Average Car Insurance Cost in Alabama

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If you are looking for auto insurance in Alabama, knowing how much it will cost will help you budget accordingly. The average premium for car insurance in Alabama is $1,542 per year or $129 per month. While the national average is $1,682. There is a difference of $140 less between the national average and the state average.

There are a range of factors that affect car insurance rates. A few of them are –age group, gender, driving history, credit score, and location where you live.

Apart from the factors that affect auto insurance rates, this guide also talks about the average rate of full coverage in the state, companies offering cheap monthly premiums for car insurance, average car insurance rates by cities in Alabama, and car insurance rates by age group.

Shop around and compare quotes to save money on your auto insurance.

Summary of average car insurance cost in Alabama
Average annual cost $1,542	Average per month cost $129	Average cost for state minimum coverage $420 / Year
Cheapest car insurance company Nationwide ($1,007/ Year)	Average cost for young drivers $2,472 / Year	Average cost for Senior drivers $1,477 / Year

Key Takeaways

The average car insurance cost in Alabama is $1,542 per year, based on Insure.com’s analysis.
In Alabama, the average premium for car insurance is $129 per month.
Nationwide has the cheapest car insurance rates in Alabama, at an average annual rate of $1,007 a year.

Average car insurance cost in Alabama per month

In Alabama, the average premium for car insurance is $129 per month.

The price for the same coverage may differ between companies, which is true of every auto insurance company. When looking for car insurance rates in Alabama, it is a promising idea to get quotes from many firms.

As per the rate analysis conducted by Insure.com, the company which offers the cheapest car insurance premiums in Alabama is Nationwide. The average annual cost is $1,007, while the average cost per month is $84. The second-best option available is Geico, offering insurance at an average per month cost of $93.

The table below lists the other available car insurance companies that offer car insurance in Alabama, along with their average cost per month and average annual cost.

Company name	Average per month cost	Average annual cost
Nationwide	$84	$1,007
Geico	$93	$1,113
USAA	$97	$1,164
Travelers	$110	$1,321
Allstate	$126	$1,512
Auto-Owners	$133	$1,601
State Farm	$135	$1,625
Progressive	$151	$1,806
Farmers Insurance	$178	$2,137

Read our guide to best car insurance companies

Alabama car insurance calculator

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*It is recommended that you should get full coverage car insurance for vehicles 2020 or newer.

Methodology

Insure.com commissioned Quadrant Information Services to calculate average auto insurance rates for vehicles from 2006 to 2023.

Our hypothetical driver is a 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage.

Rates for vehicles up until 2023 includes uninsured motorist coverage (since some states require it, we do it for all) and PIP or Medical Payments, if it is required by state law. This hypothetical driver has a clean record and good credit.

For liability 100/300 is rates the same hypothetical driver but with liability limits of 100/300/50, uninsured/underinsured motorist in matching amounts and PIP or MedPay, if required by state. We recommend limits this high, even if you have only liability coverage. A state-minimum policy includes only the basic state liability limits and any other state-required coverages, such as uninsured motorist or PIP.

Averages were calculated using data from six large carriers, such as Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm. Rates were averaged across multiple ZIP codes and insurance companies. Average rates are for comparative purposes; your rate will depend on your personal factors.

Average cost of car insurance by coverage levels in Alabama

The amount of coverage you purchase has an impact on how much car insurance costs in Alabama. Your premium is determined by your liability limits, as well as whether you want comprehensive and collision coverage.

Liability only insurance protects a third party’s property damage and personal injuries in the event of an accident. In the case of a collision, having only liability coverage on your auto insurance would not cover your injuries or personal property damage since you are the driver responsible for the accident. If your coverage limit is 50/100/50 Liability only, the average cost per year in Alabama is $585.

When you add more coverage to your policy, your insurance premium increases. The insurance provider will have to compensate you if you are in an accident or suffer damage in any other manner. Hence, the average cost of full coverage car insurance in Alabama is $1,542 per year.

For someone who does not own the car but frequently rents one, non-owner state minimum liability coverage is the best choice. It is like liability-only coverage and covers property damage and bodily injury caused to another driver. In Alabama, the average annual cost for non-owner state minimum liability only is $364.

Those who wish to save money on car insurance premiums can opt to have only the state minimum liability coverage to be able to drive legally in the state. The state minimum liability only coverage costs $420 per year in Alabama.

