How Much Is Car Insurance in Alabama? (September 2024) (2024)

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.

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.

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.

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.

$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.

Average Car Insurance Costs in Alabama by Age

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.

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.

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.

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.

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

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