Cheapest Car Insurance In Birmingham, AL For April, 2024

After analyzing multiple quotes, I believe State Farm offers the best cheap car insurance in Birmingham.

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Updated: 04 January 2024
Written by
Doug Schaffer
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After reviewing over 60 quotes from the nation’s top insurance companies, State Farm consistently ranked as the cheapest car insurance company for drivers in Birmingham, Alabama. While State Farm had the lowest rates for minimum coverage, full coverage, and motorists with violations, several other providers also had affordable rates.

For example, Travelers Insurance was the cheapest for young drivers, and Assurance America ranked the most affordable for senior drivers. Likewise, drivers with poor credit can find the best rates with Nationwide. Lastly, USAA remained the best option for active and retired military personnel.

Within the past five years, Birmingham, Alabama, has seen tremendous growth in the private sector. As more people move to the area for work, it’s essential to understand the city’s average auto insurance rates compared to other regions in the state.

For instance, the average monthly premium for a car insurance policy in Birmingham is $169, while the state average is only $144. Even though the city’s average car insurance plan is more expensive than other locations in Alabama, there are plenty of ways to find cheap coverage.

Throughout this guide, we’ll look at the cheapest options for car insurance and explore how different criteria, such as age, driving record, and credit, can play a role in your monthly payment.

Cheapest And Best Car Insurance Companies In Birmingham, AL 2024

Best Car Insurance, Birmingham 2024

Compare The Cheapest Car Insurance In Birmingham, AL

Overall Rating Best For JD Power Rating Average Annual Cost AM Best Rating Get a Quote
State Farm
4.9

Affordable Coverage

842

$1,114

A++

Instant Quote
Travelers Insurance
4.6

Young Drivers

829

$2,087

A++

Instant Quote
Assurance America
4.2

Senior Drivers

N/A

$1,464

N/A

Instant Quote
State Farm
4.9

Driving Violations

842

$1,992

A++

Instant Quote
State Farm
4.9

Full Coverage

842

$1,260

A++

Instant Quote
State Farm
4.9

Minimum Coverage

842

$768

A++

Instant Quote
Scroll to see comparisons

Our Methodology

To find the cheapest car insurance rates in Birmingham, we analyzed findings from numerous car insurance review sites, some of which analyzed rates from public filings obtained by Quadrant Information Services. We also utilize the combined twenty-five years of experience from our team of insurance experts to evaluate each carrier.

  • 62 Quotes Analyzed
  • 18 Brands Reviews
  • 25 Years of Industry Experience
  • 30+ Hours of Research
  • It’s important to note that even though the rates listed in this guide are accurate, premiums shift daily and can fluctuate based on each driver.

    67

    Quotes Analyzed

    15+

    Years Of Industry Experience

    17

    Brands Reviewed

    32+

    Research Hours

    Cheapest Car Insurance Companies In Birmingham, AL


    Cheapest Overall

    Overall Rating
    4.9

    Key Statistics

    10/10 Affordability
    9/10 Customer Reviews
    9/10 Payouts
    9/10 Coverage Level

    Why We Like Them

    When purchasing auto insurance, you want to select a company that’s affordable and dependable as well — that’s what you get when buying coverage through State Farm.

    Throughout our research to find the most affordable options in Birmingham, State Farm continued to outperform competitors in nearly every category. Their lower monthly premium rates and reputation for exceptional customer service have made them an obvious choice as the best and cheapest option for Birmingham drivers.

    Benefits & Drawbacks

    Benefits
    • Excellent customer service ratings
    • Average annual premiums are below the national average
    • A significant amount of customers continue to renew their policies with State Farm
    Drawbacks
    • Not as affordable for drivers with poor credit ratings
    • Gap insurance isn’t an option for policyholders

    Cheapest Overall Rates In Birmingham

    Company Average Rate Per Year
    State Farm $1,114
    USAA $1,064
    Allstate $1,163
    Amigo USA $1,387
    Travelers $1,396

    Cheapest For Motorists with Driving Violations

    Overall Rating
    4.9

    Key Statistics

    10/10 Affordability
    9/10 Customer Reviews
    9/10 Payouts
    9/10 Coverage Level

    Why We Like Them

    Accidents happen, and that can often lead to higher monthly insurance rates. However, several insurance providers, like State Farm, have a more lenient stance on driving violations. While rates are still higher than drivers with a clean record, State Farm still offers very competitive rates for those with instances in their driving history.

    For example, State Farm outperformed more than 20 other insurance carriers regarding monthly premium rates for drivers with DUIs, speeding tickets, or at-fault accidents.

    The insurance carrier’s forgiving rates and excellent customer service scores make it the best option for drivers with a less-than-stellar driving record.

