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Alabama Average Cost of Car Insurance Rates (2022)

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Courtney Roy

By: Courtney Roy

| Reviewed by licensed insurance agent, Amber Benka

Last Updated March 9, 2022

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How Much Does Car Insurance Cost In Alabama?

On average, car insurance rates for drivers in Alabama are $208 per month, and $2495 per year. The average rates make Alabama the 24th most expensive state in the country for car insurance rates and 7% less expensive than the national average.

Keep in mind that average auto insurance costs are determined by factors other than location. Based on your driving history, credit score, age and marital status you should be able to find insurance quotes and discounts so that your monthly payment is less than the averages cited here.

0.1%2.3%15.9%50%84.1%97.7%99.9%Average cost: $20850%

Insurify's comparison tool will help you make sure you're getting the best possible quote based on your needs and location. You can have peace of mind you're not paying any more than the average price in your state, and customers save $48 per month on average.

Best Alabama Auto Insurance Rates

Insurify analyzed car insurance rates in the twenty most populous cities in Alabama and has selected the following providers and quotes as the best rates for drivers in Alabama.

Cheapest CompaniesQuotes
State Farm$64
Allstate$83
GEICO$100
Travelers$106
Direct Auto$126

Alabama Car Insurance Rates by City

For drivers in Alabama, it's important that you evaluate all of your potential insurance options to ensure you are finding the best rate. Based on internal Insurify data, here are the average cost of car insurance rates for drivers in the top 10 cities in Alabama.

CityAvg. Monthly Rate
Auburn$180
Birmingham$213
Dothan$162
Gadsden$160
Huntsville$173
Madison$176
Mobile$204
Montgomery$188
Phenix City$192
Tuscaloosa$189

What Is the Average Cost of Car Insurance in Alabama by Age?

Alabama’s hardest-working teens will have a tough time paying for car insurance with a minimum wage job. But twentysomethings see a $150 cut on average in their monthly payments—though they still pay $40 over the state average.

Alabamans in their 30s, 40s, and 50s shell out less than the state average. Folks in their 60s pay the least as they gear up for golf and retirement parties. Those in their 70s and 80s see a price increase, but it’s far less than that for young people.

AgeAvg. Monthly Rate
Teens$415
20s$251
30s$164
40s$178
50s$162
60s$154
70s$178
>80s$169

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What Is the Average Cost of Car Insurance in Alabama by Gender?

Men pay seven percent more than women in the Heart of Dixie. Could it be that men buy bigger, costlier rides or that women are just safer drivers? It's probably a little of both.

GenderAvg. Monthly Rate
Male$219
Female$201

Does Marital Status Influence the Average Cost of Car Insurance in Alabama?

If you've just proposed, you can add one more benefit to your new nuptials. You'll save $17 a month on car insurance, which turns into a $200 savings per year. This should make that first dance even more fun.

Singles might want to listen to financial experts and economists. They say married couples have a higher average net worth and greater stability. Does that make you want to go from single to married?

Marital StatusAvg. Monthly Rate
Married$195
Single$212

What Are the Minimum Car Insurance Requirements in Alabama?

Alabama law requires liability insurance to cover injuries and property damage caused to others. Those requirements are $25,000 in bodily injury liability per person and $50,000 per accident, and $25,000 in property damage liability per accident. To cover your vehicle itself, add comprehensive and collision coverage.

alabama

How Does Credit History Affect Alabama Car Insurance Rates?

Should your credit score change what you pay for car insurance? Many Alabamans would say no, but the insurance companies beg to differ. The Heart of Dixie, like most states, allows insurance companies to use credit as a rating factor.

The good news is it doesn't make all that much of a difference in Alabama. People with poor credit pay the least, but that's likely because they finance less expensive cars and buy less coverage than those with better credit.

Credit HistoryAvg. Monthly Rate
Poor$191
Average$202
Good$203
Excellent$202

What Is the Average Cost of Car Insurance in Alabama for High-Risk Drivers?

"Safety first" is not just a mantra that saves lives. It also saves money. Common sense tells us that the safest drivers will pay the least, and safe drivers qualify for "good driver" and "accident-free" discounts. But what if your record is less than perfect?

Drivers with a speeding ticket in Alabama will pay $52 more per month on average—plus fines. Drivers with an at-fault accident on their insurance record should expect to see monthly rates increase by around $55. Accidents happen, but driving safely and keeping a clean record are the best ways to avoid rate hikes. Remember, violations and accidents will stay on your insurance history for years to come. Still, you can still take a defensive driver course to reduce your monthly payment.

Driving HistoryAvg. Monthly Rate
No Violation$191
At-Fault Accident$243
Speeding$243

Tips for Researching Alabama Car Insurance Rates

Prices and premiums in the Heart of Dixie vary by location, company, and driver. Alabama's population is steadily increasing. Will insurance premiums also go up with the number of people? Alabamans pray it doesn't happen.
While you're hoping for the best deal, you can try Insurify 's comparison tool. You'll get 10+ real quotes and unlock savings and discounts. In less than two minutes, find the coverage you deserve at a price you can afford.

Top Auto Insurance Companies

Compare Top Auto Insurance Companies

Use Insurify for all of your car insurance comparison needs! Compare and connect directly with the top insurance companies to find the best rates as well as the most personalized discounts and coverage options. Insurify’s network includes over 200 insurance companies throughout the U.S. who can work with you to get you the right auto insurance policy at the cheapest price. See All Auto Insurance Companies

FAQs - Alabama Car Insurance

  • There are many different factors that go into the how expensive your car insurance is. That said, some of the reasons why you could be paying so much for your insurance include: living in a state with high minimum insurance requirements, being a young or new driver, committing past traffic offenses like at-fault accidents or DUIs, and having a low credit score.

  • Auto insurance costs will vary between locations and insurance carriers, depending on the county Alabama. Insurify analyzed the latest data for the five most populous cities in Alabama to find you the cheapest quotes in each of these metropolitan areas.

  • The way to find the carrier with the best auto insurance ratings in Alabama and save on your insurance premiums is to compare quotes from all companies in your area. Use a car insurance quotes comparison site like Insurify to compare up to 10+ real quotes for your specific driver profile and unlock savings and discounts. Rates can fluctuate greatly based on whether you're a safe driver or a high risk one, but you should never overpay. Insurify provides the cheapest car insurance quotes and companies in your area in just a few seconds.

  • During the past three years in the United States, national premium costs have risen an average of 4.5 percent annually. In states where quotes have risen, this figure has been 7.8 percent; and in those where rates have fallen, prices have decreased by approximately 6.0 percent. Individual rates by state will of course vary depending on the driver’s history and a multitude of factors.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Courtney Roy
Courtney Roy

Content Writer at Insurify

Courtney Roy is a financial and technology copywriter. He creates content that makes an actionable difference in the life of his readers. In addition to years of experience across multiple industries, Courtney has insurance licenses, a real estate license, and a degree in electrical engineering. He and his wife chase their five kids in the Phoenix, Arizona sun. You can learn more at thecopyprophet.com.

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