10 Best Car Insurance Companies In Alabama With Cheapest Quotes and Good Services
10 Best Car Insurance Companies In Alabama With Cheapest Quotes and Good Services

Alabama is a state in the Southeastern region of the United States, bordered by Tennessee to the north; Georgia to the east; Florida and the Gulf of Mexico to the south; and Mississippi to the west. Alabama is the 30th largest by area and the 24th-most populous of the U.S. states. It is also one of the biggest states in the country, with a large number of people owning private cars. Car insurance is mandatory here, and we have compiled a list of the best car insurance companies with cheap prices and good service in the article below.

Auto insurance requirements in Alabama

If you plan on driving in the state of Alabama, the Alabama mandatory liability law requires drivers to carry insurance. Furthermore, drivers must also carry proof of insurance while driving, which must be shown to law enforcement officials when requested. Have a look at the insurance required in Alabama as well as a breakdown of what it covers.

Minimum Liability Coverage: 25/50/25

$25,000 bodily injury per person

$50,000 bodily injury per accident

$25,000 property damage per accident

Optional car insurance coverage in Alabama

Alabama law only requires liability coverage in order to be legal. However, consider these additional coverage options to expand your insurance coverage and gain more protection.

Comprehensive: This coverage protects your vehicle from non-collision perils such as theft, weather damage, and even hitting an animal.

Collision: If you collide with another vehicle or object, this coverage will cover damages to your vehicle.

Loan/Lease Payoff: This coverage is often referred to as gap coverage. It can be very helpful for those financing a vehicle that has been totaled, as it covers the difference between your vehicle’s actual cash value and the amount you still owe on the loan.

Medical Payments: Medical payments coverage (med pay) steps in to help with medical expenses accrued by you or those in your vehicle in an accident.

Rental Car Reimbursement: If your car is unable to be driven, this coverage helps cover costs associated with getting a rental until your vehicle is fixed.

Roadside Assistance: The companies that offer this coverage may differ in the types of coverage provided, but roadside assistance usually helps with things like battery jumps, towing expenses, and flat tire fixes.

Uninsured Motorist Bodily Injury: Unfortunately, there are still a number of motorists who get behind the wheel without carrying any insurance. Uninsured motorist coverage helps cover your bodily injury expenses if you are injured by a driver who has no insurance and cannot pay for your damages.

Alabama’s penalties for driving without proof of insurance

Those who choose to forgo insurance while driving are in violation of state law and can face the following consequences.

Penalty

1st offense

2nd (or subsequent) offense

Fine

$500

$1,000

Registration suspension

45 days (with $200 reinstatement fee)

Four months (with $400 reinstatement fee)

License suspension

N/A

Up to six months

Depending on the severity of the offense, further penalties could include jail time as well as the requirement to carry an SR-22.

Car insurance discounts in Alabama

If you’re looking for the best auto insurance in Alabama, you may want to look for companies that offer discounts that apply to you. Alabama drivers have multiple options to save on their car insurance premiums, even from the state’s top companies. Many common savings opportunities include discounts for:

Young driver discounts: Several top car insurance companies offer discounts for student drivers who earn good grades in school and for students who are away at college without a vehicle.

Safe driver discounts: If you are accident-free, claims-free or drive a safe vehicle, you may be able to qualify for safe driver discounts. Even if you have a mark on your driving record, you may be able to qualify for telematics discounts. A telematics program tracks your driving in real-time and awards discounts for safe driving. Your insurer may also offer discounts for participating in a defensive driving course.

Other discounts: You may also be able to score discounts for having safety features on your vehicle or for belonging to a certain company or alumni association. Several companies also offer discounts for customer loyalty and bundling multiple insurance policies such as home and auto.

List of 10 best car insurance companies in Alaska with cheap price and good service

(According to USNews)

1. USAA

2. Geico

3. Nationwide

4. State Farm

5. Travelers

6. Allstate

7. Progressive

8. Auto Owners Group

9. Farmers

10. ALFA Insurance

*****

What are the best car insurance companies in Alaska with cheap prices and good service?

