Birmingham is the most populous city in Alabama, with over 209,000 inhabitants. While the Magic City is known for its rich history and strong association with college football, you may need to do a little more research to find the best, cheapest car insurance provider in Birmingham. Average annual auto insurance rates in this city range from $ 556 per year for minimum coverage to $ 1,764 per year for fully comprehensive insurance – well above that Average prices for Alabama.
However, finding the right provider that suits both your needs and your budget is a multi-step process. To make it a little easier, Bankrate has compiled our recommendations for the best car insurance companies in Birmingham based on insurance options, competitive rates and reputation for customer service.
The best car insurance in Birmingham
The best auto insurance companies in Birmingham are Geico, USAA, Travelers and Allstate. These four providers are characterized by a combination of high JD Power customer satisfaction values 2020 2020 in the Southeast region and a range of coverage options, discounts and low premiums.
| insurance company | JD power score (Southeast region) |
Average annual premium for minimum coverage | Average annual premium for fully comprehensive insurance |
|---|---|---|---|
| Geico | 857 / 1,000 | $ 378 | $ 1,490 |
| USAA | 909 / 1,000 | $ 407 | $ 1,292 |
| traveler | 823 / 1,000 | $ 424 | $ 1,161 |
| Allstate | 846 / 1,000 | $ 470 | $ 1,405 |
Geico
Geico is no stranger to the promotion of discounted tariffs and these tariffs can also be found in Birmingham. Not only are Geico’s pricing competitive, but the company also achieves some of the highest customer satisfaction rankings in the Southeast and ranks fourth overall JD Auto Insurance Study 2020. Geico also offers a number of discounts, including for military families and club memberships.
USAA
If you meet the eligibility requirements as a service member, military family member, or veteran, USAA offers a long list of discounts and coverage options. While technically ineligible due to membership restrictions, USAA receives customer satisfaction ratings from JD Power. In addition to the standard coverage you might expect, USAA offers options tailored for the military, including reduced auto insurance rates when you are on the road or your car is in storage.
traveler
Travelers not only offers standard car insurance at competitive prices, but also offers special options to further customize your policy. This includes the replacement of new cars, accident forgiveness, ride-sharing insurance, gap insurance and breakdown assistance. You can also find a long list of discounts available, ranging from policy packaging to driver training.
Allstate
Allstate offers numerous options to customize your policy and a variety of discounts to keep your premiums working within your budget. The popular one Drivewise app you can save even more by providing tips and feedback on how to drive safely. Other discounts include good college students paid in full and policy bundling so you can save even more.
Cheapest car insurance in Birmingham
The average cost of car insurance In the United States, the minimum coverage is $ 565 per year and $ 1,674 for full coverage. Alabama’s averages are slightly lower than the national average, with annual rates of $ 469 for minimum insurance and $ 1,623 for full coverage. Fortunately, Birmingham has several cheaper options, including Geico, which costs an average of $ 378 per year for minimum coverage.
Bankrate reviewed several airlines in the Birmingham area for financial stability, coverage options and customer ratings. The analysis found that Geico, USAA, Travelers, Allstate, and Country Financial all offer competitive pricing, high overall customer ratings, and financial strength. For example, USAA offers some of the cheapest rates while maintaining an A- BBB rating and a high number of satisfaction points in the JD Power Auto Damage Study 2020. This is in addition to USAA’s financial strength rating of Superior A ++ by AM Best.
| insurance company | Average annual premium for minimum coverage | Average annual premium for fully comprehensive insurance |
|---|---|---|
| Geico | $ 378 | $ 1,490 |
| USAA | $ 407 | $ 1,292 |
| traveler | $ 424 | $ 1,161 |
| Allstate | $ 470 | $ 1,405 |
| Country finances | $ 474 | $ 1,820 |
Insurance requirements in Birmingham
Alabama drivers are required to have auto insurance with a minimum of 25/50/25 that includes:
- $ 25,000 per person for assault
- $ 50,000 per accident for personal injury
- $ 25,000 per accident for property damage
However, purchasing the minimum coverage is not your only option, nor does it suit all personal circumstances. For example, when you lease or finance a car, your lender or lessor usually requires you to add collision and fully comprehensive insurance. Depending on the landlord, a leased car may also require you to take out gap insurance and higher liability limits.
You should note that Alabama ranks sixth in the country for the highest Number of uninsured drivers on the streets, according to the Insurance Information Institute. Many insurers recommend adding uninsured motorist insurance to cover damage and personal injury costs in the event of an accident where another culpable driver is not insured. To determine the best coverage for our needs, you should contact a licensed insurance agent.
Car insurance discounts in Birmingham
Fortunately, there are several ways to save on car insurance in Birmingham. When searching for car insurance deals, also look for discounts that you may be eligible for. Here are a few that are prevalent in Birmingham that could lower your annual premiums:
- Discount for policy bundling: You can take advantage of this discount if you have both a tenant / condo / homeowner insurance policy and car insurance with the same carrier.
- Automatic Payments Discount: When you sign up to have your rewards automatically withdrawn from your bank account, some carriers offer an additional discount on this.
- Paid discount: If you can prepay your premiums, ask how much discount this will give you.
- Defensive Driving Discount: Check with your wireless carrier for a list of approved defensive driving courses as many wireless carriers offer discounts for policyholders’ purchase. Not only do you learn valuable information, but you can also earn premium discounts.
frequently asked Questions
What is the best car insurance?
Determination of best car insurance is based on your personal preferences and what is most important to you. Look for a provider with strong financial reviews, good customer reviews, and competitive prices. Bankrate has reviewed several companies and found that vendors on this list – such as Geico and Allstate – along with others, are the best choices based on these factors.
How much car insurance do I need in Birmingham?
It is tempting to buy the minimum Alabama required to save on premiums, but doing so could leave you prone to major financial headaches. Most personal finance experts recommend a liability of at least $ 300,000 instead of the bare minimum. This provides better limits on medical costs for others in the event you have a multiple car, multiple injury accident.
Is Alabama a Flawless State?
No, Alabama is considered a fault state. That is, if you are the culpable driver in a car accident, your insurance limits will be used to pay the injured person’s medical costs and property damage, and the other driver can sue you for reimbursement of additional costs related to the accident. Trying to avoid these risks is another reason many insurers advise you to get as much liability insurance as you can afford.
methodology
Bankrate uses Quadrant Information Services to analyze rates for all zip codes and airlines in all 50 states and Washington, DC. The stated tariffs are based on a 40-year-old driver with a clean driver’s license, good credit rating and the following full coverage limits:
- $ 100,000 liability per person
- $ 300,000 liability per accident
- $ 50,000 property damage liability per accident
- $ 100,000 personal injury from an uninsured motorist per person
- $ 300,000 personal injury to an uninsured driver per accident
- $ 500 deductible in case of collision
- $ 500 deductible
Tariffs are determined based on the 2020 Quadrant Information Services data.
To set the minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our example drivers own a 2018 Honda Accord, commute five days a week, and drive 12,000 miles a year.
These are sample rates and should only be used for comparison purposes. Your quotes can be different.
