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Last updated: October 10, 2024
The Average Cost of Car Insurance in Alabama
The average annual cost of full coverage car insurance in Alabama is $1,488, and $726 for minimum coverage. Learn more about average premiums in the state, based on your driver profile.
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Although car insurance in Alabama is cheaper than the national average, you may have noticed your rates increased. That’s because car insurance providers have raised their annual prices more — nearly 50 percent between 2020 and 2024 —than they have in 47 years.1
If you’re one of Alabama’s 4 million drivers, it will help to know what the state’s averages are, based on your driver type, to get an idea of how much your car insurance should cost. Remember that the auto insurance world is, like many industries, extremely volatile at the moment, so these prices will likely fluctuate on an annual and even monthly basis.
Average Cost of Car Insurance in Alabama
Car insurance in Alabama is $1,488 on average for full coverage. Depending on your driving history, vehicle type, credit score, and other important factors — which we’ll break down below — that price could be lower or higher.
Read on to see what you might expect to pay in Alabama based on your background and coverage needs.
RELATED
Learn more about the impact of rising auto insurance costs on Americans.
By Age
Since younger drivers get into more accidents and file claims at higher rates than other age groups, they pay the most on average for car insurance. Those premiums quickly drop in your early and mid-20s and are reduced by more than half, on average, for people 30 and older.
| Age | Average annual premium in Alabama |
|---|---|
| 16-19 | $4,464 |
| 20s | $3,201 |
| 30s | $1,686 |
| 40s | $1,512 |
| 50s | $1,428 |
| 60s | $1,395 |
| 70s | $1,411 |
PRO TIP
If you’re a teen driver, you can bring your costs down significantly by signing up for a plan with your parent/guardian. Otherwise, ask your agent about discounts and ways to reduce your premiums.
By Marital Status
Married couples tend to make more on-time payments and file fewer claims than their unmarried counterparts, which is why married drivers will pay less for car insurance on average. In Alabama, you can expect to pay about $100 less than the state average if you’re married.
| Marital Status | Average annual premium in Alabama |
|---|---|
| Married | $1,378 |
| Single | $1,543 |
| Divorced | $1,529 |
| Widowed | $1,522 |
By Coverage Level
If you add more coverage to your policy, you will spend more on your auto insurance. For minimum liability, you can expect to pay just over $720 a year, and that number more than doubles for full coverage. More coverage offers greater financial protection in the event of an accident.
| Coverage Level | Average annual premium in Alabama |
|---|---|
| State minimum | $726 |
| Comprehensive coverage | $285 |
| Collision coverage | $477 |
| Full coverage | $1,488 |
By Credit Score
Insurers can increase your insurance rates in Alabama if you have a bad credit score. In fact, drivers with bad credit scores can expect to pay over $600 more than the state average.
| Credit score | Average annual premium in Alabama |
|---|---|
| Excellent | $1,284 |
| Very Good | $1,319 |
| Good | $1,382 |
| Fair | $1,836 |
| Poor | $2,133 |
By Violation
Drivers with DUIs, accidents, and speeding tickets will pay more on average for their auto insurance. Keep in mind that the more traffic violations or accidents you have (and how severe they are), the higher your premiums will rise.
| Violation Type | Average annual premium in Alabama |
|---|---|
| Speeding ticket | $1,627 |
| Accident | $1,964 |
| DUI | $2,206 |
By Company
If you’re a military member, you can expect to pay the least for car insurance in Alabama ($1,012 annually). On average, Farmers offers the most expensive rates, and State Farm and Country Financial are in the middle of the pack.
These rates will vary widely based on your driving background and needs, so be sure to request as many quotes as possible.
| Company | Average annual premium in Alabama |
|---|---|
| USAA | $1,012 |
| Cincinnati Insurance | $1,223 |
| Travelers | $1,389 |
| State Farm | $1,416 |
| Country Financial | $1,497 |
| Nationwide | $1,536 |
| GEICO | $1,570 |
| Farmers | $1,681 |
Cheapest Car Insurance in Alabama
These are the cheapest average rates based on your personal background, driving history, car insurance needs, and more.