    Benefits & Drawbacks

    Benefits
    • Hundreds of local insurance agents available to answer questions
    • Highly ranked on the J.D. Power rating system for customer services
    • Strong financial strength ratings reported by AM Best
    Drawbacks
    • Doesn’t have as many customizable insurance options as other large insurance carriers

    Over time, many drivers will, unfortunately, get a minor driving violation, whether for speeding on their way to work or not entirely stopping at a stop sign. These small incidents won’t significantly impact your car insurance rates unless you receive multiple violations in a short period.

    However, other events such as DUIs, at-fault accidents, or reckless driving are seen as major offenses and can significantly increase your monthly premium rates. The main reason for the drastic change in car insurance prices is the likelihood of risk.

    The more risky a person is behind the wheel, the more likely they are to be involved in an accident.

    Cheapest Rates For Motorists With Driving Violations In Birmingham

    Company Average Rate Per Year
    State Farm $1,992
    USAA $2,055
    Allstate $2,292
    Travelers $2,747
    GEICO $3,168

    Cheapest For Full Coverage

    Overall Rating
    4.9

    Key Statistics

    10/10 Affordability
    9/10 Customer Reviews
    9/10 Payouts
    9/10 Coverage Level

    Why We Like Them

    Even though having minimum coverage could save you some money in the short term, having full coverage provides better overall protection for yourself and your vehicle. While many insurance companies charge a great deal extra for the added coverage, State Farm continues to provide drivers with affordable options.

    Compared to other insurance companies, the difference between State Farm and the carrier in 5th place was nearly $500.

    State Farm is an excellent option for drivers looking to maintain an affordable auto insurance policy and full coverage.

    Benefits & Drawbacks

    Benefits
    • Offers a generous renewal discount that’s above the industry average
    • Creative discount opportunities for drivers, such as usage-based insurance discount
    • Several discount programs are available for drivers focused on safe driving, education, and multiple vehicles or policies
    Drawbacks
    • Doesn’t offer all types of coverage, including gap insurance
    • Less affordable for certain groups of drivers, such as those with poor credit

    Many people assume that having the minimum car insurance will cover all the expenses in the event of an accident with another car or personal property. However, minimum coverage typically only covers the other person and their property — it doesn’t protect you or your vehicle.

    Purchasing comprehensive coverage can help add protection to your auto insurance policy to cover damage expenses related to your vehicle.

    Generally full coverage auto insurance policies will include the four following protections:

    • Property damage liability
    • Bodily injury liability
    • Comprehensive and collision
    • Roadside assistance or rental car reimbursement

    Cheapest Full Coverage Rates In Birmingham

    Company Average Rate Per Year
    State Farm $1,260
    USAA $1,296
    Allstate $1,440
    Amigo USA $1,656
    Travelers $1,728

    Cheapest For Minimum Coverage

    Overall Rating
    4.9

    Key Statistics

    10/10 Affordability
    9/10 Customer Reviews
    9/10 Payouts
    9/10 Coverage Level

    Why We Like Them

    Like other categories on our list, State Farm is again the cheapest option for Birmingham drivers seeking a minimum coverage policy. In fact, out of the more than 60 insurance carriers that our team reviewed, State Farm was one of only three that offered annual rates below $1,000.

    State Farm scored highly for customer service ratings, financial strength from independent agencies, and affordable rates. All three elements make State Farm an insurance carrier for every type of driver to consider, especially those looking for a comprehensive auto insurance policy.

    Benefits & Drawbacks

    Benefits
    • Known for its industry-leading customer service and quality products
    • Drivers enjoy an extensive list of discounts based on driving record, education, and usage
    • Strong financial ratings from independent agencies such as AM Best
    Drawbacks
    • There isn’t an option to add gap insurance to a car insurance policy

    If you’re planning on purchasing a minimum coverage policy, keeping the state’s legal limits in mind is a good idea. Here’s a closer look at what you’ll want to ensure is included in your plan:

    • $25,000 bodily injury liability limit per person
    • $50,000 maximum for all bodily injuries to be paid for any one accident
    • $25,000 maximum for property damage per accident

    Drivers who fail to maintain the minimums listed above could face fines of up to $400 for multiple offenses.

    Cheapest Minimum Coverage Rates In Birmingham

    Company Average Rate Per Year
    State Farm $768
    USAA $792
    Allstate $876
    Travelers $1,056
    GEICO $1,212

    Cheapest For Young Drivers

    Overall Rating
    4.6

    Key Statistics

    8/10 Affordability
    9/10 Customer Reviews
    9/10 Payouts
    8/10 Coverage Level

    Why We Like Them

    Even though Travelers Insurance isn’t the most affordable option in every category, it’s great for young drivers looking for cheap auto insurance. Its rates are almost $200 less than the second-ranked auto insurance company, and it also offers a wide range of coverage add-on options like rideshare coverage.

