Average Cost of Car Insurance in Alabama for 2023

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.

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

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 health	Avg. 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
Huntsville	$1,608/year
Birmingham	$1,853/year
Montgomery	$1,715/year
Mobile	$1,812/year
Tuscaloosa	$1,872/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.

FAQs about car insurance costs in AL