Coverage limits	Average annual cost
50/100/50 Liability Only	$585
100/300/100 Liability with $500 Comp/Coll Deductible	$1,542
Non-Owner State Minimum Liability Only	$364
State Minimum Liability Only	$420

Average car insurance cost in Alabama by city

Your car insurance premium is determined by various factors, including your state, city, and even ZIP code. The incidence of accidents and the likeliness of vehicle theft or vandalism can influence the overall cost of a city or ZIP code.

The table below depicts the top popular cities in Alabama:

City	Average annual cost
Birmingham	$1,678
Huntsville	$1,470
Montgomery	$1,554
Mobile	$1,608
Tuscaloosa	$1,520
Hoover	$1,581
Dothan	$1,407
Auburn	$1,430
Decatur	$1,412
Madison	$1,417

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Car insurance rates in Alabama by city

Average car insurance cost in Alabama by age

Age is also a consideration when it comes to auto insurance rates. Teens are more likely to be in automobile accidents than any other generation. For example, the average annual rate for young drivers in Alabama is $2,472 while for seniors it is $1,477. Here, the rate for young drivers is $995 more than the rate for senior drivers.

According to statistics, young drivers are more likely to be in a vehicle accident than more experienced drivers. As a result, they are deemed high-risk and costly to insure. They are considered a high-risk driver because of over-speeding and less driving experience on road. However, premiums start to rise again at about age 70 when some aspects of aging start affecting driving abilities.

Average car insurance cost in Alabama for young drivers

The average car insurance cost for female young drivers in Alabama is $2,330 per year or $194 per month and rate for a male young driver is $2,614 per year or $218 per month.

The average annual rates for young male and female drivers are listed in the table below:

Age of driver	Average annual cost for Male drivers	Average annual cost for Female drivers
18	$5,594	$4,897
19	$3,840	$3,330
20	$3,497	$3,044
21	$2,756	$2,410
22	$2,454	$2,202
23	$2,272	$2,069
24	$2,090	$1,924
25	$1,896	$1,800

Average car insurance cost in Alabama for senior drivers

In Alabama, the cost of car insurance for senior female driver is $1,459 per year or $122 per month and cost of car insurance for male senior driver is $1,496 per year or $125 per month.

Age of driver	Average annual cost for Male drivers	Average annual cost for Female drivers
65	$1,422	$1,389
70	$1,549	$1,511
75	$1,724	$1,649

Minimum car insurance requirements in Alabama

Each state sets its own regulations regarding the minimum amount of car insurance coverage drivers must carry to operate a vehicle legally on the roads. According to information provided by the Alabama Department of Insurance, the following are the required coverages and minimum coverage limits in Alabama:

Bodily injury per person: $25,000
Bodily injury per accident: $50,000
Personal property coverage per person: $25,000

Cheapest cars to insure in Alabama

The Ford Transit Connect Titanium has the lowest average annual insurance premium at $1,310, followed closely by the Chrysler Voyager LX at $1,334. The difference in the cost of insuring these two models is $24 annually.

Make	Model	Average annual premium
Ford	Transit Connect Titanium	$1,310
Chrysler	Voyager LX	$1,334
Mazda	CX-30 S	$1,337
Toyota	C-HR Limited	$1,349
Mazda	CX-5 S	$1,351
GMC	Savana G2500	$1,359
Kia	Seltos EX	$1,363
Honda	CR-V EX	$1,367
Hyundai	Venue SE	$1,377
Mini	Cooper SE	$1,381

Most expensive cars to insure in Alabama

The most expensive car to insure on the list is the Maserati Quattroporte, which has an average annual premium of $5,496. However, the difference between the cheapest and most expensive cars to insure is $4,186 annually.

Make	Model	Average annual premium
Maserati	Quattroporte	$5,496
Maserati	Ghibli Modena	$4,838
Maserati	Levante Trofeo	$4,736
Maserati	Ghibli GT	$4,700
Audi	RS E-tron GT	$4,352
BMW	M8 Competition XDrive	$4,123
Maserati	Ghibli Trofeo	$4,115
Tesla	Model S Plaid	$3,786
Audi	RS6 Avant Quattro	$3,776
BMW	M850i XDrive	$3,760

Note: For coverage limit: 100/300/50 liability with a $500 comprehensive and collision deductible.

Methodology

Insure.com team worked with Quadrant Information Service to get car insurance data. To determine the average premiums, our team of data analysts and expert editors have analyzed 56,838,240 insurance quotes from 136 insurance companies across 34,523 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits: