In Alabama, the average annual cost for full coverage car insurance is $1,032, while state minimum coverage averages at $487. These rates are $264 and $108 less, respectively, than the national average, making car insurance more affordable for Alabamians.
Average Cost of Car Insurance in Alabama
Updated: December 23, 2024
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Key Takeaways
Drivers in the Yellowhammer State pay 20% less for full coverage car insurance compared to the national average.
For minimum coverage, Alabama drivers enjoy rates that are 18% below the national average.
The average cost of car insurance in Alabama is $487 for state minimum and $1,032 for full coverage, making it a more affordable state for insurance.
How Much Is Car Insurance in Alabama?
| Full Coverage | $1,032 | $1,296 | -20% |
| State Minimum Liability Only | $487 | $595 | -18% |
Read More: Average Cost of Car Insurance
Alabama Car Insurance Rates by Coverage Level
Your car insurance rate in the Yellowhammer State changes with the coverage you pick. Adding more protection or full coverage ups your rate, but a bigger deductible could make it cheaper. Here's what Alabama drivers pay on average for minimum coverage and full coverage, with different deductibles and limits.
| 300/500/300 | Full Coverage | $1,238 | $500 |
| 100/300/100 | Full Coverage | $1,146 | $0 |
| 300/500/300 | Full Coverage | $1,124 | $1,000 |
| 300/500/300 | Full Coverage | $1,068 | $1,500 |
| State Minimum | Full Coverage | $1,052 | $500 |
| 100/300/100 | Full Coverage | $1,032 | $1,000 |
| 100/300/100 | Full Coverage | $977 | $1,500 |
| State Minimum | Full Coverage | $938 | $1,000 |
| State Minimum | Full Coverage | $883 | $1,500 |
| 300/500/300 | Liability Only | $658 | $0 |
| 100/300/100 | Liability Only | $571 | $0 |
| State Minimum | Liability Only | $487 | $0 |
Read More: Liability vs. Full Coverage Car Insurance
Average Alabama Car Insurance Cost by City
Car insurance rates in Alabama's cities can change due to crime, traffic, weather, and repair costs. Birmingham's annual full coverage is $989, while Huntsville and Mobile are at $838 and $950, respectively. Compare these rates with the state average in the table below.
| Birmingham | $989 | -48% | $428 | -61% |
| Huntsville | $838 | -56% | $381 | -65% |
| Mobile | $950 | -50% | $427 | -61% |
| Montgomery | $918 | -52% | $414 | -62% |
Average Alabama Car Insurance Cost by Age
In Alabama, age plays a big role in car insurance prices, with younger drivers shelling out more due to higher risk. On average, 25-year-olds pay 27% more for full coverage and 22% more for minimum coverage than 40-year-olds. Compared to 65-year-olds, the cost jumps to 33% and 20% more, respectively.
| 25 | $1,314 | $593 |
| 40 | $1,032 | $487 |
| 65 | $988 | $495 |
While age often changes car insurance prices, in California, Massachusetts, and Hawaii, it doesn't count. These states offer affordable plans without looking at how old you are.
Car Insurance Costs in Alabama for Young Drivers by Gender
In Alabama, young drivers face higher car insurance costs due to increased accident rates. Drivers aged 18 to 25 pay about $1676 annually when added to a family policy, which is 23% less than the $2066 they would pay for an individual policy.
Gender also influences car insurance rates for Alabama's young drivers. On average, women aged 18 to 25 pay $1,960 per year, 11% less than the $2,172 male drivers pay. Below, find the average car insurance costs for young Alabama drivers, broken down by gender for both individual and family policies.
Car Insurance Costs in Alabama for Young Women
An 18-year-old woman in Alabama typically adds $1,872 to a family car insurance plan. If she chooses an individual policy, her rate jumps to $3,843, more than doubling the cost.
| 18 | $3,843 | $1,872 | -51% |
| 19 | $2,405 | $1,964 | -18% |
| 20 | $2,149 | $1,754 | -18% |
| 21 | $1,658 | $1,374 | -17% |
| 22 | $1,544 | $1,645 | 7% |
| 23 | $1,441 | $1,534 | 6% |
| 24 | $1,364 | $1,452 | 6% |
| 25 | $1,278 | $1,366 | 7% |
Car Insurance Costs in Alabama for Young Men
An 18-year-old man in Alabama can expect to pay around $4,245 for full coverage on his own. However, joining a family policy can reduce the cost to about $2,039, saving nearly 52% annually.
