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.
This guide makes buying car insurance in Alabama easy. We’ve done the hard work by researching and analyzing what different drivers might pay for insurance.
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?
CarInsurance.com data found that drivers in Alabama pay $155 monthly for full coverage car insurance.
Understanding the average insurance cost can help you plan your budget. Remember, car insurance rates vary widely, depending on the type of car you drive, your driving history and other personal factors.
Average cost of auto insurance in Alabama by coverage level
In Alabama, the cost of car insurance can vary depending on how much coverage you purchase. Alabama drivers need at least the minimum insurance coverage limits of 25/50/25 to legally drive.
Liability-only insurance policies are the most affordable option and provide the minimum coverage required in Alabama. However, they don’t offer much 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 costs more but provides a lot more protection. It covers damage to your car in accidents, theft, natural events and animal collisions. If you have full coverage, you can be reassured that you’re well-protected.
Full coverage comprises liability, comprehensive, collision and any other coverage required by your state.
Below, you will find the rates for car insurance in Alabama for 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
In Alabama, minimum car insurance requirements include $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident and $25,000 of property damage liability.
The state minimum car insurance cost in Alabama is $433 a year. However, this basic coverage only offers limited protection. Alabama drivers can choose to add more coverage, such as comprehensive and collision insurance, raise their liability limits and include personal injury protection or other insurance coverage, for better protection.
Drivers in Alabama must purchase the minimum required car insurance to operate their vehicles on the road.
Liability-only car insurance in Alabama
According to CarInsurance.com data, liability-only car insurance costs $639 in Alabama for limits 50/100/50.
Liability-only insurance helps cover the costs if you damage someone else’s car or injure someone in an accident. It’s more affordable than full coverage insurance, but remember, it doesn’t pay for repairs to your vehicle or cover injuries to your passengers.
Full coverage car insurance in Alabama
In Alabama, you can expect to pay around $1,860 per year for full coverage car insurance 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.
When it comes to car insurance, experts recommend opting for full coverage with the highest liability limits you can afford. It includes liability, comprehensive and collision coverage with a deductible. Full coverage car insurance protects you from unexpected events on the road. with a deductible.
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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.
Insurance companies assess various factors, such as crime rates, traffic conditions, car theft incidents and population density, to evaluate the level of risk in different areas and determine car insurance premiums.
As a result, residents in higher-risk neighborhoods in Alabama pay more for premiums than those in lower-risk areas.
With our easy-to-use tool, you can get insurance quotes for different coverage limits for your ZIP code in minutes. Enter your ZIP code into our free tool to see how much you can save.
Alabama Car Insurance Rates by ZIP Code
Estimate car insurance in Alabama by car model
In Alabama, car insurance costs depend on the type of car you drive. If you have a luxury or electric vehicle that’s more expensive to repair, you’ll pay higher insurance rates than someone with a car that’s cheaper to repair.
For instance, luxury brands like Maserati, BMW, Porsche, and Audi usually have higher insurance costs. Cars like Subaru, Hyundai, Honda and Mazda are often cheaper to insure.
Find out how much you’ll pay for car insurance for your vehicle 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
Younger drivers and teenagers typically pay more for insurance than older, more experienced drivers. This is because teenagers are more likely to get into car accidents. In fact, teenagers are four times more likely to crash than drivers who are 20 or older, according to the Insurance Institute for Highway Safety.
Auto insurance companies understand that teenage drivers typically have less experience and pose a higher risk to insure. In Alabama, drivers aged 30 to 60 enjoy the lowest average auto insurance premiums, 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
Having a DUI, speeding ticket or being at fault in an accident can substantially increase your insurance rates. In Alabama, a DUI conviction often results in higher premiums and you may see an increase of up to 56% as insurers perceive 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.
Fortunately, high-risk drivers have several options to lower their insurance premiums. A good first step is to shop around and compare quotes, as each insurance provider has a unique rate structure designed to meet individual needs.
Use this tool to compare prices from different companies and find out which is cheaper for drivers with speeding tickets, DUI convictions or at-fault accidents.
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
Average car insurance cost in different states of U.S.
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Our apologies, we cannot display the data due to availability or spelling errors. Please check the spelling and try again. For assistance, reach out us via 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.
Compare the best car insurance options in Alabama by getting quotes from different insurance companies.
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 costs differ from city to city in Alabama, mainly because of traffic congestion. Cities with more traffic usually see more accidents and insurance claims, which makes insurance more expensive.
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?
The average cost of a full-coverage car insurance policy in Alabama costs $155 monthly for coverage limits of 100/300/100.
Paying car insurance monthly can offer individuals greater budget flexibility. By spreading the cost over time, they can avoid the strain of a hefty lump sum payment and manage their expenses more comfortably.
While paying your car insurance in full upfront at renewal can sometimes get you a discount, the best choice will depend on your situation.
| 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
There’s no one best car insurance for everyone. Some drivers are willing to pay a bit more for outstanding customer service, some want the lowest rates, others prefer carriers who can handle claims and payments through mobile apps and some prefer agents.
Understanding your needs and finding the best insurance policy at a great price are important. So, take your time and check out different options to find the right policy for you.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety. “Teenagers.” Accessed September 2024.
- USAA. “How credit affects insurance premiums.” Accessed September 2024.
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.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
Guide to car insurance (with rates) in cities of Alabama