Again, these can vary from driver to driver based on factors such as your location or the other drivers attached to your policy. Take the time to request quotes from several companies to find out exactly how much you’ll pay.
| Category | Most affordable provider | Annual average rate |
|---|---|---|
| Male | Cincinnati Insurance | $1,288 |
| Female | Cincinnati Insurance | $1,301 |
| Speeding ticket on record | State Farm | $1,589 |
| Accident on record | State Farm | $1,712 |
| DUI on record | State Farm | $1,983 |
| Military/veteran | USAA | $1,081 |
| Full coverage | Cincinnati Insurance | $1,223 |
| Minimum coverage | Cincinnati Insurance | $577 |
| Poor credit | Nationwide | $1,853 |
| 20s | State Farm | $2,761 |
| 30s | Travelers | $1,482 |
| 40s | Cincinnati Insurance | $1,316 |
| 50s | Cincinnati Insurance | $1,291 |
| 60s | Cincinnati Insurance | $1,284 |
| 70s | Cincinnati Insurance | $1,409 |
How to Save on Car Insurance in Alabama
Although Alabama does not offer a state-supported car insurance program, there are many ways to bring your costs down.
Here are a few best practices you can follow to bring your premiums down in Alabama:
- Increase your deductible.
- Lower your coverage limits.
- Ask your agent about any discounts you might be eligible for.
- Bundle home, auto, and other insurance types.
- Drop optional coverage add-ons.
LEARN MORE
Not sure what kind of discounts to ask your agent about? Check out our guide to the most common auto insurance discounts you’ll see, by company.
Minimum Car Insurance in Alabama
You only need liability coverage to drive legally in Alabama, which includes bodily injury and property damage coverage. The minimum liability limits are:
- $25,000 in bodily injury per person
- $50,000 in bodily injury per accident
- $25,000 in property damage2
Alabama Fault Law
Alabama is an at-fault state, which means that the party responsible for the injuries/damages must also pay for those damages/injuries.
More specifically, Alabama functions under pure contributory negligence, which states that you can only claim damages from the other party if you are zero percent at fault. If you are even 1 percent at fault in an accident, you cannot claim damages from the other party.
Alabama SR-22s
An SR-22 is a certificate that proves you have the minimum car insurance coverage required by the state of Alabama. You will typically need to file and carry an SR-22 after a serious violation, like a DUI, for three years.
Recap
Although car insurance in Alabama is cheaper than in many other states, choosing the right provider based on your background and needs can significantly reduce costs. Take the time to ask for discounts based on your age, bundling needs, driving history, and other personal factors. And if you have poor credit or a bad record, shop around — as you can see from the data, some providers will cater to your driver profile and offer cheaper rates than others.
FAQs
Should I get uninsured/underinsured motorist insurance in Alabama?
We recommend adding uninsured/underinsured motorist (UIM) coverage to your plan if you can afford it. According to the Insurance Research Council, 14.2 percent of drivers are uninsured in Alabama, which is on par with the national average of 14 percent. UIM coverage pays for damages caused by a driver without insurance or without enough insurance, including hit-and-runs.
How much does car insurance cost in Alabama, by city?
Here’s the average cost of car insurance in Alabama’s largest cities.
| City | Average annual premium in Alabama |
|---|---|
| Huntsville | $1,438 |
| Tuscaloosa | $1,497 |
| Montgomery | $1,530 |
| Mobile | $1,611 |
| Birmingham | $1,624 |
What is the average cost of rental car insurance in Alabama?
You can expect to pay anywhere from $30 to $60 a day for full coverage on your car rental in Alabama.
How much does it cost to file an SR-22 in Alabama?
It costs about $20 to file an SR-22 in Alabama.
Staff Writer & Editor
Ali Saleh is a copywriter with nearly 10 years of experience in content writing, editing, and journalism. Ali’s work has been featured on a number of notable sites and publications, including MSN, Business.com’s award-winning newsletter, and Groove Korea, South Korea’s largest English-print magazine. Today, he writes for dozens of brands, providing expert guides and informative articles on auto insurance, healthcare, recruiting technology, business, and more. Ali holds a Master of Fine Arts in creative writing from North Carolina State University.
Citations
Eggs, gasoline and car insurance: Where inflation has hit Americans hardest. Pew Research Center. (2024, Aug 7).
https://www.pewresearch.org/short-reads/2024/08/07/eggs-gasoline-and-car-insurance-where-inflation-has-hit-americans-hardest/Automobile Insurance FAQs. Alabama Department of Insurance. (2024).
https://www.aldoi.gov/consumers/AutoFAQ.aspx
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