1. USAA

Photo:  time.com
Photo: time.com

USAA offers great rates for its policyholders for both auto and homeowners insurance. Young drivers are particularly likely to save the most by selecting USAA for car insurance. And for homeowners insurance shoppers, people with more expensive homes are likely to find particularly low premiums with USAA.

USAA auto insurance coverages

USAA provides standard coverages, such as liability, comprehensive, and collision insurance, that you would expect from an auto insurer or that might be required in your state. In terms of additional coverage options, USAA has a wide variety of insurance offerings but does not offer anything that you wouldn't likely be able to find with a similar national insurer.

Car Replacement Assistance coverage: This is essentially what other insurers might call "new car replacement coverage." Car Replacement Assistance (CRA) pays 20% — in addition to the actual cash value of the vehicle — if your car is totaled. This coverage is not available for leased cars. CRA is only available to vehicles with both comprehensive and collision coverage, and signing up for CRA could increase your premiums by 5%.

Accident Forgiveness: With Accident Forgiveness, USAA auto insurance customers will not see their rates go up after one at-fault accident. Similar to Geico's accident forgiveness program, this coverage can either be earned or purchased. Qualifying drivers who have no at-fault accidents for five years while being insured with USAA will automatically receive this benefit. Purchasing this coverage could cost drivers an additional 4% in their auto insurance premiums, judging from the quotes we gathered.

Rental Reimbursement: In the event of a covered loss where your vehicle is in need of repair, USAA will pay for a rental vehicle. Unlike other insurers — which let you select a daily limit as well as a limit per claim — USAA lets customers select a type of vehicle: Economy, Standard, Multipassenger-Truck, or Large SUV. The specific coverage limits for Rental Reimbursement will be spelled out in your insurance policy. According to the quotes, we gathered, adding this coverage with an economy rental costs around $60 more per year.

Towing and Labor: If you are in need of roadside assistance, having this coverage will pay for the cost of towing to the nearest repair shop, the cost of gas delivery, a tire change and any labor performed where your car broke down. USAA will specify coverage limits on your individual policy. We found this coverage to cost an additional $18 on yearly auto insurance premiums for each driver profile we examined.

Rideshare Gap Protection: This coverage protects rideshare drivers during the times where they may not be covered by their personal auto insurance policy or the coverage provided by their rideshare services — such as Uber or Lyft.

Glass coverage

Customers looking for full glass coverage — so they won't have to pay out of pocket for windshield or window repairs — might be disappointed with USAA's offerings. Unlike many other insurers, full glass coverage is only automatically included by USAA with comprehensive coverage only in Florida, Kentucky, Massachusetts, and South Carolina. However, USAA customers may have the option to choose full glass coverage — for an additional charge — if they live in Arizona, Connecticut, Minnesota, or New York.

Gap insurance

Gap insurance is designed for drivers who finance or lease their vehicles, and it covers the difference between what drivers owe and what their cars are worth in the event of a total loss. USAA does not offer gap insurance for leased vehicles, though it does provide similar products for purchased vehicles.

Drivers who get a car loan through USAA have the option to purchase Total Loss Protection, which functions similarly to gap insurance. This will cover the gap between what you owe and your car's actual cash value (ACV) up to $50,000, including $1,000 of your deductible.

Car Replacement Assistance (CRA) — which can cover the same costs as gap insurance — is available if you have either bought a car outright or have an auto loan through USAA or another lender. The main difference between gap insurance and CRA is that CRA will pay 20% more than the ACV of your car, whether this exceeds or is less than the amount you owe on a vehicle. For example, if you totaled your car and owed more than 20% over the ACV of your car, you would be left paying out of pocket for the remaining balance of your loan. While gap insurance is also limited on how much it will cover, in most cases the limit will be greater than 20% of your car’s ACV. On the other hand, if your car isn’t financed, CRA can play a valuable role in helping you to purchase a new vehicle in the case your car is totaled, not just pay off a loan as gap insurance does.

