INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Alabama for 2024

Updated Nov. 13, 2023
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USAA is generally the cheapest car insurance in Alabama for both full coverage and minimum liability policies.

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From college football to its Gulf Coast beaches, there’s plenty to do in Alabama. The state also boasts the fourth-lowest cost of living in the country, which translates to lower car insurance premiums for residents. The average cost of full coverage car insurance in Alabama is $1,276. compared to the national average of $1,582.

However, the cost of your premiums will depend on factors such as your location, vehicle, and the type of coverage you choose for your car.

In this article

Key takeaways

  • The average cost of car insurance in Alabama is $1,276 per year for full coverage policies and $584 for state-minimum liability insurance.
  • Teens pay an average of $4,909 per year for full coverage car insurance.
  • Drivers who had an at-fault accident will pay an average of $881 more than the state average for insurance.

How much does car insurance cost in Alabama?

In Alabama, drivers pay an average of $1,276 for full coverage insurance, which includes collision, comprehensive, and liability protection. That number compares to a national average of $1,582.

But high-risk drivers and teens can expect to pay substantially more for coverage. The average premium for teens is $4,518 per year, while high-risk drivers will pay an average of $2,137 per year.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,276/year $584/year USAA
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$4,518/year $1,658/year $2,137/year

Average cost of car insurance in Alabama by provider

There are several insurance providers to choose from in Alabama. We found that USAA offers the lowest average premiums for both full coverage and state-minimum policies. 

However, if you aren’t eligible for USAA membership and insurance, GEICO has the next cheapest premiums for both forms of car insurance.

Provider Full coverage Minimum liability coverage
Allstate $1,118/year $498/year
Travelers $1,217/year $562/year
GEICO $1,046/year $375/year
State Farm $1,209/year $604/year
Progressive $1,547/year $627/year
USAA $920/year $304/year

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How does credit score affect car insurance rates in Alabama?

Insurance companies that issue policies in Alabama can use driver credit histories to set premiums. If your credit is poor to fair, your premiums will likely be more expensive than those with good to excellent credit

On average, drivers with poor credit in Alabama paid $2,475 per year.

Credit healthAvg. annual premium
Poor (550-649)$2,475/year
Average (650-699)$2,040/year
Good (700-749)$1,740/year
Excellent (750+)$1,527/year

Average car insurance rates for high-risk drivers in Alabama

Alabama is fifth in the country for alcohol-impaired driving fatalities. And besides the dangers driving under the influence presents, driving recklessly can also cost you financially. 

We found that drivers convicted of driving under the influence (DUI) saw their car insurance premiums drastically increase after the violation, paying an average of $2,538 per year for coverage.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,276/year $2,157/year $881
DUI $1,276/year $2,538/year $1,262
Speeding ticket $1,276/year $1,873/year $597

*Assumes clean driving record with good credit

How does age affect car insurance rates in Alabama?

In Alabama and most states, teens and young adults tend to pay much more for coverage than other age groups. Full coverage for an 18-year-old in the state costs an average of $4,909 per year, compared to a state average of $1,276.

Age Avg. annual premium
18 $4,909/year
25 $1,581/year
30 $1,494/year
40 $1,546/year
60 $1,526/year

Alabama car insurance rates by city

If you live in the suburbs or rural areas, you’ll generally pay less for car insurance than someone living in a city. And drivers that live in areas with high incidence rates of accidents and vandalism will pay the highest premiums.

In Alabama, the city with the highest average premium is Tuscaloosa. According to NeighborhoodScout, Tuscaloosa has a crime rating of four, meaning that 96% of cities in the U.S. are safer, so the higher premium is unsurprising.

City Avg. annual full-coverage premium
Tuscaloosa $1,872/year
Birmingham$1,853/year
Mobile $1,812/year
Montgomery $1,715/year
Huntsville $1,608/year

AL’s minimum car insurance requirements

Alabama’s laws require all drivers to have car insurance — and carry proof with them — that meets the following requirements:

  • $25,000 in bodily injury protection for one person
  • $50,000 in bodily injury protection for two or more people
  • $25,000 in property damage protection

However, you may want to consider purchasing additional insurance. Alabama has an extremely high rate of uninsured drivers. According to the Insurance Research Council, 19.5% of drivers in the state don’t have insurance.

To protect yourself and your vehicle, you may want to increase your coverage limits, purchase collision or comprehensive insurance and add uninsured/underinsured motorist protection to your policy.

How to save money on car insurance in Alabama

To save money on your car insurance premiums in Alabama, use these tips:

  • Adjust your deductible: Increasing your deductible will impact how much you have to pay for repairs or injuries after an accident before your insurer starts paying, but a higher deductible will lower your premiums.
  • Ask about discounts: You may be eligible for discounts you didn’t know were available, such as claims-free, paperless billing, or good student discounts. Contact your agent to see what discount programs your insurer offers.
  • Consider usage-based coverage: Several companies in Alabama — including Nationwide, Progressive, and Travelers — sell pay-per-mile insurance policies that base your premiums on your mileage and driving habits. If you drive safely or with fewer-than-average miles, you could reduce your monthly or annual premiums.
  • Shop for a new policy: As we mentioned above, car insurance premiums can vary significantly by insurer. Shopping around at least once a year and requesting quotes from the best car insurance companies can allow you to save money on your premiums.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in AL

Is car insurance expensive in AL?

Car insurance isn’t as expensive in Alabama as it is in other parts of the country. On average, full coverage policies in Alabama cost $1,276 per year. compared to a national average of $1,582.

How much is car insurance per year in AL?

The average cost of car insurance in Alabama is $1,276 per year for full coverage policies. For state-minimum liability insurance, the average price is $584 per year. 

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.