Car insurance rates vary greatly based on your ZIP code, the coverage you choose and other personal details, such as age and driving record. CarInsurance.com’s data shows that Nationwide offers the most affordable car insurance at $1,345 per year.
We’ve compiled this detailed guide to help you choose the right car insurance in Alabama. The team at CarInsurance.com has done all the hard work by researching and analyzing insurance prices for different kinds of drivers.
Keep reading to get a clear idea of how car insurance in Alabama works and how much coverage you need.
- Nationwide provides the most affordable annual rates for full coverage car insurance in Alabama, costing $1,345 per year.
- In Alabama, insurance costs differ depending on factors such as coverage limits, age and location, with key factors including the make/model of your vehicle and your driving history
- Minimum liability coverage in Alabama costs $433 annually for limits of 25/50/25, while liability-only coverage costs $639 per year for limits of 50/100/50.
- In Alabama, driving incidents can significantly increase premiums, with a speeding ticket raising rates by up to 30%, a DUI raising rates by 56%, and an at-fault accident by up to 48%.
How much is car insurance in Alabama?
According to CarInsurance.com data, drivers in Alabama pay about $155 per month for full coverage car insurance.
Understanding the average insurance cost can help you budget effectively for your coverage. Remember that insurance premiums can differ significantly based on your vehicle’s make and model and your driving history.
Average cost of auto insurance in Alabama by coverage level
Car insurance costs in Alabama can differ based on the coverage limit. To legally drive, Alabama residents must adhere to the minimum liability limits of 25/50/25.
Liability-only insurance is the least expensive coverage and meets the minimum legal requirements in Alabama, but it doesn’t offer adequate protection.
While liability insurance protects you from financial loss by covering legal defense and damages if you’re found responsible for causing injury or property damage to others, it doesn’t protect your vehicle or passengers.
On the other hand, full coverage car insurance is more expensive, but it offers extensive protection. It helps cover your vehicle in case of accidents, theft, natural disasters, and animal collisions. Full coverage can make you feel more secure, knowing you’re well-protected if something happens.
Full coverage car insurance comprises liability, comprehensive, collision and any other coverage required by your state.
Below are the Alabama car insurance costs for three different coverage levels.
| Coverage Level | Avg. Monthly Cost | Avg. Annual Cost |
|---|---|---|
| State Minimum – Liability Only BI/PD | $36 | $433 |
| Liability Only – 50/100/50 BI/PD | $53 | $639 |
| Full Coverage – 100/300/100 Liability BI/PD with $500 Comp/Coll Deductible | $155 | $1,860 |
State minimum car insurance in Alabama
Alabama laws mandate that all drivers carry insurance with minimum liability limits of $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $25,000 for property damage liability.
In Alabama, you can get state minimum car insurance for $433 per year. However, this minimum coverage doesn’t offer enough protection. Drivers can add other types of insurance, such as comprehensive and collision, increase their liability limits and buy personal injury coverage for added protection.
Drivers in Alabama must be aware of the minimum insurance coverage requirements to stay compliant.
Liability-only car insurance in Alabama
The average cost of liability-only insurance in Alabama is $639 for the coverage limits of 50/100/50, based on a recent data analysis by CarInsurance.com.
Liability only pays for damage you cause to other people’s property or for injuries to others in an accident, but it doesn’t cover your passengers’ medical expenses. It’s cheaper than full coverage insurance, but it won’t help if your own car is damaged or stolen.
Full coverage car insurance in Alabama
On average, premiums for full coverage car insurance in Alabama cost $1,860 per year for the limits of 100/300/100 – $100,000 in bodily injury coverage, $300,000 in bodily injury coverage per accident and $100,000 in property damage coverage.
Car insurance experts advise drivers to get full coverage insurance with the highest liability limits they can afford. Full coverage includes liability, comprehensive and collision coverage, with a deductible.
Calculate the cost of car insurance in Alabama
A policy that is perfect for someone living in one ZIP code might be expensive for a driver living in another.
