Average cost of car insurance in Alabama in 2023

How much is car insurance in Alabama?

On average, Alabama car insurance rates are lower than the national average. Alabama drivers pay an average of $1,843 per year for full coverage car insurance, compared to $2,014 per year nationally. Minimum coverage is similarly cheaper in Alabama, at $441 per year compared to $622 per year nationally. Car insurance rates in Alabama are calculated based on numerous factors. Your age, gender, marital status, vehicle and driving history all affect your premium. Other variables such as the number of miles driven and credit-based insurance score are also used. Since all of these factors hold a different weight with each carrier, it is even more important to compare multiple carriers to ensure you are getting the best rate for your financial situation.

Alabama car insurance rates by city

Each specific area of a state presents a unique risk profile, which means car insurance rates vary by city. One area might have a higher risk of accidents or higher cost of living, which raises rates, while another area might have a lower risk of accidents or lower cost of living, which results in lower rates. Below are the five largest cities in Alabama by population, along with their average annual premium for full coverage and how it compares to the state average.

Average car insurance costs by age and gender in Alabama

A driver’s age is a major factor when it comes to auto insurance premiums in most states, and it’s the same in Alabama. Typically, as you get older, your premiums can decrease, as you can see with these average full coverage premiums. The average car insurance cost in Alabama is also affected by gender, with males tending to pay more than females, especially at younger ages.

Cost considerations for young drivers in Alabama

Teen drivers have to be insured on their parents’ or guardians’ policy in most circumstances, but once a driver turns 18, they can purchase their own car insurance policy. Young adults still pay relatively high premiums due to their inexperience, but generally it’s a cheaper option to stay on an adults’ policy as long as you are a resident of the household.

*16- and 17-year-old drivers must be on their parents’ policy. 

How does driving record impact the cost of car insurance in Alabama?

As you might expect, a moving vehicle violation, such as a speeding ticket or accident, leads to an increase in premiums in Alabama. A DUI conviction is likely to increase your premium significantly. The table below shows the average full coverage premium for each of these incidents, as well as how much the premium increases from the state’s average rate with a clean driving record.

Car insurance rates in Alabama by credit score

Your insurance score, which is based on your credit rating, also influences your car insurance premium in Alabama. Rates by credit score tend to vary a lot in states where insurers are allowed to use it as a rating factor because, statistically speaking, drivers with lower credit ratings are more likely to file claims. In Alabama, the difference between the average annual premium for drivers with poor credit and those with excellent credit is over $1,600.

Alabama car insurance rates by vehicle type

The make and model of your vehicle is one of the biggest drivers of your car insurance premium. Different vehicles have different prices to repair, different accident statistics and different safety features. Higher-end vehicles, like luxury cars and sports cars, are likely to be more expensive to insure than more mid-range vehicles.

How to save on car insurance in Alabama

There are several ways to save on car insurance in Alabama, some of which require little to no time or effort to access the savings.

• Shop around: Comparison shopping is a fantastic way to save on your policy. Rates vary from one company to another, and some offer rates hundreds of dollars more or less than the next carrier. By shopping around, you can save money and get the exact coverage options you want for your policy.
• Take advantage of discounts: Almost all carriers offer at least a few discounts, which allow you to take advantage of more significant savings. Savings opportunities may include setting up automatic payments, switching to paperless bills and signing up for a telematics program.
• Bundle your policies: Often, one of the most significant discounts is to bundle your auto and home, renters or condo policy with one company. Some companies may offer bundling discounts on other product lines, too, like boat or RV insurance. 
• Raise your deductibles: The higher your car insurance deductibles, the lower your premiums will usually be. However, keep in mind that  higher deductibles mean you pay more money out of pocket should you need to file a claim.
• Improve your credit score: While this may be a long-term approach, improving your credit score will usually positively impact your premiums. A higher score means you pay less for your premiums since you are considered less of a financial risk to the carrier.

Estimate your car insurance cost in Alabama

Frequently asked questions