2. Geico

Photo:  Insurance Journal
Photo: Insurance Journal

Geico is the nation’s second-largest auto insurance company, known primarily for low rates offered directly to consumers online and over the phone. It is available in all 50 states and the District of Columbia. If you’re looking for an affordable car insurance policy and you’re comfortable managing your own accounts online when an agent isn’t nearby, Geico might be right for you.

Common types of car insurance coverage

When you’re shopping for car insurance, it’s important to understand what car insurance coverage you want and what you’re required to buy. Most states require car insurance to drive a vehicle, although minimum coverage requirements vary from state to state. This generally includes liability insurance and uninsured and underinsured motorist coverage.

If you want extra protection, you may be interested in full coverage insurance. Full coverage isn’t a specific policy you can buy, but rather a combination of coverage types like liability, collision and comprehensive insurance.

Check out the most common types of car insurance coverage below to see how they work:

Coverage type

What it pays for

Required?

Bodily injury and property damage liability

Costs for injuries, deaths or property damage from an accident you caused.

Typically required.

Uninsured or underinsured motorist coverage

Medical and property damage costs after an accident with a driver who has insufficient insurance or none at all.

Often required.

Collision coverage

Repair expenses from traffic-related accidents, regardless of who's at fault.

A car loan or lease may require it.

Comprehensive coverage

Repair costs from events outside of your control — including weather events, hitting an animal while driving, theft and vandalism.

A car loan or lease may require it.

In addition to typical car insurance coverage choices, Geico offers:

  • Mechanical breakdown coverage. This covers repairs to all mechanical parts of a new car, less than 15 months old and with less than 15,000 miles, except problems caused by wear and tear. There’s a $250 deductible. Mechanical breakdown coverage is renewable for up to seven years or 100,000 miles, whichever comes first, and does not pay for regular maintenance such as tune-ups.
  • Rideshare insurance. If you drive for a rideshare company such as Uber or Lyft, or a delivery service like Instacart or GrubHub, this option allows you to have one policy that covers both personal and ridesharing use. You can replace your existing auto policy with this hybrid insurance on the ridesharing vehicle only. Geico’s ridesharing insurance is available in 40 states and the District of Columbia.

Geico’s auto insurance discounts

Geico has a long list of car insurance discounts, so there’s a good chance you can find a price break that applies to you. Although details vary by state, you may be eligible for discounts for:

Have safety equipment like airbags, anti-lock brakes, daytime running lights, or an anti-theft system.

Owning a brand new vehicle that is three model years old or newer.

Driving for five years with no accidents.

Using seat belts.

Completing a defensive driving course, or driver’s education for a young driver.

Having good grades, if you or someone on your policy is a full-time student 16 to 24 years old.

Participating in an emergency deployment with the U.S. military.

Being an active or retired military service member or a member of the National Guard or Reserves.

Being an active or retired federal employee.

Insuring more than one vehicle with Geico.

Buying homeowners, renters, condo or mobile home policy through Geico.

Being a member of organizations such as alumni associations or sports groups.

Read More: 10 Best Car Insurance Companies in America With Cheapest Quotes and Good Services

3. Nationwide

Photo: The Balance
Photo: The Balance

Starting as a small mutual auto insurance company in 1926, Nationwide has grown into one of the biggest insurance and financial services companies in the world. It is now a Fortune 100 company, selling insurance for vehicles, homes, businesses, and more.

Nationwide’s Auto Insurance Discounts

Nationwide Insurance offers a wide range of discounts for auto insurance customers, such as:

Multi-policy discount. Bundle your car insurance with a homeowners insurance policy from Nationwide for a price break.

Accident-free discount. If you have an accident-free driving record, you’re eligible for a discount.

Good student discount. A discount if you have a young driver ages 16 to 24 who has a “B” average or better in high school or college.

Defensive driving discount. You may be eligible for a discount if you finish a state-approved driver’s safety class. In some instances, this is available only to customers age 55 or older.

Anti-theft discount. If you have an anti-theft device in your car, you may qualify for a discount.

Safe driver discount. Nationwide customers with five years or more of good driving, with no tickets, no violations, and no accidents, are eligible for a discount.

