Average Car Insurance Cost in Alabama (2024)

Compared to the national average car insurance costs, Alabama’s rates are looking as sunny as a day on the Gulf Coast. Alabamans pay $60 per month for liability-only policies and $156 per month for full coverage, on average. By comparison, the national average for liability coverage is $104, and full coverage is $211.

Here’s what you should know about the different factors that influence Alabama’s insurance premiums so you can find better-than-average car insurance rates for your unique driver profile.

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Rates start at $37 per month for liability-only policies

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What’s the average cost of car insurance in Alabama?

Your car insurance costs can vary substantially based on a number of different factors like your gender, age, marital status, and location.

USAA and State Farm offer the lowest liability-only rates in Alabama, at $37 and $37 per month, respectively. Other insurers, like GAINSCO, offer monthly liability coverage for an average of $105.

It’s important to compare multiple car insurance quotes or ask an insurance agent for free quotes before choosing an insurance company.

Average Alabama car insurance rates by city

Location plays a huge role in setting car insurance premiums. Geographic factors like rates of population, auto accidents, vandalism, and theft can cause two cars of the exact same make and model to have different insurance premiums.^[1]

For instance, Dothan has a smaller population and fewer reported motor vehicle thefts than Tuscaloosa, which may be two reasons why Dothan’s rates are lower than Tuscaloosa’s. Birmingham and Mobile have the highest rates, which makes sense since they have larger populations and significantly more reported motor vehicle thefts.^{[2] [3]}

Here, you can see how rates compare across different cities in Alabama.

Average Alabama car insurance rates by age

Teens receive a higher average annual auto insurance rate than other age groups because they’re statistically more at risk of being in a fatal car accident. This is predominantly due to their inexperience, overconfidence, and social distractions.

Drivers younger than 25 also tend to have higher rates, while middle-aged drivers see their rates decrease in their 30s. Rates rise again, however, once drivers reach age 70 and older.

The chart below shows how rates fluctuate based on age.

How gender affects car insurance rates in Alabama

Just over half of Alabama’s population is female, which means that the majority of people in Alabama may qualify for cheap car insurance. Statistics show that female drivers are less likely to be involved in an accident, a serious accident, or an accident caused by driving under the influence.^[1]

These statistics are reflected in the higher rates male drivers pay across every age bracket.

How your driving record affects car insurance rates in Alabama

The Alabama Department of Transportation (ALDOT) records a traffic accident once every three and a half minutes and a fatality in a traffic accident every nine minutes.^[4] Many accidents are caused by risky driving behavior. If you have another indicator of risky driving behavior on your record — like an at-fault accident, speeding ticket, or driving under the influence (DUI) conviction — it’ll raise your rates.

Here, you can see how the rates of a driver with a clean record differ from those of drivers with an incident on their record.

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Average Alabama car insurance rates by marital status

Being married has many benefits — and one of them is potentially lower car insurance. This is because insurers judge married people to be less risky to insure. And while the savings usually aren’t great, it’s good to know you can save a few extra dollars when possible.

Here, you can see how rates change for married couples compared to single people.

Average Alabama car insurance rates by credit tier

Checking for discrepancies on your credit report is important, even if you have a good credit score. It can also affect your car insurance rates.

Alabama car insurance companies can use your credit rating to determine your credit-based insurance score. This is a score different from your credit score and one that directly affects your premiums.

A driver with a good credit score will usually get a cheaper rate than a driver with a bad credit score. And while your credit score isn’t the sole factor influencing your premium, you can see the effect it has on your rates in the table below.

Alabama car insurance FAQs