How Much Does Car Insurance Cost on Average in Alabama?
- In Alabama state minimum liability costs around $67 a month or $805 a year. A full coverage costs around $240 a month or $2,874 a year.
InsuranceQuotes cost rates are pulled from our real-time auto insurance database from recent quotes in Alabama – Rates are based on a used car driver who is single, middle aged & has a clean driving record. Read on to learn about the cheapest local rates filtered by insurance providers, new cars, vehicle types and age.
Cheapest Car Insurance Companies in Alabama
- In Alabama on average the cheapest auto insurance providers are Progressive, USAA and GEICO. State minimum liability car insurance starts at $38 a month or $457 a year. Full coverage car insurance costs around $139 a month or $1,673 a year with Progressive.
Here is a breakdown of average costs from the cheapest local insurance companies in Alabama from our data set of used-car drivers who are single, middle aged and have a clean driving record:
| Insurance Provider: | State Minimum: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Progressive | $457 | $38 | $1,673 | $139 |
| USAA | $535 | $45 | $2,176 | $181 |
| GEICO | $654 | $54 | $2,475 | $206 |
| Allstate | $721 | $60 | $2,450 | $204 |
| State Farm | $935 | $78 | $3,110 | $259 |
Average Cost for Auto Insurance in Popular AL Cities
Review average auto insurance costs for state minimum and full coverage policies in popular Alabama cities below:
| Alabama City: | State Minimum Liability: | SM Monthly: | Full Coverage: | FC Monthly: |
|---|---|---|---|---|
| Auburn | $660 | $55 | $2,377 | $198 |
| Birmingham | $805 | $67 | $2,874 | $240 |
| Decatur | $646 | $54 | $2,375 | $198 |
| Dothan | $672 | $56 | $2,327 | $194 |
| Florence | $652 | $54 | $2,346 | $196 |
| Gadsden | $723 | $60 | $2,607 | $217 |
| Hoover | $796 | $66 | $2,668 | $222 |
| Huntsville | $726 | $60 | $2,472 | $206 |
| Madison | $711 | $59 | $2,432 | $203 |
| Mobile | $788 | $66 | $2,789 | $232 |
SEE OUR LIST OF AL CAR INSURANCE COST CITY GUIDES:
How Much Car Insurance Do I Need in Alabama?
With a mix of large cities and rural charm, Alabama is a melting pot of cultures and personalities. This is no more apparent than it is on the roads, as drivers of all types battle traffic together. In Alabama, you must have auto insurance according to the Alabama Liability Insurance Law (32-7A). If you drive a registered vehicle in Alabama, you must have insurance that meets the law’s minimum requirements. The Alabama minimum requirements are as follows:
- $25,000 for injury/death to one person
- $50,000 for injury/death to more than one person
- $25,000 for damage to property
If you’re caught on the road without insurance, you’ll potentially receive fines and a license suspension. The most common way you can prove that you have a policy is with an insurance card. A valid insurance card includes the policy’s effective date, the insurer’s National Association of Insurance Commissioners number, the vehicle identity number, and the policy number.
Auto Insurance Cost by Age
| Auto Insurance Costs by Age: | Male | Female | Average Monthly Payment: |
|---|---|---|---|
| Age: 16 - 20 | $4,122 | $3,763 | $329 |
| Age: 21 - 30 | $2,091 | $2,021 | $171 |
| Age: 30 - 40 | $1,679 | $1,712 | $141 |
| Age: 40 - 50 | $1,620 | $1,644 | $136 |
| Age: 50 - 64 | $1,597 | $1,591 | $133 |
| Age: 65+ | $2,035 | $1,896 | $164 |
Auto Insurance Rates by AL County & Vehicle Type
See below a list of the average annual premium yearly and monthly costs for each vehicle type by city in Alabama for any used vehicle make and model between 2015 to 2020.
