How Much Is Car Insurance in Alabama? Rates by Coverage Level, Age, Driving History and Location

Car insurance in Alabama averages $1,221 annually. This means that Alabama’s insurance rates are slightly higher than the typical state, as it ranks 31st among all states. MoneyGeek used the same sample driver profile for several providers across various locations to get these averages. We also broke down rates using factors such as age and credit score.

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A 40-year-old driver with a clean record pays an average of $1,221 per year for car insurance in Alabama. These rates vary depending on several factors. For example, the amount of coverage you purchase affects how much you pay for car insurance in Alabama. If the same driver buys a policy meeting the minimum state requirements, they only pay $613 per year. However, a 16-year-old driver buying a full coverage insurance policy pays $3,060 annually.

MoneyGeek broke down several key aspects of Alabama car insurance rates to help you understand how prices change.

Average Cost of Car Insurance in Alabama: Summary

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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Why Are Car Insurance Rates Average 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

Minimum vs. Full Coverage Car Insurance Costs 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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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

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  • Age
    Annual Premium
  • $3,060
  • $2,885
  • $2,628
  • $2,491
  • $2,228
  • $1,795
  • $1,662
  • $1,509
  • $1,400
  • $1,314
  • $1,187
  • 40
    $1,221
  • $1,087

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 Violation
    Annual Premium
  • Safe Driver
    $1,221
  • Speeding Ticket
    $1,483
  • At-Fault Accident
    $1,635
  • DUI
    $2,064

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 Score
    Annual 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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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.

Methodology

MoneyGeek gathered full coverage policies for a 40-year-old driver according to particular factors, including coverage levels, age, driving infractions and credit score. MoneyGeek’s methodology page details the coverage limits of a full coverage policy.

The data used was from a collaboration with Quadrant Information Services. MoneyGeek also gathered data on highway traffic density, the urban share of the population, vehicle thefts and uninsured motorists.

  • The Federal Highway Administration provided 2019 data for highway traffic density
  • The Insurance Research Council provided 2019 data for uninsured motorists
  • The U.S. Census Bureau provided the latest information used to calculate the urban share of the population
  • The FBI’s Crime in the United States Report for 2019 provided data on motor vehicle thefts

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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