- How much is car insurance in Alabama?
- Alabama car insurance rates by company
- Alabama car insurance costs by coverage level
- Alabama car insurance by driver profile
- Alabama car insurance rates by age group
- How much does car insurance cost in Alabama per month?
- Alabama car insurance discounts
- Car insurance requirements in Alabama
- Car insurance rates in Alabama by model year
- Compare auto insurance rates by city in Alabama
- Car insurance premium trends in Alabama
- Methodology
- Compare Alabama car insurance rates with other states
How much is car insurance in Alabama?
The average cost of car insurance in Alabama is $1,860 annually for full coverage. However, these rates vary considerably based on factors like age, coverage levels, driving record and the make and model of the vehicle.
For example, younger drivers and males pay higher insurance rates, as do drivers with poor driving records.
Alabama drivers who only want to carry the minimum car insurance can expect to pay an average of $433. However, collision and comprehensive coverages aren't included, so any damage to your vehicle in an at-fault accident would be paid out of pocket.
"While most of us are reviewing our household budgets to see where we may be able to cut corners, your car insurance policy shouldn't be one of them. If you are considering saving money buying a liability-only auto insurance policy, the minimum legal coverage in most states, think first about what it will cost you when you need to file a claim for any injuries or damage to your vehicle other than those of the other victims when you cause a crash," says Carole Walker, executive director of the Rocky Mountain Insurance Association, a nonprofit consumer insurance information organization.
| Average annual premium | Average monthly premium |
|---|---|
| $1,860 | $155 |
Alabama car insurance rates by company
Every car insurance company uses its own criteria for determining rates. For example, while some emphasize age, others look closely at driving records. Because of this, Alabama car insurance rates vary significantly from company to company.
The table below compares average Alabama car insurance rates from top-rated companies for different coverage levels. On average, Country Financial is the cheapest car insurance company in Alabama.
| Company | State minimum | Liability-only | Full coverage |
|---|---|---|---|
| Country Financial | $313 | $475 | $1,694 |
| State Farm | $340 | $511 | $1,790 |
| Geico | $363 | $523 | $1,625 |
| Travelers | $403 | $558 | $1,428 |
| Auto-Owners | $416 | $618 | $2,134 |
| Progressive | $450 | $718 | $2,402 |
| Nationwide | $487 | $617 | $1,345 |
| Allstate | $576 | $752 | $2,178 |
| Farmers | $667 | $1,186 | $2,542 |
| USAA | $316 | $431 | $1,458 |
Alabama car insurance costs by coverage level
Generally, Alabama minimum car insurance is the cheapest option. However, it won’t protect you or your vehicle, even if you increase your limits. Although full coverage is more expensive, it includes collision and comprehensive coverages, which pay for damages to your car from an accident or events like severe weather.
Compare Alabama car insurance costs based on coverage level below.
| State minimum car insurance | Liability-only car insurance | Full coverage car insurance |
|---|---|---|
| $433 | $639 | $1,860 |
Alabama car insurance by driver profile
Car insurance companies use your driving record to help determine rates since it indicates how likely you are to file a claim. Drivers with DUIs, multiple accidents or a history of reckless driving have significantly higher insurance rates.
In most states, credit history also affects car insurance rates. Statistically, drivers with a lower credit score are more likely to file a claim instead of paying out of pocket for damages.
This table compares average car insurance rates in Alabama based on driver profiles. The highest rates in Alabama are for drivers with Bad credit.
| Profile groups | Average annual premium | Annual premium for profile | $ Increase | % Increase |
|---|---|---|---|---|
| At-fault accident | $1,860 | $2,881 | $1,021 | 55% |
| Bad credit | $1,860 | $3,920 | $2,060 | 111% |
| Careless driving | $1,860 | $2,819 | $959 | 52% |
| Claims | $1,860 | $1,964 | $104 | 6% |
| DUI | $1,860 | $3,251 | $1,391 | 75% |
| Reckless driving | $1,860 | $3,274 | $1,414 | 76% |
| Speeding | $1,860 | $2,569 | $709 | 38% |
| Texting ticket | $1,860 | $2,341 | $481 | 26% |
Alabama car insurance rates by age group
Age can significantly impact car insurance rates. Younger, less experienced drivers see the highest Alabama car insurance rates. Rates decrease considerably with age and experience behind the wheel.
The table below shows average Alabama car insurance rates by age.
| Age group | Full coverage car insurance |
|---|---|
| Teens (16-19) | $5,995 |
| Young Adults (20-24) | $2,813 |
| Adults (25-60) | $1,855 |
| Seniors (65-75) | $1,835 |
How much does car insurance cost in Alabama per month?
The average monthly cost of Alabama car insurance varies based on the amount of coverage you choose. While the minimum required car insurance is the cheapest, full coverage offers more protection at a higher rate.
| Coverage level | Average monthly premium |
|---|---|
| State Minimum BI/PD | $36 |
| Liability Only - 50/100/50 BI/PD | $53 |
| Full Coverage - 100/300/100 BI/PD - 500 Comp/Coll | $155 |
Alabama car insurance discounts
Which car insurance discounts are available and how much savings drivers can expect depend on the state and the company. So, savings may vary considerably from company to company in Alabama.