Different areas pose more or less risk based on crime rate, traffic, car thefts and population density. Insurance companies research each area’s risks and then use that information to determine what they can charge for premiums.
This means that residents in higher-risk neighborhoods in Alabama have to bear greater financial burdens than those in areas with lower risks.
Use our simple tool to see how much you’ll have to pay for car insurance. Just type in your ZIP code, and you’ll get quotes for different coverage options quickly.
Alabama car insurance rates by ZIP Code
For 30 year old Male ( Liability - Minimum)
Estimate car insurance in Alabama by car model
Car insurers in Alabama use the make and model of your car to determine your insurance rates. Cars deemed more expensive to repair, such as luxury cars and EVs, may raise your rates more than those that may cost less to fix.
For example, luxury brands like Maserati, BMW, Porsche and Audi tend to have higher insurance costs. On the other hand, more affordable brands like Subaru, Hyundai, Honda and Mazda typically come with the cheapest insurance cost.
Find out how much car insurance costs for your car make and model in Alabama.
Insurance rates by car model
Guide: How to estimate car insurance using our car insurance estimator tool
Car insurance rates by age group in Alabama
As drivers age, their auto insurance premiums change – with younger and teen drivers paying higher rates than experienced drivers. The crash rate for teen drivers is four times higher than that of drivers aged 20 and older, according to the Insurance Institute for Highway Safety.
Car insurance companies know teen drivers are less experienced and riskier to insure. Alabama drivers aged 30 to 60 have the lowest average auto insurance rates at $1,807 annually.
Drivers aged 16-19 pay $4,188 more for car insurance than Alabama drivers aged 30-60 per year.
See the average rates by age group below:
- For teen drivers: Teens aged 16-19 can expect to pay $5,995 per year for a full coverage car insurance policy.
- For young adults: Drivers aged 20-25 can expect to pay $2,709 yearly for a full coverage policy.
- For average-aged adult drivers: Drivers aged 30 to 60 can expect to pay $1,807 annually in Alabama.
- For senior drivers: Drivers aged 65 and older can expect to pay $1,835 per year.
Check out our detailed guide on average car insurance rates by age
Rates based on driver profile, history and habits in Alabama
A history of DUI, speeding, or at-fault accidents often results in significant hikes in insurance premiums. In Alabama, a DUI conviction lead to increased rates and you may see a rate hike of up to 56% as insurers categorize you as a high-risk driver.
If you get caught speeding in Alabama, your car insurance rates will increase by 30% when you renew your policy. Typically, you’ll pay the increased premiums for three years. But how much your rates go up can vary depending on the laws in your state, the insurance company you’re with, and your driving history.
Here is how much your car insurance rate increases in Alabama after driving incidents:
- Speeding ticket: Up to 30% increase
- DUI conviction: 56% increase
- At-fault accident (bodily injury and property damage): 48% increase
But even with a traffic ticket, comparison shopping can save you money.
Car insurance cost in Alabama for high-risk drivers
In Alabama, if you’re a high-risk driver, you’ll pay more for car insurance. Factors such as past accidents, speeding tickets, and having a low credit score can increase your insurance costs.
Luckily, there are ways for high-risk drivers to reduce their premium payments. Shopping around and comparing quotes is a great place to start, as each company will have its own rate structure tailored to individual needs.
Use this tool to determine which company has the best prices for drivers with speeding tickets, DUIs, or at-fault accidents on their driving records.
Select your state and risk factor below to see the insurance company and its
average annual full coverage rates.
| Company Name | Insurance Rates |
|---|---|
| Travelers | $2,078 |
| State Farm | $2,151 |
| USAA | $2,210 |
| Nationwide | $2,235 |
| Auto-Owners | $2,696 |
| Geico | $2,845 |
| Allstate | $3,379 |
| Progressive | $3,944 |
| Farmers | $4,269 |
Learn more: The 10 most important factors that affect car insurance rates
Explore car insurance costs in your neighboring states
Compare car insurance quotes in Alabama
In Alabama, drivers can save on their premiums by comparing insurance quotes from different carriers. The cost of car insurance can vary based on several factors, including your driving history and the model of your car. Comparing multiple options allows you to find the right policy at an affordable price.
