Cheapest car insurance quotes in Montgomery, AL

After a thorough investigation of the car insurance market, I believe State Farm offers the best cheap policy in Montgomery

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Updated: 23 January 2024
Written by
Doug Schaffer
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We reviewed 60 quotes from the top insurance providers in the country and discovered that State Farm ranked as the cheapest insurer for motorists in Montgomery, Alabama. State Farm had the cheapest premiums for minimum coverage, full coverage, and for drivers with violations, however, there are also many other insurance companies that offer good coverage at affordable premiums.

For example, we discovered that Travelers Insurance was the least expensive for young drivers whereas Assurance America was the most affordable for senior drivers. Additionally, drivers with a poor credit rating can find the best rates with Nationwide. Lastly, USAA remained the no.1 choice for both active military members and veterans.

In the last five years, Montgomery, has seen overwhelming growth within the private sector. With more people moving to Montgomery for work, it’s paramount that we have an understanding of the city’s average insurance rates when compared to other regions within the state.

The average monthly cost for a car insurance policy in Montgomery comes to around $131, while the average in the entire state of Alabama is only $119. Even though the city’s average car insurance plan costs significantly more than other areas in Alabama, there are still plenty of ways to go about finding a cheaper policy.

In this guide, we’ll look at the least expensive options for auto insurance and explore how different factors, such as age, driving record, and credit, can impact the amount you pay each month.

Cheapest and best car insurance companies in Montgomery, AL 2024

Cheapest Car Insurance, Montgomery 2024

Compare the cheapest car insurance companies in Montgomery, AL

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

Affordable Coverage

842

$1,026

A++

Instant Quote
Travelers Insurance
4.6

Young Drivers

829

$2,334

A++

Instant Quote
Assurance America
4.2

Senior Drivers

N/A

$1,468

N/A

Instant Quote
State Farm
4.9

Driving Violations

842

$1,568

A++

Instant Quote
State Farm
4.9

Full Coverage

842

$1,569

A++

Instant Quote
State Farm
4.9

Minimum Coverage

842

$468

A++

Instant Quote
Scroll to see comparisons

Our methodology

To find the least expensive auto insurance rates in Montgomery, we looked through findings taken from several car insurance review sites, some of which analyzed rates from public filings obtained by Quadrant Information Services. Another contributing factor was the combined twenty-five years of experience within our team of insurance experts to evaluate each insurance company. It’s important to be aware that even though the rates in this guide are accurate, premiums change almost daily and can fluctuate based on each individual.

62

Quotes Analyzed

18

Brands Reviews

25

Years of Industry Experience

30+

Hours of Research

Cheapest car insurance companies in Montgomery, AL


Cheapest Overall Rates

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 you’re looking to purchase car insurance, you want to choose a company that’s both affordable and reliable — and that’s exactly what you can expect with State Farm.

In our quest to find the most affordable options in Montgomery, State Farm continued to stand out from its competitors in almost every category. Their lower monthly premium rates and reputation for excellent customer service make them an obvious choice for the people of Montgomery seeking the best and cheapest option for their car insurance.

Benefits & Drawbacks

Benefits
  • Exceptional customer satisfaction levels
  • Average annual rates below the national average
  • A significant amount of drivers continue to renew their policies with State Farm
Drawbacks
  • Not as affordable for drivers with bad credit
  • Gap insurance unavailable for policyholders

Cheapest Overall Rates in Montgomery

Company Average Rate Per Year
State Farm $1,026
USAA $1,260
Allstate $1,608
Nationwide $1,634
Travelers $1,537

Cheapest Coverage 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 unfortunately do happen, and they can often lead to increased rates when it comes to insuring your vehicle. However, many providers, including State Farm, have a more lenient approach to people with a mark on their driving record. While their rates are still higher than they are for someone with a clean record, State Farm is still the best choice for people with a driving violation.

State Farm outperformed more than 20 of its competitors when it came to monthly insurance rates for drivers with DUIs, speeding tickets, or at-fault accidents.

