Car Insurance in Alabama


WRITTEN BY: Julia Matseikovich

UPDATED: AUGUST 03, 2022 | 2 MIN READ

Car insurance is one of the most important parts of owning a car. It protects you from financial losses if your car is damaged, stolen or destroyed. The coverage amount will depend on the type of policy you purchase and the company you go through. Some things are essential to know about Alabama Car Insurance before you buy a policy for your vehicle.

Best Alabama Car Insurance Companies

The best Alabama car insurance companies are the ones that offer:

  • competitive rates
  • coverage options
  • customer service.

A little research can go a long way when looking for the best Alabama car insurance company. The best way to start is by comparing quotes online.

You can also get quotes by calling the company’s customer service line or visiting their website.

It is important to know what you’re looking for in an Alabama car insurance company before you start shopping around.

Cheapest Alabama Car Insurance Company

State Farm Insurance Logo

State Farm is a well-known insurance company with a full century of experience. They offer the cheapest car insurance rates in Alabama and many other states. In addition to offering the cheapest car insurance in Alabama, State Farm has a great reputation and offers an app to make filing claims simple.

Company With the Best Customer Service

USAA Insurance Logo

The J.D. Power study is a survey of customer satisfaction of various insurance providers. The survey is conducted annually. It evaluates the performance of insurance providers and measures their customer satisfaction levels. In 2021, USAA scored 879 (out of 1,000) in J.D. Powers’ 2021 U.S. Retail Banking Satisfaction Study.

Company With the Best Premium-Reducing Programs

Some insurance companies have programs to reduce your premium. These include safe driving discounts where you can save money by showing that you’re a safe driver. Safe Auto joins our list because it offers several safe driving programs. It also has an accident forgiveness program that helps lower your rates if you remain accident-free for specific periods of time.

Company With the Best Discounts

progressive logo

Progressive insurance has the best discounts. They also offer ‘Name Your Price’, where you can get insurance based on your budget.

Alabama Insurance Demographics

The insurance industry is highly regulated. The premiums are determined by several factors, such as age, gender, driving history, and type of car.

Since the insurance companies want to provide fair rates for all drivers, they need to consider demographic factors. That’s why they use these factors as a way to adjust rates.

  • Average Car Value: The average used car value in Alabama is $33,663.
  • Crime Rates: The average crime rate in the state of Alabama is 25.37 per 1,000 residents.
  • Average Household Income: The median household income in Alabama is just over $52,000, which is a lot lower than the national average of almost $65,000.
  • Median Age Range: Alabama has a median age of 38.6 years for the overall population, with 25% of people between the ages of 35-54.
  • Education: 86.9% of Alabama residents have graduated high school, with over ¼ of them graduating college.

Common Risk Factors In Alabama

The state of Alabama has risk factors typical of any state. These can affect the cost of your car insurance. For example, natural disasters, crime rates, and even the number of people who commute to work.

Natural disasters can occur in Alabama, including tornadoes, hurricanes, floods, and thunderstorms. These can damage your vehicle, and if you live in a part of Alabama where they are common, you could see higher premiums.

Auto Insurance Laws In Alabama

If you are looking for Alabama auto insurance, there are a few things that you need to know. The Alabama Department of Insurance requires that all drivers carry liability insurance and personal injury protection (PIP) coverage.

  • Liability coverage pays for damages to another person’s property or injuries if you cause an accident. 
  • PIP coverage pays for medical expenses for you or your passengers if they are injured in an accident.

What are the minimum car insurance requirements in Alabama?

In Alabama, you must have a minimum level of auto insurance coverage to operate a vehicle on the road legally.

The minimum liability car insurance coverage for your car is $25,000 per person for bodily injury. Also, a further $50,000 per occurrence for bodily injury. You also need $25,000 per person of property damage liability coverage.

Am I required to carry uninsured motorist coverage in Alabama?

Ideally, Alabama wants you to carry $25,000 per person for bodily injury and $50,000 per occurrence of uninsured motorist bodily injury insurance. Insurance companies are required to offer this coverage, but you can reject the coverage in writing.

Alabama SR-22 policies

If you have committed one of the following offenses, you will likely need an SR-22 to reinstate your driving privileges:

  • reckless driving
  • DUI
  • driving without insurance.

SR-22 insurance is a document that you will need if you have been convicted of drunk driving in the state of Alabama. The SR-22 form must be filed with the DMV, and it can only be obtained from your insurer.

Is Alabama a no-fault state?

Alabama is an at-fault state, which means that if you are found to be at fault in a collision, you will be held responsible. You must pay for the other driver’s property damage and medical bills.

Alabama does not have a no-fault car insurance law.

What happens if my vehicle isn’t properly insured in Alabama?

In Alabama, the law states that you need to have insurance on your vehicle. If you don’t have it, then you can be charged with a misdemeanor. You will also have to pay a fine, and your license may be suspended.

Does Alabama accept digital insurance cards?

Alabama is one of the states that accept digital insurance cards as proof of coverage.