We pulled costs data from 400+ cities in Alabama, we found that you can expect to pay anywhere from $1,606 at the cheapest rate to $3,281 at the most expensive rate across all vehicle types. The average cost for insurance on a typical used car or sedan is around $1,908 a year or $159 a month for state minimum coverage for a single driver with a good driving record.
| AL City: | Avg. Annual Premium: | Avg. Monthly Costs: | Luxury | EV / Electric | SUV | Truck | Car /Sedan | |
|---|---|---|---|---|---|---|---|---|
| Abbeville | $1,978 | $165 | $2,469 | $1,927 | $1,696 | $2,062 | $1,734 | |
| Adamsville | $2,490 | $208 | $3,064 | $2,439 | $2,139 | $2,605 | $2,205 | |
| Adger | $2,337 | $195 | $2,877 | $2,290 | $2,006 | $2,449 | $2,066 | |
| Akron | $2,194 | $183 | $2,809 | $2,126 | $1,856 | $2,278 | $1,903 | |
| Alabaster | $2,298 | $192 | $2,799 | $2,266 | $1,980 | $2,407 | $2,040 | |
| Albertville | $2,159 | $180 | $2,657 | $2,118 | $1,851 | $2,257 | $1,913 | |
| Alexander City | $2,024 | $169 | $2,546 | $1,969 | $1,725 | $2,109 | $1,772 | |
| Alexandria | $2,154 | $179 | $2,651 | $2,114 | $1,848 | $2,248 | $1,908 | |
| Alpine | $2,170 | $181 | $2,718 | $2,120 | $1,850 | $2,264 | $1,900 | |
| Andalusia | $1,951 | $163 | $2,515 | $1,882 | $1,643 | $2,026 | $1,686 | |
| Anniston | $2,133 | $178 | $2,630 | $2,094 | $1,829 | $2,226 | $1,888 | |
| Arab | $2,109 | $176 | $2,601 | $2,068 | $1,809 | $2,206 | $1,863 | |
| Ardmore | $2,111 | $176 | $2,604 | $2,076 | $1,814 | $2,201 | $1,863 | |
| Argo | $2,174 | $181 | $2,685 | $2,135 | $1,863 | $2,272 | $1,916 | |
| Ariton | $1,930 | $161 | $2,412 | $1,880 | $1,656 | $2,012 | $1,692 |
Insurance Costs for Newer Vehicles by City
As mentioned newer vehicles can often be more expensive to insure as the cost to replace them after an accident can be significantly more of a risk for your insurance provider. However, in some cases you may find that a newer vehicle that has upgraded safety and security features can be cheaper to insure than an older model vehicle from 5 years ago. Here is a breakdown of costs found on vehicles types that were produced from 2020 to 2023 along with their average annual premium and monthly rates:
| Alabama | Average Annual Premium: | Min | Max | Monthly Avg: |
|---|---|---|---|---|
| Car | $1,908 | $1,644 | $2,360 | $159 |
| SUV | $1,859 | $1,606 | $2,283 | $155 |
| EV / Electric | $2,122 | $1,834 | $2,609 | $177 |
| Luxury | $2,714 | $2,355 | $3,281 | $226 |
| Truck | $2,268 | $1,969 | $2,787 | $189 |
Average Cost of Car Insurance in Alabama by County
| AL City | Annual Premium | Avg. Monthly Costs | Luxury | EV / Electric | SUV | Truck | Car /Sedan | |
|---|---|---|---|---|---|---|---|---|
| Abbeville | $2,097 | $175 | $2,715 | $1,928 | $1,700 | $2,251 | $1,889 | |
| Adamsville | $2,631 | $219 | $3,365 | $2,446 | $2,139 | $2,826 | $2,378 | |
| Adger | $2,478 | $207 | $3,177 | $2,294 | $2,012 | $2,667 | $2,242 | |
| Akron | $2,350 | $196 | $3,104 | $2,147 | $1,878 | $2,518 | $2,105 | |
| Alabaster | $2,429 | $202 | $3,077 | $2,269 | $1,984 | $2,615 | $2,200 | |
| Albertville | $2,293 | $191 | $2,933 | $2,126 | $1,865 | $2,465 | $2,077 | |
| Alexander City | $2,154 | $179 | $2,805 | $1,977 | $1,738 | $2,309 | $1,940 | |
| Alexandria | $2,285 | $190 | $2,924 | $2,119 | $1,856 | $2,454 | $2,069 | |
| Alpine | $2,314 | $193 | $3,006 | $2,131 | $1,866 | $2,485 | $2,083 | |
| Andalusia | $2,088 | $174 | $2,774 | $1,897 | $1,665 | $2,239 | $1,866 |
How Do Insurance Companies Calculate AL Auto Policy Rates?
One of the most important determinants of car insurance cost in Alabama is the type of vehicle you drive. Generally speaking, the more expensive the car is, the more expensive the insurance premiums will be. Other factors that insurers take into consideration include the driver’s age, gender, driving record, credit score, and the area where the car is registered. In Alabama, the average annual cost of car insurance is around $1,500. However, this figure can be higher or lower depending on the factors mentioned above.
