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Alabama is among the most affordable states for car insurance. Drivers in Alabama pay an average of $1,920 per year for basic liability insurance. Buying collision and comprehensive coverage results in an average cost of $2,294 per year. By comparison, the national average is $1,627 per year to buy basic liability car insurance and $2,297 per year to buy full-coverage car insurance.
Alabama is among the most affordable states for car insurance. Drivers in Alabama pay an average of $1,920 per year for basic liability insurance. Buying collision and comprehensive coverage results in an average cost of $2,294 per year. By comparison, the national average is $1,627 per year to buy basic liability car insurance and $2,297 per year to buy full-coverage car insurance.
Compare best car insurance quotes in Alabama
Your car insurance rates could be dramatically different based on your zip code, age, driving history, and other factors. This can make finding the best rates for car insurance a complicated process.
Here are some real quotes and savings from customers in Alabama who switched with Jerry:
| Quote Date | Car | Before Jerry | After Jerry | City | Name | Age | Insurance Company |
|---|---|---|---|---|---|---|---|
| March 21, 2023 | Nissan Altima 2.5 | $175/mo. | $142/mo. | Satsuma | Teresa C. | 45 | Assurance America |
| March 11, 2023 | Nissan Altima 2.5 | $189/mo. | $174/mo. | Cleveland | Amelia C. | 35 | Assurance America |
| March 10, 2023 | Nissan Sentra S | $152/mo. | $122/mo. | Weaver | Dora M. | 33 | Progressive |
| March 8, 2023 | Land Rover Discovery SE | $170/mo. | $119/mo. | Daphne | Estella L. | 35 | Progressive |
| March 2, 2023 | Kia Forte FE | $185/mo. | $143/mo. | Birmingham | Myrtle H. | 41 | Progressive |
Best Car Insurance Companies in Alabama
GEICO, Progressive, and Nationwide are among the auto insurance companies offering the best rates for Alabama drivers in 2022. But because every insurance company uses a different formula to calculate your rate, rates can vary widely. For instance, if you or a family member are an active service military member, you might qualify for a very good rate from USAA.
The only way to find the best Alabama car insurance company for you is to compare rates from multiple companies.
| Insurance Company | Average Cost | Annual Savings with Jerry | |
|---|---|---|---|
| Dairyland | $3,246 | $1,023 | |
| National General | $2,353 | $821 | |
| Progressive | $2,406 | $812 | |
| Clearcover | $2,319 | $748 | |
| Safeco | $2,499 | $732 | |
| Travelers | $2,374 | $688 | |
| Allstate | $2,370 | $649 | |
| State Auto | $2,381 | $619 | |
| Nationwide | $2,085 | $562 | |
| Compare Prices | |||
How much does auto insurance cost in Alabama?
Auto insurance in Alabama is relatively affordable compared to the rest of the country. Why? Relatively low population density and low minimum car insurance requirements keep average rates manageable overall.
But that doesn't mean it can't be expensive to insure a car in Alabama—and "expensive" means something different for every car owner. So what can make car insurance in Alabama expensive?
- Population density: The state's major cities, such as Birmingham and Huntsville, have higher accident rates due to busier traffic, which means pricier car insurance rates.
- High crime rates: Alabama's rates of both violent crime and property crime are higher than the national average, which raises the risk to insurers of covering a car in the state.
- Extreme weather: Alabama is part of both the Gulf Coast and Dixie Alley, making it prone to severe weather from hurricanes to tornadoes, both of which can cause serious damage to your vehicle.
Want to know more about car insurance in Alabama? Check out the tables below.
Auto insurance requirements in Alabama
The total cost of car insurance in Alabama depends on how much coverage you buy.
The bare minimum coverage in Alabama, as in most states, is liability insurance. In this case, that's $25,000 per person and $50,000 per accident in bodily injury liability coverage, along with $25,000 per accident in property damage liability. (You might hear people call this 25/50/20 liability coverage.)
How much insurance do I need in Alabama?
In Alabama, minimum insurance requirements are $25,000 for bodily injury liability per person, $50,000 of bodily injury liability for each accident, and $25,000 of property liability for each accident. These minimum requirements are known as the 25/50/25 rule.
What do you need if you’re pulled over?
If you get pulled over, you are required to show your driver’s license, proof of insurance, and registration. Thankfully, digital insurance ID cards are accepted by police and the DMV so you will always have your stored proof of insurance available 24/7 in the Jerry app.
Is Alabama a no-fault state?
No, Alabama is an at-fault state This means the at-fault driver’s insurance will pay for the not-at-fault driver’s and passengers' injuries, once the at-fault driver’s insurance company accepts liability and confirms that there is enough coverage.
Alabama drivers must carry minimum amounts of liability insurance. If you’re at fault in an accident, your liability insurance will cover expenses for the other driver—but it won’t cover your car or your medical bills. However, you’ll pay the lowest rates if you stick to the state’s minimum liability limits.