| 18 | $4,245 | $2,039 | -52% |
| 19 | $2,780 | $2,174 | -22% |
| 20 | $2,461 | $1,924 | -22% |
| 21 | $1,883 | $1,491 | -21% |
| 22 | $1,700 | $1,762 | 4% |
| 23 | $1,549 | $1,604 | 4% |
| 24 | $1,440 | $1,493 | 4% |
| 25 | $1,315 | $1,370 | 4% |
Average Alabama Car Insurance Cost by Driving Record
In Alabama, driving mistakes can hike your car insurance by a lot. For instance, after an at-fault accident, full coverage can cost around $1,573, and just the minimum coverage jumps to $720. A DUI pushes full coverage to $1,743, with minimum at $832. Even a single ticket can raise your full coverage to $1,277 and minimum to $572. We lay out how these stack up against the average rates for locals with no offenses.
| At-Fault Accident | $1,573 | -18% | $720 | -34% |
| DUI | $1,743 | -9% | $832 | -24% |
| Ticket | $1,277 | -33% | $572 | -48% |
Read More: High-Risk Car Insurance in Alabama
Average Alabama Car Insurance Cost by Credit Score
Your credit-based insurance score plays a big role in your car insurance costs in Alabama. Expect to see average full coverage annual premiums ranging from $893 for those with excellent credit to $2236 for drivers with poor credit.
| Excellent | $893 | -53% | $301 | -73% |
| Good | $1,127 | -41% | $378 | -66% |
| Fair | $1,421 | -26% | $481 | -56% |
| Below Fair | $1,748 | -8% | $590 | -46% |
| Poor | $2,236 | 17% | $726 | -34% |
CREDIT SCORES AND YOUR PREMIUM
A credit score from 670 to 739 indicates financial dependability and may reduce insurance costs for Alabama drivers. However, using credit-based scores in insurance pricing is banned in Hawaii, Massachusetts, Maryland, California, and Michigan. In states like North Carolina, Oregon, Washington, Utah, and Nevada, credit can only influence insurance rates under specific conditions.
Average Alabama Car Insurance Cost by Company
Car insurance prices can differ a lot from one company to another, even in the same state. In Alabama, Country Financial has the most affordable average annual full coverage premium at $683. On the other end, Progressive's average premium is the priciest at $1,359, just about 2% above the national average.
| Country Financial | $683 | $441 |
| Travelers | $772 | $386 |
| Cincinnati Insurance | $796 | $226 |
| State Farm | $963 | $387 |
| Auto-Owners Insurance Co | $1,022 | $453 |
| GEICO | $1,087 | $511 |
| Allstate | $1,138 | $649 |
| Nationwide | $1,164 | $628 |
| Farmers | $1,338 | $704 |
| Progressive | $1,359 | $482 |
Read More: Cheapest Car Insurance Companies in Alabama
Average Alabama Car Insurance Cost by Vehicle Age
In Alabama, insuring a new car often costs more because it's worth more, and repairs or theft could cost more. On average, full coverage for a new model is $1,156 annually, while a 10-year-old car averages $891.
| 10-Year-Old Vehicle | $891 | $397 |
| New Model Vehicle | $1,156 | $379 |
ACTUAL CASH VALUE
The actual cash value (ACV) represents your vehicle's value as determined by your insurer just before any damage. For comprehensive or collision claims, the ACV guides the maximum payout for repairs or replacement, minus your deductible. This ensures the settlement aligns with the car's fair market value.
Read More: Used Car Insurance
Alabama Car Insurance Rates Explained
We're examining how car insurance costs in the Yellowhammer State align with the national average. Rates here may be pricey or more wallet-friendly, depending on several factors like your credit-based insurance score and the extent of coverage you choose.
Is Car Insurance Expensive in Alabama?
Car insurance in Alabama is affordable, with an average full coverage monthly cost of $86. It's 20% cheaper than the national average for full coverage policies.
Read More: Why Car Insurance is So Expensive
Car Insurance Costs in Alabama vs. National Average
National Average Cost
Full Coverage Car Insurance
$108
Alabama Average Cost
Full Coverage Car Insurance
$86AL Car Insurance Is Cheap:$22 saved
This is 20% less expensive.
Why Are Car Insurance Rates Expensive in Alabama?
Car insurance in Alabama can be pricey because cities are crowded, living costs are high, and storms are often harsh. These factors lead to more insurance claims, making coverage more costly for residents.
Read More: Car Insurance Rates by State
Estimating Your Car Insurance Costs in Alabama
While state factors shape Alabama's average car insurance rates, your personal cost depends on your unique situation. Consider your driving record, car model, and age when looking for affordable coverage in the Yellowhammer State .
Driving Record
Keeping a spotless driving record can lead to lower insurance rates, as insurers view safe drivers as less risky to insure.
Age and Gender
Younger drivers and males typically face higher rates. Compare insurers to find those with more favorable rates for your demographic.
Credit History
A higher credit score can result in lower car insurance premiums. Work on improving your credit to potentially reduce your rates.