For example, drivers under the age of 25 tend to pay higher rates due to their higher risk of being involved in an accident. Similarly, drivers with poor credit scores may also be charged higher premiums. In addition to the cost of the insurance policy, drivers in Alabama also have to pay for mandatory coverage. This includes liability coverage, which is designed to protect the driver if they are found to be at fault in an accident, and uninsured motorist coverage, which covers a driver’s medical bills in the event that the other driver is not insured.
It is important for drivers in Alabama to shop around for car insurance. Different insurers offer different rates and levels of coverage, so it is important to compare policies to find one that fits your budget and provides you with the right level of protection. Additionally, drivers can potentially lower their premiums by taking defensive driving courses and having a clean driving record. Overall, the cost of car insurance in Alabama can vary greatly from one driver to the next.
Finding Auto Insurance Resources in Alabama
You have many resources available to learn about Alabama insurance requirements. To start, you can go to the Alabama Department of Motor Vehicles (DMV). You can also talk with local insurers to learn about policies and coverage options.
If you have an accident with an uninsured or underinsured driver, there is no need to panic. Alabama’s Uninsured Motorist Statute requires insurers to provide you with uninsured coverage on every policy. When an uninsured or underinsured driver collides with your car, your policy will cover damages and injuries without raising your rates.
If you have trouble buying car insurance, you can obtain proof of financial responsibility with a Motor Vehicle Liability Bond or a Certificate of Cash Bond. For these bonds, you’ll need to fill out an application and bring your Alabama certificate of title and VIN.
Saving on Your Alabama Auto Insurance Policy
Although a car insurance plan that fits your needs is important, you should also consider options that work with your budget. Some companies charge very different rates for similar plans. You should get quotes from at least three insurers in your area to find the best rate. Some other money saving tips include:
- Insuring multiple cars on one plan
- Getting good grades (students that maintain a B average or higher qualify for a discount)
- Completing a defensive driving course
- Having a car that passes vehicle safety inspections
You can also raise your deductible to save a bit of overall cost. Higher deductibles result in lower monthly payments. If your car is old, you should fix minor damage yourself and let your insurer take care of the more expensive issues.
The best way to save on your policy is to have a good driving record, as that greatly affects what you pay. Any Alabama drivers seeking a new auto policy should compare multiple auto insurance company rates to make sure they are getting the best price in their area.
Moving to Alabama: Important Information
When you move to Alabama, you have 30 days to get your Alabama driver’s license. You’ll need to visit an Alabama Department of Public Safety office to obtain your new license. Make sure that you bring a valid copy of your out-of-state license, birth certificate, Social Security card, and proof of address. If all of your information is accepted, you won’t have to take an eye vision exam or a written test.
Additionally, you have 30 days to register your vehicle. To register your vehicle, you must do the following:
- Have a county licensing official inspect the vehicle
- Provide proof of car insurance
After these two requirements are met, a licensing official will collect fees and then issue a license plate. The state of Alabama doesn’t require an emissions test.
Understanding Driving Laws in Alabama
While driving in Alabama, you must be aware of Alabama’s unique driving laws.
The state of Alabama has strict laws regarding cell phones use. Text messaging is forbidden for everyone. If you are 16 or 17 with an intermediate driver’s license, you cannot talk on your cell phone. Additionally, Alabama is part of the “Click It or Ticket” program, so you must wear your seatbelt at all times.
Like most states, Alabama has very strict and serious driving under the influence (DUI) laws. If you’re caught with a blood alcohol content (BAC) over 0.08 percent, you’ll face large fines, a jail sentence up to a year, and license suspension. Multiple offenses result in increased penalties. Alabama police officers can issue underage drivers a DUI with only a 0.02 percent BAC.
Frequently Asked Questions
What determines your insurance premium?
There are many factors that affect the price of your premium. Some of these factors include:
- Type of car you drive
- Purpose of your vehicle (personal use only or business use)
- Driving record
- Age (drivers under 25 often pay more)
- Marital status
What is SR-22 insurance?
If you are considered a high risk individual or you have a DUI on your record, an SR-22 insurance policy is required by the state. This policy proves that you have taken financial responsibility for your vehicle if your license has been suspended or revoked.
Do you need auto insurance for an older car?
Even though the cost of your premium may be more than your car is worth, you still need to purchase auto insurance. If repairs cost more than the car, the insurer will total the car and give you a check worth its value.