Automatic deductions discount. This discount applies if you sign up to pay your auto insurance premium with automatic deductions from your bank account.

Paperless discount. A price break for receiving your insurance bills and documents electronically.

Nationwide’s Car Insurance

Nationwide offers insurance on a variety of vehicles: cars, classic cars, recreational vehicles, all-terrain vehicles, motorcycles, and boats. Nationwide even covers scooters, golf carts, and snowmobiles.

Are you an accident-free driver? For every year that you go without a car accident, Nationwide will give you $100 off your deductible, up to $500. This is known as a vanishing deductible and it is a good value for drivers who are accident-free.

The accident forgiveness program offered by Nationwide allows you to avoid a rate increase after your first at-fault car accident. You’ll have to pay for this feature.

Usage-Based Insurance Options from Nationwide

Nationwide’s SmartRide program gives discounts based on how safely you drive. This usage-based insurance program tracks your driving habits for six months. If you have been a safe driver, you may save as much as 40% off your insurance. You get a 10% discount for signing up. Weekly progress reports also are sent, as is feedback on how well you’re driving.

Nationwide also offers a pay-per-mile insurance program. SmartMiles can provide savings for low-mileage drivers. The amount of money you pay for car insurance is based partly on the number of miles that you drive. You can monitor your miles online so you’ll know your monthly payment, according to Forbes.

4. State Farm

Photo: WGLT
Photo: WGLT

State Farm dominates in the auto insurance space with a market share of 16%. The insurance company's coverage spans the U.S. Those who prefer a more personal experience can easily get in contact with State Farm's network of agents. This popular insurance company also boasts good ratings from reputable third parties, with positive assessments of its customer satisfaction and financial outlook.

Coverage options and discounts for State Farm car insurance are comparable with those offered by other large companies — but those looking for an impressive selection of add-ons and extras could be found wanting.

State Farm Auto Insurance Coverage

With State Farm car insurance, you can get all the standard types of car insurance offered by most companies. These include:

Liability auto insurance (bodily injury/property damage)

Collision insurance

Comprehensive car insurance

Medical payments (MedPay)

Personal injury protection (PIP)

Uninsured/underinsured motorist coverage (UM/UIM)

It should be noted that BI/PD is required by almost all states. Some states also require medical coverage or UM/UIM. All no-fault states require PIP since it covers the driver no matter who is at fault.

Car Insurance Extras

You can get a number of add-ons with State Farm, which is one reason why State Farm insurance reviews so well. These add-ons include:

Rental and travel expense coverage: With a Car Rental Expense, State Farm will cover a rental car while your car is being repaired after a covered claim (up to the limits you choose). With Travel Expenses, State Farm will pay for meals, lodging, and transportation (up to $500) if you get in an accident more than 50 miles from home and can’t get home. The insurance provider also covers a return trip to pick up your car. Finally, State Farm auto insurance can pay up to $500 toward a deductible after you have an accident in a rental car.

Rideshare insurance coverage: If you drive for Uber or Lyft, you should add this option to your policy. That’s because a standard auto insurance policy doesn’t cover commercial use of your vehicle. You are usually covered by the rideshare company when you are driving to pick up a person or drop them off, but you aren’t covered when you are waiting to accept a trip from the app.

State Farm roadside assistance: State Farm offers emergency road service that includes one hour of labor at the breakdown site, towing to the nearest repair shop, fluid delivery, jump-starts, spare tire installation, and lockout services.

5. Travelers

Photo:  Quote.com
Photo: Quote.com

The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company. It is the second-largest writer of U.S. commercial property-casualty insurance, and the sixth-largest writer of U.S. personal insurance through independent agents. Travelers are incorporated in Minnesota, with headquarters in New York City, and its largest office in Hartford, Connecticut. Travelers also maintains a large office in St. Paul, Minnesota. It has been a component of the Dow Jones Industrial Average since June 8, 2009.

The company has field offices in every U.S. state, plus operations in the United Kingdom, Ireland, Singapore, China, Canada, and Brazil. Travelers ranked No. 98 in the 2021 Fortune 500 list of the largest United States corporations with total revenue of $32 billion.

