Average car insurance cost in Birmingham, Alabama

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The average car insurance cost in Birmingham, Alabama is $2,040 per year, according to Insure.com data analysis. Also, the car insurance rates in Birmingham is $180 more than the average rates in Alabama and $145 more than the national average.

Most insurance providers consider factors such as location, city demographics, population density, and average resident age, accident rates, theft and vandalism rates while determining your car insurance premium. This may lead to either lower or higher costs compared to other regions.

This article provides details on the most and least expensive car insurance companies in Birmingham, the average car insurance rates categorized by age and gender, and the cost of car insurance in Birmingham based on coverage limits. Whether you’re a new driver or an experienced driver, this article will help you find the most cost-effective auto insurance in Birmingham. Read on to learn more.

Cheap car insurance companies in Birmingham

At an average of $1,340 per year with full coverage limits of 100/300/100, Nationwide provides the most affordable car insurance in Birmingham.

Ranked as the second most affordable company in Birmingham, Travelers provides car insurance at $1,556 per year.

As previously noted, car insurance rates differ among companies due to variations in the factors used for calculating the rates. So, it is best to compare quotes from several insurers to secure affordable car insurance rates in Birmingham that align with your needs before selecting a policy.

The table below lists the average annual and monthly costs for the various car insurance companies providing coverage in Birmingham, Alabama:

Read about the best car insurance companies.

Average car insurance cost in Birmingham by coverage limits

The average car insurance rates in Birmingham by coverage type are as follows:

• State minimum coverage: $513 per year (limits of 25/50/25)
• Liability-only coverage: $754 per year (limits of 50/100/50)
• Full coverage: $2,040 per year (limits of 100/300/100)
• Non-owners coverage: $411 per year

In many states, drivers are legally required to maintain state minimum coverage. However, these requirements vary by state. However, the state minimum coverage does not protect vehicles listed on your policy in an at-fault accident.

It’s advisable to choose full coverage to avoid the risk of inadequate coverage and out-of-pocket expenses. You can also choose non-owners coverage if you often borrow or rent vehicles and don’t own one yourself.

Average car insurance rates by gender in Birmingham

The average car insurance per year for female drivers in Birmingham, Alabama, is $2,065.

Whereas the yearly average car insurance rate for male drivers is $2,016, which is $49 less than what female drivers pay.

According to the Insurance Information Institute, women are considered to be safer drivers than men, and statistics have proved this. They often enjoy lower auto insurance premiums due to their lower incidence of severe accidents compared to men.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Birmingham

In Birmingham, teenagers have the highest car insurance rates, at $6,895 per year or $575 per month. This higher rate is attributed to the increased risk of road accidents among teenagers (aged 16 to 19) due to their limited experience on the road, according to the Insurance Information Institute.

However, there are driving laws for teens to improve their driving habits. Additionally, the cost of teen insurance can be reduced by adding them to a parent’s auto insurance policy. As teens mature and establish a positive driving history, their car insurance rates are likely to decrease.

Young adults, pay an average of $3,145 annually for car insurance, which is $3,750 less than what the teens pay for their insurance policy.

Meanwhile, adult, and senior drivers in Birmingham have car insurance rates of $2,039 and $2,068 per year, respectively. The car insurance rates for adults and seniors are lower than those for teens and young adults. “This is because they are more likely to obey the speed limits and follow the rules of the road,” says the Insurance Information Institute.

Read more on auto insurance for seniors.

The table below shows the average annual rates for drivers of different age groups:

Car insurance rate trends in Birmingham

Examining the trends in car insurance rates in Birmingham, Alabama, there was an upward trend from 2022 to 2023. Between 2022 and 2023, rates increase overall by 21% or $353.

The table below illustrates the trend over the three years:

Conclusion

In conclusion, the insurance rates in Birmingham, are higher than the average insurance cost in Alabama. Shopping around and taking advantage of available discounts, drivers in Birmingham can find affordable car insurance options. Additionally, many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

• Insurance Information Institute. “What determines the price of my auto insurance policy,” Accessed September 2024.
• Insurance Information Institute. “Auto insurance for teen drivers,” Accessed September 2024.
• Insurance Information Institute. “Senior driving safety and tips,” Accessed September 2024.

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 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 individual rates may vary.

Prachi Singh

Contributing Researcher

 

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Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.