If you own a home in Alabama, Allstate has your cheapest home insurance rate, followed by USAA. USAA only offers insurance products to military members and veterans, making Farmers the second-cheapest home insurer for most families.
Alabama has higher home insurance rates than the national average. This makes comparing home insurance quotes a high priority. This guide will help you understand the cheapest home insurance providers in Alabama to find the best combo of cost and coverage.
We will cover
The cheapest home insurance companies in Alabama
Allstate has the lowest home insurance rate in Alabama, with an average of $136 a month. For most homeowners, Farmers has the second-cheapest rate of $147 a month.
| Company | Monthly rate |
|---|---|
| Allstate | $136 |
| USAA | $144 |
| Farmers | $147 |
| Country Mutual | $153 |
| State Farm | $171 |
| Cincinnati Mutual | $180 |
| Alfa Mutual | $215 |
| Nationwide | $217 |
| Travelers | $271 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How much does home insurance cost in Alabama?
The average rate for homeowners insurance in Alabama is $171 a month. This is 8% higher than the national average home insurance rate of $159 a month.
Home insurance providers calculate your premium based on multiple factors, including:
- Your ZIP code
- The age of the house
- Materials used in construction
- Your insurance history
The points of coverage in a standard home insurance policy, also known as an HO-3 policy, tend to be the same across all providers. The difference in rates from insurer to insurer comes down to how they gauge risk factors. For example, one insurance company may consider your neighborhood to be a higher risk area than another company. This is a key reason why you should compare quotes from many different home insurers.
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The policy deductible you choose also affects your premium. The standard rule is the higher your deductible, the lower your premium. The table below shows how your rate changes depending on your deductible.
| Deductible | Monthly rate |
|---|---|
| $500 | $193 |
| $1,000 | $182 |
| $1,500 | $174 |
| $2,000 | $166 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
If your budget allows for it and you have a relatively new home or updated systems, going with a higher deductible can be a good way to go towards saving money on premiums. However, if you have an older home, going with a lower deductible may be a better way to go.
The dwelling coverage limit you choose will also have a bearing on your home insurance rate. You want to have enough dwelling coverage to take care of a full rebuild of your home in the event of a total loss. The table below shows how different dwelling coverage limits affect your rate.
| Dwelling coverage amount | Monthly rate |
|---|---|
| $200,000 | $146 |
| $350,000 | $215 |
| $425,000 | $254 |
| $500,000 | $296 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Alabama's best home insurance companies
We found Allstate and USAA to be the best homeowners insurance companies in Alabama. Here's why:
Allstate: Cheapest rates and best discounts
Allstate has an average home insurance rate of $136 a month in Alabama, which is 21% cheaper than the state average rate. Allstate's low rate is due in part to the exceptional range of discounts it offers policyholders. These include:
- Early signing discount: You save up to 10% off your home insurance premium if you sign up for a new Allstate policy at least seven days before your current policy expires.
- Welcome and loyalty discount: When you switch to Allstate for home insurance, you can get a discount of up to 10% off your premium that remains for as long as you carry the policy.
- Multipolicy discount: If you bundle your home insurance with an Allstate car or life insurance policy, you can save up to 25% off your annual insurance costs.
- Claim-free discount: If you sign on with Allstate with no recent claims on your insurance history, it can result in up to 20% off your premium.
USAA: Best for veterans
USAA has an average rate of $144 a month for homeowners insurance in Alabama. USAA is often considered "the best of the best" for insurance providers. In J.D. Power's 2022 U.S. Property Claims Satisfaction Study, USAA received a score of 893 out of 1,000. This score reflects overall customer satisfaction based on resolution of claim factors such as response time and payout.
USAA only provides home insurance for serving and veteran military members, making its services limited. However, Alabama has the 16th-highest population of veterans in the country, according to the World Population Review. If you're one of them, definitely consider USAA.
Alabama's cheapest home insurance by city and county
In looking at five of Alabama's five biggest cities, Auburn has the cheapest home insurance rate with Country Mutual at $185 a month. Dothan ties with Auburn, paying $185 a month with Allstate. Hoover pays the next-cheapest rates with Farmers at an average rate of $188.
| Company | Auburn | Birmingham | Decatur | Dothan | Hoover |
|---|---|---|---|---|---|
| Alfa | $250 | $241 | $306 | $291 | $221 |
| Allstate | $247 | $226 | $251 | $185 | $223 |
| Cincinnati | $206 | $217 | $204 | $297 | $206 |
| Country Mutual | $185 | $237 | $246 | $218 | $216 |
| Farmers | $218 | $250 | $258 | $224 | $188 |
| Nationwide | $267 | $339 | $346 | $278 | $298 |
| State Farm | $206 | $259 | $246 | $204 | $225 |
| Travelers | $292 | $492 | $310 | $352 | $267 |
| USAA | $191 | $237 | $247 | $192 | $215 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |||||
In Alabama's five biggest counties, Mobile County homeowners get the cheapest insurance rates with Country Mutual at an average rate of $151 a month. Baldwin County gets the second-lowest rates with Country Mutual at $155 a month.
| Company | Baldwin | Jefferson | Madison | Mobile | Montgomery |
|---|---|---|---|---|---|
| Alfa | $347 | $251 | $300 | $340 | $246 |
| Allstate | $201 | $235 | $215 | $177 | $220 |
| Cincinnati | $581 | $221 | $220 | $532 | $231 |
| Country Mutual | $155 | $235 | $218 | $151 | $189 |
| Farmers | $318 | $231 | $240 | $316 | $196 |
| Nationwide | $857 | $330 | $325 | $697 | $298 |
| State Farm | $170 | $256 | $248 | $182 | $221 |
| Travelers | $554 | $425 | $450 | $707 | $348 |
| USAA | $190 | $234 | $253 | $197 | $202 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |||||
Alabama home insurance: FAQs
Alabama has an average home insurance rate of $171 a month, 8% higher than the national average rate of $159 a month.
Allstate has the cheapest home insurance rate in Alabama, at an average of $136 a month.
Methodology
We collected quotes from every ZIP code in Alabama for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling coverage (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
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