Start your search for the best car insurance policy in Alabama by getting quotes from several insurers for comparison.
In the table below, see an overview of various car insurance companies in Alabama, along with their average annual premiums.
| Company | State Minimum | 50/100/50 | 100/300/100 |
|---|---|---|---|
| Nationwide | $487 | $617 | $1,345 |
| Travelers | $403 | $558 | $1,428 |
| Geico | $363 | $523 | $1,625 |
| Country Financial | $313 | $475 | $1,694 |
| State Farm | $340 | $511 | $1,790 |
| Auto-Owners | $416 | $618 | $2,134 |
| Allstate | $576 | $752 | $2,178 |
| Progressive | $450 | $718 | $2,402 |
| Farmers | $667 | $1,186 | $2,542 |
| USAA | $316 | $431 | $1,458 |
Car insurance rates by city in Alabama
Tarrant is the most expensive city in Alabama, with an average car insurance rate of $2,084 a year. Fort Rucker is the cheapest city for Alabama drivers at an average rate of $1,664 annually.
Car insurance premiums differ across cities in Alabama and are influenced by traffic conditions. Cities with heavier traffic often experience more frequent accidents and insurance claims, which results in higher insurance costs.
Rates can also be influenced by factors such as uninsured motorist statistics, expenses related to repairs and medical treatment, as well as the overall crime rate in the city.
Below, you’ll see the average annual car insurance cost of major cities in Alabama.
Select your city below to see the insurance company and its average full coverage rates.
| Company Name | Insurance Rates |
|---|---|
| Travelers | $1,296 |
| Nationwide | $1,391 |
| USAA | $1,459 |
| Geico | $1,598 |
| State Farm | $1,753 |
| Country Financial | $1,773 |
| Auto-Owners | $2,078 |
| Allstate | $2,158 |
| Progressive | $2,323 |
| Farmers | $2,357 |
How much does car insurance cost in Alabama per month?
Car insurance in Alabama costs an average of $155 a month for a full coverage policy with limits of 100/300/100.
For some people, it is better to pay car insurance monthly because it gives them more flexibility in their budget. They can spread the cost over a longer period of time and don’t have to worry about a large lump sum payment.
On the other hand, paying for car insurance in full at renewal time can often result in a discount. Ultimately, your best option will depend on your needs and circumstances.
| Coverage Level | Avg. Monthly Rates |
|---|---|
| State Minimum – Liability Only BI/PD | $36 |
| Liability Only – 50/100/50 BI/PD | $53 |
| Full Coverage – 100/300/100 Liability BI/PD with $500 Comp/Coll Deductible | $155 |
Final thoughts on choosing car insurance in Alabama
The ideal car insurance company varies depending on what matters most to you. Some prioritize excellent customer service, even if it costs slightly more. Others focus on finding the cheapest rates. Some drivers also value the convenience of handling everything through a mobile app, while some prefer the personalized touch of a dedicated agent.
It’s really important to figure out what you need and find the best insurance policy for your car without breaking the bank while driving in Alabama.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety. “Teenagers.” Accessed March 2025.
- USAA. “How credit affects insurance premiums.” Accessed March 2025.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates in Alabama. The average premiums are based on the sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and a clean driving record.
The rates are for different coverage limits. It includes:
- Full coverage car insurance with a coverage limit of $100,000 in bodily injury per person, $300,000 in bodily injury coverage per accident, $100,000 in property damage coverage per accident and a $500 collision/comprehensive deductible.
- Liability-only car insurance rates with a limit of 50/100/50.
- State minimum coverage limit of 25/50/25.
To evaluate the rates, we have compared 53,409,632 insurance quotes from 75 company groups across 34,588 ZIP codes. The average premiums are for comparison purposes only; your exact rates may vary.
Note: USAA is only available to military community members and their families.
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs