Car Insurance in Alabama
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Here's what you need to know when driving in Alabama
The average car insurance rate in Alabama is $1,379 per year — 10% less than the U.S. average. Car insurance rates are impacted by more than just your location. Auto insurance rates comprise many factors, including a driver's age and driving history. The Zebra's experts analyzed average Alabama car insurance rates for these rating factors in an effort to help you find an affordable policy.
Read on to learn how much auto insurance costs in Alabama based on these variables, or submit your ZIP code above to receive personalized quotes from top insurers.
The best car insurance companies in Alabama
Based on data from J.D. Power's 2021 Auto Satisfaction Study and The Zebra's Customer Satisfaction Survey, we have compiled a list of the best car insurance companies in Alabama.
Along with topping The Zebra's Customer Satisfaction Survey, USAA received a score of 879 (out of 1,000) in J.D. Powers' 2021 U.S. Auto Insurance Study for the state of Alabama.
As a highly-rated regional carrier, Farm Bureau Insurance - Tennessee scored an 883 on J.D. Power's 2021 auto study, .
Erie Insurance placed third with a score of 874 in J.D. Power's 2021 customer satisfaction survey. Erie also received second place in The Zebra's Customer Satisfaction Survey.
The cheapest car insurance companies in Alabama
These companies offer the cheapest rates in the following scenarios.
The cheapest rates are from Travelers at $1,921 annually, or $160 per month.
For the minimum required coverage in Alabama, GEICO is the cheapest on average.
If you have a DUI on your record, check out Travelers for the cheapest average rates.
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Alabama auto insurance laws
Car insurance is mandatory in almost every state, including Alabama. If you choose the legal minimum coverage level in Alabama, expect to pay an average of $478 annually. This expenditure is less expensive than the nationwide average by 11%.
State minimum coverage
In order to drive legally in the state of Alabama, you must carry at least the minimum liability limits listed below:
- Bodily Injury $25,000 per person
- Bodily Injury $50,000 per accident
- Property Damage $25,000 per accident
Optional coverage in Alabama (varies by carrier):
- Loan/Lease Payoff
- Medical Payments
- Rental Car Reimbursement
- Roadside Assistance
- Uninsured Motorist Bodily Injury
If you opt for better coverage, you can choose a policy with comprehensive and collision, which will protect against the costs of car accidents, theft, vandalism, or weather incidents. But better coverage comes with a cost: in Alabama, a comprehensive insurance policy with a $1,000 deductible costs $1,249, 161% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay 212% more than you would for basic coverage.
Compare car insurance rates from the best companies in Alabama.
Alabama car insurance premiums by rating factor
Your rates are determined by a number of individual factors, including your coverage level, driving history, location, and more. Explore average premium costs by rating factor below to get a better sense of how much you should be paying for auto insurance in Alabama.
Cheap auto insurance in Alabama for minimum coverage
Forgoing full coverage for liability-only at the state minimum level will make your car insurance significantly cheaper. In Alabama, the average cost for minimum coverage is $40 per month, or $478 yearly — a savings of $1,014 compared to full coverage.
Cheap auto insurance in Alabama with bad credit
Your credit history is an important factor in determining your car insurance rates. Many carriers see those with a poor credit score as being higher risk, meaning you could pay more for your policy. On average, Alabama drivers with poor credit pay 61% more per year than those with exceptional credit. Have a look at some common rates by credit tier below.
Cheap auto insurance in Alabama with an at-fault accident
Your driving history plays a big part in how much you pay. Insurance companies look for previous accidents for which you have been at fault to gauge the level of risk you pose as a customer. An at-fault accident in recent years could see your car insurance rates increase by as much as $639 per year.
Safe driver discounts
In addition to having a cheaper premium, some companies offer a safe driving discount. While the amount varies based on your company, it can range between 5 and 10%.
Cheap auto insurance for young drivers in Alabama
Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In Alabama, teen drivers pay especially high rates: $4,773 per year — that's $23 less than the nationwide average but over twice as much as a typical Alabama driver.
Alabama auto insurance rate by violation
In Alabama, a bad driving record will cause your rates to skyrocket. If you receive a ticket or citation, your auto insurance premiums will probably rise. By how much depends on the violation, your insurer's pricing standards, and differing local insurance regulations and risks. That's why tickets may have a different impact on insurance in your state compared to the national average.
