If you are in the market for the cheapest auto insurance, then put National General, State Farm, and Progressive on your bucket list of carriers for quotes.
Each of them are 24% to 32% lower than the median rate for drivers in Alabama.
Other carriers which are competitive are USAA and GEICO.
Both can offer quotes 18% to 26% lower than the median rate for drivers compared to competitors.
Top local companies in the state of Alabama are Alfa, Accc, and Integon General.
Both insurers are able to provide quotes which are 18% to 28% lower than the median rate for drivers with the same age and profile.
Note: A 40 year old driver can find the least expensive quotes with National General, Progressive, and State Farm. I queried each at $623, $645, and $678 respectfully per year for full coverage. Both Alfa and Accc are competitive with quotes at $701 and $734 respectfully. All carriers are at least 17% lower than the median rate for similar profile drivers.
Determined by my query for quotes, you would want to put all of the carriers mentioned so you have a blend of local and national carriers to find the most savings.
In this article I am going to cover the minimum car insurance requirements in Alabama, the least expensive carriers, and other cost-saving strategies for the most savings.
If you would like to skip to a certain portion of the article, please use the table contents down a little and to the right.
Note: For a 45 year old driver the lowest picks are National General, Progressive, and Accc. All five insurers offered quotes which were within $50. I would recommend getting quotes from all five to find the most savings while getting optimum coverage.
Minimum Car Insurance Requirements in Alabama
Table of Contents
- 1 Minimum Car Insurance Requirements in Alabama
The State of Alabama has minimum car insurance limits to help citizens and drivers financially in the unlikely event of an accident.
| Coverage | Alabama Minimum Liability Coverage | Recommended Coverage |
|---|---|---|
| Bodily Injury Protection | $25,000 / $50,000 | $100,000 / $300,000 |
| Property Damage | $25,000 | $25,000 |
| Uninsured Motorist Coverage BIL* | $25,000 / $50,000 | $25,000 / $50,000 |
| Comprehensive Coverage | Optional | $250 - $1,000 deductible |
| Collision Coverage | Optional | $250 - $1,000 deductible |
*This coverage can be rejected.
Bodily Injury Liability
The first number represents the maximum amount an insurance company will pay before the at-fault party is responsible for the other driver’s medical bills.
The minimum coverage you are required to have in the state of Alabama is $25,000.
The second number is the maximum an insurance company will pay for all injured parties in the other automobile.
In Alabama the amount has to be a minimum of $50,000.
Note: A 25 year old driver in Alabama can find the lowest rates with National General, Progressive, and State Farm. The quotes from my top five choices are more than 12% lower than the state average. Please see table below.
Property Damage Liability
The third number is the minimum requirement for property damage liability.
Property damage liability covers damage caused to other automobiles, road signs or buildings.
In Alabama you are required to have a minimum protection of $25,000.
Note: Again the most affordable quotes are from National General, Progressive, and State Farm. For a 30 year old driver, it would be wise to get quotes from all 5 companies. GEICO and Accc may be able to tailor your premium needs for a lower rate based on individual criteria.
The minimum requirement is listed as 25/50/25, if you take a look at the figures above they are in that order respectfully.
While these are the minimum state requirements, they are not the maximum coverage you are allowed to obtain.
While you are able to get as many quotes for free at AutoInsureSavings, it is recommended to consult with an insurance broker to be sure you have the state minimum or if you need more coverage.
Note: For a 35 year old driver all insurers clustered within $100 for a yearly premium. It would be smart to get quotes from all five insurers.
In the event of an accident, the party responsible for the accident will be held responsible for any monetary damages above the amounts set in their insurance policy.
Affordable Auto Insurance Companies & Average Rate & Age
The table below lists the top 20 companies with the cheapest car insurance rates by age.
Please note that each driver had no more than one driving violation, decent credit, single, and driving a 2013 Toyota Camry.
The averages are for the whole state of Alabama.
Therefore, you may get a higher or lower rate depending on the city or zip code you reside in.
Your actual quotes will be different and tailored to your individual car insurance premium needs.
