There are over four million licensed drivers in Alabama, according to the 2018 U.S. Department of Transportation Highway Statistics. Since drivers are legally required to carry insurance, learning about car insurance rates in Alabama could be a helpful budgeting tool for drivers in the Cotton State. The average cost of car insurance in Alabama is $469 for minimum coverage on an annual basis and $1,623 for a full coverage policy, but what you pay will depend heavily on your driving habits and circumstances.
How much does car insurance cost in Alabama?
Alabama car insurance rates are calculated based on numerous factors in addition to location. Your age, gender, marital status, vehicle and driving history all affect your premium. Other variables such as the number of miles driven and credit 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,
The average cost of insurance in the U.S. is $565 per year for minimum coverage and $1,674 for a full coverage policy, which means Alabama’s average rates align with the national average.
Alabama car insurance rates by company
Comparing carriers gives you a snapshot of the best carriers in your area, especially if you need to find the cheaper insurance for your budget.
| Car insurance company | Average annual premium for minimum coverage | Average annual premium for full coverage |
|---|---|---|
| Alfa | $593 | $2,138 |
| Allstate | $414 | $1,313 |
| American Independent | $877 | $3,110 |
| Country Financial | $408 | $1,699 |
| Donegal | $798 | $1,606 |
| Farmers | $406 | $1,432 |
| Geico | $322 | $1,423 |
| MetLife | $884 | $2,441 |
| Progressive | $516 | $1,573 |
| Safeway | $492 | $1,825 |
| State Farm | $449 | $1,470 |
| Travelers | $374 | $1,071 |
| USAA | $361 | $1,230 |
Alabama car insurance rates by city
Not only does the state where you live influence the amount you pay for premiums, but so does the exact zip code where you live and mostly drive. These rates greatly vary even among the top 20 cities by population in Alabama.
| City | Average annual premium for full coverage | % increase in average annual premium |
|---|---|---|
| Birmingham | $1,764 | 9% |
| Montgomery | $1,642 | 1% |
| Mobile | $1,750 | 8% |
| Huntsville | $1,581 | -3% |
| Tuscaloosa | $1,636 | 1% |
| Dothan | $1,527 | -6% |
| Madison | $1,542 | -5% |
| Decatur | $1,522 | -6% |
| Hoover | $1,646 | 1% |
| Auburn | $1,543 | -5% |
| Bessemer | $1,730 | 7% |
| Florence | $1,514 | -7% |
| Phenix City | $1,726 | 6% |
| Gadsden | $1,586 | -2% |
| Vestavia Hills | $1,669 | 3% |
| Prattville | $1,625 | 0% |
| Trussville | $1,716 | 6% |
| Enterprise | $1,519 | -6% |
| Opelika | $1,564 | -4% |
| Northport | $1,637 | 1% |
Alabama car insurance rates by age
Age is a major factor when it comes to auto insurance premiums, 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.
| Age | Average annual premium in Alabama |
|---|---|
| Age 16* | $2,714 |
| Age 18 | $6,127 |
| Age 20 | $4,247 |
| Age 25 | $2,191 |
| Age 30 | $1,900 |
| Age 40 | $1,623 |
| Age 50 | $1,604 |
| Age 60 | $1,559 |
| Age 70 | $1,703 |
*The premiums for a 16-year old were calculated based on being added to the parent’s policy
Alabama car insurance rates by driving record
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.
| Driving incident | Average annual full coverage premium in Alabama | % increase in average annual premium |
|---|---|---|
| Speeding ticket | $1,959 | 17% |
| Accident | $2,393 | 32% |
| DUI | $3,121 | 48% |
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 a wide range of discounts, which allows you to take advantage of more significant savings. These discounts come from simple tasks such as enrolling in paperless statements and setting up auto-pay. Or you can take a defensive driving class or install an app for monitoring your driving habits, all of which provide potential savings.
- Bundle your policies: Often, one of the most significant discounts on a policy is to bundle it with the same carrier you use for your homeowners/renters/condo.
- Raise your deductible: The higher your deductible, the lower your premiums will be. However, keep in mind that a higher deductible means 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.
Frequently asked questions
Is uninsured motorist coverage required in Alabama?
No, it is not a requirement to purchase uninsured or underinsured motorist coverage in Alabama. However, Alabama currently ranks 7th overall for the highest number of uninsured drivers, with over 19% of the residents driving uninsured. Adding this optional coverage could provide additional payments for vehicle damage or medical payments if you are involved in an accident with someone without insurance.
How much will I pay for car insurance in Alabama?
In Alabama, car insurance rates depend on various personal factors, including your age, zip code, gender, vehicle type, daily miles driven, and credit score. Your rates are specific to you and can only be determined by receiving a quote — preferably from multiple carriers — to find the best cost and coverage options.
Is Alabama a no-fault state?
No, Alabama is not a no-fault state and instead is considered an at-fault one. An at-fault state means the insurance company of the person ruled at fault for the accident has to pay for property damage and/or medical payments for the other driver or drivers involved. This is yet another reason to make sure you have adequate insurance coverage in case you are the responsible party.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
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