In Alabama, drivers pay about $1,032 annually for full coverage car insurance and around $483 for minimum coverage.
Your age, coverage level, location, driving record and credit history impact your car insurance premium. These factors help insurers determine your policy cost.
AlabamaCar InsuranceCosts
2024
Table of Contents
Average Cost Summary
Average Costs by Company
Average Costs by Coverage Level
Average Costs by City
Average Costs by Driver Age
Average Costs for New Cars
Average Costs by Driving Record
Average Costs by Credit Score
Tips to Save on Car Insurance in Alabama
Why Trust MoneyGeek? We analyzed data and quotes from Quadrant Information Services and the Alabama Department of Insurance to get the most precise average costs for various Alabama drivers.
These rates reflect the average cost of car insurance in Alabama as of September 2024.
31,680Quotes Analyzed
11Companies Compared
45ZIP Codes
Average Car Insurance Costs in Alabama
Alabama's average full coverage car insurance cost is around $1,032 annually. Knowing Alabama's average car insurance rates can help determine if you're receiving an affordable or pricier quote. Compare car insurance quotes to find the best deal.
Below are average auto insurance costs in Alabama to help you find minimum or comprehensive full coverage that fits your needs.
100/300/100 Full Cov. w/$1,000 Ded. | Average Annual Premium$1,032 | Average Monthly Premium$86 |
100/300/100 Liability Only | Average Annual Premium$567 | Average Monthly Premium$47 |
State Minimum Liability Only | Average Annual Premium$483 | Average Monthly Premium$40 |
Why Are Car Insurance Rates Moderate in Alabama?
Car insurance in Alabama is generally more affordable than the national average cost of car insurance. A full coverage policy with a $1,000 deductible costs around $1,032 annually ($86 monthly) in Alabama, while the average national equivalent is $1,330 annually ($111 monthly). For minimum coverage, Alabama's average is $483 per year ($40 monthly), compared with the national average of $615 annually ($51 monthly).
Several factors drive the cost difference, including Alabama's lower-than-average number of uninsured drivers, moderate population density, which reduces the likelihood of accidents, and the relatively low frequency of natural disasters reducing weather-related claims. Competition among insurers in Alabama also helps keep premiums lower.
Average Car Insurance Costs in Alabama by Company
In Alabama, Country Financial offers the cheapest full coverage at $675 annually, while Progressive has the most expensive average premium at $1,359.
Finding the cheapest car insurance in Alabama requires comparing quotes from different providers.
Data filtered by:Results filtered by:
Coverage:
- Full Coverage
- Minimum Coverage
Coverage:Full Coverage
Age Group:
- 22-29
- 30-59
- 60 +
Age Group:30-59
Country Financial | Annual Premium$675 | Monthly Premium$56 |
Cincinnati Insurance | Annual Premium$796 | Monthly Premium$66 |
Travelers | Annual Premium$854 | Monthly Premium$71 |
State Farm | Annual Premium$958 | Monthly Premium$80 |
Auto-Owners Insurance Co | Annual Premium$1,022 | Monthly Premium$85 |
GEICO | Annual Premium$1,083 | Monthly Premium$90 |
Allstate | Annual Premium$1,138 | Monthly Premium$95 |
Nationwide | Annual Premium$1,164 | Monthly Premium$97 |
Farmers | Annual Premium$1,267 | Monthly Premium$106 |
Progressive | Annual Premium$1,359 | Monthly Premium$113 |
Compare Auto Insurance Rates
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
Average Car Insurance Costs in Alabama by Coverage Level
The cost of car insurance in Alabama is also influenced by the level of coverage you select. While the monthly cost for minimum coverage is approximately $40, opting for full coverage ramps up the amount to an average of $86 a month. Despite its higher expense, it is often recommended to obtain a full coverage policy for more comprehensive financial protection on the road. For those interested, detailed information about full coverage insurance is readily available.