The table is merely showing which insurers offer the lowest rates for a yearly premium and by age in 5 year increments.
| Alabama Company | Average Rate for 25 Y/O Driver | 30 Y/O | 35 Y/O | 40 Y/O | 45 Y/O | 55 Y/O |
|---|---|---|---|---|---|---|
| National General | $1,089 | $843 | $746 | $623 | $600 | $551 |
| Progressive | $1,121 | $845 | $756 | $645 | $609 | $511 |
| State Farm | $1,156 | $876 | $789 | $678 | $623 | $523 |
| USAA | $1,148 | $903 | $800 | $688 | $609 | $554 |
| Alfa | $1,149 | $921 | $799 | $701 | $618 | $553 |
| GEICO | $1,145 | $933 | $803 | $690 | $647 | $556 |
| ACCC | $1,167 | $979 | $843 | $734 | $608 | $558 |
| MetLife | $1,190 | $1,004 | $843 | $721 | $700 | $675 |
| Amica | $1,200 | $1,049 | $854 | $743 | $700 | $558 |
| Nationwide | $1,232 | $1,111 | $879 | $789 | $711 | $590 |
| Infinity | $1,254 | $1,123 | $909 | $800 | $721 | $595 |
| 21st Century | $1,287 | $1,176 | $913 | $801 | $705 | $600 |
| Allstate | $1,289 | $1,188 | $943 | $785 | $706 | $643 |
| Esurance | $1,300 | $1,190 | $956 | $789 | $709 | $658 |
| Integon National | $1,311 | $1,243 | $990 | $805 | $743 | $634 |
| Guideone Speciality | $1,326 | $1,256 | $1,000 | $865 | $765 | $689 |
| Integon General | $1,376 | $1,276 | $1,009 | $876 | $777 | $699 |
| Farmers | $1,421 | $1,289 | $1,046 | $832 | $778 | $694 |
| Standard Fire | $1,532 | $1,293 | $1,090 | $843 | $793 | $711 |
| Liberty Mutual | $1,634 | $1,300 | $1,147 | $909 | $799 | $699 |
| Ameriprise | $1,723 | $1,306 | $1,189 | $932 | $800 | $701 |
Note: A 55 year old driver, with a clean driving history, should be able to find low rates with any of the five insurance companies illustrated.
Uninsured Motorist Protection & Additional Coverage
Alabama is not a “no-fault” state which means the driver does not have to carry collision, comprehensive, uninsured motorist protection, or Personal Injury Protection (PIP).
Even though Alabama does not require uninsured motorist protection, it is recommended to have it to compensate for drivers in the event of an accident and they fail to carry sufficient coverage.
Best Insurance Companies by Premiums, Ratings, & Complaints
The table below shows the best insurers by ratings, complaints, and change in rates over an 18 month period.
Ratings are consumers ratings of each carrier.
The number of complaints are from consumers.
National General, Progressive, and State Farm were the three best based on these metrics.
| Alabama Company | Premiums | # of Complaints | Rate Change < 18 Months | Rating out of 5 Stars |
|---|---|---|---|---|
| National General | $290,183,000 | 6 | +5.4% | 4.4 |
| Progressive | $171,360,000 | 3 | +6.4% | 4.6 |
| State Farm | $604,955,000 | 11 | +3.1% | 4.2 |
| USAA | $151,411,000 | 9 | +3.3% | 4.7 |
| GEICO | $228,534,000 | 21 | +1.9% | 4.7 |
| Liberty Mutual | $62,525,000 | 14 | +2.1% | 4.6 |
| MetLife | $85,110,000 | 6 | +3.7% | 4.2 |
| Amica | $73,122,000 | 6 | +4.0% | 3.9 |
| Nationwide | $97,039,000 | 7 | +8.4% | 4.3 |
| Travelers | $55,880,000 | 9 | +8.1% | 4.3 |
| 21st Century | $42,750,000 | 5 | +6.2% | 4.1 |
| Allstate | $270,293,000 | 7 | +5.2% | 4.5 |
Average Premium by City
Below is a list of 24 cities in Alabama with the median price of an auto insurance premium.
The quotes varied from $1,143 to $1,489 depending on the zip code of the driver.
Location is a primary determining factor for insurers.
You may see a variance of 20% of more in a price of premium from one city to the next.
If you decide to move, etc you may see either a spike in price or a decrease.
This shouldn’t alarm you.
If you see price increase then call the insurer and ask about it if you have moved recently.
