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Car insurance rates can vary due to several factors, including the policyholder’s age, driving history, credit score, the insurer, the number of drivers and coverage level. Costs can range from $709–1,188 from Nationwide and Progressive, respectively. Those in their early adulthood can expect to pay around $1,092 per year, while those in their 30s generally pay around $852 per year.

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2023

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Average Car Insurance Costs in Alabama (2023)

The average cost of car insurance in Alabama for full coverage is around $852 annually. Different factors affect premiums, including how much coverage you need and your driving record. A speeding ticket can hike up the cost to around $1,074, while at-fault accidents result in a yearly expense of $1,305. Having a DUI record leads to an annual premium of approximately $1,451.

Driving Record
Annual Premium
Monthly Premium

Clean

$359

$30

Clean

$362

$30

Ticket

$445

$37

Clean

$447

$37

Ticket

$462

$38

Ticket

$542

$45

At-Fault Accident

$555

$46

At-Fault Accident

$576

$48

DUI

$630

$52

DUI

$652

$54

At-Fault Accident

$664

$55

DUI

$748

$62

Clean

$811

$68

Clean

$852

$71

Ticket

$1,041

$87

Ticket

$1,074

$89

Clean

$1,092

$91

At-Fault Accident

$1,276

$106

At-Fault Accident

$1,305

$109

Ticket

$1,320

$110

DUI

$1,417

$118

DUI

$1,451

$121

At-Fault Accident

$1,597

$133

DUI

$1,779

$148

Why Are Car Insurance Rates Cheap in Alabama?

The national average for full coverage car insurance is $1,054, and Alabama has a cheap average car insurance cost of around $852. This affordability can be attributed to factors such as reduced traffic density, less concentrated urban populations, competitively priced insurance providers and decreased vehicle theft rates. It's important to recognize that personal factors, such as age and driving history, may cause your car insurance premiums to be more expensive.

Average Car Insurance Costs in Alabama by Company

The average cost of car insurance in Alabama can be misleading since there are vast differences in insurance costs between insurers. For insurance, Cincinnati Insurance offers the cheapest car insurance in Alabama, at $201 per year for minimum coverage ($717 for full coverage), and Farmers is the most expensive car insurance company, at around $483 per year (around $961 per year for full coverage).

A full coverage policy will be more expensive than minimum liability coverage, but you can find cheaper options if you compare rates.

Company
Annual Premium
Monthly Premium

Cincinnati Insurance

$175

$15

Cincinnati Insurance

$201

$17

Cincinnati Insurance

$256

$21

Country Financial

$271

$23

Country Financial

$274

$23

Nationwide

$306

$25

Nationwide

$313

$26

State Farm

$347

$29

State Farm

$362

$30

Country Financial

$382

$32

Travelers

$387

$32

Auto-Owners Insurance Co

$391

$33

GEICO

$391

$33

Allstate

$405

$34

Auto-Owners Insurance Co

$407

$34

Travelers

$411

$34

GEICO

$414

$34

Progressive

$423

$35

Nationwide

$428

$36

Travelers

$435

$36

Allstate

$437

$36

Progressive

$446

$37

Allstate

$450

$37

State Farm

$450

$37

GEICO

$473

$39

Farmers

$483

$40

Farmers

$502

$42

Auto-Owners Insurance Co

$532

$44

Progressive

$558

$47

Cincinnati Insurance

$581

$48

Farmers

$592

$49

Nationwide

$641

$53

Country Financial

$679

$57

Nationwide

$709

$59

Cincinnati Insurance

$717

$60

Allstate

$732

$61

Country Financial

$743

$62

Allstate

$790

$66

State Farm

$794

$66

GEICO

$818

$68

Travelers

$821

$68

Allstate

$825

$69

Travelers

$845

$70

GEICO

$851

$71

State Farm

$863

$72

Cincinnati Insurance

$885

$74

Farmers

$904

$75

Nationwide

$936

$78

Auto-Owners Insurance Co

$954

$79

Farmers

$961

$80

Auto-Owners Insurance Co

$980

$82

Country Financial

$981

$82

Travelers

$995

$83

GEICO

$1,052

$88

State Farm

$1,113

$93

Farmers

$1,159

$97

Progressive

$1,188

$99

Progressive

$1,216

$101

Auto-Owners Insurance Co

$1,373

$114

Progressive

$1,679

$140

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MONEYGEEK’S ALABAMA CAR INSURANCE CALCULATOR

The premiums charged by insurance companies not only depend on the extent of your coverage but also on various personal factors like your age and driving record. With MoneyGeek’s car insurance calculator for Alabama, you can get the best estimate that you would be offered in the state.