Travelers can be a great auto insurance company for customers who unlock some of its many discounts. For instance, the IntelliDrive program alone can reduce your annual insurance rates by as much as 20% if you exhibit good driving habits, making Travelers a very affordable insurance option. However, if you’re unwilling to partake in due diligence, namely in seeing if you qualify for any discounts or discount programs, it’s unlikely that Travelers will be the most affordable option.

Travelers auto insurance coverages

As one of the largest and oldest insurance companies, Travelers offers its customers all of the coverage options that most other national insurance companies do. Beyond the standard coverages, Travelers offers a few unique optional coverages, such as premier new-car replacement and two accident forgiveness plans.

Loan or Lease Gap Insurance: If your vehicle is involved in a total loss, this optional coverage pays for the difference between the actual cash value of your car and the unpaid portion of your loan or lease. For instance, if you purchased or leased a 2015 Toyota Camry that is now worth $10,000, but you have an unpaid loan or lease balance of $13,000, loan or lease gap insurance would pay for the $3,000 difference. Without the coverage, you’d have to pay the $3,000 out of pocket.

Premier New Car Replacement: This optional coverage functions as a bundle for new car owners, which includes new-car replacement coverage, loan or lease gap coverage, and a glass deductible feature. The standout feature of the bundle is the new-car replacement coverage, which covers the cost of a new car if your vehicle is totaled in a covered loss. Losses stemming from fire, theft, larceny, and flood are excluded from the coverage. The loan or lease gap coverage functions in the same manner as if you were to purchase it as a single endorsement. The glass deductible feature lowers your deductible for a glass-only loss. Any claim involving your windshield, windows, exterior lights, or mirrors is eligible.

Accident Forgiveness Plans: Travelers offers accident forgiveness through two hybrid programs marketed as discounts: the Responsible Driver Plan and the Premier Responsible Driver Plan. Accident forgiveness programs cancel the increase in a driver’s rates after an at-fault accident, which can save you hundreds of dollars over the term of your policy. Below is a table illustrating the plan’s estimated cost for a 30-year-old driver with a 2015 Toyota Camry and the two programs’ features.

Program

Sample Annual Cost

Features

Responsible Driver Plan

$95

Forgives one accident and one minor violation every three years.

Premier Responsible Driver Plan

$146

Forgives one accident and one minor violation every three years. Provides a waiver for your deductible if your car is totaled. Reduces your deductible by $50 every six months that you’re accident-free, up to a $500 limit.

Ride Sharing: Prospective policyholders in Colorado and Illinois have the option to add coverage when driving for Uber, Lyft or other ridesharing apps. If you don’t have a similar coverage, it’s likely you’re not covered when driving for a ridesharing app. The endorsement provides coverage after opening your mobile app but before picking up a passenger. Once you pick someone up, the ridesharing company’s insurance will provide you with coverage.

Rental Car Coverage: Rental car coverage reimburses you for the cost of a rental vehicle if your car is involved in a covered accident. Coverage starts at $30 per day, and the maximum available is $100 per day. While the cost will vary depending on your vehicle type, you can expect to pay around $20 per year for the lower end of coverage and around $50 per year for the maximum coverage. To use Travelers’ rental car coverage, your vehicle must be out of commision for at least 24 hours. Rental car coverage applies to specific vehicles rather than people, meaning that you must pay more if you want to have coverage for another vehicle.

Roadside Assistance: If you want roadside services, such as a jump-start, fuel delivery, tire change or lockout assistance, you’ll want to purchase this optional coverage. Travelers offers two tiers of roadside assistance: basic roadside assistance and premier roadside assistance. The former provides towing service up to 15 miles, while the latter provides the service up to 100 miles. Premier roadside assistance also includes trip interruption coverage, which provides $600 (maximum of $200 per day) of reimbursement for food and lodging if your vehicle breaks down.

