if the driver didn’t cause a car accident.

In Montgomery, getting a speeding ticket can land you with average car insurance rates of $220 per month for full coverage and $99 for liability-only policies. The table below shows liability car insurance rates for Montgomery drivers with a speeding ticket on their records.

Cheapest car insurance for drivers with an at-fault accident: National General

In 2022, Montgomery County had 9,224 traffic accidents.3 If you’re responsible for an accident, your car insurance rates will likely increase due to your classification as a high-risk driver. You may be able to dodge higher rates if you purchased accident forgiveness, but it’s not guaranteed.

Montgomery drivers with at-fault accidents on their records see average car insurance rates of $100 per month for minimum-coverage policies and $221 for full coverage. The table below shows the auto insurers with the cheapest liability-only car insurance quotes for Montgomery drivers with an at-fault accident.

Cheapest car insurance for drivers with a DUI: National General

Alcohol- or drug-impairment was a suspected factor in 5,005 crashes that killed 197 people in Alabama in 2022.3 A DUI can lead to hefty fines and jail time as well as more expensive car insurance coverage, especially if you have to file an SR-22.

In Montgomery, a DUI conviction pushes average car insurance rates to $261 per month for full coverage and $118 for liability-only policies. Here’s a look at average minimum-coverage car insurance quotes for Montgomery drivers with a DUI on their records.

Cheapest car insurance for seniors: National General

As drivers gain experience on the road and get older, car insurance premiums decrease. Average premiums usually decrease around age 25 and then increase a bit around age 70 due to age-related conditions that increase accident risks.4 However, senior drivers typically pay lower-than-average premiums than many other age groups.

Car insurance for seniors in Montgomery averages $142 per month for full coverage and $64 for liability-only policies. Here’s a look at the lowest auto insurance quotes for Montgomery senior drivers.

Cheapest car insurance for teens: National General

Compared to older drivers, teenagers and young adults have less experience behind the wheel, which is why they can expect higher car insurance costs. Drivers younger than 24 made up the highest percentage of drivers involved in car accidents in Alabama in 2022.3 To save money on auto insurance, teens can stay on their parents’ policy, complete an approved driver education course, or lock in a good student discount.

Teen drivers in Montgomery pay, on average, $340 per month for their own full-coverage policies, and $153 for liability only. Here are the cheapest auto insurance companies in Montgomery for teens and young drivers.

Montgomery car insurance quotes by credit tier

Insurance companies believe that drivers with good to excellent credit are less risky and usually file fewer claims than drivers with poor credit. For this reason, car insurance companies consider your credit score when determining premiums. While a handful of states prohibit insurers from considering credit history, Alabama allows it.

In Montgomery, a driver with poor credit pays around 100% more on average than a driver with excellent credit. Here’s how credit tiers affect average quotes in Montgomery.

Is car insurance more expensive in Montgomery?

Car insurance rates in Montgomery are higher than the national average. It’s important to note that car insurance premiums differ by city and ZIP code within Alabama due to factors like population, crime rates, and the number of uninsured drivers.5

For example, cities with fewer traffic fatalities may have lower liability car insurance rates, while areas more at risk of damage from coastal weather may have higher full-coverage car insurance rates.

More cities in Alabama

Here are average monthly quotes for car insurance in other Alabama cities.