Average Car Insurance Costs in Alabama by Coverage Level

Car insurance rates vary based on the type of coverage you choose. Minimum coverage car insurance in Alabama costs around $359 per year, while the most comprehensive coverage can cost up to $1,010 annually. The cost of the policy also increases with the increase in liability limit.

If you opt for both comprehensive and collision insurance, which is also known as full coverage insurance, you could pay hundreds of dollars more per year. However, you can increase your deductible, which means you'll have lower premiums but may pay more out of pocket if you get into an accident.

Average annual car insurance rates by coverage tier

Minimum coverage car insurance in Alabama is the cheapest option, but it does not include comprehensive and collision coverage. It features the lowest possible liability limits.

Insurers may offer increased liability limits, which are abbreviated as 50/100/50 or 100/300/100. This means:

  • $100,000 in bodily injury liability insurance per person
  • $300,000 in bodily injury liability insurance per accident
  • $100,000 in property damage liability insurance per accident

Most insurers offer a maximum liability option of up to 300/500/300. Liability insurance covers damages or injuries to those not at fault in an accident, while comprehensive and collision insurance covers everything. This is why it's called full coverage

Average Car Insurance Costs in Alabama by Age

Age is considered a significant factor when determining car insurance rates. This is especially true for young or inexperienced drivers in Alabama and other states.

Alabama drivers of different ages can expect to pay the following rates for full coverage:

  • 22–29: $1,092 annually
  • 30–59: $852 annually
  • 60 and older: $811 annually

Premiums remain relatively stable from age 30–60, with only slight changes for drivers in their 60s and beyond. However, rates are generally higher for drivers in their 20s due to their lack of experience.

Older drivers who are new to driving could pay similar rates to drivers in their 20s since experience is a key factor in determining car insurance rates for new drivers.

Age
Annual Premium
Monthly Premium

22-29

$447

$37

22-29

$1,092

$91

30-59

$359

$30

30-59

$852

$71

60 +

$811

$68

60 +

$362

$30

Average Car Insurance Costs in Alabama for Teens

In Alabama, teenage drivers face higher car insurance rates. A 16-year-old male driver on a family plan with full coverage could pay around $2,896 annually, while an individual plan would amount to around $6,081. Keep in mind that anyone under 18 years of age might not be able to buy their own policy.

Rates can shift dramatically with age. A 19-year-old male on a family plan would pay around $2,268, while a 22-year-old male would pay around $1,840. There may also be discrepancies in rates between male and female teen drivers, but some states have prohibited gender-based pricing.

Insurance rates almost always vary among providers, with some insurers offering more competitive rates for Alabama’s young drivers than others.

Age
Annual Family Premium
Monthly Family Premium
Annual Individual Premium
Monthly Individual Premium

16

$2,584

$215

$5,405

$450

16

$2,896

$241

$6,081

$507

17

$2,533

$211

$4,535

$378

17

$2,865

$239

$5,172

$431

18

$2,224

$185

$3,977

$331

18

$2,430

$202

$4,397

$366

19

$2,048

$171

$2,484

$207

19

$2,268

$189

$2,875

$240

20

$2,120

$177

$2,218

$185

20

$2,345

$195

$2,543

$212

21

$1,649

$137

$1,711

$143

21

$1,810

$151

$1,948

$162

22

$1,715

$143

$1,592

$133

22

$1,840

$153

$1,758

$146

23

$1,755

$146

$1,485

$124

23

$1,896

$158

$1,599

$133

24

$1,660

$138

$1,405

$117

24

$1,762

$147

$1,486

$124

25

$1,562

$130

$1,316

$110

25

$1,616

$135

$1,356

$113

Average Car Insurance Costs in Alabama for New Cars vs. Older Cars

Insuring a car in Alabama can vary significantly depending on its age. Full coverage for an old car could cost around $891, while a new car may cost $1,156, representing an almost 30% increase. The reason for this discrepancy is due to several factors, such as the higher cost of repairs, the elevated risk of theft and a higher actual cash value (ACV).

ACV determines the amount that an insurance provider must pay in the event of an accident. An older car would have a lower ACV, resulting in lower rates. If you drive a newer car, it is advisable to obtain a full coverage insurance policy that covers damage to your car.