6. Allstate

Photo: Allstate
Photo: Allstate

Allstate Insurance was founded in 1931 as an auto insurance company. The first policy, costing $41.60, was a 12-month policy for a 1930 Studebaker. Wondering about the name Allstate? The name came from a car tire in the Sears catalog. Today Allstate ranks at No. 4 for private passenger auto insurance, behind State Farm, Geico and Progressive.

Allstate Car Insurance

Allstate sells insurance for cars, RVs, ATVs, motorcycles and boats. For those who have classic cars and want to protect their antique cars, Allstate also sells classic car insurance. Optional coverage types include:

Roadside assistance

Medical payments

Uninsured and underinsured motorist

Sound system insurance

Rental reimbursement

Personal injury protection

For drivers worried about a rate increase after an accident, Allstate offers accident forgiveness insurance as another add-on to your policy. Ths coverage “forgives” an accident and it won’t result in a premium increase, even if the accident was your fault.

If you just bought a new car, you might want to consider new car replacement insurance. If your car is two model years old or less, this coverage replaces your car with a new car of the same make and model if it was totaled in an accident covered by your policy.

Other add-ons offered by Allstate include rideshare insurance and additional car insurance for drivers who are going south of the border to Mexico, according to Forbes.

Allstate Car Insurance Discounts

Allstate offers several discounts, especially for safe drivers. Parents of teen drivers can take advantage of discounts like the smart student discount and the teenSMART driver education program. You can also get discounts on car features like anti-lock brakes and anti-theft devices. Other Allstate auto insurance discounts include:

Multiple policy discount: If you have more than one Allstate policy, you could save money off your premiums.

Early signing discount: If you sign your policy seven or more days before it becomes effective, you could receive a discount.

Responsible payer discount: If you haven’t received a cancellation notice within the past year, you can get a discount.

Anti-lock brake discount. Driving a car with anti-lock brakes will save you money on your car insurance.

New car discount: If you are the first owner of a car that is the current model year or one year prior, you could save money on your premium payments.

Anti-theft discount. If you have an anti-theft device in your car, you’ll save money on your car insurance premium.

EZ plan pay discount: Get a discount by setting up an automatic payment plan.

Allstate eSmart discount: By signing up for an ePolicy and going paperless, you can get a discount.

FullPay discount: You can save by paying your annual premium in full.

Safe driving club discount: If you meet certain safe driving requirements, you could qualify for the safe driving club and earn a discount.

7. Progressive

Photo: Allstate
Photo: Allstate

Progressive started its ignition in the auto insurance business in 1937 when Joseph Lewis and Jack Green had the idea of offering basic insurance that anyone could afford. Today, Progressive is the third-largest auto insurance company in the United States and a leading seller of commercial auto insurance and motorcycle insurance.

About Progressive Car Insurance

Progressive sells insurance for cars, RVs, ATVs, classic cars and boats. For drivers who prefer more unique forms of transportation, Progressive also offers Segway, Sea-Doo, golf cart and snowmobile insurance.

Optional auto insurance coverage types include roadside assistance, custom parts, rideshare insurance, and rental reimbursement. Progressive also offers a deductible savings bank which helps pay your deductible. For every claim-free policy period, Progressive will subtract $50 from your deductible.

Additionally, Progressive sells loan/lease payoff coverage (also known as gap insurance). This helps cover the difference between what you owe on the car and the car’s actual worth if it’s totaled in an accident covered by your policy.

Progressive’s Usage-Based Auto Insurance

Progressive offers a usage-based program, known as Snapshot, which determines your insurance rate in part based on your actual driving.

You’ll get an automatic discount simply for participating in the program (depending on your state). Your personalized insurance rates will be calculated based on when you renew your policy, based on your driving habits.

Progressive Auto Insurance Discounts

Progressive offers many discounts, especially for drivers who practice safe driving habits. If you have a teen driver, look for Progressive’s discounts for teen drivers, good students and distant students.

If you’re a loyal Progressive customer, you can benefit from the multi-policy and multi-car discounts. Here are a few other insurance discounts you may qualify for:

Multi-policy discount: Do you have multiple policies with Progressives such as home and auto insurance? If so, this discount can save you up to 5%.

