Not sure where to start when it comes to auto insurance? If y’all have a southern drawl, this insider guide to Alabama’s cheapest car insurance rates, best companies for certain age groups, and more is for you.

What Are You Looking For?

Alabama’s Cheapest Car Insurance Companies

We obtained rates from 20 top companies for five different driver profiles and analyzed the data to find that on average, drivers are paying roughly $2,028.51 a year for minimum liability insurance in Alabama. Should you pay that much? That depends on you, your driving history, and a number of other factors.

We found Travelers, for example, to be 33% less expensive than the state average, based on annual premium data. Alfa Insurance and Safeco came in as a close second and third with rates more than $600 less than state average. Below is a chart that lists the cheapest to most expensive car insurance companies in the Heart of Dixie based on our research.

 Average Annual Rate
Travelers$1,348.97
Alfa Insurance$1,383.75
Safeco$1,423.69
USAA$1,525.42
Farmers$1,642.51
State Farm$1,797.73
Country Insurance$1,818.73
Amtrust$1,852.99
Allstate$1,880.10
California Casualty$1,890.90
Infinity$1,912.71
Auto Owners$1,937.23
National General$2,151.36
Home State Insurance$2,234.32
ACCC$2,273.22
Titan$2,372.07
Progressive$2,497.43
Nationwide$2,574.87
Amica Mutual$2,751.47
GuideOne$2,771.00

*While USAA is the 4th cheapest, it’s important to remember that it’s only available to military personnel and their immediate family members.

How Much Drivers Like You Spend On Auto Insurance

We looked at the 27 most populated Alabama cities to find the cheapest car insurance providers by driver type. Because your rates can vary significantly by age, sex, and marital status, it’s important to know which car insurance companies are the cheapest for drivers like you.

Our data is based on several profiles with ages ranging from 18 to 65. Regardless of age or sex, our profiles use a driver who has one minor driving violation (such as a ticket), travels 15,000 miles a year, and has the minimum state liability coverage. Premiums can fluctuate depending on what car you drive, but we didn’t use a specific make or model.

Cheapest Car Insurance for Teens

Insurance companies typically charge more for this age group because they statistically get into the most accidents. In Alabama, our research found that ACCC Insurance and Farmers are the most affordable options for 18-year old teen drivers. If you are 18 and under, here’s what you might expect to pay for an annual policy from the five cheapest companies.

 Average Annual Rate
ACCC Insurance$2,376.83
Farmers$2,492.93
Allstate$2,974.78
Alfa Insurance$3,115.94
USAA$3,144.79

Cheapest Car Insurance for Single Drivers

Our research shows that by the time you reach 25 your rates could have decreased 45% on average. And depending on your sex, you can pay drastically different rates.   According to our calculations, women pay about 15% less than their male counterparts. Safeco, Travelers, USAA, and Alfa were the four cheapest for both men and women.  See how your rates can differ:

 

Cheapest For Drivers Over 55

There are some perks to aging—including paying less for car insurance. When analyzing rates for a married man and woman, age 62 and 57 respectively, we found that Safeco premiums are among the cheapest for Alabama drivers, with Travelers only $30 behind.

Alabama Car Insurance CompaniesAverage Annual Rate
Safeco$924.64
Travelers$954.07
Alfa Insurance$1,215.07
USAA$1,220.04
Country Insurance$1,274.79

Cost of Alabama Car Insurance by City

Rates can vary significantly throughout a state. For example, we found that there are only 143.4 miles separating the cheapest and most expensive cities, yet Ft. Payne drivers pay $671 more on average. That’s a $4.68 increase for every mile you drive. Below is the breakdown of insurance rates by city in Alabama.

 Average Annual Rate
Florence$2,023.73
Ozark$2,107.74
Foley$2,140.84
Boaz$2,158.68
Russellville$2,162.60
Anniston$2,169.11
Bay Minette$2,170.39
Clanton$2,183.84
Alexander City$2,185.85
Daphne$2,197.69
Cullman$2,202.90
Andalusia$2,209.12
Jasper$2,238.75
Grove Hill$2,242.56
Eufaula$2,243.56
Citronelle$2,307.35
Troy$2,308.31
Dothan$2,315.00
Auburn$2,344.73
Huntsville$2,356.14
Gulf Shores$2,361.87
Tuscaloosa$2,368.15
Decatur$2,371.14
Birmingham$2,408.20
Montgomery$2,430.46
Mobile$2,539.73
Ft. Payne$2,694.95

Market share shows the percentage of customers a company has compared to competitors. It can also show hidden insights about a company. We found that State Farm has the biggest market share in Alabama, but not the cheapest rates. The research helped us discover that Travelers (the cheapest option) ranks 10th for market share. This indicates that the majority of drivers in Alabama are choosing a company for other reasons than price—such as customer service or coverage options. Take a look to see for yourself how price and market share relate to one another.

 Market Share %Average Premiums
State Farm24.61$2,702.47
Alfa Insurance14.77$1,943.86
Allstate10.94$2,750.62
GEICO9.49N/A
Progressive6.88$3,915.80
USAA6.22$2,127.25
Nationwide3.61$3,193.65
Farmers2.91$1,917.50
Liberty Mutual2.63N/A
Travelers2.26$2,191.62

**Prices for GEICO and Liberty Mutual Insurance weren’t available on the Alabama DOI, so we didn’t include them here.

Customer Satisfaction Rating

A “complaint index”— the percentage of customer complaints compared to a company’s written premiums—can tell you a lot about a provider’s overall customer satisfaction. The lower the numbers, the less complaints and better overall satisfaction. We found that Progressive has one of the lowest complaint indexes—an indication its customers are happy in Alabama. Travelers is on the higher end and can be a sign of dissatisfied policyholders.

 Complaint Index
Progressive0.02
Allstate0.03
Alfa Mutual0.03
GEICO0.04
State Farm0.05
USAA0.05
Nationwide0.06
Farmers0.08
Liberty Mutual0.16
Travelers0.21

A complaint index of 1.0 indicates that a company’s complaints are higher than average. You can see that the top 10 providers are well below state average.

Our Recommendation

You have your own mind, so the choice is up to you when it comes to deciding on an insurance company.  We want to help give you peace of mind by giving you the facts and our in-depth analysis. In Alabama, it depends what factor is the biggest priority in your decision:

  • Budget– Our analysis discovered that Travelers is the cheapest across the board and Alfa Insurance is second.
  • Popularity– If you want to go with the most popular auto insurance provider in Alabama, State Farm not only ranks number one, but has a pretty low complaint index too.
  • Customer Satisfaction– Progressive has the lowest complaints in the state and is in the top five market share. Although, our data shows that their policies are much more expensive than others.

Depending on whether you’re farming in the country and barely driving or commuting to school in Auburn, you’ll need to call and get a quote to get an exact price. Call an agent at 855-462-2213 and start comparing insurance policies.

Where We Found The Facts

All of the cost data we found is from The Alabama Department of Insurance. We analyzed it to help give you an idea of what drivers in Alabama pay for insurance, which companies they like best, and which providers are more suited for certain age groups. The key phrase there is “to give you an idea.” Every person is different and you shouldn’t expect your car insurance premium to be exactly what you see here. The information is provided solely for comparison purposes.

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