Model Year
Annual Premium
Monthly Premium

2022 Vehicle

$379

$32

2022 Vehicle

$383

$32

2012 Vehicle

$397

$33

2012 Vehicle

$407

$34

2022 Vehicle

$462

$38

2012 Vehicle

$488

$41

2012 Vehicle

$867

$72

2012 Vehicle

$891

$74

2022 Vehicle

$1,080

$90

2012 Vehicle

$1,142

$95

2022 Vehicle

$1,156

$96

2022 Vehicle

$1,462

$122

Average Car Insurance Costs in Alabama by Driving Record

Your driving record can have a significant impact on your insurance rates. Here are the average annual costs for full coverage for the following records:

  • Clean driving record: $852 annually
  • Speeding ticket: $1,074 annually
  • At-fault accident: $1,305 annually
  • DUI: $1,451 annually

The severity of the violation also impacts premiums. DUIs get the highest rate as they are a more severe violation. These rates are on an insurer-to-insurer basis. There are cheap car insurers in Alabama for poor records that are cheaper than others, so make sure to look around first before settling.

Driving Record
Annual Premium
Monthly Premium

Clean

$359

$30

Clean

$362

$30

Ticket

$445

$37

Clean

$447

$37

Ticket

$462

$38

Ticket

$542

$45

At-Fault Accident

$555

$46

At-Fault Accident

$576

$48

DUI

$630

$52

DUI

$652

$54

At-Fault Accident

$664

$55

DUI

$748

$62

Clean

$811

$68

Clean

$852

$71

Ticket

$1,041

$87

Ticket

$1,074

$89

Clean

$1,092

$91

At-Fault Accident

$1,276

$106

At-Fault Accident

$1,305

$109

Ticket

$1,320

$110

DUI

$1,417

$118

DUI

$1,451

$121

At-Fault Accident

$1,597

$133

DUI

$1,779

$148

Average Car Insurance Costs in Alabama by Credit Score

Credit score is also a factor when it comes to the cost of car insurance in Alabama. A driver with excellent credit could be offered a rate of $707 annually, while a driver with poor credit would receive a rate of $1,744 annually.

  • Excellent: $707 per year
  • Good: $889 per year
  • Fair: $1,122 per year
  • Below fair: $1,375 per year
  • Poor: $1,744 per year

You could get lower rates if you choose cheaper insurers, so make sure to shop around when looking for car insurance.

Credit Score
Average Annual Premium
Average Monthly Premium

Excellent

$316

$26

Excellent

$320

$27

Excellent

$388

$32

Good

$395

$33

Good

$400

$33

Good

$486

$41

Fair

$502

$42

Fair

$507

$42

Below Fair

$614

$51

Below Fair

$617

$51

Fair

$619

$52

Excellent

$676

$56

Excellent

$677

$56

Excellent

$701

$58

Excellent

$707

$59

Excellent

$722

$60

Excellent

$727

$61

Poor

$755

$63

Poor

$755

$63

Below Fair

$757

$63

Good

$849

$71

Good

$850

$71

Good

$880

$73

Good

$889

$74

Excellent

$892

$74

Excellent

$905

$75

Good

$906

$75

Good

$914

$76

Excellent

$915

$76

Poor

$936

$78

Fair

$1,066

$89

Fair

$1,071

$89

Fair

$1,113

$93

Fair

$1,122

$94

Good

$1,123

$94

Fair

$1,136

$95

Good

$1,138

$95

Good

$1,151

$96

Fair

$1,156

$96

Below Fair

$1,299

$108

Below Fair

$1,311

$109

Below Fair

$1,362

$113

Below Fair

$1,375

$115

Below Fair

$1,386

$115

Below Fair

$1,418

$118

Fair

$1,420

$118

Fair

$1,432

$119

Fair

$1,458

$122

Poor

$1,636

$136

Poor

$1,660

$138

Poor

$1,720

$143

Poor

$1,744

$145

Poor

$1,744

$145

Below Fair

$1,745

$145

Below Fair

$1,753

$146

Poor

$1,792

$149

Below Fair

$1,792

$149

Poor

$2,214

$184

Poor

$2,233

$186

Poor

$2,265

$189

Average Car Insurance Costs in Alabama by City

Location within a state can also have an impact on your car insurance rates. Huntsville has the cheapest rate at $838 annually, while Birmingham has the most expensive rate at $989. Birmingham’s rate can be attributed to potentially having a denser population or higher car theft rates.

City
Full Coverage Annual Premium
Minimum Coverage Annual Premium

Birmingham

$1,252

$529

Birmingham

$989

$428

Birmingham

$936

$431

Huntsville

$1,059

$469

Huntsville

$838

$381

Huntsville

$797

$383

Mobile

$1,202

$528

Mobile

$950

$427

Mobile

$902

$430

Montgomery

$1,159

$512

Montgomery

$918

$414

Montgomery

$870

$417

Insurance Rates

Compare Insurance Rates

Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.

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FAQ About Car Insurance Costs in Alabama

We answered some frequently asked questions about car insurance costs in Alabama. Keep in mind that insurance rates can fluctuate based on individual factors and statewide disparities.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.