Cheap Car Insurance in Alabama
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Alabama Car Insurance Minimums
Alabama requires all drivers to carry minimum liability insurance. Here are the state-mandated minimums:
Bodily Injury (per person)
$25,000
Bodily Injury (per accident)
$50,000
Property Damage
$25,000
At-fault (tort) state.
Source: Ala. Code § 32-7-6 (liability limits); Ala. Code § 32-7-23 (uninsured motorist), verified 2026-09-01.
What drives car insurance rates in Alabama
Average spend per insured vehicle, 2023
$1,081
Alabama drivers spent $1,081 per insured vehicle on liability, collision and comprehensive in 2023, against $1,282 nationally.
Claims paid per premium dollar, 2023
70.2¢
Auto insurers in Alabama paid 70.2 cents in claims for every premium dollar in 2023; the median state was 72 cents.
Traffic deaths per 100 million miles, 2024
1.32
Alabama recorded 962 traffic deaths in 2024, 1.32 per 100 million vehicle miles against 1.19 nationally. Injury claims follow crash severity.
Vehicle thefts per 100,000 residents, 2025
160.8
Alabama reported 8,351 motor vehicle thefts in 2025, 160.8 per 100,000 residents, from 173 the year before. Theft claims are paid under comprehensive coverage.
Natural-hazard loss rank
#21
FEMA ranks Alabama #21 of 51 for expected annual loss from natural hazards; flood accounts for 44% of that loss, and comprehensive coverage is what pays for flood damage.
- Average spend per insured vehicle, 2023: NAIC Auto Insurance Database Report, 2023 data
- Claims paid per premium dollar, 2023: NAIC Profitability by Line by State, 2023
- Traffic deaths per 100 million miles, 2024: NHTSA Fatality Analysis Reporting System, 2024
- Vehicle thefts per 100,000 residents, 2025: FBI Crime in the United States, 2025
- Natural-hazard loss rank: FEMA National Risk Index
Largest auto insurers in Alabama
The ten insurer groups that wrote the most auto premium in Alabama in 2025, with their share of the state total of $5.2 billion.
| # | Insurer group | Market share | Premiums written |
|---|---|---|---|
| 1 | State Farm Group | 27.68% | $1.4 billion |
| 2 | Allstate Insurance Group | 15.76% | $817 million |
| 3 | Progressive Group | 14.96% | $776 million |
| 4 | Alfa Insurance Group | 13.54% | $702 million |
| 5 | United Services Automobile Association Group | 7.1% | $368 million |
| 6 | Berkshire Hathaway Group | 6.31% | $327 million |
| 7 | Farmers Insurance Group | 1.65% | $86 million |
| 8 | Travelers Group | 1.52% | $79 million |
| 9 | Auto Owners Group | 1.47% | $76 million |
| 10 | Liberty Mutual Group | 1.3% | $68 million |
Source: NAIC Market Share Reports, 2025 data, direct premiums written by insurer group. GEICO writes inside Berkshire Hathaway Group. Ranking is market commentary; it says nothing about which carriers a quote comparison includes.
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