|Accident/Violation||Avg. Annual Premium||% Rate Increase||$ Rate Increase|
|One Med/PIP claim||$1,770||0%||$0|
|Two Med/PIP claims||$1,826||3%||$56|
|One comp claim||$1,862||5%||$92|
|Two comp claims||$1,973||11%||$203|
|Driving without lights||$2,010||14%||$240|
|Failure to wear a seat belt||$2,053||16%||$282|
|Child safety restraint||$2,066||17%||$295|
|Failure to show documents||$2,098||19%||$328|
|Cell phone violation||$2,142||21%||$372|
|Texting while driving||$2,142||21%||$372|
|Driving with expired registration||$2,163||22%||$393|
|Speeding in school zone||$2,187||24%||$417|
|Driving too slowly||$2,187||24%||$417|
|Speeding 6 - 10 MPH over limit||$2,187||24%||$417|
|Speeding 11 - 15 MPH over limit||$2,198||24%||$428|
|Wrong way/wrong lane||$2,209||25%||$439|
|Following too closely||$2,211||25%||$441|
|Failure to yield||$2,212||25%||$442|
|Speeding 16 - 20 MPH over limit||$2,215||25%||$445|
|Failure to stop at a red light||$2,222||26%||$452|
|Passing school bus||$2,300||30%||$530|
|Speeding 21 - 25 MPH over limit||$2,302||30%||$532|
|At-fault accident - less than $1000||$2,338||32%||$568|
|In 65 MPH zone||$2,417||37%||$647|
|Operating a vehicle without permission||$2,530||43%||$760|
|At-fault accident - $1000-$2000||$2,595||47%||$824|
|At-fault accident - greater than $2000||$2,607||47%||$837|
|Driving with a suspended license||$3,057||73%||$1,286|
|Refusal to submit to a chemical test||$3,175||79%||$1,405|
|Leaving scene of an accident/hit and run||$3,299||86%||$1,529|
Alabama DUI laws
In Alabama, a DUI offense can increase your annual car insurance premium by an average of $776. Finding affordable auto insurance in the wake of a DUI violation isn’t simple. In fact, a DUI often brings about a bigger premium increase than any single road violation — more than an at-fault accident, racing, or reckless driving.
Low-cost car insurance after a DUI in Alabama
If you're convicted of a DUI or DWI violation in Alabama, it’s key to mull over each of your insurance choices carefully. Auto insurance premiums following a DUI can vary substantially by insurer. For example, the least expensive car insurance company with a DUI in Alabama, Travelers, advertises annual rates 15% less than the statewide average insurance rate with a DUI. The second-cheapest insurer for auto insurance after a DUI in Alabama is Allstate, while the priciest firm is GEICO, with prices 51% above average.
There is no car insurer in particular that offers inexpensive DUI auto insurance. The recommended way to save in the wake of a DUI citation is to shop around.
Alabama SR-22 insurance
An SR-22 is a routine legal requirement triggered by a violation such as a DUI conviction, a ticket for driving without insurance, an at-fault collision, driving with a suspended license, or accumulating too many points on your license. It is not a type of insurance policy, but a form issued by your insurance company with the state of Alabama to ensure that you remain insured.
Finding cheap auto insurance with an SR-22 in Alabama might require some research, but it could pay off in the end.
How to acquire an SR-22 in Alabama
For currently insured drivers
If you already have auto insurance, getting an SR-22 certificate is straightforward. Contact your car insurance company ask the company to file an SR-22 request for you. If your insurer isn’t willing to file a request, you'll need to look for a new insurer.
For uninsured drivers
When filing for a new policy, you might be saddled with an up-front fee to have your prospective insurer file an SR-22 request for you and to cover your high-risk driving profile. Needing an SR-22 might disqualify you from purchasing insurance from some companies, while others would be happy to sell you a policy.
For drivers without a vehicle
Not owning a vehicle makes it more difficult to obtain an SR-22, as you will need to furnish proof of insurance to receive the certificate. In this scenario, purchase a non-owners car insurance policy before filing an SR-22 request. Non-owners auto insurance is typically less expensive than traditional coverage since it doesn't protect against material damage to your vehicle.
Find an affordable policy in Alabama in minutes!
Rates by city
Car insurance companies calculate your rate based on many factors, the location of the vehicle being an important one. The cheapest car insurance is found in Ozark, Alabama, and the most expensive in Fairfield, Alabama.
Have a look at the table below to see average car insurance costs in some of Alabma's biggest cities.
Car insurance price trends in Alabama
In Alabama, average annual auto insurance costs increased by $82 in the past year. A typical Alabama driver pays an average of $1,379 per year.
The recent pricing trend in Alabama leans toward slightly cheaper car insurance costs than the national average. The steepest decrease occurred from 2015 to 2016, while the highest surge took place from 2016 to 2017. At the same time, car insurance rates across the United States have stayed relatively steady in the past few years, moving from $1,521 in 2018 to $1,529 in 2021.
|Year||Avg. Annual Premium — Alabama||Yearly Change — Alabama||Avg. Annual Premium — US||Yearly Change — US|
If your rates are rising faster than the average in your state, compare quotes and find a better deal. The Zebra's car insurance comparison engine furnishes quotes based on your specific profile — enter your ZIP below to get started.
Alabama car insurance FAQs
Below you'll find answers to some of the most commonly asked questions regarding Alabama auto insurance.
Who actually has the cheapest car insurance in Alabama?
Travelers is the cheapest insurance company in Alabama. Our data show Travelers charges $399 for a six-month policy — or $67 a month.
How much is car insurance in Alabama per month?
The average monthly premium in Alabama varies. The average driver pays $113/month for car insurance in Alabama. Our estimate could be low or high depending on your driving profile. Use our comparison tool to find multiple options for you.
What insurance company has the best auto rates?
The best company and best rates will depend on you. Based on your driving history, different companies will charge you different amounts. Use our comparison tool to find the perfect match for you.
Save money on your next car insurance policy!
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.