According to the 2018 U.S. Department of Transportation Highway Statistics, there are more than four millions of licensed drivers. Drivers are legally required by law to have insurance. Knowing about the rates of car insurance in Alabama can help drivers in the Cotton State with their budgeting. Alabama’s average car insurance cost is $469 per year for minimum coverage and $1,623 per year for full coverage. However, your driving habits and other factors will impact how much you pay.
Alabama car insurance: How much?
Alabama car insurance rates are determined based on many factors, including location. Your driving record, age, gender, marital status and marital status all impact your premium. Other factors such as credit score and mileage are also considered. Because each carrier has a different weight, it is important to compare rates across carriers.
The average cost for insurance in the United States is $565 per annum for minimum coverage, and $1,674 to cover full coverage. Alabama’s rates are therefore comparable with the national average.
Alabama car insurance rates by firm
Comparing carriers will give you an overview of the top carriers within your area. This is especially important if you are looking for the best insurance to fit your budget.
| Car insurance company | Minimum coverage: Average annual premium | For full coverage, the average annual premium |
|---|---|---|
| Alfa | $593 | $2,138 |
| Allstate | $414 | $1,313 |
| American Independent | $877 | $3,110 |
| Country Financial | $408 | $1,699 |
| Donegal | $798 | $1,606 |
| Farmers | $406 | $1,432 |
| Geico | $322 | $1,423 |
| MetLife | $884 | $2,441 |
| Progressive | $516 | $1,573 |
| Safeway | $492 | $1,825 |
| State Farm | $449 | $1,470 |
| Travelers | $374 | $1,071 |
| USAA | $361 | $1,230 |
Alabama auto insurance rates per city
The state in which you live will have an impact on the premiums you pay. However, the zip code you live and drive also has an effect. Even among the 20 largest cities in Alabama, these rates can vary greatly.
| City | For full coverage, the average annual premium | Increase of % in the average annual premium |
|---|---|---|
| Birmingham | $1,764 | 9% |
| Montgomery | $1,642 | 1% |
| Mobile | $1,750 | 8% |
| Huntsville | $1,581 | -3% |
| Tuscaloosa | $1,636 | 1% |
| Dothan | $1,527 | -6% |
| Madison | $1,542 | -5% |
| Decatur | $1,522 | -6% |
| Hoover | $1,646 | 1% |
| Auburn | $1,543 | -5% |
| Bessemer | $1,730 | 7% |
| Florence | $1,514 | -7% |
| Phenix City | $1,726 | 6% |
| Gadsden | $1,586 | -2% |
| Vestavia Hills | $1,669 | 3% |
| Prattville | $1,625 | 0% |
| Trussville | $1,716 | 6% |
| Enterprise | $1,519 | -6% |
| Opelika | $1,564 | -4% |
| Northport | $1,637 | 1% |
Alabama car insurance rates based on age
Alabama’s auto insurance premiums are influenced by your age. As you age, your premiums will decrease. These are the average full coverage premiums.
| Age | Alabama’s average annual premium |
|---|---|
| Age 16* | $2,714 |
| Age 18 | $6,127 |
| Age 20 | $4,247 |
| Age 25 | $2,191 |
| Age 30 | $1,900 |
| Age 40 | $1,623 |
| Age 50 | $1,604 |
| Age 60 | $1,559 |
| Age 70 | $1,703 |
*The premiums charged to a 16-year-old were calculated by adding the parent’s policy to the child’s.
Alabama car insurance rates for driving record
As you would expect, an Alabama moving violation such as a speeding ticket, accident or other type of traffic offense can lead to an increase in Alabama’s premiums. Your premium is likely to rise significantly if you are convicted of DUI.
| Accident while driving | Alabama’s average annual premium for full coverage | Increase of % in the average annual premium |
|---|---|---|
| Speeding ticket | $1,959 | 17% |
| Accident | $2,393 | 32% |
| DUI | $3,121 | 48% |
Alabama: How to Save on Car Insurance
There are many ways to save money on Alabama car insurance. Some of these savings require very little time and effort.
- Compare It’s a great way to save money on your policy. Rates can vary between companies and carriers. Some offer rates that are hundreds of dollars higher than others. You can save money by shopping around and find the right coverage for your policy.
- You can take advantage of discounts offered by almost all carriers. This allows you to enjoy more substantial savings. You can save as little as signing up for paperless statements or setting up auto-pay. You can also take a defensive driving course or use an app to monitor your driving habits. All of these options offer savings.
- Bundle your policies: Often, one of the most significant discounts on a policy is to bundle it with the same carrier you use for your homeowners/renters/condo.
- Increase your deductible. The higher your deductible is, the lower your premiums. Keep in mind, however, that a higher-deductible policy means you will have to pay more out of pocket if you need to file a claim.
- Your credit score can be improved: Although it may not be an ideal long-term strategy, improving your credit score can have a positive impact on your premiums. Higher credit scores mean lower premiums because you are less risky financially.
Questions frequently asked
Alabama requires uninsured motorist coverage
It is not required to have uninsured or underinsured motorist coverage. Alabama is currently 7th in the highest proportion of uninsured drivers with more than 19% of residents not having insurance. This optional coverage can provide additional payments for vehicle damage and medical payments in the event of an accident with someone who isn’t insured.
What is the cost of car insurance in Alabama?
Alabama car insurance rates are based on your personal factors such as age, zip code and vehicle type. To get the best price and coverage, your rates will be unique to you.
Is Alabama a no-fault state?
Alabama is an at-fault state , and is therefore not a no fault state . At-fault states are those where the insurance company for the victim of an accident is responsible for paying for any property damage or medical expenses. Another reason to ensure you have sufficient insurance coverage in the event you are the responsible party.