How Much Does Car Insurance In Alabama Cost?

In Alabama, many factors affect how much a person pays for car insurance. One factor is age: older people pay less than younger people because they are statistically less likely to get into an accident. Another cost factor is where someone lives. Living near an urban area could mean higher car insurance premiums because traffic is more likely to be hazardous there.

Average Cost of Car Insurance In Alabama By City

In Alabama, the average cost of car insurance varies from city to city. It can range from around $1,250 to $3,000 per year. The average cost for a driver who lives in Huntsville is around $141 per month, while it’s closer to $164 in Birmingham.

CityAverage Monthly
Alabama Car Insurance Cost
Birmingham$164
Montgomery$152
Mobile$158
Huntsville$141
Tuscaloosa$147

Average Cost of Car Insurance In Alabama By Company

The average cost of car insurance in Alabama varies depending on which company you choose and what type of insurance coverage you need.

Car Insurance CompanyAverage Minimum-Coverage
Premium (Annually)
Average Full-Coverage
Premium (Annually)
Allstate$415$1,315
GEICO$325$1,425
MetLife$885$2,445
Progressive$520$1,575
State Farm$450$1,470

Average Cost of Car Insurance In Alabama By Age

Younger drivers are typically considered more risky drivers. The insurance premium charged by providers reflects this.

AgeAverage Full-Coverage
Premium (Annually)
Age 16$2,715
Age 18$6,130
Age 20$4,250
Age 25$2,195
Age 30$1,900
Age 40$1,625
Age 50$1,605
Age 60$1,600
Age 70$1,705

Average Cost of Car Insurance In Alabama By Gender

In Alabama, gender doesn’t seem to make much difference to your insurance premium. Women can expect to pay slightly more than male drivers.

Average Full-Coverage Premium (Annually)
Male$1,350
Female$1,375

Average Cost of Car Insurance In Alabama By Credit Score

The better your credit score, the cheaper your premiums are likely to be. If your credit isn’t good, consider trying to get car insurance without a credit check.

PoorAverageGoodExcellent
National Average$3,005$1,910$1,775$1,560
Alabama$3,120$1,900$1,760$1,545

Average Cost of Car Insurance In Alabama By Driving Record

The Alabama average cost of car insurance also varies depending on your driving record. Drivers with a clean record should expect to see the lowest premiums. Whereas those with more serious infractions will see the highest increases.

Driving IncidentAverage Full-Coverage
Premium (Annually)
% Increase In Average
Full-Coverage Premium
Clean Driving Record$1,7750%
Speeding Ticket$1,96017%
Accident$2,39532%
DUI/DWI$3,12548%

What Optional Alabama Auto Insurance Coverages Should You Consider?

Alabama is a state that requires all drivers to have at least the minimum amount of auto insurance coverage. However, it is always a good idea to consider adding more coverage.

Some coverages to consider are:

  • Collision: This coverage pays to repair your vehicle after an accident.
  • Comprehensive: This coverage pays to replace your vehicle after an accident.
  • Uninsured motorist: This coverage pays for damages if the other driver does not have insurance or is underinsured.
  • Underinsured motorist: This coverage covers you if the other driver is at fault but does not have enough insurance to cover your damages.

These coverages will protect you in the event of an accident with another driver who does not have enough insurance. They also protect you if you are hit by someone who has no insurance at all.

What Auto Insurance Discounts To Look For In Alabama

The common car insurance discounts that you should be looking for in Alabama include:

  • Multi-Car Discount: This is a discount that is offered to those who have more than one car insured under the same policy. This will reduce the cost of the insurance for both cars, and you can save up to 20% on the total policy.
  • Good Student Discount: If you are a student and your grades are good, then you may qualify for this discount. You can save up to 10% on your insurance by being a good student.
  • Driver’s Education Discount: If you take driver’s education courses, then there is a chance that you will be eligible for this discount. The amount of savings varies between different companies, but it can range from $10 to $200.

FAQs

How much is car insurance in Alabama per month?

The cost of car insurance in Alabama can vary depending on the company, your driving record, and the type of coverage you have.

Is car insurance high in Alabama?

The average rate for car insurance in Alabama is slightly lower than the national average.

Is it illegal to drive without car insurance in Alabama?

Yes, it is illegal to drive without car insurance in Alabama. If caught, you could face a fine, a suspended license, and even imprisonment.

What type of car insurance is mandatory in Alabama?

All drivers in Alabama must have at least the minimum state-required insurance coverage.

Does car insurance follow the car or driver in Alabama?

Car insurance usually follows the car in Alabama, but not always. This means that if someone else is driving your car and gets into an accident, you should still be covered for damages.

How To Purchase Alabama Car Insurance

When it comes to purchasing Alabama car insurance, there are many factors that you need to consider. You should take into account the coverage options, deductibles, and other features that are available with each policy. Purchasing Alabama car insurance can be confusing, but by comparing car insurance quotes, you can find car insurance in Alabama at an affordable price.