Typically, if you move to a more populous city you are going to see an increase in your rates.
Overall the cheapest carriers by price in each of the cities are State Farm, Progressive, Infinity, Alfa, and Accc.
If you reside in any of the cities below and are in the market for a low-cost premium then put all of those carriers on your list to compare quotes.
For a more detailed comparison of the carriers in major Alabama cities, please read further below.
| City | Average Rate | Population | City | Average Rate | Population | City | Average Rate | Population |
|---|---|---|---|---|---|---|---|---|
| Alabaster | $1,376 | 30,352 | Daphne | $1,366 | 21,570 | Jasper | $1,321 | 13,618 |
| Albertville | $1,284 | 21,160 | Dothan | $1,329 | 65,496 | LaFayette | $1,311 | 2,968 |
| Anniston | $1,190 | 23,106 | Dozier | $1,237 | 331 | Madison | $1,261 | 42,938 |
| Athens | $1,311 | 21,897 | Enterprise | $1,462 | 26,562 | Montevallo | $1,409 | 6,723 |
| Auburn | $1,476 | 53,380 | Florence | $1,487 | 39,319 | Moulton | $1,398 | 3,343 |
| Bessemer | $1,481 | 27,456 | Glencoe | $1,296 | 5,160 | Opelika | $1,143 | 26,477 |
| Boaz | $1,489 | 9,710 | Hartselle | $1,187 | 14,255 | Prattville | $1,276 | 33,960 |
| Center Point | $1,201 | 16,921 | Helena | $1,296 | 18,673 | Selma | $1,290 | 20,756 |
Birmingham, AL
Birmingham residents can find cheaper car insurance rates by comparing any of the insurers illustrated in the table or chart.
The average rate for Birmingham is a whopping $1,400 per year.
With Infinity, Progressive, or National General you could save 47% per year.
I queried each at $765, $744, and $734 respectfully per year for a 30 year old driver.
A 45 year old driver could find rates as low as $600 per year.
The insurers clustered between $600 and $750 per year.
The least costly carriers are National General, Progressive, and Infinity.
I queried each at $600, $609, and $623 per year for full coverage.
Which is over 34% lower than the median rate for drivers in Birmingham.
| Birmingham Company | 30 Y/O Driver | 45 Y/O Driver |
|---|---|---|
| National General | $734 | $600 |
| Progressive | $744 | $609 |
| Infinity | $765 | $623 |
| State Farm | $812 | $667 |
| USAA | $857 | $709 |
| GEICO | $921 | $732 |
Birmingham has the raw materials needed to make steel which are iron ore, limestone, and coal.
Seldom do all these occur close together in large quantities, as they do in Birmingham.
In the 1800’s when the railroads where complete, a fascinating “manufacturing city” was born.
Birmingham has since diversified into industries such as finance, health care, and the beginnings of biotech.
Decatur, AL
The average insurance rate in Decatur is over $1,300 per year.
With National General you may be able to save 46%.
With Progressive and Infinity you could save 39% and with State Farm and GEICO it is approximately 27%.
With all five of the insurers in my study for Decatur the average rate is $822 which is 32% lower.
For a city with over 55,000 residents and a metropolitan population over 150,000, the quotes for a 30 year old driver are low.
A 45 year old driver should start with Progressive, Infinity, and National General to maximize savings.
I queried each at $611, $622, and $643 per year for full coverage.
Which is at least 31% lower than the “mean” quote for drivers in Decatur.
| Decatur Company | 30 Y/O Driver | 45 Y/O Driver |
|---|---|---|
| Progressive | $678 | $611 |
| National General | $789 | $622 |
| Infinity | $812 | $643 |
| State Farm | $876 | $723 |
| USAA | $900 | $746 |
| GEICO | $912 | $803 |
Decatur is known as “The River City” and is located in north Alabama along the banks of the Wheeler Lake.
It was originally named Rhodes Ferry Landing after Dr. Rhodes who operated a ferry along the river.
Decatur is full of history, with quaint boutique shops, and beautiful landscapes.
Montgomery, AL
For the cheapest rates in Montgomery, I suggest getting quotes from Progressive, National General, and Infinity.
I queried each at $678, $708, and $745 per year for a 30 year old driver.
