Are Car Insurance Rates Rising in Alabama?

The Zebra
May 31, 2019

Many drivers are aware from personal experience that auto insurance costs tend to rise each year. But the reasons for auto insurance rate fluctuations vary, and rate hikes aren't always the prevailing trend.

Geographic location is among the primary rating factors used by insurance companies to set premiums. The ZIP code, city, and state in which a vehicle is parked and operated are weighed when setting car insurance rates — a phenomenon that comes down to state regulations and the variable risk associated with insuring a vehicle in a particular area.

Because auto insurance pricing depends on a number of factors, yearly rate trends vary widely by state. Car insurance rates could be on their way up year-over-year in a state but decreasing in a neighboring area.

See below auto insurance rate trends in Alabama. If you're paying too much, consider shopping around to find a better rate.


Auto insurance rate trends in Alabama


In Alabama, average yearly car insurance premiums increased by $9 over the past year. A typical Alabama driver now pays an average premium of $1,387 per year.

The recent pricing trend in Alabama leans toward pricier auto insurance rates. Between 2015 and 2018, rates went up by $329 per year. At the same time, auto insurance costs across the nation as a whole have gone up recently, climbing from $1,280 in 2015 to $1,470 in 2018.


YEARLY INSURANCE RATE TRENDS IN ALABAMA
YearAvg. Annual Premium — AlabamaYearly Change — AlabamaAvg. Annual Premium — USAYearly Change — US
2018$1,387$9$1,470$32
2017$1,378$90$1,437$69
2016$1,288$230$1,368$88
2015$1,058$27$1,280$51
2014$1,031$8$1,229$34
2013$1,023-$34$1,195-$80
2012$1,057-$222$1,276$82

If your rates are rising faster than the average in your state, shop around for a better deal. The Zebra's auto insurance comparison engine allows you to get auto insurance rates based on your specific profile — enter your ZIP below to get started.


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How are auto insurance rates trending in major Alabama cities?


Car insurance prices fluctuate at the ZIP code level, with a variety of location-specific variables impacting how much you pay. That means drivers could see major differences in their insurance rates, based solely on their ZIP code or city. For instance, Birmingham drivers endured a larger yearly rate increase (3.0%) than did drivers in Huntsville (2.5%) between 2018 and 2017.

The below table shows annual auto insurance rate changes in Alabama's largest municipalities If rates are rising in your city — and moving isn't a feasible option — you can get quotes in an effort to find a lower rate.


CityAvg. Premium Increase — 2018 vs. 2017
Birmingham3.0%
Huntsville2.5%
Tuscaloosa2.4%
Mobile2.2%
Montgomery2.0%

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