How Much Is Car Insurance in Alabama? (July 2024)

In Alabama, drivers pay about $1,005 a year for full coverage car insurance. If you choose minimum its around $455 annually.

Your car insurance premium is based on factors like age, coverage level, where you live, driving record, and credit history. These details help insurers decide how much you pay for your policy.

Alabama's average full coverage car insurance cost is around $1005 yearly. Knowing the average car insurance rates in Alabama can help you determine if you're receiving an affordable or pricer quote. Compare car insurance refinancing rates to find the best deal.

Below is an outline of auto insurance averages in Alabama to help guide you to find either minimum coverage or extensive full coverage to fit your insurance needs.

Car insurance in Alabama is generally more affordable than the national average cost of car insurance. A full coverage policy with a $1,000 deductible costs around $1,005 annually ($84 monthly) in Alabama, while the average national equivalent is $1,296 annually ($108 monthly). For state minimum coverage, Alabama's average is $455 per year ($38 monthly), compared with the national average of $595 annually ($50 monthly).

The cost difference can be attributed to several factors, including Alabama's lower-than-average number of uninsured drivers, moderate population density, which reduces the likelihood of accidents, and the relatively low frequency of natural disasters reducing weather-related claims. Competition among insurers in Alabama also helps keep premiums lower.

In Alabama, Country Financial offers the cheapest full coverage at $593 annually, while Progressive has the most expensive average premium at $1,346.

Finding the cheapest car insurance in Alabama requires comparing quotes from different providers.

The cost of car insurance in Alabama is also influenced by the level of coverage you select. For instance, minimum coverage may only cost around $38 monthly, whereas full coverage can run approximately $84 per month. Opting for full coverage provides more comprehensive protection, guarding against a wide array of risks and therefore often deemed worth the higher price point. To understand the benefits, consider reading about full coverage insurance.

While adding comprehensive and collision coverage will raise your rates, opting for higher deductibles can offset the premium cost. Selecting a $1,000 deductible, for example, ensures that you bear that amount for each comprehensive or collision claim, effectively reducing your premium while maintaining robust coverage.

In Alabama, the minimum car insurance requirements are $25,000 for bodily injury liability per person, $50,000 per accident, and $25,000 for property damage liability per accident. Uninsured/underinsured motorist coverage is not required.

Your location can heavily impact your car insurance premiums. The full coverage rate in Huntsville is $838, while Birmingham's rate is $989.

Car insurance costs in Alabama are influenced by factors like driving record, age and the type of vehicle you drive. The safety features of your car and local weather conditions also play a significant role.

Age influences car insurance costs in Alabama. Younger drivers typically pay more due to perceived inexperience. In general, as drivers age, their car insurance premiums tend to decrease, assuming a clean driving record. Drivers aged 22 to 29 pay the highest premiums, with an average annual cost of $1,283. This gradually lowers to $1,005 for those aged 30 to 59, and further decreases to $967 for drivers 60 and older.

In Alabama, age and gender affect car insurance rates. A 16-year-old male driver added to a family policy faces an average annual cost of $2,896. This age group generally sees the highest premiums across the board.

Teen drivers under 18 typically cannot purchase car insurance independently without a guardian's signature. If opting for an individual policy, a male teen would pay around $6,081 annually.

The average annual cost of full coverage car insurance for a 2012 car model is $891, while the same coverage for a 2022 model jumps to $1,156. This increase is attributed to the 2022 car's higher actual cash value, more expensive repair bills, and the elevated risk of theft.

Drivers with newer car models should consider comprehensive and collision coverage, which safeguards against a wide range of incidents, providing financial protection from unforeseen events and accidents. It's an investment in securing your vehicle's value.

The average cost of car insurance in Alabama varies depending on your driving record, affecting how much you'll pay for coverage.

• With a ticket: $1,252 per year; $104 per month
• With an at-fault accident: $1,540 per year; $128 per month)
• With a DUI: $1,706 per year; $142 per month)

The more severe the violation, such as a DUI, the higher your car insurance premiums will be in Alabama. These increases will continue for as long as the violation is on your record, and the duration varies by state. For instance, in Alabama, a DUI can stay on your driving record for up to five years.

The table shows the average cost of insurance in Alabama for each driving record by coverage and age group to help you see what to expect for state minimum or full coverage auto insurance plans.

Alabama drivers experience a significant difference in car insurance costs based on credit scores, with average annual premiums ranging from $707 for excellent credit to $1,744 for those with poor credit. The impact of your credit score on car insurance rates is real — in Alabama, insurers consider it when assessing risk.

Scores are categorized as excellent (800 to 850), very good (740 to 799), good (670 to 739), fair (580 to 669), and poor (300 to 579). A higher score often means lower insurance rates.

•Driving Record: Your driving history is crucial in Alabama. Safe drivers often enjoy lower rates, while tickets and accidents indicate higher risk, leading to increased premiums.

•Age and Gender: Younger drivers, particularly boys, may face higher rates due to a perceived lack of experience and higher risk of accidents.

•Credit Score: Alabama permits the use of credit scores to determine car insurance rates. A higher credit score can result in more affordable insurance options.

•Vehicle Type: The make and model of your vehicle affect your rate. High-value or sports cars generally come with higher insurance costs due to the potential repair cost and risk profile.

•Location: Living in areas with high traffic congestion or higher crime rates can impact your insurance rates due to the increased risk of accidents and theft.

•Coverage Level: Opting for state minimal coverage will cost less compared with more comprehensive plans. However, additional protection like collision insurance and comprehensive insurance can be valuable.

•Annual Mileage: The more you drive, the more you might pay. Higher annual mileage can increase your risk of being in an accident, subsequently raising your insurance rates.

•Marital Status: Being married can often lead to lower insurance rates because married couples tend to file fewer claims than single drivers, signaling a lower risk to insurers.

By understanding these factors, Alabama drivers can better navigate their options and find car insurance that balances affordability with adequate coverage.

To secure affordable car insurance in Alabama, compare rates from various providers, opt for a higher deductible and utilize all eligible discounts to reduce premiums.

Get answers about what impacts the average cost of car insurance in Alabama and how to find affordable rates.