Average car insurance cost in Birmingham, Alabama

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According to our data, the average annual cost of car insurance in Birmingham is $2,040 – $180 more than the Alabama average cost and $145 more than when compared to the national average.

Insurance rates can differ significantly depending on where you live. Factors like population density, accident rates and theft statistics all play a role in determining premiums. As a result, drivers in some ZIP codes pay higher premiums.

Understanding how car insurance rates in Birmingham stack up against state and national averages can help you make informed decisions. We’ll walk you through local trends, rate changes and how to save on your premiums.

Cheap car insurance companies in Birmingham

Nationwide provides the lowest full coverage car insurance rate in Birmingham, with an annual premium of $1,340 for the liability limits of $100,000 per person, $300,000 per accident and $100,000 for property damage.

Travelers also offers cheap full coverage car insurance rates at an average annual cost of $1,556.

Every insurance company calculates premiums differently based on its unique underwriting guidelines. This means prices can vary widely, so getting quotes from multiple insurers is one of the best ways to find affordable coverage tailored to you.

The table below shows the average annual and monthly car insurance rates for various car insurance companies in Birmingham.

Read about the best car insurance companies.

Average car insurance cost in Birmingham by coverage limits

Here’s a breakdown of average car insurance rates in Birmingham by coverage type.

• State minimum coverage: $513 per year (limits are $25,000 bodily injury liability per person, $50,000 total bodily injury liability per accident and $25,000 property damage liability per accident).
• Liability only coverage: $754 per year (limits are $50,000 bodily injury liability per person, $100,000 total bodily injury liability per accident and $50,000 property damage liability per accident).
• Full coverage: $2,040 per year (limits are $100,000 bodily injury liability per person, $300,000 total bodily injury liability per accident and $100,000 property damage liability per accident).
• Non-owners coverage: $411 per year

Most states require drivers to carry a minimum amount of liability insurance to legally operate a vehicle, but the specific coverage limits vary by state. Liability insurance is designed to cover injuries or property damage you cause to others in an accident.

However, it’s important to understand that minimum coverage won’t pay for your own medical bills or repairs to your vehicle if you’re at fault. If you want protection for your own car, you’ll need to add collision and comprehensive coverage to your policy.

Average car insurance rates by gender in Birmingham

In Birmingham, female drivers pay an average of $2,065 per year for car insurance. In comparison, male drivers pay $2,016 annually, which is $49 less than what female drivers pay. Most states consider gender when calculating premiums. However, states such as California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania don’t allow insurers to use gender as a rating factor to determine insurance rates.

According to the Insurance Information Institute, or Triple-I, women tend to be safer drivers than men and are less likely to be involved in severe accidents. Insurers account for this risk by charging male drivers higher premiums.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Birmingham

Teen drivers in Birmingham pay the highest car insurance premiums, at $6,895 per year or $575 per month.

Data from the Insurance Information Institute shows that teens aged 16 to 19 are more likely to be involved in crashes due to inexperience, which leads to higher insurance rates. On average, teen drivers pay $3,750 more annually than young adult drivers.

As teen drivers get older and gain more experience, their car insurance premiums usually decrease. On average, young adults aged 20 to 24 pay $3,145 per year for car insurance – that’s $3,750 less than what teen drivers typically pay.

Adult drivers aged 25 to 55 pay an average of $2,039 per year for car insurance, while seniors aged 60 to 75 pay around $2,068 annually.

Read more on auto insurance for seniors.

The table below shows the average annual full coverage car insurance rates for drivers of different age groups.

Car insurance rate trends in Birmingham

Car insurance rates in Birmingham saw an upward trend between 2022 and 2023. During this period, average premiums increase by 21% – a change of about $353.

The graph below tracks insurance costs from 2016 to 2023, highlighting long-term trends that help explain today’s rate changes.

How drivers can save on insurance even with higher rates

Drivers in Birmingham pay higher than the state average for car insurance. The good news? You can often cut costs by comparing quotes from several insurers and using discounts – like bundling policies, safe driver rewards, or low-mileage savings.

Methodology

Insure.com commissioned car insurance rates in 2023 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

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

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your rates may vary.

Shivani Gite

Contributing Writer

 

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Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.