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Average cost of car insurance in Alabama in 2023
Alabama drivers pay an average of $1,843 per year for full coverage and $441 per year for minimum coverage car insurance, according to Bankrate’s research.
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What To Know First
The average cost of car insurance in Alabama is $1,843 per year for full coverage and $441 per year for minimum coverage, which is less than the national average. To help you determine how much you might pay for car insurance in Alabama, our insurance editorial team — which includes three licensed insurance agents — analyzed average premium data from Quadrant Information Services for a range of driver profiles. Whether you have a teen driver on your policy, a speeding ticket or a high-end vehicle, our research might help you understand your insurance costs.
- Drivers in Huntsville, Alabama’s most populated city, pay an average of $1,761 per year for full coverage, 4 percent less than the state average.
- If you have a speeding ticket on your record, you can expect to pay 20 percent more than the state average for full coverage, or about $2,207 per year.
- 18-year-old males have the highest average premium of any age and gender we analyzed, at $6,752 per year for full coverage.
- A BMW 330i is the most expensive vehicle model to insure in Alabama, based on our data. Full coverage costs an average of $2,492 per year.
On This Page
- How much is car insurance in Alabama?
- Alabama car insurance rates by city
- Alabama car insurance costs by age and gender in Alabama
- How does driving record impact the cost of car insurance in Alabama?
- Car insurance rates in Alabama by credit score
- Alabama car insurance rates by vehicle type
- How to save on car insurance in Alabama
- Estimate your car insurance cost
- Frequently asked questions
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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.
Average minimum coverage premium in Alabama | Average annual full coverage premium in Alabama |
---|---|
$441 | $1,843 |
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.
Alabama city | Average annual full coverage premium | Percentage difference from Alabama average annual full coverage premium |
---|---|---|
Birmingham | $1,959 | 6% |
Huntsville | $1,761 | -4% |
Mobile | $1,958 | 6% |
Montgomery | $1,871 | 2% |
Tuscaloosa | $1,828 | -1% |
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.
Age | Average monthly full coverage premium in Alabama | Average annual full coverage premium in Alabama |
---|---|---|
Age 16* | $352 | $4,227 |
Age 18 | $563 | $6,752 |
Age 20 | $385 | $4,617 |
Age 25 | $201 | $2,416 |
Age 30 | $165 | $1,979 |
Age 40 | $155 | $1,865 |
Age 50 | $143 | $1,712 |
Age 60 | $139 | $1,672 |
Age 70 | $154 | $1,843 |
*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied.
Age | Average monthly full coverage premium in Alabama | Average annual full coverage premium in Alabama |
---|---|---|
Age 16* | $312 | $3,744 |
Age 18 | $468 | $5,610 |
Age 20 | $317 | $3,800 |
Age 25 | $182 | $2,180 |
Age 30 | $159 | $1,912 |
Age 40 | $152 | $1,820 |
Age 50 | $141 | $1,694 |
Age 60 | $136 | $1,631 |
Age 70 | $149 | $1,784 |
*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied.
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.
Age | Average annual premium for drivers on their parents' policy in Alabama | Average annual premium for drivers on their own policy in Alabama |
---|---|---|
Age 16 | $3,986 | N/A* |
Age 17 | $3,753 | N/A* |
Age 18 | $3,477 | $6,181 |
Age 19 | $3,108 | $4,710 |
Age 20 | $2,857 | $4,209 |
*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.
Driving incident | Average annual full coverage premium in Alabama | Percentage increase in average annual premium |
---|---|---|
Clean driving record | $1,843 | 0% |
Speeding ticket | $2,207 | 20% |
Accident | $2,711 | 47% |
DUI | $3,320 | 80% |
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.
Credit tier | Average annual full coverage premium in Alabama | Percentage difference in average annual premium |
---|---|---|
Poor | $3,270 | 77% |
Average | $1,986 | 8% |
Good | $1,843 | 0% |
Excellent | $1,614 | -12% |
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.
Vehicle | Average annual full coverage premium in Alabama |
---|---|
Toyota Camry | $1,843 |
Ford F-150 | $1,646 |
Honda Odyssey | $1,589 |
BMW 330i | $2,492 |
Toyota Prius | $1,947 |
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.
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