How Much Is Car Insurance in Alabama? (2023 Averages)
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The cost of auto insurance premiums varies based on the driver profile and the amount of coverage chosen. While the average cost of car insurance in Alabama is $1,221 per year, those who have a minimum coverage policy will only pay roughly $613 per year. Meanwhile, if you have a violation on your record or add a young driver to your policy, the average yearly cost of your auto insurance increases to $1,483 and $3,060, respectively.
The rate you receive will also depend on your insurance provider. In Alabama, full coverage insurance from GEICO costs $827 a year, but the same policy from Nationwide costs $1,874 annually.
The Average Cost of Car Insurance in Alabama
MoneyGeek broke down Alabama’s car insurance costs according to the factors that most affect rates. These include age, coverage level, driving record and credit scores. Among these, age has the most impact, followed by poor credit scores.
You can see more information about average car insurance rates for driver profiles by clicking them.
Average Costs of Car Insurance in Alabama
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- DriverAverage Annual PremiumAverage Monthly Premium
- The Average Driver$1,221$102
- Drivers Buying Minimum Coverage$613$51
- Adding a Young Driver$3,060$255
- Drivers With a Violation$1,483$124
- Drivers With Poor Credit$2,138$178
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Why Are Car Insurance Rates Reasonable in Alabama?
Car insurance prices by state vary, but Alabama car insurance rates are considered to be roughly average. Several factors contribute to this. Alabama has a low urban population share, ranking 43rd of all states. It ranks 16th in vehicle theft and seventh in uninsured drivers. Around 20% of drivers in the state do not have coverage.
If you find your premium expensive, factors unique to your neighborhood, such as traffic congestion or neighborhood crime rates, may be the reason why.
Average Cost of Car Insurance in Alabama: Full Coverage vs. Minimum Coverage
The amount of coverage you purchase affects how much car insurance costs in Alabama, especially regarding your liability limits and whether you include comprehensive and collision insurance.
If you purchase a state minimum liability-only plan, it’ll cost you roughly $613 per year. In comparison, the average cost of full coverage car insurance in Alabama is $1,221 annually — that’s a $608 difference per year.
Average Cost of Car Insurance in Alabama by Coverage Level
The least expensive auto insurance you can purchase is a state-minimum policy in Alabama.
For an added cost you can increase your liability coverage to 50/100/50 or 100/300/100. These figures are shorthand for liability coverage levels above the minimum coverage required in Alabama. A liability coverage of 50/100/50, for instance, includes:
- $50,000 in bodily injury liability insurance per person
- $100,000 in bodily injury liability insurance per accident
- $50,000 in property damage liability insurance per accident
On the other hand, comprehensive and collision coverage is included in a full coverage policy. In addition to basic liability coverage, it also provides protection to your automobile.
Average Cost of Car Insurance in Alabama By Company
Which carrier you choose also affects how much car insurance costs in Alabama. The prices between providers vary. For example, if you’re looking for cheap liability-only coverage, you can purchase it from GEICO for $375 a year on average. On the expensive end of the scale, MetLife offers a similar policy for an annual rate of roughly $971.
GEICO also offers cheap full coverage car insurance at an average of $827. If you purchase a full coverage policy from Nationwide, the most expensive insurer for full coverage in Alabama, it’ll cost you $1,814 on average.
You can find cheaper rates from USAA, but these are only available to current and former military members and their families.
Average Annual Costs of Car Insurance in Alabama - By Company
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- CompanyMinimum CoverageFull Coverage
- $304$677
- $375$827
- $498$846
- $494$1,033
- $562$1,059
How Much Is Car Insurance in Alabama by Age?
The average cost of car insurance in Alabama varies considerably based on the driver’s age. The difference could be as much as $1,839.
In Alabama, car insurance for a 40-year-old driver costs an average of $1,221 annually. A similar policy for a 16-year-old costs roughly 250% more — $3,060 yearly. Being added to your parents’ insurance is a cheap car insurance option for young drivers.
Car insurance for first-time drivers may also be more expensive since providers also look at experience behind the wheel. It’s best to shop around for rates so you know your options.
Average Costs of Full Coverage Car Insurance in Alabama - By Age
How Does Driving History Affect Car Insurance Costs in Alabama?
Keeping your driving record clean can help you get better car insurance rates in Alabama. Compared to a safe driver, who typically pays an average of $1,221 per year, having a speeding ticket on your record increases it to $1,483 per year on average. That’s a difference of about $262.
Car insurance rates in Alabama also continue to increase with more serious violations. You’ll have to shop around to find providers offering cheap car insurance for drivers with bad driving records.
Average Costs of Full Coverage Car Insurance in Alabama - By Driving History
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- Driving ViolationAnnual Premium
- Safe Driver$1,221
- Speeding Ticket$1,483
- At-Fault Accident$1,635
- DUI$2,064
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Credit Scores and the Cost of Car Insurance in Alabama
Carriers associate your credit score with your ability to pay your premium, so the better yours is, the lower your rate becomes. For example, you only pay an average of $973 for car insurance in Alabama if your credit standing is excellent. If you have good credit, it increases slightly to $1,171 per year.
Having a bad score may result in additional charges each year. Drivers with poor credit pay $2,138 on average for car insurance in Alabama each year. That’s $966 more than what drivers with good credit typically spend on coverage.
Average Costs of Full Coverage Car Insurance in Alabama - By Credit Score
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- Credit ScoreAnnual Premium
- Excellent$973
- Good$1,171
- Fair$1,464
- Below Fair$1,738
- Poor$2,138
How Much Is Car Insurance in Your City?
Car insurance rates differ within cities, not just between states. Typically, areas that are more populated or have more accidents result in higher rates for drivers. Depending on where you live, your car insurance premium may be higher or lower than Alabama’s annual average of $1,221.
Drivers in Huntsville pay $1,125 on average for car insurance, 7.9% lower than the state average. On the other hand, the average premium price in Mobile is slightly higher than Alabama’s average. Driver's residing here shell out an average of $1,236 every year for car insurance.
Average Costs of Full Coverage Car Insurance in Alabama - By City
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- CityAnnual Premium
- $1,221
- $1,125
- $1,236
- $1,181
Frequently Asked Questions About Alabama Car Insurance Rates
People interested in knowing whether the average car insurance rates in Alabama are expensive or not have several questions. Here are the most commonly asked ones.
About Mark Fitzpatrick
sources
- The University of Alabama. "Alabama: Rural or Urban?." Accessed September 8, 2021.
- Insurance Information Institute. "Facts + Statistics: Uninsured Motorists." Accessed September 8, 2021.