Take a look at the graph below to understand how much you’re paying for each.
Best auto insurance for high-risk drivers in Alabama
Listen: we aren't here to judge. Everyone's had their bad days behind the wheel, and even though most people insist they're good drivers, most of us have at least one speeding ticket or other minor infraction on our records.
If that's you—and even if you've got a bigger violation in your past, like a DUI or a reckless driving charge—your insurance premium is likely higher as a result. That's because insurance companies see driving violations as red flags for driving risk. Just one speeding ticket can cause your insurance rate to rise. Rack up enough points on your driver’s license, and you're liable to be labeled a "high-risk driver."
| Driving Violation | Average Cost | Annual Savings with Jerry |
|---|---|---|
| Clean Record | $1,982 | $659 |
| Wrong Way/Wrong Lane | $3,420 | $2,049 |
| Racing/Drag Racing | $4,289 | $1,545 |
| Improper Passing | $3,058 | $1,468 |
| DUI | $3,371 | $1,384 |
| Illegal Turn | $2,645 | $1,078 |
| Failure to Obey Traffic Sign | $2,686 | $996 |
| Speeding under 15 | $2,517 | $950 |
| Driving on Sus. License | $2,696 | $938 |
| Careless Driving | $2,866 | $853 |
Insurance Cost With a DUI in Alabama
If you get a DUI in Alabama, you can expect your car insurance to increase by an average of $74.98 each month.
Read More
Insurance Cost With a Reckless Driving Citation in Alabama
If you receive a reckless driving citation, you can expect your insurance to rise to an average of $187.66 per month.
Read More
Alabama auto insurance rates by age
Fatal car accidents account for half of the preventable deaths of Alabama residents under age 18. That's higher than the national average, and it's serious news for young Alabama drivers.
Even without discounts, you can still find a great deal by shopping around and maintaining a clean driving record.
How can young drivers save money on car insurance in Alabama?
- Take a defensive driving course.
- Maintain a B average or better in school and you could qualify for a discounted rate.
- Take a defensive driving course.
- Maintain a B average or better in school and you could qualify for a discounted rate.
Alabama car insurance rates by city
Remember those algorithms we talked about earlier? Your zip code plays a big role in those algorithms, which means that you could pay a different rate based on which Alabama city you live in.
High population density and crime rates tend to translate to higher average car insurance rates, so if you're living in a crowded neighborhood that's a little rough around the edges, you're probably paying more for your coverage than you would in a quiet rural area. But rural drivers face their own problems: speeding on rural roads leads to high fatality rates, which can also raise your rate.
Want to see how prices in your area compare to the rest of Alabama? Check out the breakdown in the table below:
| City | Average Cost | Annual Savings with Jerry |
|---|---|---|
| Alexander City | $1,547 | $610 |
| Anniston | $2,152 | $893 |
| Birmingham | $1,983 | $766 |
| Daphne | $1,837 | $670 |
| Decatur | $1,871 | $666 |
| Huntsville | $1,958 | $731 |
| Mobile | $2,091 | $769 |
| Montgomery | $2,090 | $799 |
| Phenix City | $1,931 | $709 |
| Tuscaloosa | $1,805 | $684 |
Least Expensive Cities in Alabama
On the other hand, Enterprise is the least expensive city in Alabama for car insurance. Annual car insurance costs in Enterprise will cost you an average of $996.
Cities with Highest Rates of Accidents in Alabama
Auburn has the highest accident rates in Alabama—16.04% of drivers have a prior at-fault accident already on their record. Living in a high-accident area means higher insurance rates.
Read More
Cities with the Longest Commute Times in Alabama
Holtville has the longest commute time in Alabama at 39.1 minutes, on average. Longer driving times and more traffic means more risk of filing a claim, not to mention the miles you’ll be adding to your vehicle—all of which raise premiums.
Read More
Cost to insure your car in Alabama
Your insurance rate also depends on what car you drive.
For a conservatively-priced model like a Nissan Altima, you should be able to find a reasonable quote. That's because the Altima has good safety ratings, comparatively low repair costs, and an overall low value.
But what if you're insuring a more expensive vehicle, like a Ford F-150 Raptor? Because the vehicle itself is more expensive, repair and replacement costs will be higher, meaning that any insurance company will charge you more to insure your super truck than for the Altima.
You're also likely to pay less to insure a car you don't drive often. But if you're looking for a policy on a luxury vehicle like a BMW X3 or a Porsche Cayman, you can expect to shell out the big bucks.
| Car | Average Cost | Annual Savings with Jerry |
|---|---|---|
| Kia Optima LX | $2,329 | $1,042 |
| Hyundai Elantra SEL | $2,625 | $905 |
| Nissan Altima 2.5 | $2,013 | $720 |
| Toyota Corolla L | $1,895 | $657 |
| Ford Fusion SE | $2,072 | $646 |
Most Popular Car in Alabama
The most popular vehicle in Alabama is the Toyota Camry. The average Camry driver pays $1,426 a year in car insurance.