Vehicle Type
Opt for a vehicle with a strong safety record and lower repair costs. High-performance or luxury vehicles often have higher insurance rates.
Location Within Alabama
Living in areas with lower accident rates and crime in Alabama can lead to more affordable insurance. Update your policy if you move to such an area.
Coverage Level
Adjust your coverage levels to fit your needs and budget. Higher deductibles can lower premiums, but ensure you can cover the deductible if needed.
Marital Status
Married couples often receive lower rates due to perceived stability. Inform your insurer of your marital status change to potentially benefit from discounts.
State Law
Alabama requires certain coverages by law. Knowing these requirements can help you avoid purchasing unnecessary additional coverage, saving you money.
Read More: Alabama Car Insurance Calculator
Minimum Car Insurance in Alabama
In Alabama, the average state minimum car insurance rate is $487, below the national average of $595. This minimum coverage is more affordable than full coverage, offering basic protection at a lower cost. Below is a table detailing Alabama's minimum insurance requirements.
Alabama Car Insurance Requirements
In Alabama, drivers must have minimum coverage car insurance. This includes $25,000 for bodily injury per person, $50,000 per accident, and $25,000 for property damage.
Liability Limits | Description |
|---|---|
$25,000 for bodily injury liability per person. | In Alabama, drivers must have at least $25,000 in bodily injury liability per person to cover medical expenses if they cause an accident. |
$50,000 for bodily injury liability per accident. | The state requires $50,000 in bodily injury liability per accident, ensuring coverage for multiple injuries in a single incident. |
$25,000 for property damage liability per accident. | Alabama mandates $25,000 for property damage liability per accident to cover repairs or replacements of damaged property. |
How to Lower Car Insurance Costs in Alabama
Save on Alabama car insurance by comparing rates, raising deductibles, and snagging discounts.
- 1
Compare Multiple Quotes
Researching multiple insurance providers can help you find affordable car insurance, potentially saving you hundreds of dollars annually.
- 2
Lower Your Risk Profile
A better credit score or a clean driving record without at-fault accidents or moving violations can significantly decrease insurance premiums because insurers see you as a lower risk.
- 3
Adjust Your Coverage
Review your coverage needs to ensure you're paying only for necessary protection. Increasing deductibles or opting for usage-based policies can lower costs for certain drivers.
- 4
Ask for Discounts
Inquire about discounts for safe driving, good grades, installed anti-theft devices, completion of a state-approved defensive driving course, and bundling policies to achieve lower premiums.
- 5
Consider the Car You Drive
Choosing a vehicle with good safety ratings or those that are generally less expensive to insure can result in lower insurance costs for residents.
Read More: How to Reduce Your Car Insurance Costs
Auto Insurance Rates in Alabama: Bottom Line
In Alabama, the average yearly cost for full coverage car insurance is $1032, which is more affordable than the $1296 national average. Factors like your driving history, the car you drive, and your age can change your rates. Overall, Alabama is a wallet-friendly state for car insurance compared to many others.
Alabama Car Insurance Rates: FAQ
Discover how age, driving record, and location impact Alabama car insurance costs. Compare providers for affordable rates.
What are the minimum car insurance requirements in Alabama?
In Alabama, the minimum car insurance requirements include $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $25,000 for property damage liability per accident. Uninsured/underinsured coverage is not mandated. These limits signify the least amount you must have to legally drive in the state.
When discussing the cost of minimum coverage auto insurance in Alabama, it's important to note that it varies based on individual factors such as driving history and vehicle type. However, to meet state minimum requirements, one must purchase coverage that includes the prescribed liability amounts.
What is the average cost of full coverage and minimum coverage auto insurance in Alabama?
In Alabama, the average annual cost for state minimum auto insurance is $487, while full coverage averages around $1,032. Both rates offer essential protection at competitive prices compared to national averages.
What is the average cost of car insurance for a 25-year-old in Alabama?
The average cost for full coverage car insurance for a 25-year-old in Alabama is $1,314, slightly below the state average. The minimum coverage averages around $593, also lower than the typical rates in the state.
What are the cheapest car insurance companies in Alabama?
Alabama Auto Insurance Cost: How We Determine Average Rates
We used a sample driver profile with the following attributes to determine average car insurance rates in Alabama:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We modified this driver profile by age, vehicle, credit score and driving record to determine averages for different driver profiles and needs.
Coverage Levels and Deductibles
Unless otherwise noted, average rates on this page are for a full coverage policy with comprehensive and collision coverage, a $1,000 deductible for each and the following liability limits (100/300/100):
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
When minimum coverage is specified, we used the following minimum liability-only limits as mandated by Alabama:
- $25,000 for bodily injury liability per person
- $50,000 for bodily injury liability per accident
- $25,000 for property damage liability per accident
Learn more about MoneyGeek's car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.