Adding comprehensive and collision coverage to your insurance policy generally leads to a higher premium; however, electing for higher deductibles can mitigate this increase. The deductible applies individually to both comprehensive and collision coverages, meaning it's the amount you pay out-of-pocket for each covered incident.
State Minimum Liability Only | Average Annual Premium$483 | Average Monthly Premium$40 |
100/300/100 Liability Only | Average Annual Premium$567 | Average Monthly Premium$47 |
300/500/300 Liability Only | Average Annual Premium$654 | Average Monthly Premium$54 |
State Minimum Liability w/ Full Cov. w/$1,500 Ded. | Average Annual Premium$882 | Average Monthly Premium$73 |
State Minimum Liability w/ Full Cov. w/$1,000 Ded. | Average Annual Premium$938 | Average Monthly Premium$78 |
100/300/100 Full Cov. w/$1,500 Ded. | Average Annual Premium$976 | Average Monthly Premium$81 |
100/300/100 Full Cov. w/$1,000 Ded. | Average Annual Premium$1,032 | Average Monthly Premium$86 |
State Minimum Liability w/ Full Cov. w/$500 Ded. | Average Annual Premium$1,052 | Average Monthly Premium$88 |
300/500/300 Full Cov. w/$1,500 Ded. | Average Annual Premium$1,067 | Average Monthly Premium$89 |
300/500/300 Full Cov. w/$1,000 Ded | Average Annual Premium$1,123 | Average Monthly Premium$94 |
100/300/1000,000 - 500 comp_coll | Average Annual Premium$1,146 | Average Monthly Premium$95 |
300/500/300 Full Cov. w/$500 Ded. | Average Annual Premium$1,237 | Average Monthly Premium$103 |
Minimum Car Insurance Requirements in Alabama
In Alabama, the minimum car insurance requirements are $25,000 for bodily injury liability per person, $50,000 per accident and $25,000 for property damage liability per accident. Uninsured/underinsured motorist coverage isn't required.
$25,000 for bodily injury liability per person
Alabama requires $25,000 for coverage of injuries to one person in an accident you cause.
$50,000 for bodily injury liability per accident
Alabama requires $50,000 for total injury coverage when multiple people are hurt in an accident you're responsible for.
$25,000 for property damage liability per accident
In Alabama, $25,000 represents the minimum coverage for damage to another person's property in an accident you cause.
Average Car Insurance Costs in Alabama by City
Location can heavily impact car insurance costs in Alabama. In Huntsville, full coverage costs $838, while in Birmingham, it's $989.
Your driving record, age, type of vehicle, safety features and local weather conditions also influence premiums.
Birmingham | Full Coverage Annual Premium$989 | Minimum Coverage Annual Premium$428 |
Huntsville | Full Coverage Annual Premium$838 | Minimum Coverage Annual Premium$381 |
Mobile | Full Coverage Annual Premium$950 | Minimum Coverage Annual Premium$427 |
Montgomery | Full Coverage Annual Premium$918 | Minimum Coverage Annual Premium$414 |
Average Car Insurance Costs in Alabama by Age
In Alabama, younger drivers aged 22 to 29 face the highest car insurance rates, averaging $1,313 annually due to perceived inexperience. Premiums decrease with age, dropping to $1,032 for drivers aged 30 to 59 and $987 for those 60 and older, assuming a clean driving record.
Data filtered by:Results filtered by:
Coverage:
- 100/300/100 Full Cov. w/$1,000 Ded.
- 100/300/100 Liability Only
- State Minimum Liability Only
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
22-29 | Average Annual Premium$1,313 | Average Monthly Premium$109 |
30-59 | Average Annual Premium$1,032 | Average Monthly Premium$86 |
60 + | Average Annual Premium$987 | Average Monthly Premium$82 |
Average Car Insurance Costs in Alabama for Teens
Age and gender affect car insurance rates in Alabama. A 16-year-old male driver added to a family policy faces an average annual cost of $2,896. This age group generally sees the highest premiums across the board.
Teen drivers under 18 typically cannot purchase car insurance independently without a guardian's signature. A male teen would pay around $6,081 annually for an individual policy.
