Alabama drivers pay about $1,245 per year for full coverage car insurance and $640 for minimum coverage, based on a 40-year-old driver with good credit and no driving violations. Your rates will vary depending on your unique profile.
Average Cost of Car Insurance in Alabama
Updated: August 15, 2025
Advertising & Editorial Disclosure
Key Takeaways
Depending on driver profile, coverage and location, car insurance costs can be between $640 and $4,562 per year on average in Alabama.
Car insurance costs in Alabama are typical for the U.S., with the state placing 29th for minimum coverage and 16th for full coverage affordability.
To secure the cheapest car insurance in Alabama, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In Alabama
| Full Coverage | $104 | $1,245 |
| Minimum Coverage | $53 | $640 |
*Rates are based on a 40-year-old driver with good credit and a clean record driving a 2012 Toyota Camry LE. Minimum coverage means basic liability required by state law. Full coverage includes 100/300/100 liability limits plus comprehensive and collision with $1,000 deductibles.
Average Alabama Car Insurance Cost by Category
Car insurance varies widely depending on your unique characteristics, location and car. Here are average rates for common categories of drivers so you can see how pricing can vary.
| Young Drivers | $126 | $248 |
| Adult Drivers | $53 | $102 |
| Senior Drivers | $73 | $135 |
| Drivers With An Accident | $75 | $150 |
| Drivers With A DUI | $83 | $169 |
| Drivers With A Speeding Ticket | $63 | $127 |
| Drivers With Bad Credit | $118 | $247 |
| Drivers With Low Income | $85 | $176 |
| Drivers With Newer Cars | $71 | $142 |
| Drivers With Old Cars | $49 | $94 |
We modified rates based on the same 40-year-old driver profile with these changes: young drivers (16 to 25), adults (26 to 64), seniors (65+), low income (fair credit), bad credit (poor credit), newer cars (2025 Toyota Camry LE), older cars (2007 Toyota Camry LE). Driving violation profiles include only that specific violation.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Personalized Average Alabama Car Insurance Costs
General driver categories give you a basic picture, but your costs are unique. Our filterable table below shows you exact rates based on your personal details.
Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Select
Age Group:Adult Drivers
Select
Gender:Female
Select
Credit Alignment:Below Fair
Select
Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| 100/300/100 Full Cov. w/$1,000 Ded. | 317 | 3803 |
*Rates for the age groups are based on the following assumptions: young drivers (16 to 25), adults (26 to 64), seniors (65+).
Average Alabama Car Insurance Cost by City
Your location in Alabama significantly affects your car insurance costs. Annual rates for full coverage range from $573 in Opp to $1,458 in Chunchula. Below you can compare both full and minimum coverage rates for your city and all other residential areas in the state.
Data filtered by:Results filtered by:
Select
City:Abbeville
| Full Coverage | $95 | $1,143 |
| Minimum Coverage | $50 | $598 |
*Rates are for a 40-year-old driver with good credit and no driving violations who is insuring a 2012 Toyota Camry LE. Minimum coverage represents the minimum required liability coverage in the state while full coverage is representative of a 100/300/100 liability policy with a $1,000 deductible for comprehensive and collision coverage.
Is Alabama Car Insurance Expensive?
Alabama ranks 29th for minimum coverage and 16th for full coverage affordability, making it one of the more budget-friendly states for full coverage policies in 2025. This reflects statewide averages, and affordability rankings for your city differ from the rest of the United States.
Why Is Car Insurance More Expensive In Alabama?
Below we'll explore the reasons for Alabama's high car insurance rates:
Traditional liability coverage system
Alabama follows a traditional at-fault insurance system, requiring drivers to carry minimum liability coverage of 25/50/25. This means $25,000 for bodily injury per person, $50,000 per accident and $25,000 for property damage per accident. While these limits meet state requirements, they're among the lowest in the nation and may not provide adequate financial protection for serious accidents where medical costs and car repairs can easily exceed these amounts.
Moderate insurance costs compared to national averages
Alabama drivers pay less than the national average for car insurance. The state's lower population density, reasonable cost of living and highway infrastructure help keep insurance costs relatively affordable. However, factors like severe weather exposure and high uninsured driver rates can still impact individual premiums.
Rising penalties for uninsured driving
Driving without insurance in Alabama can result in misdemeanor criminal charges, fines up to $3,000, jail time up to six months and license suspension. First-time offenders face a $500 fine and 45-day registration suspension with a $200 reinstatement fee, while repeat offenders can face $1,000 fines, four-month registration suspension, $400 reinstatement fee and up to six months license suspension. The state has strengthened enforcement to encourage compliance with mandatory insurance laws.
Limited medical coverage requirements
Unlike no-fault states, Alabama doesn't require personal injury protection coverage. Drivers must rely on their health insurance or the at-fault driver's bodily injury liability coverage for medical expenses after accidents. Alabama law does require insurers to offer uninsured/underinsured motorist coverage, though drivers can reject it by signing a waiver. Given the high rate of uninsured drivers, accepting this coverage provides important financial protection.
How To Lower Car Insurance Costs In Alabama
Want to save even more on Alabama's already affordable rates? Here's how to lower your car insurance costs:
- 1
Decide on coverage needs beforehand
Deciding on your coverage needs is important so you're not oversold on too much coverage. Consider your financial situation, driving habits, car details and risk tolerance when making this decision.
- 2
Research costs and discounts
To save money for your profile, know the average costs for your preferred coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance bundles for the most balanced perspective.
- 3
Look into company reputations and coverage options
Cost is not all the matters and you should consider add-on coverage options and customer experiences with different providers to help you narrow down which you'd like to compare quotes with. Use resources like industry studies, review forums and public forums like Reddit.
- 4
Compare quotes through multiple means
Compare quotes from multiple companies to find the best deal possible. Use different means of getting quotes, such as comparison sites and independent agents, since pricing varies widely by method.
Cost of Car Insurance in Alabama: Bottom Line
Alabama car insurance costs are among the more affordable in the United States, but smart shopping can still help you save even more. Decide on your coverage needs beforehand, do thorough research and compare quotes from the right insurers.
Cost of Car Insurance in Alabama: FAQ
Below are answers to frequently asked questions about Alabama car insurance costs:
How much is Alabama car insurance per month?
Alabama car insurance costs $53 for minimum coverage and $104 for full coverage policies. Rates range from $49 to $248 monthly, depending on your unique driver profile and coverage choice.
What factors affect Alabama car insurance costs?
Primary factors include driving history, age and location. Drivers with accidents, violations or those who are young face higher rates, while urban areas cost more than rural ones. Car type, coverage amounts, credit score and annual mileage also impact premiums, along with factors like gender and marital status in some states.
Why is Alabama car insurance so expensive?
Alabama's car insurance rates are influenced by severe weather including frequent tornadoes, with 833 recorded from 2010 to 2022. The state has one of the nation's highest uninsured driver rates at 20%, nearly one in five drivers. Alabama requires low minimum coverage (25/50/25) and follows a traditional at-fault system. Despite weather risks, rates average $104 monthly for full coverage, 20% below the national average.
How expensive is Alabama car insurance?
Alabama ranks 29th for minimum coverage and 16th for full coverage affordability among the 50 states and Washington, D.C., making it one of the more budget-friendly states for auto insurance in the U.S.
How We Determined Alabama Car Insurance Costs
We used the following profile and modifications of this profile to determine Alabama auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.