How Much Is Car Insurance in Alabama? (2023)

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.