Table of Contents
The average full-coverage auto insurance cost in Alabama is $1,989, while the state-mandated minimum coverage costs $478 yearly. The average cost of car insurance in Alabama is reasonable compared to the national averages of $637 for basic coverage and $2,299 for full coverage.
However, depending on your unique driving profile, including your age, ZIP code, vehicle type, and claim history, your premiums will vary from these averages. Although buying auto insurance is a big decision, getting affordable coverage in Alabama is not always simple. Comparing quotes from several insurers is the most straightforward approach to discovering affordable auto insurance.
Alabama Car Insurance Rates by City
Because every state has a different risk profile, auto insurance prices differ from city to city. For instance, your car insurance rate can be higher than that of someone who lives in a more rural region and parks in a garage if you live in a busy metropolis and park your vehicle on the street.
Here are the average rates in some of Alabama’s most significant cities, compared to the state average.
The table below shows the average rates for Alabama’s 25 most populous towns and cities.
| City in Alabama | Estimated Monthly Cost | Estimated Annual Cost |
| Birmingham | $142 | $1,701 |
| Huntsville | $120 | $1,436 |
| Montgomery | $128 | $1,541 |
| Mobile | $135 | $1,615 |
| Tuscaloosa | $126 | $1,512 |
| Hoover | $134 | $1,604 |
| Dothan | $113 | $1,352 |
| Auburn | $119 | $1,430 |
| Decatur | $116 | $1,396 |
| Madison | $116 | $1,396 |
| Florence | $113 | $1,353 |
| Prattville | $123 | $1,476 |
| Phenix City | $128 | $1,538 |
| Gadsden | $126 | $1,512 |
| Vestavia Hills | $130 | $1,565 |
| Alabaster | $125 | $1,496 |
| Opelika | $120 | $1,437 |
| Enterprise | $111 | $1,335 |
| Athens | $116 | $1,397 |
| Daphne | $116 | $1,386 |
| Bessemer | $137 | $1,649 |
| Northport | $127 | $1,519 |
| Homewood | $131 | $1,571 |
| Pelham | $130 | $1,560 |
| Trussville | $138 | $1,653 |
Also Read: Psychology Behind Car Insurance Pricing: What Insurers Don’t Always Tell You
Average Car Insurance Costs by Age and Gender in Alabama
In most states, including Alabama, the driver’s age is an essential factor in determining the price of auto insurance. Young drivers typically pay more for coverage because they have higher accident rates and less driving experience.
Thankfully, average rates often decrease beyond the age of 25, assuming that you continue to have a spotless driving record. Because they are statistically more likely than women to drive recklessly, and when distracted, men also typically pay more for auto insurance.
| Age Group | Average Annual Premium | Average Monthly Premium |
| 22-29 | $1,280 | $107 |
| 30-59 | $999 | $83 |
| 60 + | $957 | $80 |
Car Insurance Rates in Alabama by Credit Score
In Alabama, your insurance score—determined by your credit score—also affects how much you pay for auto insurance. In places where insurers are permitted to use credit score as a rating component, rates by credit score typically differ significantly since, on average, drivers with lower credit ratings are more likely to submit claims. In Alabama, the average annual premium for drivers with bad credit is 11% higher than that of drivers with good credit.
| Credit Score | Annual Premium | Monthly Premium |
| Excellent | $707 | $59 |
| Good | $889 | $74 |
| Fair | $1,122 | $94 |
| Below Fair | $1,375 | $115 |
| Poor | $1,744 | $145 |
Cheapest Car Insurance Companies in Alabama
The amount of coverage you select will also affect the cost of Alabama auto insurance. For example, the average monthly premium for basic coverage is $36, and the average monthly premium for comprehensive coverage is approximately $83. Complete coverage is advised despite being more expensive because it provides extensive protection.
A broad range of events can be financially secured with full coverage insurance. Adding collision and comprehensive coverage can increase your insurance costs; however, you can reduce the rise by choosing greater deductibles. The premium may be less expensive if you want full coverage with a $1,000 deductible. This deductible is separate for collision and comprehensive coverage.
Progressive has the highest average premium in Alabama, with an annual average price of $1,340, while Cincinnati Insurance offers the cheapest full coverage at $821. USAA is the most economical option, with average monthly premiums of $105; the only other insurers with rates below the state average are Nationwide, State Farm, and Allstate. However, only active duty personnel and their families are eligible for USAA policies.
Also Read: How To Get Temporary Car Insurance for a Road Trip Fast
Cost For Driving Record in Alabama
As one might anticipate, an infraction involving a moving vehicle, like a speeding citation or collision, usually increases your Alabama auto insurance premium. Your insurance will go up dramatically if you are found guilty of DUI. Certain insurance companies could decline to provide coverage to drivers who pose a danger, like those with a history of DUIs or several accidents.
This table shows the average amount that various occurrences tend to elevate rates by comparing driving records with different incidents.
| Driving Incident | Avg. Annual Premium in AL | Percentage Increase from AL Avg. Annual Premium |
| Clean driving record | $1,989 | 0% |
| Speeding ticket conviction | $2,392 | 20% |
| At-fault accident | $2,890 | 45% |
| DUI conviction | $3,443 | 73% |
How Much Is The Auto Insurance For Good And Poor Credit Scores in Alabama
In Alabama, your insurance score—determined by your credit score—also affects how much you pay for auto insurance. In places where insurers are permitted to use credit score as a rating component, rates by credit score typically differ significantly since, on average, drivers with lower credit ratings are more likely to submit claims.
Drivers in Alabama pay significantly different amounts for auto insurance based on their credit scores; typical yearly premiums for good credit range from $707 to $1,744 for bad credit.
There is an absolute correlation between your credit score and auto insurance premiums in Alabama; insurers consider it when determining risk. There are five categories for scores: fair (580–669), good (670–739), very good (740–799), excellent (800–850), and bad (300–579). Lower insurance prices are typically associated with higher scores.
Conclusion
Navigating the nuances of Alabama auto insurance prices might be difficult. Use Beem’s Car Insurance and get personalized car insurance quotes from industry leading insurance providers. You can obtain a customized estimate of the average monthly premium by providing specific details about your driving history.
FAQs on Average Cost of Car Insurance in Alabama
What Is Full Coverage Car Insurance in Alabama?
In Alabama, the average monthly premium for full coverage auto insurance is $166, while the average monthly premium for minimal coverage is $40. It’s crucial to remember that these are merely state averages. The quotes you get could differ significantly. Your premium is determined in part by your driving history, age, and Alabama ZIP code, among other factors. Obtaining competitive rates can be ascertained most accurately by comparing individual quotes from several companies.
How much car insurance do I need in Alabama?
Alabama’s minimum auto insurance requirements are $25,000 for property damage liability per accident, $50,000 for bodily injury per person, and $25,000 for property damage liability per accident. Uninsured/underinsured motorist coverage is not necessary.
What is the monthly insurance cost in Alabama?
In Alabama, a basic coverage auto insurance policy typically costs $36, while a comprehensive coverage policy often costs $83 per month. Some solutions are affordable if you’re looking for basic or comprehensive coverage.Â