    Travelers is also well-known for great customer service and historically has received few customer complaints, according to the National Association of Insurance Commissioners.

    Benefits & Drawbacks

    Benefits
    • Ranks as one of the top insurance carriers for customer service
    • Wide range of auto insurance options and customizable plans
    • Drivers have access to accident forgiveness and minor violation forgiveness
    Drawbacks
    • Costs for a typical car insurance policy is higher than many other carriers
    • Bundling discounts are lower than competitors
    • Mobile app is outdated

    As a young driver just starting with a new license, it can be exciting and overwhelming at the same time. While newfound freedom comes with driving, there is also the responsibility to manage a vehicle on the road safely.

    Since many young drivers don’t have experience behind the wheel, insurance companies tend to increase rates to hedge against potential accidents.

    As younger drivers spend more time driving and keeping their records clean, auto insurance providers can collect more data on the motorist and calculate a more accurate risk assessment. For most drivers, this means as you age, your rates will decrease as long as there haven’t been any driving violations.

    Cheapest Rates For Young Drivers In Birmingham

    Company Average Rate Per Year
    Travelers Insurance $2,087
    Progressive $2,232
    Clearcover $2,652
    Foremost Signature $2,652
    SafeAuto $2,664

    Cheapest For Senior Drivers

    Overall Rating
    4.2

    Key Statistics

    7/10 Affordability
    8/10 Customer Reviews
    7/10 Payouts
    7/10 Coverage Level

    Why we Like Them

    Many drivers might not be as familiar with Assurance America as with larger insurance carriers like Nationwide, GEICO, or State Farm. However, the Georgia-based insurance provider is a great option for seniors living in Birmingham, AL.

    Along with affordable rates for senior drivers, Assurance America also has an excellent customer service team that provides a customized experience for every driver. Additionally, their user-friendly app makes adjusting account information or looking up payment details easy.

    Benefits & Drawbacks

    Benefits
    • Offers coverage for drivers needing SR-22s
    • Personalized experience thanks to a first-class customer service team
    • Easy-to-use mobile app makes it possible to access account details in seconds
    Drawbacks
    • Only available in a limited number of states
    • Only offers basic coverage options for drivers

    For many senior drivers, accessing account information is one of the biggest challenges. With Assurance America, there are multiple ways to accomplish this, including speaking with a representative. Many policyholders rave about the hospitality and politeness the customer service team provides.

    Along with easy access to information, many senior drivers are on fixed incomes, so they need the most affordable coverage. Luckily, many insurance providers offer special discounts that will help keep costs low as motorists age.

    Cheapest Rates For Senior Drivers In Birmingham

    Company Average Rate Per Year
    Assurance America $1,464
    Progressive $1,491
    Nationwide $1,633
    InsureMax $1,678
    Safeco $1,802

    Average Cost Of Car Insurance In Birmingham, Alabama

    Insurance Company Average Annual Quote
    State Farm $1,260
    USAA $1,301
    GEICO $2,028
    Farmers Insurance $2,328
    Liberty Mutual $4,092

    Average Cost In Birmingham – By Age

    Age Group Average Monthly Rate
    Teenagers $721
    Under 25 $356
    25-29 $263
    30s $224
    40s $209
    50s $234
    60s $238
    70s $190
    80s $123

    Average Cost In Birmingham – By Gender

    Gender Average Monthly Cost
    Female $248
    Male $254

    Average Cost In Birmingham – Marital Status

    Marital Status Average Monthly Cost
    Single $217
    Married $205

    Average Cost In Birmingham – By Accident And Violation History

    Violation/Incident Type Average Monthly Rate
    Clean Record $105
    Speeding Ticket $143
    DUI/DWI $207
    At-Fault Accident $152

    Average Cost In Birmingham – By Credit Tier

    Credit Tier Average Monthly Rate
    Excellent $212
    Good $257
    Fair $274
    Poor $430

    Average Cost In Birmingham – By Zip Code

    Zip Code Average Monthly Cost
    35226 $153
    35222 $160
    35233 $161
    35212 $161
    35205 $161
    35221 $162
    35294 $162
    35235 $163
    35203 $163
    35206 $164

    Minimum Car Insurance Requirements In Alabama

    Every state has requirements for a driver’s minimum auto insurance to operate a vehicle legally. For Alabama drivers, the minimum car insurance requirements include the following:

    • $25,000 bodily injury liability limit per person
    • $50,000 maximum for all bodily injuries to be paid for any one accident
    • $25,000 maximum for property damage per accident

    While most insurance carriers will include these coverage amounts in your typical auto insurance policy, it’s still a good idea to review the terms of your agreement before accepting.

    How To Buy Car Insurance In Birmingham

    Many consumers assume purchasing car insurance is a complex and lengthy process. However, most drivers can find a policy within minutes when utilizing websites like Insuranceopedia to compare free auto coverage quotes.

