Updated: November 15, 2024
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In Alabama, drivers pay about $1,032 annually for full coverage car insurance and around $487 for minimum coverage.
Your age, coverage level, location, driving record and credit history impact your car insurance premium. These factors help insurers determine your policy cost.
AlabamaCar InsuranceCostsWhy Trust MoneyGeek? We analyzed data and quotes from Quadrant Information Services and the Alabama Department of Insurance to get the most precise average costs for various Alabama drivers.
These rates reflect the average cost of car insurance in Alabama as of November 2024.
Alabama's average full coverage car insurance cost is around $1,032 annually. Knowing Alabama's average car insurance rates can help determine if you're receiving an affordable or pricier quote. Compare car insurance quotes to find the best deal.
Below are average auto insurance costs in Alabama to help you find minimum or comprehensive full coverage that fits your needs.
| 100/300/100 Full Cov. w/$1,000 Ded. | $1,032 | $86 |
| 100/300/100 Liability Only | $571 | $48 |
| State Minimum Liability Only | $487 | $41 |
Car insurance in Alabama is generally more affordable than the national average cost of car insurance. A full coverage policy with a $1,000 deductible costs around $1,032 annually ($86 monthly) in Alabama, while the average national equivalent is $1,337 annually ($111 monthly). For minimum coverage, Alabama's average is $487 per year ($41 monthly), compared with the national average of $628 annually ($52 monthly).
Several factors drive the cost difference, including Alabama's lower-than-average number of uninsured drivers, moderate population density, which reduces the likelihood of accidents, lower rates of car theft, and the relatively low frequency of natural disasters reducing weather-related claims. Competition among insurers in Alabama also helps keep premiums lower.
In Alabama, Country Financial offers the cheapest full coverage at $683 annually, while Progressive has the most expensive average premium at $1,359.
Finding the cheapest car insurance in Alabama requires comparing quotes from different providers.
| Country Financial | $683 | $57 |
| Travelers | $772 | $64 |
| Cincinnati Insurance | $796 | $66 |
| State Farm | $963 | $80 |
| Auto-Owners Insurance Co | $1,022 | $85 |
| GEICO | $1,087 | $91 |
| Allstate | $1,138 | $95 |
| Nationwide | $1,164 | $97 |
| Farmers | $1,338 | $112 |
| Progressive | $1,359 | $113 |
The cost of car insurance in Alabama is also determined by the level of coverage selected. The minimum coverage averages at $41 per month, while full coverage, referred to as 100/300/100 Full Cov. w/$1,000 Ded., is higher at around $86 monthly. Despite the price difference, full coverage insurance is recommended for its comprehensive protection.
Adding comprehensive and collision coverage to your Alabama car insurance policy will increase premiums. Yet, opting for higher deductibles, such as a $1,000 deductible, can help make these additions more affordable. Each comprehensive and collision coverage carries its own deductible amount, contributing to financial responsibility in the event of a claim.
| State Minimum Liability Only | $487 | $41 |
| 100/300/100 Liability Only | $571 | $48 |
| 300/500/300 Liability Only | $658 | $55 |
| State Minimum Liability w/ Full Cov. w/$1,500 Ded. | $883 | $74 |
| State Minimum Liability w/ Full Cov. w/$1,000 Ded. | $938 | $78 |
| 100/300/100 Full Cov. w/$1,500 Ded. | $977 | $81 |
| 100/300/100 Full Cov. w/$1,000 Ded. | $1,032 | $86 |
| State Minimum Liability w/ Full Cov. w/$500 Ded. | $1,052 | $88 |
| 300/500/300 Full Cov. w/$1,500 Ded. | $1,068 | $89 |
| 300/500/300 Full Cov. w/$1,000 Ded | $1,124 | $94 |
| 100/300/1000,000 - 500 comp_coll | $1,146 | $95 |
| 300/500/300 Full Cov. w/$500 Ded. | $1,238 | $103 |
In Alabama, the minimum car insurance requirements are $25,000 for bodily injury liability per person, $50,000 per accident and $25,000 for property damage liability per accident. Uninsured/underinsured motorist coverage isn't required.
$25,000 for bodily injury liability per person
Alabama requires $25,000 for coverage of injuries to one person in an accident you cause.
$50,000 for bodily injury liability per accident
Alabama requires $50,000 for total injury coverage when multiple people are hurt in an accident you're responsible for.
$25,000 for property damage liability per accident
In Alabama, $25,000 represents the minimum coverage for damage to another person's property in an accident you cause.
Location can heavily impact car insurance costs in Alabama. In Huntsville, full coverage costs $838, while in Birmingham, it's $989.