Data filtered by:Results filtered by:
Gender:Male
16 | Added to Family Policy Premium$2,896 | Individual Premium$6,081 |
17 | Added to Family Policy Premium$2,865 | Individual Premium$5,172 |
18 | Added to Family Policy Premium$2,430 | Individual Premium$4,397 |
19 | Added to Family Policy Premium$2,268 | Individual Premium$2,875 |
20 | Added to Family Policy Premium$2,345 | Individual Premium$2,543 |
21 | Added to Family Policy Premium$1,810 | Individual Premium$1,948 |
22 | Added to Family Policy Premium$1,840 | Individual Premium$1,758 |
23 | Added to Family Policy Premium$1,896 | Individual Premium$1,599 |
24 | Added to Family Policy Premium$1,762 | Individual Premium$1,486 |
25 | Added to Family Policy Premium$1,616 | Individual Premium$1,356 |
Average Car Insurance Costs in Alabama for New Cars
The average annual cost of full coverage car insurance for a 2012 model is $891, while a 2022 model costs $1,156. This increase is due to the 2022 car's higher value, more expensive repairs and higher theft risk.
Drivers with newer cars should consider comprehensive and collision coverage to protect against various incidents and accidents.
Data filtered by:Results filtered by:
Coverage:
- Full Coverage
- Minimum Coverage
Coverage:Full Coverage
Age Group:
- 22-29
- 30-59
- 60 +
Age Group:30-59
2012 Vehicle | Annual Premium$891 | Monthly Premium$74 |
2022 Vehicle | Annual Premium$1,156 | Monthly Premium$96 |
ACTUAL CASH VALUE
The actual cash value (ACV) of your vehicle is critical in insurance claims. It represents your car's market value considering depreciation. After comprehensive or collision incidents, insurers use the ACV to determine the maximum payout for your vehicle's loss or damage, ensuring compensation aligns with its current worth.
Average Car Insurance Costs in Alabama by Driving Record
The average cost of car insurance in Alabama varies depending on your driving record, affecting how much you'll pay for coverage.
- With a ticket: $1,277 per year; $106 per month
- With an at-fault accident: $1,573 per year; $131 per month
- With a DUI: $1,743 per year; $145 per month
The more severe the violation, such as a DUI, the higher your car insurance premiums will be in Alabama. These increases will continue for as long as the violation is on your record, and the duration varies by state. For instance, in Alabama, a DUI can stay on your driving record for up to five years.
The table shows the average cost of insurance in Alabama for each driving record by coverage and age group to help you see what to expect for state minimum or full coverage auto insurance plans.
Data filtered by:Results filtered by:
Coverage:
- 100/300/100 Full Cov. w/$1,000 Ded.
- 100/300/100 Liability Only
- State Minimum Liability Only
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Age Group:
- 22-29
- 30-59
- 60 +
Age Group:30-59
Clean | Average Annual Premium$1,032 | Average Monthly Premium$86 |
Ticket | Average Annual Premium$1,277 | Average Monthly Premium$106 |
At-fault Accident | Average Annual Premium$1,573 | Average Monthly Premium$131 |
DUI | Average Annual Premium$1,743 | Average Monthly Premium$145 |
Average Car Insurance Costs in Alabama by Credit Score
Alabama drivers experience a significant difference in car insurance costs based on credit scores, with average annual premiums ranging from $707 for excellent credit to $1,744 for those with poor credit. The impact of your credit score on car insurance rates is real — in Alabama, insurers consider it when assessing risk.
Scores are categorized as excellent (800 to 850), very good (740 to 799), good (670 to 739), fair (580 to 669) and poor (300 to 579). A higher score often leads to lower insurance rates.
