Average car insurance cost in Birmingham, Alabama

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Our analysis shows that drivers in Birmingham pay about $2,306 per year for car insurance. It is $199 more than the Alabama average and $207 less than the nationwide 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

Travelers offers the cheapest full coverage car insurance in Birmingham at $1,814 per year with coverage limits of $100,000 in bodily injury per person, $300,000 total per accident and $100,000 for property damage.

The second most affordable option in Birmingham is Nationwide, with an average annual premium of $1,936.

Car insurance rates differ from one company to another because each insurer has its own underwriting process to determine premiums. That’s why shopping around and comparing quotes from multiple insurance companies is key to finding affordable coverage that meets your needs.

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: $601 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: $822 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: $2,306 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: $483 per year

While liability insurance is required in nearly every state to drive legally, the minimum coverage limits differ by state. This coverage protects you financially if you’re responsible for injuring someone or damaging their property in a crash.

Minimum liability insurance only covers damage or injuries you cause to others – it won’t help with your own medical bills or car repairs. You should consider adding collision and comprehensive coverage for adequate protection.

Average car insurance rates by gender in Birmingham

In Birmingham, the average annual car insurance cost for female drivers is $2,313. Male drivers, on the other hand, pay $2,298 per year – that’s $15 less than what female drivers pay. While most states allow insurers to use gender when setting rates, there are states, including California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania that prohibit the use of gender as a rating factor.

According to the Insurance Information Institute, or Triple-I, women tend to drive more cautiously and are involved in fewer serious accidents than men. Insurers factor this into their premium calculations, which is why men often pay more for car insurance.

Read more on how gender affects car insurance rates.

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Average car insurance rates by age in Birmingham

Teen drivers in Birmingham pay the highest car insurance premiums, at $8,074 per year or $673 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 $4,501 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 $3,573 per year for car insurance – that’s $4,501 less than what teen drivers typically pay.

Adult drivers aged 25 to 55 pay an average of $2,306 per year for car insurance, while seniors aged 60 to 75 pay around $2,272 annually.

Read more on auto insurance for seniors.

Below you’ll find average annual full coverage car insurance rates for drivers of different age groups.

Car insurance rate trends in Birmingham

From 2023 to 2025, drivers in Birmingham experienced an upward trend in car insurance premiums, with average rates Increased by 13% or about $266.

The graph below tracks insurance costs from 2022 to 2025, 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 2025 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.