Check out the available car insurance discounts in Alabama below and see how much you can save on average.
| Discount type | Premium before discount | Premium after discount | $ Saving |
|---|---|---|---|
| Air Bags | $1,895 | $1,869 | $26 |
| Anti-Theft Device | $1,895 | $1,872 | $23 |
| Daily Commute | $1,895 | $1,793 | $102 |
| Days Advanced Purchase | $1,895 | $1,777 | $118 |
| Days Per Week Driven | $1,895 | $1,827 | $68 |
| Education | $1,895 | $1,796 | $99 |
| Electronic Funds Transfer | $1,895 | $1,855 | $40 |
| Homeowner | $1,895 | $1,829 | $66 |
| Lower Annual Mileage | $1,895 | $1,809 | $86 |
| Loyalty - Years Renewal With Company | $1,895 | $1,681 | $214 |
| Marital Status | $1,895 | $1,699 | $196 |
| Multi Policy | $1,895 | $1,736 | $159 |
| Paperless/Electornic Documents | $1,895 | $1,824 | $71 |
| Payment Type | $1,895 | $1,731 | $164 |
| Primary Use | $1,895 | $1,739 | $156 |
| Profession | $1,895 | $1,692 | $203 |
| Safety Devices | $1,895 | $1,856 | $39 |
| Telematics | $1,895 | $1,685 | $210 |
| Years Insured | $1,895 | $1,548 | $347 |
| Years Licensed | $1,895 | $1,514 | $381 |
Car insurance requirements in Alabama
Alabama requires a minimum amount of car insurance, including:
- 25/50/25 in liability coverage to pay for bodily injuries and property damages you cause in an accident.
Remember, the minimum coverage required by Alabama law is just that - the minimum. Experts recommend increasing limits and adding coverage, such as collision and comprehensive, to protect yourself better. By ensuring you have adequate coverage, you can have peace of mind on the road.
| State minimum requirements | State minimum car insurance | Liability-only car insurance | Full coverage car insurance |
|---|---|---|---|
| 25/50/25 | $433 | $639 | $1,860 |
Car insurance rates in Alabama by model year
The vehicle you drive also affects Alabama car insurance rates. For example, newer cars cost more to repair since they have expensive parts, such as collision warning systems, cameras, and anti-theft devices.
See how the model and age of the vehicle affect Alabama car insurance rates below.
| Company | Style | Average annual premium |
|---|---|---|
| Nationwide | 2WD 4 Door Sedan Automatic Turbo | $1,519 |
| Geico | 2WD 4 Door Sedan Automatic Turbo | $1,649 |
| State Farm | 2WD 4 Door Sedan Automatic Turbo | $1,892 |
| Allstate | 2WD 4 Door Sedan Automatic Turbo | $2,029 |
| Progressive | 2WD 4 Door Sedan Automatic Turbo | $2,444 |
| Farmers | 2WD 4 Door Sedan Automatic Turbo | $2,518 |
Compare auto insurance rates by city in Alabama
Auto insurance rates vary not just by state, but also by city. Cities have different levels of risk based on factors like accident rates, claim costs, weather and more. That means where you live in Alabama will impact what you pay. Below, we've gathered Alabama car insurance rates by city for comparison.
| City | Annual insurance premium |
|---|---|
Alpine | $1,818 |
Bessemer | $1,996 |
Birmingham | $2,040 |
Decatur | $1,700 |
Montgomery | $1,926 |
Car insurance premium trends in Alabama
Car insurance rates change regularly, influenced by changes in the cost of repairs, claim rates and other factors. Recent years have seen car insurance rates rise across the country, but not every state has seen the same increases.
We've tracked car insurance premium trends in Alabama to show you how things have changed and help you prepare for potential changes in the future. Take a look at the chart below.
Methodology
Insurance.com commissioned car insurance rates from Quadrant Data Systems in late 2023 for all 50 states and Washington, D.C. Base rates were fielded based on a 40-year-old driver with a clean record and good credit, driving a 2023 Honda Accord LX. Additional rates were fielded for multiple driver profiles including tickets, accidents and various credit tiers. Coverage levels include state minimum, 50/100/50 liability only, and full coverage at 100/300/100 liability limits with $500 deductibles. Rates were fielded from 34,588 ZIP codes and 170 insurance companies.
Compare Alabama car insurance rates with other states
Helpful auto insurance tools and calculators
You might also be interested in- Traffic ticket calculator in Alabama
- SR-22 insurance in Alabama
- Best and cheapest non-owner car insurance in Alabama
- Alabama gap insurance: Everything you need to know
- Low-income car insurance in Alabama: What you need to know
- Cheapest car insurance for high-risk drivers in Alabama
- Cheapest home and auto insurance bundle in Alabama
- Best cheap car insurance in Alabama for 2024
- Best condo insurance in Alabama for 2024
- Best and cheapest renters insurance in Alabama