Your driving record, age, type of vehicle, safety features and local weather conditions also influence premiums.
| Birmingham | $989 | $428 |
| Huntsville | $838 | $381 |
| Mobile | $950 | $427 |
| Montgomery | $918 | $414 |
In Alabama, younger drivers aged 22 to 29 face the highest car insurance rates, averaging $1,314 annually due to perceived inexperience. Premiums decrease with age, dropping to $988 for drivers aged 60 and older, assuming a clean driving record.
| 22-29 | $1,314 | $110 |
| 30-59 | $1,032 | $86 |
| 60 + | $988 | $82 |
Age and gender affect car insurance rates in Alabama. A 16-year-old male driver added to a family policy faces an average annual cost of $2,896. This age group generally sees the highest premiums across the board.
Teen drivers under 18 typically cannot purchase car insurance independently without a guardian's signature. A male teen would pay around $6,081 annually for an individual policy.
The average annual cost of full coverage car insurance for a 2012 model is $891, while a 2022 model costs $1,156. This increase is due to the 2022 car's higher value, more expensive repairs and higher theft risk.
Drivers with newer cars should consider comprehensive and collision coverage to protect against various incidents and accidents.
| 2012 Vehicle | $891 | $74 |
| 2022 Vehicle | $1,156 | $96 |
The actual cash value (ACV) of your vehicle is critical in insurance claims. It represents your car's market value considering depreciation. After comprehensive or collision incidents, insurers use the ACV to determine the maximum payout for your vehicle's loss or damage, ensuring compensation aligns with its current worth.
The average cost of car insurance in Alabama varies depending on your driving record, affecting how much you'll pay for coverage.
The seriousness of a violation, such as a DUI, greatly influences your car insurance premiums in Alabama. These increases will persist for as long as the violation remains on your record, and this timeframe can differ by state. In Alabama, for example, a DUI can impact your car insurance rates for a minimum of five years.
Although a DUI is often the most costly infraction, some states have insurance companies that use risk assessment methods that may assess other violations as more severe.
When shopping for car insurance, consider different coverage options and your age to find the most affordable rate that matches your specific driving record in Alabama.
| Clean | $1,032 | $86 |
| Ticket | $1,277 | $106 |
| At-fault Accident | $1,573 | $131 |
| DUI | $1,743 | $145 |
Alabama drivers experience a significant difference in car insurance costs based on credit scores, with average annual premiums ranging from $707 for excellent credit to $1,744 for those with poor credit. The impact of your credit score on car insurance rates is real — in Alabama, insurers consider it when assessing risk.
Scores are categorized as excellent (800 to 850), very good (740 to 799), good (670 to 739), fair (580 to 669) and poor (300 to 579). A higher score often leads to lower insurance rates.
| Excellent | $707 | $59 |
| Good | $889 | $74 |
| Fair | $1,122 | $94 |
| Below Fair | $1,375 | $115 |
| Poor | $1,744 | $145 |
These key elements influence car insurance rates in Alabama. Understanding them helps drivers find affordable, adequate coverage.
To get affordable car insurance in Alabama, compare rates from different providers, choose a higher deductible and take advantage of all eligible discounts.
Shop Around for Options
Comparing quotes from multiple insurers can reveal the cheapest car insurance in Alabama, potentially saving you hundreds of dollars annually.
Maintain a Clean Driving Record
A clean driving record free of accidents and violations can significantly lower insurance rates because it indicates responsible driving behavior to insurers.
Consider Higher Deductibles
Opting for higher deductibles can reduce premium costs, but ensure you can afford the deductible in case of a claim.
Bundle Insurance Policies
Bundling car insurance with other policies like home or renters insurance can lead to discounts and more affordable overall rates.
Look for Discounts
Insurers offer various discounts, such as for safe driving, good students or military service. Ask providers about eligible discounts to reduce costs.
Drive a Car with Safety Features
Vehicles equipped with safety features may qualify for lower insurance rates because they reduce the risk of injury and potential claims.
Review Coverage Annually
Regularly review your insurance needs and coverage to ensure you're not overpaying for unnecessary features or missing out on newer discounts.
Get answers about what impacts the average cost of car insurance in Alabama and how to find affordable rates.
In Alabama, drivers must have at least $25,000 in bodily injury liability per person, $50,000 per accident, and $25,000 for property damage liability per accident. Although uninsured/underinsured motorist coverage is not mandatory, it's advisable to consider it.
On average, full coverage car insurance in Alabama, with a $1,000 deductible, costs approximately $1,032 per year. For minimum coverage, the annual cost is about $487.
A 22-year-old in Alabama typically pays around $1,314 annually, or $110 monthly, for full coverage with a $1,000 deductible. Liability-only coverage costs roughly $708 per year, or $59 monthly, while minimum coverage averages $593 annually, or $49 monthly.
Country Financial offers the most budget-friendly full coverage car insurance in Alabama at $683 per year. For minimum coverage, Cincinnati Insurance is the least expensive option at $226 annually.
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.