Their forgiving premiums and fantastic customer service reviews make them the optimum choice for drivers with a driving record that’s less than squeaky clean.

Benefits & Drawbacks

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

As time goes on, a lot of drivers will undoubtedly find themselves receiving a minor driving violation. This could be for speeding on the way to the office, or not fully stopping at a stop sign. These minor incidents won’t have a massive impact your insurance rates unless you find yourself receiving multiple violations in a short space of time.

However, other incidents such as DUIs, at-fault accidents, or reckless driving are seen as major offenses and can have a significantly impact on your monthly premium rates – meaning that they will be much higher. The main reason for this drastic rise in cost comes with the probability of risk.

The riskier a person is when driving, the more likely they are to, unfortunately, be involved in an accident.

Cheapest Rates for Motorists with Driving Violations in Montgomery

Company Average Rate Per Year
State Farm $1,568
USAA $1,573
Travelers $1,765
Nationwide $2,187
GEICO $2,236

Cheapest Full Coverage Rate

Overall Rating
4.9

Key Statistics

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

Why We Like Them

Having minimum coverage will save you a bit of money in the short term, however, full coverage provides you and your vehicle with a better level of protection. State Farm offers its drivers the most affordable options, with many providers charging a higher rate for added coverage.

When compared with other carriers, the difference between State Farm and the provider ranking 5th was nearly $500.

State Farm is a superb choice for drivers looking to maintain an affordable insurance policy as well as full coverage.

Benefits & Drawbacks

Benefits
  • Offers its customers a generous renewal discount that’s above the industry average
  • Creative discount opportunities for drivers, such as usage-based insurance discount
  • Several discount programs available for drivers who are focused on safe driving, education, and multiple vehicles or policie
Drawbacks
  • Not all forms of coverage available, including gap insurance
  • Not as affordable for certain drivers, such as those with bad credit

A lot of people incorrectly assume that having minimum insurance will cover all the expenses required in the event of an accident with another vehicle or personal property. Minimum coverage typically only covers the other person involved in the accident, and their property — minimum coverage does not protect you or your automobile.

Buying full comprehensive coverage adds a much more sufficient layer of protection to your auto insurance policy, also covering damage expenses related to your vehicle.

Typically, full coverage auto insurance policies will include the following protections:

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

Cheapest Full Coverage Rates in Montgomery

Company Average Rate Per Year
State Farm $1,569
USAA $1,272
Allstate $1,608
Nationwide $1,634
Travelers $1,724

Cheapest Minimum Coverage Rates

Overall Rating
4.9

Key Statistics

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

Why We Like Them

Along with many other categories in our list, State Farm is again the best and cheapest choice for drivers in Montgomery who are looking for a minimum coverage insurance policy. In fact, out of the more than 60 insurance companies reviewed by our team, State Farm was one of only three others offering annual rates below $1,000.

State Farm also scored highly for customer support ratings, financial strength from independent agencies, and affordable rates. All of these elements make State Farm an insurance provider that’s suitable for every type of driver to consider, especially those seeking a full comprehensive insurance policy.

Benefits & Drawbacks

Benefits
  • Renowned for its industry-leading customer support and high-quality products
  • Drivers enjoy a huge list of discounts based on their driving record, education, and usage
  • Strong financial ratings from independent agencies such as AM Best
Drawbacks
  • No option to add gap insurance

If you’re wanting to purchase minimum coverage, making yourself aware of the state’s legal limits is one thing that we would suggest. Below are some of the things that you’ll want to be sure are included in your policy:

$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 failing to maintain the minimums listed could potentially face fines of up to $400 for multiple offenses.

Cheapest Minimum Coverage Rates in Montgomery

Company Average Rate Per Year
State Farm $468
USAA $509
Allstate $478
Progressive $510
GEICO $465

Cheapest Rates 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

Travelers Insurance may not be the most affordable carrier in every category, however, it’s great for young drivers who are on the lookout for cheap insurance. Its rates are nearly $200 less than the second-ranked insurance provider, and it also offers a range of coverage add-on options such as rideshare coverage.