    Below are some essential steps when buying car insurance in Birmingham.

    Step 1: Gather Information

    Even though you can complete the information step when purchasing auto insurance, it’s often easier to gather it beforehand. The most common types of information you’ll need include:

    • Driving history for all drivers on the plan
    • Information about your vehicle — annual mileage, safety features, current odometer reading, VIN, make, model, and year of the vehicle
    • Driver’s license numbers for all policy members
    • Name and birthdate of all policy members
    • Information on the current insurer, if you’re switching carriers

    Step 2: Understand Your Coverage Needs

    For drivers in Birmingham, the state requires that each motorist carry an insurance policy that has the following minimums:

    • $25,000 bodily injury liability limit per person
    • $50,000 maximum for all bodily injuries to be paid for any one accident
    • $25,000 maximum for property damage per accident

    Keep these numbers in mind as you move into the remaining steps of purchasing a plan. The state could force you to pay a fine for driving without proper insurance and minimum coverage.

    Step 3: Select A Purchasing Method

    Most people prefer to shop online for their car insurance policy. This path is often the easiest, and many shoppers feel they have more time to compare offers without the added pressure of working with an insurance agent. However, there are still some benefits to going through the traditional route of an insurance agency.

    For instance, working with a licensed insurance agent allows you to ask questions and receive instant answers. While many online carriers have a chat feature, you may have to wait for the information you need to proceed with a policy.

    Regardless of which path you choose, online or in-person, selecting the policy that makes the most sense for your current situation is important.

    Step 4: Compare Auto Insurance Policies

    It’s often easy to simply select the first quote you receive from an insurance agency. However, collecting at least three samples from different providers is always a good idea. With additional quotes, you can compare rates and review the types of discounts you qualify for from each insurance company.

    Step 5: Purchase Your New Auto Insurance Policy

    The final step in purchasing an auto insurance policy is buying the coverage. You’ll need to purchase your new policy and close any open ends at this stage.

    For example, if you’re replacing coverage, you’ll want to contact your former insurer and have them cancel your car insurance policy after the new plan is active.

    Factors That Impact Cost Of Your Car Insurance Policy In Birmingham

    Regarding the car insurance rates you’ll pay in Birmingham, many factors will play a role in determining your monthly premium. For instance, location is often a criterion that can affect your rates.

    The insurance company could deem your location high-risk depending on which zip code you live in or where you park your car. In these zones, car theft and vandalism are often more likely to occur, so auto insurance rates are generally a little higher.

    Along with location, several other factors impact the cost of car insurance, including:

    • Age
    • Gender
    • State Insurance Requirements
    • Driving Record
    • Vehicle Type
    • Average Annual Mileage
    • Credit History
    • Marital Status

    Alabama Car Insurance Laws To Know

    The most important car insurance law for Alabama drivers is the minimum liability coverage of 25/50/25. Motorists must carry an auto insurance plan with a minimum of $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident.

    While these plans are a great way to protect other drivers, a minimum liability coverage policy won’t cover you or your vehicle. You’ll need to add another type of insurance product, like comprehensive or collision coverage, for additional protection.

    In The News

    Information About Birmingham

    Birmingham is the largest city in Alabama, with more than 200,000 citizens. Since its foundation in 1871, Birmingham has served as an important cultural and economic hub for the state. Many historians and experts refer to the city as “the Pittsburgh of the South” due to its important role in the steel and iron industries.

    Birmingham, AL, was also one of the most important cities during the Civil Rights Movement in the 1960s. Today, a Civil Rights Institute in the area chronicles the city’s role in the battle against segregation in the United States.

    Car Insurance Discounts In Birmingham

    Along with searching for affordable premium rates, drivers can also use discounts to decrease the amount of money they spend on car insurance. Here are a few discounts to review when purchasing your next auto insurance policy:

    • Safe driver
    • Low mileage
    • Accident-free
    • Defensive driving
    • Good student
    • Student away
    • Senior
    • Military
    • Multi-policy
    • Multi-vehicle
    • Paid in full

    FAQs

    Why is Alabama car insurance so high?

    Several factors impact the average monthly auto insurance rates of a state. For Alabama, the state average is generally higher than other regions of the country due to two elements — high incidence of accidents and a large number of uninsured drivers. 

    How much is car insurance in AL a month?

    Most drivers can expect to pay a monthly average of $185 for auto insurance coverage in Alabama. However, criteria such as credit history and driving record can affect the premium each driver pays. 

    Which company offers the cheapest car insurance in Birmingham, AL?

    State Farm generally offers the cheapest car insurance rates in Birmingham, AL, for several groups of drivers. For example, motorists will pay around $105 per month for a car insurance policy through State Farm, which is $80 less than the state average for coverage.

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