Multi-car discount: Save up to 4% by listing more than one vehicle on your car insurance policy.

Continuous insurance: If you’ve continuously had an auto insurance policy with no gaps or cancellations, whether it’s with Progressive or another insurance company, you may be eligible for a discount.

Teen driver discount: Progressive offers discounts for teen drivers on your policy to help offset the cost of adding an inexperienced driver.

Good student discount: If you add a student to your policy and they maintain a “B” average, you may be eligible for a 10% discount.

Homeowner discount: Even if you don’t insure your home through Progressive, you could receive up to 10% off your policy for being a homeowner.

Online quote discount: If you get a quote online for a Progressive policy, you could receive up to 7% off your policy.

Sign online discount: Progressive will take up to 9% off your policy if you sign your policy documents online.

Paperless discount: If you opt for paperless statements, you will automatically receive a discount.

Pay in full discount: If you pay the full policy bill upfront you can get a discount.

Automatic payments: For those who don’t want to pay in advance for their policy, you can set up automatic payments from your checking account and receive a discount. Unfortunately, you can’t combine the pay in full discount and automatic payment discount.

8. Auto Owners Group

Photo: Wikipedia
Photo: Wikipedia

Auto-Owners Insurance Group is a Michigan-based insurance carrier founded in 1916. The company offers more than just car insurance. It offers more than a dozen types of insurance through independent agents. With Auto-Owners Insurance, customers can benefit from bundling. However, the company doesn’t have strong online tools, so you can’t get a quote, sign up for coverage, or file a claim online. The company is also only available in 26 states, so if you fall outside of its coverage area, you may need to seek coverage elsewhere.

Cost of Auto-Owners Insurance Group Auto Insurance

The average annual cost of car insurance in the United States is $1,674, which comes to an average monthly premium of $139.50. Auto-Owners Insurance customers can expect to pay an average annual cost of $1,351, or $113 per month, which is about $300 per year below the national average.

Keep in mind that your costs will depend on many factors, including your vehicle, driving history, age, creditworthiness and amount of coverage.

Types of Coverage

Auto-Owners has a solid list of auto insurance coverages to choose from. Standard coverages include:

  • Collision
  • Comprehensive
  • Bodily injury liability
  • Property damage liability
  • Uninsured and underinsured motorist
  • Medical payments
  • Personal injury protection
  • Road trouble service
  • Additional expense
  • Loan and lease gap
  • Diminished value
  • Personal automobile plus

The company also offers several additional coverage perks that include:

  • Waived deductible for an accident with another Auto-Owners customer
  • Common loss deductible
  • Rental cars

9. Farmers

Photo:  3Q Digital
Photo: 3Q Digital

Farmers’ strongest feature is its customer service, which translates into a speedy claim process and potentially discounted rates for customers. Farmers has a strong coverage network with more than 48,000 exclusive and independent agents and approximately 21,000 employees available across all 50 states, but not the District of Columbia.

Customer reviews of Farmers generally paint the company’s agents in a positive light, so policyholders are likely to have a good experience when interacting with the company’s employees.

In terms of price, Farmers offers rates far higher than what major competitors offer. For instance, we found that Farmers' rates for a 35-year-old driver with a clean record were 67% more expensive than what Geico offered. Similarly, home insurance rates from Farmers were 30% more expensive than Allstate's rates, according to Value Penguin.

Farmers Car Insurance Coverage Options

With Farmers, you can get an insurance quote online, or you can contact an agent for personalized assistance. Farmers offers the following coverage options:

Accident Forgiveness

This is an option you can add to your policy. Farmers will forgive one at-fault accident for every three years you go without one, helping to keep your premiums from going up.

Collision

If you’re at fault in an accident, collision coverage pays for the repairs to your vehicle. It covers repairs after accidents with other vehicles, objects, and animals.

Comprehensive

Comprehensive coverage pays for repairs to your vehicle resulting from incidents other than accidents, such as storms or theft.

