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For drivers in Montgomery, Alabama, the average annual cost of car insurance is generally lower than the national average rate. Montgomery drivers pay an average of $519 per year for minimum coverage and an average of $1,642 per year for full coverage. Nationally, drivers pay an average of $1,674 per year for full insurance and $565 per year on average for minimum insurance.

If you’re looking for cheap car insurance in Montgomery, you might be able to find an even lower than average rate. Bankrate reviewed Quadrant Information Services premium data for some of the major insurance companies to identify the providers that offer the most affordable auto insurance premiums in Montgomery. We’ve also analyzed coverage options, discounts offered, and customer service ratings to help drivers find the best cheap insurance in Montgomery.

Best auto insurance companies in Montgomery

Based on our research, the best car insurance companies in Montgomery are Geico, Farmers, Country Financial, and State Farm. These four providers offer some of the most affordable premiums and include a range of coverage and discount options.

Quadrant Information Services, 2020

Geico

Geico offers Montgomery drivers the opportunity to save on annual premiums while delivering high overall customer satisfaction. Geico is a subsidiary of Berkshire Hathaway and is the second insurer passenger vehicles in the United States. In addition to already low premiums, the company does not lack discounts, with savings for the military, good students and federal employees. You can also get a discount for having safety features like airbags installed on your vehicle, being claim-free, and insuring more than one vehicle.

Read more: Geico Insurance Review

Farmers

Farmers is a major national carrier offering many coverage options and policy discounts. Customers looking for digital tools might be pleased to know that the mobile app makes font management easy and accessible. Although farmers scored below the industry average for the Southeast region in the 2021 JD Power US Auto Insurance Study, the company received a Complaint Index score of about average from the National Association of Insurance Commissioners (NAIC). A score of 1.00 indicates a baseline level of complaints. The auto insurance product for farmers’ individuals received a rating of 1.18.

Read more: Farmers Insurance Review

Country Financial

Country Financial operates in 19 states across the country, including Alabama. It offers a few options to customize your car insurance policy, such as emergency road service coverage and safety glass coverage. While the hedging options with Country Financial are fairly standard, the company offers a wide range of discounts to help policyholders lower their premiums. You can get a discount by bundling your policies, pledging and driving safely. One of the more unique discounts is Country Financial’s Occupancy Discount – K-12 teachers, firefighters, police officers, paramedics and paramedics could save on their car insurance.

Read more: Country Financial Assurance Review

state farm

State Farm is the leading personal vehicle insurer in the USA. State Farm offers specialty coverage options such as carpool coverage and gap insurance to allow policyholders to create an auto insurance policy that’s right for them. Discounts such as the Drive Safe & Save program offer up to 30% savings, and bundling your fonts could save you up to 17%. State Farm is the only vendor on our list that scored above average for overall customer satisfaction in the Southeast region of J.D. Power. Additionally, its private passenger insurance product receives fewer complaints than average, according to the NAIC, with a score of 0.70.

Read more: State Farm Insurance Review

Cheapest car insurance in Montgomery

On average, auto insurance costs $1,674 per year for full coverage and $565 per year for minimum coverage nationwide. Alabama residents pay slightly less than the national average, with annual rates of $469 for minimum coverage and $1,623 for full coverage. The average in Montgomery is slightly higher than in Alabama, at $519 per year for minimal coverage and $1,642 per year for full coverage.

Bankrate analyzed the average premiums of the largest insurers by market share in the Montgomery area to find the best cheap car insurance options. In addition to average premiums, factors such as financial stability, customer service ratings, coverage options and available discounts were all considered. These providers generally offer the cheapest rates on average:

insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Geico $376 $1,418
USAA $394 $1,244
Travelers $420 $1,113
Allstate $438 $1,254
Farmers $450 $1,489

Although price is a factor when buying car insurance, it is not the only consideration. You can also review a company’s customer service reviews, coverage and discount options, and financial stability before choosing a provider.

Montgomery Insurance Requirements

Alabama requires drivers to carry at least one minimum amount of liability insurance. Because Alabama is a no-fault state, drivers are not required to carry no-fault insurance. The minimum levels of insurance coverage required by the state are as follows:

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $25,000 property damage per accident

However, insurance professionals recommend that you purchase higher liability limits if you can afford it. If you carry minimal liability insurance and cause an accident, you could end up with personal expenses.

You can also consider comprehensive auto insurance to cover damage to your own vehicle. If you lease or finance your car, your lender will usually require you to have comprehensive coverage and collision coverage.

Alabama ranks sixth in the nation for largest number of uninsured motorists, with just over 18% of drivers estimated to be uninsured. Adding uninsured motorist coverage to your policy can be a good idea. This coverage will help pay for your medical expenses and property damage, up to your policy limits, if you are hit by an uninsured driver. Insurance companies in Alabama are required to offer a minimum of 25/50 coverage for uninsured motorists, but you have the option to decline coverage in writing.

Car insurance discounts in Montgomery

Although Montgomery drivers pay about the same amount for car insurance as average drivers in the United States, discounts can still help lower your car insurance premiums. Most car insurance companies offer discounts to policyholders. Some common discounts at Montgomery include:

  • Discounts for safe driving: If you’re willing to use an app or plug-in device to track your driving habits, you could save money by being a safe driver.
  • Good student: If you are a student or insure a student on your policy who gets good grades, your insurance company may reward you by applying a discount to your policy.
  • Safety Equipment Features: Carriers often offer discounts if your car is equipped with safety features such as airbags, anti-theft system, or anti-lock brakes.
  • Dematerialized delivery: Many carriers offer a discount for choosing electronic statements instead of paper versions.

Each insurance company offers its own selection of discounts. Check with your company to make sure you’re getting the most out of it.

Frequently Asked Questions

What is the best car insurance company?

The best car insurance company for you may be different from the best company for a friend or family member because everyone has a unique situation that they bring to car insurance. However, looking at factors for each carrier, such as digital tools, customer service ratings, average premiums, and financial stability, can help you narrow down your choices. A good practice is to get quotes from several insurance companies and compare them.

How much auto insurance do I need in Montgomery?

Drivers in Montgomery, AL must carry at least 25/50/25 for liability insurance. However, insurance agents often recommend that drivers take out more coverage than is necessary. This is because if you cause an accident and the other driver’s losses exceed your liability policy limit, you may have to pay the difference out of pocket. You can also consider purchasing a comprehensive insurance policy, which includes physical damage coverage for your vehicle, which works as an additional layer of protection.

What factors affect car insurance rates in Montgomery?

Car insurance rates are personalized for each driver based on many factors. You could pay more or less than the average city rate depending on factors such as your zip code, age, credit score, claims history and driving record. Additionally, the types of insurance you carry, your deductibles, optional coverages and coverage limits will also affect your premium.

Methodology

Bankrate uses Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates shown are based on a 40-year-old male and female with a clean driving record , good credit and the following complete coverage limits:

  • Civil liability of $100,000 in bodily injury per person
  • Civil liability of $300,000 in bodily injury per accident
  • Civil liability of $50,000 in property damage per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 aggregate deductible

To determine minimum coverage limits, Bankrate has used minimum coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week, and drive 12,000 miles a year.

These are sampling rates and should only be used for comparison purposes. Your quotes may be different.

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