Average car insurance cost in Alabama

If you want to secure auto insurance coverage in Alabama, know the associated costs. On average, premiums for car insurance in Alabama cost $1,860 per year or $155 monthly. While the national average is $1,895, highlighting a difference of $35.

Various factors influence car insurance rates, including age, gender, driving history, credit score, and location.

This guide covers the average cost of full coverage in the state, the factors impacting auto insurance rates, identifies companies providing affordable monthly premiums for car insurance, outlines average car insurance rates across cities in Alabama, and breaks down car insurance rates by age group.

Shop around and compare quotes to save money on your auto insurance. Continue reading the guide to ensure your insurance policy meets your needs within your budget.

Average annual cost
$1,860

Average per month cost
$155

Average cost for state minimum coverage
$433 / Year

Cheapest car insurance company
Nationwide($1,345 / Year)

Average cost for young drivers
$2,813 / Year

Average cost for Senior drivers
$1,835 / Year

Average car insurance cost in Alabama per month

In Alabama, the average monthly rate for car insurance is $155.

This cost can vary among insurers, which is true of every auto insurance company. When exploring car insurance options in Alabama, it’s advisable to obtain quotes from multiple companies.

Cheapest car insurance companies in Alabama

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

Affordable car insurance providers in Alabama

Graph

Table

Company name	Average per month cost	Average annual cost
Nationwide	$112	$1,345
Travelers	$119	$1,428
GEICO	$135	$1,625
Country Financial	$141	$1,694
State Farm	$149	$1,790
Auto-Owners	$178	$2,134
Allstate	$182	$2,178
Progressive	$200	$2,402
Farmers	$212	$2,542
USAA	$122	$1,458

Read our guide to cheap car insurance companies

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

Car insurance rates in Alabama are directly proportional to the amount of coverage you buy. Your premium is determined by factors such as your liability limits and your choice of comprehensive and collision coverage.

Liability-only insurance protects against third-party property damage and personal injuries in an accident. However, relying solely on liability coverage would not cover your injuries or property damage if you are considered at fault in a collision. Liability-only insurance for a coverage limit of 50/100/50 costs $639 per year in Alabama.

As mentioned earlier, increasing the coverage on your policy leads to a rise in your premium, as the insurer will need to provide compensation in case of accidents or other damages. The average annual cost of full coverage car insurance in Alabama amounts to $1,860 per year.

If you don’t own a car but frequently rent one, non-owner state minimum liability coverage is the most suitable option. Similar to liability-only coverage, it protects property damage and bodily injury caused by another driver. In Alabama, the average annual cost for non-owner state minimum liability coverage is $380.

For individuals seeking to reduce their car insurance expenses, selecting only the state minimum liability coverage is an option to ensure legal driving privileges within the state. This coverage, which includes only the minimum liability requirements, carries an annual cost of $433 in Alabama.

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

Birmingham

Huntsville

Mobile

Montgomery

Tuscaloosa

Average car insurance cost in Alabama by city

Your car insurance premium is determined by several factors, such as your state, city, and even ZIP code. The frequency of accidents and the probability of vehicle theft or vandalism play a role in determining the overall cost associated with a city or ZIP code.

The table below depicts the top popular cities in Alabama:

Average car insurance cost in Alabama by age of the driver

Age plays a significant role in determining auto insurance rates. Teenagers have a higher chance of being involved in a car accident compared to any other age group. In Alabama, the average annual rate for young drivers is $2,813, whereas for seniors, it is $1,835. The rate for young drivers exceeds that of senior drivers by $978.

Statistics show that young drivers are more likely to be involved in vehicle accidents than more seasoned drivers. As a result, they are classified as high-risk individuals and are more expensive to insure. This classification is primarily due to tendencies such as speeding and limited on-road experience. However, premiums begin to increase again around the age of 70, as certain aspects of aging may impact driving capabilities.

Average car insurance cost in Alabama for young drivers

In Alabama, the auto insurance premium for female young drivers averages at $2,668 annually, or $222 monthly, while male young drivers face a yearly rate of $2,959, or a monthly average of $247.

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

Average car insurance cost in Alabama for senior drivers

In Alabama, the annual car insurance cost for senior female drivers is $1,792 or $149 monthly. Similarly, male senior drivers face a yearly insurance cost of $1,878 per year, with a monthly average of $157.

Read more about senior car insurance

Minimum car insurance requirements in Alabama

Every state establishes laws regarding the minimum car insurance coverage drivers must possess to lawfully drive a vehicle. As outlined by the Alabama Department of Insurance, the following are the mandatory coverages and minimum coverage limits mandated 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

Chevrolet TrailBlazer owners pay less for car insurance, around $1,635 per year.

Honda HR-V follows closely with an annual premium of $1,644. The annual difference in insurance costs between these two models amounts to $9.

Most expensive cars to insure in Alabama

The most expensive car to insure on the list is the Maserati Quattroporte Trofeo, which has an average annual premium of $6,549. However, the difference between the cheapest and most expensive cars to insure is $4,914 annually.

Methodology

The Insure.com team worked with Quadrant Information Service to get car insurance data. Our team of data analysts and expert editors have analyzed 56,838,240 insurance quotes from 136 insurance companies across 34,523 ZIP codes to determine the average premiums. 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 of 100/300/100. The quoted insurance rates are for comparison purposes, and your rates may vary.

How much is car insurance in other states

Alaska$1,676/Year

Arkansas$1,957/Year

Arizona$1,812/Year

California$2,416/Year

Colorado$2,337/Year

Connecticut$1,725/Year

Delaware$2,063/Year

Florida$2,694/Year

Georgia$1,970/Year

Hawaii$1,517/Year

Iowa$1,630/Year

Idaho$1,428/Year

Illinois$1,532/Year

Indiana$1,515/Year

Kansas$1,900/Year

Kentucky$2,228/Year

Louisiana$2,883/Year

Massachusetts$1,726/Year

Maryland$1,746/Year

Maine$1,175/Year

Michigan$2,352/Year

Minnesota$1,911/Year

Missouri$1,982/Year

Mississippi$2,008/Year

Montana$2,193/Year

North Carolina$1,741/Year

North Dakota$1,665/Year

Nebraska$1,902/Year

New Hampshire$1,265/Year

New Jersey$1,902/Year

New Mexico$2,049/Year

Nevada$2,060/Year

New York$1,870/Year

Ohio$1,417/Year

Oklahoma$2,138/Year

Oregon$1,678/Year

Pennsylvania$1,872/Year

Rhode Island$2,061/Year

South Carolina$2,009/Year

South Dakota$2,280/Year

Tennessee$1,677/Year

Texas$2,043/Year

Utah$1,825/Year

Virginia$1,469/Year

Vermont$1,319/Year

Washington$1,608/Year

Wisconsin$1,664/Year

West Virginia$2,005/Year

Wyoming$1,758/Year

Show more