Data filtered by:Results filtered by:
Coverage:
- 100/300/100 w/ $1000 Deductible
- 300/500/300 w/ $1500 Deductible
- State Min - No comp_coll
- State Minimum w/ $500 Deductible
Coverage:100/300/100 w/ $1000 Deductible
Age Group:
- 22-29
- 30-59
- 60 +
Age Group:30-59
Excellent | Annual Premium$707 | Monthly Premium$59 |
Good | Annual Premium$889 | Monthly Premium$74 |
Fair | Annual Premium$1,122 | Monthly Premium$94 |
Below Fair | Annual Premium$1,375 | Monthly Premium$115 |
Poor | Annual Premium$1,744 | Monthly Premium$145 |
Compare Auto Insurance Rates
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
Factors Affecting Car Insurance Rates in Alabama
These key elements influence car insurance rates in Alabama. Understanding them helps drivers find affordable, adequate coverage.
- Driving record: Safe drivers often enjoy lower rates, while tickets and accidents indicate higher risk, increasing premiums.
- Age and gender: Younger drivers, particularly boys, may face higher rates due to a perceived lack of experience and a higher risk of accidents.
- Credit score: Alabama permits credit scores to be used to determine car insurance rates. A higher credit score can result in more affordable insurance options.
- Vehicle type: Your car's make and model affect your rates. High-value or sports cars generally have higher insurance costs due to their potential repair costs and risk profile.
- Location: Living in areas with high traffic congestion or higher crime rates can impact your insurance rates due to the increased risk of accidents and theft.
- Coverage level: Opting for state minimal coverage will cost less than more comprehensive plans. However, additional protection like collision insurance and comprehensive insurance can be valuable.
- Annual mileage: The more you drive, the more you might pay. Higher annual mileage can increase your risk of an accident, raising your insurance rates.
- Marital status: Being married can often lead to lower insurance rates because married couples tend to file fewer claims than single drivers, signaling a lower risk to insurers.
How to Save Money on Car Insurance in Alabama
To get affordable car insurance in Alabama, compare rates from different providers, choose a higher deductible and take advantage of all eligible discounts.
Shop Around for Options
Comparing quotes from multiple insurers can reveal the cheapest car insurance in Alabama, potentially saving you hundreds of dollars annually.
Maintain a Clean Driving Record
A clean driving record free of accidents and violations can significantly lower insurance rates because it indicates responsible driving behavior to insurers.
Consider Higher Deductibles
Opting for higher deductibles can reduce premium costs, but ensure you can afford the deductible in case of a claim.
Bundle Insurance Policies
Bundling car insurance with other policies like home or renters insurance can lead to discounts and more affordable overall rates.
Look for Discounts
Insurers offer various discounts, such as for safe driving, good students or military service. Ask providers about eligible discounts to reduce costs.
Drive a Car with Safety Features
Vehicles equipped with safety features may qualify for lower insurance rates because they reduce the risk of injury and potential claims.
Review Coverage Annually
Regularly review your insurance needs and coverage to ensure you're not overpaying for unnecessary features or missing out on newer discounts.
FAQ: Car Insurance Costs in Alabama
Get answers about what impacts the average cost of car insurance in Alabama and how to find affordable rates.
What are the minimum car insurance requirements in Alabama?
The minimum car insurance requirements in Alabama include $25,000 for bodily injury liability per person, $50,000 per accident and $25,000 for property damage liability per accident. Uninsured/underinsured motorist coverage isn't required.
What is the average cost of full coverage and minimum coverage auto insurance in Alabama?
In Alabama, full coverage car insurance with a $1,000 deductible costs about $1,032 annually, while minimum coverage costs around $483 per year.
What is the average cost of car insurance for a 22-year-old in Alabama?
In Alabama, a 22-year-old can expect to pay about $1,313 annually, or $109 monthly, for full coverage (100/300/100) with a $1,000 deductible. Liability only (100/300/100) costs around $703 annually, or $59 monthly, while minimum coverage averages $588 annually, or $49 monthly. Rates can vary based on individual factors.
What are the cheapest car insurance companies in Alabama?
Country Financial offers the most affordable full coverage car insurance in Alabama at $675 annually, while Cincinnati Insurance provides the cheapest minimum coverage at $226 per year.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.