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The Best Cheap Alabama Car Insurance for 2023

Updated April 20, 2022
Dana George
By: Dana George

Our Insurance Expert

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The last thing an Alabama driver wants or needs is to be pulled over without proper auto insurance, particularly if they're involved in an accident. To drive legally in the state, Alabamans must be insured with at least minimum coverage. Whether a driver is on a tight budget or rolling in the dough, it's good to know where they can find the cheapest car insurance in Alabama.

  • Cheapest for typical drivers: Geico
  • Cheapest for military members: Geico
  • Cheapest for teen drivers: Country Preferred
  • Cheapest for senior drivers: Geico
  • Cheapest for minimum coverage: Cincinnati Insurance Co.

Cheapest for typical drivers

When it comes to cheap Alabama auto insurance, Geico is the clear winner for the typical driver with a clean driving record. Geico offers an average annual premium rate of $1,110 (less than $100 per month).

Geico

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Best for Alabama drivers with a clean driving recordGeico
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Here are a few other companies offering cheap auto insurance in Alabama:

  • USAA, available to current military members, veterans, and their families, offers an annual rate of $1,263
  • Nationwide comes in with a competitive rate of $1,291
  • Country Preferred offers an annual average rate of $1,435

Cheapest for military members

One of the ways insurance companies attempt to honor military members and veterans is to offer them low-cost car insurance. In some cases, the rate is considerably lower than the quotes offered to civilians. The lowest premiums are courtesy of Geico, with an average annual rate of $1,017

Other companies offering members of the military affordable car insurance in Alabama are:

  • USAA, with an average annual rate of $1,248
  • Nationwide, offering an average premium rate of $1,307
  • Country Preferred, with a competitive rate of $1,435

Cheapest for teen drivers

Even the best car insurance companies in Alabama charge more to insure teens and young drivers. Simply put, teens are not statistically the safest drivers on the road. When it comes to the cheapest rates for teens, Country Preferred is the winner, with an average annual rate of $2,345

Even though they're more expensive than Country Preferred, these three carriers still beat the rest of the pack:

  • USAA, with an average rate of $2,573
  • Geico, coming in with a rate of $2,606
  • Cincinnati Insurance Co., offering an annual rate of $3,739

Cheapest for senior drivers

There are a number of benefits associated with being an older, wiser driver. In fact, seniors can frequently snag a decent low-cost insurance rate due to their decades of driving experience. One of the best insurance companies for cheap premiums for seniors is Geico, with an average rate of $976.

Other contenders for the cheapest car insurance in Alabama for senior drivers include:

  • Nationwide, offering a competitive rate of $1,081
  • Country Preferred, with an average rate of $1,151
  • Cincinnati Insurance Co., offering an average annual rate of $1,243

Cheapest for drivers looking for minimum coverage

Alabama requires drivers to carry at least minimum coverage. The reason is clear: to provide the most basic protection. For the driver with minimum coverage, it's a matter of being covered in the event of physical injury. And if a driver with minimum coverage hits another car on the road, it helps cover the cost of physical injuries, death, and damage to the other driver's car. The best car insurance in Alabama for cheap minimum coverage is Cincinnati Insurance Co. with an average annual rate of $327.

Other contenders for cheap Alabama minimum car insurance are:

  • Geico, coming in with an average rate of $358
  • USAA, offering an average annual rate of $391
  • Country Preferred, with an average rate of $421

Average car insurance cost in Alabama compared to the national average

The average rate for Alabama auto insurance is $2,482, approximately 6% less than the national average.

Average Rate Category Alabama National Average
Overall $2,482 $2,646
Young drivers $6,208 $5,988
1 accident on driving record $2,774 $3,092
1 speeding ticket on driving record $2,412 $2,766
What drivers in Alabama can expect to pay for car insurance compared to the national average

Alabama auto insurance laws

Alabama car insurance laws are quite clear, and anyone who chooses to drive in Alabama without insurance can find themselves in serious legal peril. For example, penalties for a first offense can include:

  • Fine up to $500
  • Vehicle impoundment
  • 45-day registration suspension
  • $200 registration reinstatement
  • Up to three months in jail
  • Additional document proving insurance coverage for one year after reinstatement, paid for at the driver's expense

Drivers caught behind the wheel a second (or subsequent) time without insurance coverage may face:

  • Fines up to $1,000 or $3,000
  • Six months in jail
  • Four-month registration suspension
  • $400 registration reinstatement
  • Six-month license suspension
  • Vehicle impoundment
  • Additional document proving insurance coverage for three years after reinstatement (normally in the form of an SR-22)

Alabama minimum coverage requirements

Alabama minimum car insurance must include:

  • $25,000 coverage for bodily injury or death of one person
  • $50,000 coverage for bodily injury or death or two or more
  • $25,000 coverage for property damage of another's property

How to get cheap auto insurance in Alabama

When seeking cheap car insurance in Alabama it helps to know how to keep quotes low. Here are a few ideas:

Driving record

It's tough to imagine that anyone sets out to damage their driving record, but if drivers realized how much car insurance is in Alabama following an accident or speeding ticket they would probably be mindful of keeping their driving record clean. One of the easiest ways a driver can receive low car insurance quotes in Alabama is to prove that they are a careful driver.

Credit score

Studies show that drivers with high credit scores tend to make fewer insurance claims, which helps explain why insurers check a driver's credit score before offering a quote. A driver who keeps their credit score high can keep their insurance rates low.

Discounts

Alabama auto insurance companies offer a wide range of discounts on car insurance. Here are some of the most popular:

  • Good student discount
  • Defensive driver discount
  • Pay-in-full discount
  • Away-at-school discount
  • Occupational discount
  • Alumni discount
  • Professional organization discount
  • Safety feature discount
  • Usage-based discount
  • Multi-car discount
  • Multi-policy discount
  • New car discount

Other things to consider when looking for car insurance in Alabama

Alabama drivers must carry proof of insurance in either physical or electronic form. If they're pulled over and refuse to provide proof of insurance, they can be charged with a Class C misdemeanor. There are no first-time exceptions to not having coverage. In other words, they're serious about their auto insurance in Alabama and drivers should be prepared.

While it would be unusual to run across someone who enjoys paying for car insurance, it's there for the protection of the driver, the inhabitants of their car, and other drivers on the road. Paying for coverage -- even if it's just minimum coverage -- is far less expensive than the legal penalties of driving without insurance or worse yet, being in an accident while uninsured. Shopping the best car insurance companies can help a driver land the most comprehensive coverage they can afford.

And finally, always be sure to compare car insurance rates from multiple companies.

RELATED: Need homeowners insurance? Check out The Ascent's guide to the best cheap Alabama homeowners insurance.

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