Customized Equipment

If you added after-market equipment to your vehicle, such as speakers or custom wheels, the customized equipment option will cover the cost to repair or replace those features. It’s available on any vehicle with comprehensive or collision coverage.

Full Windshield and Glass

With this coverage you’ll pay nothing out of pocket to replace your windshield or glass. It offers a $0 deductible on glass repair and replacement.

Glass Deductible Buyback

This also covers glass repair and replacement but has a $100 deductible.

Guaranteed Value

This option is popular for car collectors and antique vehicle owners. It pays you a defined, agreed-upon value if your car is a total loss.

Liability

Nearly all states require liability insurance, which covers you when you’re at fault in an accident. It pays for damage and the cost of injury to others.

Loss of Use

While your car is being repaired, this pays a flat sum for transportation. You can use it to pay for public transportation, car rentals, taxis, or rideshare services.

Medical Payments

No matter who is at fault in an accident, medical payments pays for medical care for you and your passengers.

New Car Replacement

New car replacement will pay to replace your vehicle with a new one of the same make and model if your car is totaled within the first two model years and 24,000 miles.

Original Equipment Manufacturer (OEM)

OEM coverage pays for the use of factory-original parts in repairs. It’s available on cars up to 10 years old.

Personal Injury Protection (PIP)

PIP covers the cost of your rehabilitation and lost wages after an accident, regardless of who is at fault.

Personal Umbrella

If you have personal umbrella coverage, you can have additional liability insurance above the limits of your auto policy. It helps protect your assets in case of a lawsuit.

Spare Parts

A popular option for car collectors, this will pay up to $750 to replace spare parts you keep on hand.

Towing and Roadside Assistance

If your car is disabled, this provides 24/7 aid. You can get help with towing, tire changes, or locksmith services.

Uninsured/Underinsured Motorist

Uninsured motorist coverage ameliorates your losses if you’re in an accident with a motorist who doesn’t have insurance. Underinsured motorist protection covers you if your accident partner has insufficient insurance. Both help pay for damages to your vehicle and any bodily injuries you or your passengers sustain.

10. ALFA Insurance

Photo: Guidewire
Photo: Guidewire

Alfa Insurance was founded in 1946 and initially went into business to provide fire insurance to farmers in Alabama. Today, the company provides a variety of insurance products to more than 1 million customers, primarily in the Southern region. Alfa Insurance operates in 11 states, including Alabama, Mississippi, Georgia, Texas, Missouri, Indiana, Ohio, Virginia, Tennessee, Arkansas and Kentucky.

Types of coverage

Alfa Insurance sells minimum and full coverage car insurance policies. Here are the coverage options available:

  • Full coverage: A full coverage policy from Alfa includes collision, comprehensive, liability, medical payments, uninsured/underinsured motorist coverage, loss of income and rental car reimbursement coverage.
  • Roadside assistance: Roadside assistance from Alfa includes 24/7 coverage for services like towing, tire changes, gas, battery replacement and more.
  • Accident forgiveness: Drivers in Alabama can get an accident waiver, which prevents their car insurance premium from increasing after their first at-fault accident.

Cost of Alfa car insurance

For most drivers, Alfa Insurance will not be the cheapest car insurance company. The average full coverage policy costs $2,215 per year, and the average minimum coverage policy costs $600 per year, compared to the average annual premium of $1,738 across the United States for full coverage car insurance.

However, remember that every driver pays a slightly different rate for car insurance. Factors like state, ZIP code, age, credit score, and claims history contribute to a driver’s personalized car insurance premium.

Minimum Coverage

Full Coverage

$600

$2,215

Discounts

Although Alfa Insurance’s average premium is pricey, the company offers a long list of discounts that can help drivers save money on their policy, including:

  • Multi-vehicle discount
  • Life insurance multi-policy discount
  • Homeowner discount
  • Defensive driver discount
  • Young driver discount
  • Driver training discount
  • Youth defensive driving discount
  • Occupational discounts for teachers, military, first responders, state/federal employees, ministers, and farmers
  • Vehicle safety features discount (airbags and anti-theft device)
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