Do you need more than the minimum car insurance in Alabama?
Just about every state has minimum insurance requirements that you must meet before you can hit the road.
Alabama drivers must carry minimum amounts of liability insurance. If you’re at fault in an accident, your liability insurance will cover expenses for the other driver—but it won’t cover your car or your medical bills. However, you’ll pay the lowest rates if you stick to the state’s minimum liability limits.
If you want to build out your insurance policy a little more to cover your own car, you'll need to consider options like:
- Collision coverage
- Comprehensive coverage
Uninsured motorist coverage pays out if you're in an accident with someone who doesn't carry liability insurance. It's a good idea to buy this coverage in Alabama, where an estimated 19.5% of the people behind the wheel are fully uninsured drivers. An additional 8.5% have less than the required coverage, which is where that "underinsured" part comes in.
Collision coverage and comprehensive insurance are smart additions no matter where you drive, but especially in areas with high crime rates, dense traffic, or severe weather patterns. Here are a few different factors that impact the additional coverage you may need in Alabama:
Though Alabama is ranked 14th for least traffic, it also has high accident rates. Get insured with collision insurance for protection from collision-related damages that liability won’t cover.
Read More
Alabama has more motor vehicle thefts per year than the national average. Only comprehensive insurance can protect you from motor vehicle theft, so it’s worth getting—plus, it offers coverage for weather damage and vandalism.
Uninsured Drivers: Uninsured/underinsured motorist coverage Alabama
19.5% of drivers in Alabama are uninsured—that’s almost 1/5th of people on the road. And if you’re in an accident with a liable uninsured driver, you might not be covered. The risk is so high in Alabama that insurers are legally required to offer $25,000 in uninsured/underinsured motorist coverage, though customers can choose to opt out.
Read More
Alabama residents rate the state a 6.28/10 for road quality, which isn’t exactly a glowing review. Make sure you’re safe from the stray pothole by getting roadside assistance to help with flats, towing, and more.
How to save money on auto insurance in Alabama
No matter where you live or what you drive in Alabama, no matter what your credit history looks like, no matter what coverage limits you want to meet, you can save on your premium by following these smart tips from Jerry.
Shop for quotes (more than once)
You've probably heard it before: the best way to shop for car insurance is to compare rates. But did you know that experts recommend comparison insurance quotes every six months?
Instead of buying one policy from a single company and accepting that rate for the next ten (or twenty, or thirty) years, make sure you're searching for competitive car insurance premiums at least once a year.
Look into discounts
Just about every insurance company offers discounts based on driving behavior, payment history, loyalty, demographics, and more—but most companies don't directly advertise all of their discounts.
That means you could be leaving lower rates on the table unless you check for the discounts you qualify for. Alabama drivers should look out for the following discounts:
Clean Driving Record Discounts
Clean Driving Record Discounts
Having a clean driving record speaks volumes. If you drive safe and don’t make many insurance claims, your carrier will reward you with reduced prices.
Bundling Discounts
Bundling Discounts
Car insurance customers who also get home or renters insurance with the same carrier can get a bundling discount.
Good Student Discounts Alabama
Good Student Discounts Alabama
Drivers with a “B” average or higher in their classes could get a good student discount with certain carriers. This can save students 5-20% on their premium.
Safety Ratings and Anti-theft Discounts
Safety Ratings and Anti-theft Discounts
Vehicles that have high safety ratings and anti-theft technology mean you’re safer in your car. Carriers will offer lower rates for safer vehicles.
Increase your deductible
Raising your deductible might be the easiest way to slash your monthly car insurance payments—just make sure that your updated deductible is something you can still afford to pay if necessary!
Your car insurance deductible is the amount you'll pay out of pocket on a claim before your insurance kicks in. Common deductibles include $500 and $1000, although it's possible to get a higher or lower deductible in many cases.
The higher your deductible is, the less you'll pay on a regular basis to maintain the policy. That's easy savings—but it's not worth it unless you know that you'd be able to pay the full deductible if you had to.
By R.E. Fulton
Updated on Mar 23, 2023
Reviewed by Kathleen Flear, Director of Content.
Compare best car insurance quotes in Alabama
Best Car Insurance Companies in Alabama
How much does auto insurance cost in Alabama?
Auto insurance requirements in Alabama
Best auto insurance for high-risk drivers in Alabama
Alabama auto insurance rates by age
Alabama car insurance rates by city
Cost to insure your car in Alabama
Do you need more than the minimum car insurance in Alabama?
How to save money on auto insurance in Alabama
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