Travelers is also renowned for their fantastic customer service and has historically received very few customer complaints, according to the National Association of Insurance Commissioners.

Benefits & Drawbacks

Benefits
  • Ranks as one of the top insurance companies for customer support
  • Diverse range of insurance options and customizable plans
  • Drivers have access to accident forgiveness and minor violation forgiveness
Drawbacks
  • Costs for a typical car insurance plan higher than many other carriers
  • Bundling discounts are lower than its competitors
  • Mobile app needs updating

When you’re young and receive your driver’s license, it can be both exciting and overwhelming all at once. With a driver’s license and a vehicle comes a newfound freedom, as well as the responsibility to manage a vehicle on the road in a safe way.

Since many young drivers don’t have experience behind the wheel, insurance companies typically tend to increase their rates due to the increased risk of an incident.

As younger drivers spend more and more time on the road driving, all while maintaining a clean record, providers will collect more data on the driver and work out a more accurate risk assessment. For many drivers, this means your rates will decrease as long as there haven’t been any driving violations, as you get older.

Cheapest Rates for Young Drivers in Montgomery

Company Average Rate Per Year
Travelers Insurance $2,334
Progressive $2,239
State Farm $3,146
Progressive $3,576
Auto Owners $3,865

Cheapest Rates 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

You may not be as familiar with Assurance America as you are with other larger insurance companies such as GEICO, State Farm, or Nationwide. However, the Georgia-based insurer is a fantastic option for seniors who live in Montgomery, AL.

Along with their affordable rates for senior motorists, Assurance America also has an exceptional customer support team dedicated to offering a customized experience for every individual motorist. In addition to that, their user-friendly app makes updating account information or looking up payment details easy.

Benefits & Drawbacks

Benefits
  • Offers coverage for drivers needing SR-22s
  • Personalized experience due to their fantastic customer service team
  • Easy-to-use mobile app enables quick access to account details
Drawbacks
  • Only available in a few states
  • Only offers basic coverage options for motorists

For many drivers in their twilight years, accessing account information can be a bit of a challenge. With Assurance America, there are numerous ways to achieve this, including speaking with one of their representatives. Many policyholders speak highly about the hospitality and politeness that the customer service team deliver.

As well as easily accessible information, a lot of senior drivers are on fixed incomes, which means they need the most affordable coverage. Luckily, many insurance carriers offer special discounts to help keep costs low as drivers get older.

Cheapest Rates for Senior Drivers in Montgomery

Company Average Rate Per Year
Assurance America $1,468
Progressive $1,419
Nationwide $1,672
Auto Owners $1,672

Average cost of car insurance in Montgomery, Alabama

Insurance Company Average Monthly Quote
State Farm $130
USAA $106
Allstate $136
Auto Owners $132
Nationwide $139

Average cost in Montgomery – By Age

Age Group Average Monthly Rate
Teenagers $248
Under 25 $167
25-29 $159
30s $111
40s $98
50s $87
60s $93
70s $115
80s $117

Average cost in Montgomery – By Gender

Gender Average Monthly Cost
Female $147
Male $158

Average cost in Montgomery – Marital Status

Marital Status Average Monthly Cost
Single $111
Married $109

Average cost in Montgomery – By Accident and Violation History

Violation/Incident Type Average Monthly Rate
Clean Record $108
Speeding Ticket $143
DUI/DWI $206
At-Fault Accident $179

Average cost in Montgomery – By Credit Tier

Credit Tier Average Monthly Rate
Excellent $99
Good $124
Fair $154
Poor $272

Average cost in Montgomery – By Zip Code

Zip Code Average Monthly Cost
36103 $111
36106 $120
36107 $103
36108 $109
36111 $116
36112 $156
36113 $256
36116 $115
36117 $131
36124 $56

Minimum car insurance requirements in Alabama

Each state has its own requirements for a driver’s minimum motor insurance to operate a vehicle legally. For drivers living in Alabama, the minimum motor insurance requirements are as follows:

  • $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 many carriers will include these coverage amounts in a standard motor insurance policy, it’s still recommended that you take the time to review the terms of your agreement before you go ahead and accept.

