Car insurance in Alabama costs approximately $1,245 annually for full coverage and $640 for minimum coverage, based on a 40-year-old driver with good credit and no violations. Alabama ranks 16th for full coverage and 29th for minimum coverage among all states, with rates 15% and 7% below national standards respectively.
Average Cost of Car Insurance in Alabama
Updated: October 16, 2025
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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 |
The jump from basic liability to comprehensive protection adds $605 yearly, roughly $50 per month. Your individual rates will fluctuate based on your driving background, personal details and policy choices.
Average Alabama Car Insurance Cost by Category
Drivers with older vehicles secure the best rates in Alabama at $94 monthly for full coverage, while young drivers face the steepest premiums at $248 monthly. Your individual characteristics play a major role in determining car insurance costs.
Adult drivers with clean records pay reasonable baseline rates at $102 monthly for full coverage and $53 for minimum coverage. Drivers with poor credit encounter similar costs to young drivers at $247 for full coverage and $118 for minimum, since credit scores help insurers predict claim likelihood.
| Drivers With Old Cars | $49 | $94 |
| Adult Drivers | $53 | $102 |
| Drivers With A Speeding Ticket | $63 | $127 |
| Drivers With Newer Cars | $71 | $142 |
| Senior Drivers | $73 | $135 |
| Drivers With An Accident | $75 | $150 |
| Drivers With A DUI | $83 | $169 |
| Drivers With Low Income | $85 | $176 |
| Drivers With Bad Credit | $118 | $247 |
| Young Drivers | $126 | $248 |
These rate variations reflect different risk profiles, with comprehensive and collision payouts for older vehicles limited by depreciated vehicle values.
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Average Car Insurance Cost in Alabama by Company
AIG provides the lowest rates in Alabama at $71 monthly for full coverage, while GEICO charges the most at $92 monthly. Car insurance companies in Alabama offer relatively narrow rate ranges, with full coverage premiums spanning from $71 to $92 monthly among major insurers.
Alabama drivers can save about $259 annually by choosing the most affordable option over the most expensive.
| AIG | $22 | $71 |
| Cincinnati Insurance | $26 | $89 |
| Auto Owners | $44 | $89 |
| Travelers | $47 | $86 |
| Geico | $42 | $92 |
Average Alabama Car Insurance Cost by City
Alabama maintains relatively consistent car insurance costs across most cities, with full coverage premiums ranging from $93 monthly in Florence to $117 in Phenix City. Location impacts Alabama car insurance costs, though the state shows modest city-to-city variation.
The $24 monthly spread between the most and least expensive cities is among the smaller variations seen nationally, but still makes location-based comparison worthwhile. Compare rates for your city below.
Data filtered by:
Abbeville
| Full Coverage | $95 | $1,143 |
| Minimum Coverage | $50 | $598 |
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:
- 1Decide 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.
- 2Research 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.
- 3Look 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.
- 4Compare 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.