Which is nearly 35% lower than the average Montgomery rate of $1,300.
Each of the insurance firms illustrated are more than 22% below the city average.
For a 45 year old driver the lowest rates can be found with National General, Progressive, and Infinity.
I queried each at $590, $592, and $643 per year for full coverage.
Which is 29% to 33% lower than the “mean” quote for similar profile drivers.
It would be smart for a family of 4 to get quotes from all carriers illustrated to find additional savings with optimum coverage.
| Montgomery Company | 30 Y/O Driver | 45 Y/O Driver |
|---|---|---|
| National General | $678 | $590 |
| Progressive | $708 | $592 |
| Infinity | $745 | $643 |
| GEICO | $821 | $700 |
| State Farm | $845 | $708 |
| ACCC | $890 | $732 |
Cool Facts about Montgomery
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Montgomery was a primary site for the Civil Rights Movement. Dr. Martin L. King was the pastor of the Dexter Ave. Baptist church from 1954 until 1960.
-
Montgomery is the current home of the Hyundai Motor Co. first assembly plant to be located in the United States.
-
Montgomery was the first capital of the Confederacy.
Mobile, AL
The city of Mobile has the highest car insurance rates in the state.
If you are looking for a lower rate I suggest starting with Progressive, National General, and Accc.
I queried each at $767, $802, and $854 per year for a 30 year old driver.
Or approximately 27% lower than the median premium for drivers of similar age.
Integon General and GEICO offer rates around $900.
Making both carriers competitive and worthy of getting quotes from.
With city average rate of over $1,400 per year all insurance firms illustrated are more than 23% below the city average.
A 45 year old driver would do well by getting car insurance quotes from Progressive, National General, and Accc.
I queried each at $687, $689, and $709 respectfully for full coverage.
Both age of drivers should definitely consider Accc and Integon General for optimum coverage and low prices monthly or yearly.
| Mobile Company | 30 Y/O Driver | 45 Y/O Driver |
|---|---|---|
| Progressive | $767 | $687 |
| National General | $802 | $689 |
| ACCC | $854 | $709 |
| Integon General | $889 | $754 |
| GEICO | $945 | $776 |
| State Farm | $955 | $821 |
Mobile is often referred to as the “Azalea Capital of the World,” with more than 50 varieties of the flower on display.
Which is a beautiful and stunning sight to see.
Mobile also retains the distinction of being the original home of the Mardi Gras in the USA.
Huntsville, AL
The average rate for residents of Huntsville is around $1,300 per year.
Each of the insurance carriers illustrated are more than 28% below the city average.
For a 30 year old driver, I suggest getting insurance quotes from National General, Progressive, and Accc.
I queried each at $643, $688, and $703 respectfully per year for a 30 year old driver.
A 45 year old driver should be able to get an auto insurance premium for less than $600.
The most competitive are National General, Progressive, and Accc.
I queried each at $578, $599, and $609 for a full coverage premium.
Which is over 34% lower than the “mean” quote for similar profile drivers.
| Huntsville Company | 30 Y/O Driver | 45 Y/O Driver |
|---|---|---|
| National General | $643 | $578 |
| Progressive | $688 | $599 |
| GEICO | $703 | $609 |
| ACCC | $756 | $614 |
| State Farm | $789 | $675 |
| Integon General | $843 | $705 |
With a population of nearly 200,000 residents, Huntsville, Alabama is one of the most recognized cities in the State.
Technology, space, and defense industries have a major presence in Huntsville.
Home to several Fortune 500 companies and beautiful historic districts, Huntsville also offers a broad base of manufacturing, retail and service industries.
Resources & DMV Information
| Department of Insurance | Department of Transportation | Department of Motor Vehicles |
|---|---|---|
| 201 Monroe St # 1700, Montgomery, AL 36104 (800) 701-5909 | 1020 Bankhead Hwy W, Birmingham, AL 35204 (205) 328-5820 | 50 N Ripley St, Montgomery, AL 36104 (334) 242-9000 |
| Website | Website | Website |
Sources
https://drivewiththeeagle.com/
https://www.alfainsurance.com/
https://www.iii.org/alabama-firm-foundation
http://www.aldoi.gov/Consumers/
https://auto.nationalgeneral.com/