How to buy car insurance in Montgomery

Many drivers assume buying insurance is a complicated and drawn-out process. However, the majority of drivers can find a policy within a matter of minutes when going through websites such as Insuranceopedia, where they can compare coverage quotes.

Below are some essential steps when purchasing insurance in Montgomery.

Step 1: Gather Information

You can fill out the information step on purchasing auto insurance, although it’s much easier to collect it all in advance. The most common types of information you’ll need when applying 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 your current provider, if you’re switching to another carrier

Step 2: Understand Your Coverage Needs

For motorists in Montgomery, the state requires that each individual 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

Make a mental note of these numbers as you progress through the remaining steps of purchasing a policy. The state could charge you a fine for driving without sufficient insurance and minimum coverage.

Step 3: Select a Purchasing Method

Nowadays, a lot of motorists prefer to shop online for their car insurance as it’s often the easiest method, plus it gives shoppers more time to compare quotes without the additional pressure of conversing with an insurance agent. However, there are still some benefits to purchasing insurance the traditional way.

For example, working with an insurance agent provides you with the opportunity to ask questions and receive answers immediately. While many online insurance providers have a live chat feature, you may have to wait for the information you need to proceed.

No matter which path you choose, whether online or in-person, choosing the insurer that offers a policy that makes the most sense for your current situation is what’s most important.

Step 4: Compare Auto Insurance Policies

It’s often easy to accept the first quote that you receive from an insurance agency. However, we recommend that you collect at least three samples from separate insurers. By getting more quotes, you are then able to compare rates and investigate the types of discounts you qualify for from each insurance provider.

Step 5: Purchase Your New Auto Insurance Policy

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

For instance, if you’re switching providers, you’ll want to get in touch with your former insurer and have them cancel your policy after your new plan becomes active.

Factors that impact cost of your car insurance policy in Montgomery

When it comes to calculating rates, there are a number of factors that will play a role in how a provider determines your monthly premium. An example being your location, which is often a criterion that can impact your rates.

The insurance provider could deem your location to be high-risk depending on your zip code, or where you park your car. In these high-risk zones, car theft and vandalism are often more likely to happen, therefore insurance rates tend to be a little higher.

Along with your zip code, there are numerous other factors that impact the cost of your car insurance policy, including:

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

Alabama car insurance laws to know

The main car insurance law that Alabama drivers need to know is that the minimum liability coverage is 25/50/25. Drivers need to carry an insurance policy 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 of protecting other drivers, a minimum liability coverage policy won’t protect you or your motor. Therefore you will need to add an extra type of insurance product to your policy, such as comprehensive or collision coverage.

In the news

  • Insurance experts predict auto insurance rates to increase by 7 percent throughout Alabama, affecting cities such as Montgomery.
  • State Farm could stop offering coverage for certain Kia and Hyundai vehicles due to increased circumstances of theft within the area

Information about Montgomery

Montgomery is the capital city of Alabama, with a population of almost 200,000 people. With an array of things to do and sites to see, Montgomery is home to ballets, museums, civil rights memorials, city parks, sports complexes, and a vibrant riverfront that houses Riverboat Harriott II. Famous for its sublime weather and divine food, and that good old Southern charm

Car insurance discounts in Montgomery

When looking for affordable car insurance premiums, motorists can also use discounts to lower the costs of their car insurance. Below are discounts to consider when purchasing your next 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?

Many factors can impact the average monthly car insurance rates of a state. For Alabama, the state average is higher than other areas of the country for two reasons — high number of accidents and a large number of drivers who are not insured.

How much is car insurance in AL a month?

The majority of drivers can expect to pay an average of $189 per month for their car insurance coverage in Alabama. However, there are factors including credit history and driving record that can impact the premium each driver is quoted.

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

State Farm offers the cheapest auto insurance rates for motorists in Montgomery, AL, for many groups of drivers. Motorists will pay around $106 per month for a State Farm policy, which is $80 less than the state average for the same amount of coverage.

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