Car insurance rates vary greatly based on your ZIP code, the coverage you choose and other personal details, such as age and driving record. CarInsurance.com’s data shows that Nationwide offers the most affordable car insurance at $1,345 per year.
This guide makes buying car insurance in Alabama easy. We’ve done the hard work by researching and analyzing what different drivers might pay for insurance.
Keep reading to get a clear idea of how car insurance in Alabama works and how much coverage you need.
- The average cost of car insurance in Alabama is $1,860 a year or $155 per month, based on our data analysis.
- Minimum liability coverage in Alabama costs around $433 annually for limits of 25/50/25, while liability-only coverage costs $639 per year for limits of 50/100/50.
- Nationwide provides the most affordable annual rates for full coverage car insurance in Alabama, costing $1,345 per year.
- In Alabama, driving incidents can significantly increase premiums, with a speeding ticket raising rates by up to 30%, a DUI raising rates by 56%, and an at-fault accident by up to 48%.
How much is car insurance in Alabama?
According to CarInsurance.com data, drivers in Alabama pay about $155 per month for full coverage car insurance.
Understanding the average insurance cost can give you a head start in budgeting for your coverage. It’s important to consider that premium costs vary from person to person and will depend largely on the make/model of your car, your driving record and other factors.
See how rates change in Alabama based on driver profile:
- Teen drivers in Alabama pay the most — about $500 a month or $5,995 a year.
- Young drivers in their 20s pay an average of $234 monthly or $2,813 annually, for car insurance.
- Senior drivers pay around $153 monthly or $1,835 a year.
- A speeding ticket can increase your rates to $216 monthly or $2,593 annually.
- An at-fault accident increases car insurance rates to $240 a month or $2,879 a year.
- Poor credit drivers usually see their car insurance costs increase to $326 monthly or $3,917 annually.
Average cost of auto insurance in Alabama by coverage level
In Alabama, car insurance rates can differ depending on how much coverage you choose. Drivers in Alabama are required by law to have minimum insurance coverage limits of 25/50/25 to drive legally.
Liability-only insurance is the least expensive coverage and meets the minimum legal requirements in Alabama, but it doesn’t offer adequate protection.
While liability insurance protects you from financial loss by covering legal defense and damages if you’re found responsible for causing injury or property damage to others, it doesn’t protect your vehicle or passengers.
On the other hand, full coverage car insurance costs more but provides a lot more protection. It covers damage to your car in accidents, theft, natural events and animal collisions. If you have full coverage, you can be reassured that you’re well-protected.
Full coverage comprises liability, comprehensive, collision and any other coverage required by your state.
In the table below, see the car insurance premiums in Alabama for three different coverages.
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State minimum car insurance in Alabama
Alabama laws mandate that all drivers carry insurance with minimum liability limits of $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $25,000 for property damage liability.
The state minimum car insurance cost in Alabama is $433 a year. However, this basic coverage only offers limited protection. Alabama drivers can choose to add more coverage, such as comprehensive and collision insurance, raise their liability limits and include personal injury protection or other insurance coverage, for better protection.
Drivers in Alabama must purchase the minimum required car insurance to operate their vehicles on the road.
Liability-only car insurance in Alabama
The average cost of liability-only insurance in Alabama is $639 for the coverage limits of 50/100/50, based on a recent data analysis by CarInsurance.com.
Liability only pays for damage you cause to other people’s property or for injuries to others in an accident, but it doesn’t cover your passengers’ medical expenses. It’s cheaper than full coverage insurance, but it won’t help if your own car is damaged or stolen.
Full coverage car insurance in Alabama
In Alabama, you can expect to pay around $1,860 per year for full coverage car insurance for the limits of 100/300/100 – $100,000 in bodily injury coverage, $300,000 in bodily injury coverage per accident and $100,000 in property damage coverage.
Car insurance experts advise drivers to get full coverage insurance with the highest liability limits they can afford. Full coverage includes liability, comprehensive and collision coverage, with a deductible.
Calculate the cost of car insurance in Alabama
Insurance rates can differ depending on your ZIP code because what’s affordable in one area might be expensive in another.
Insurance companies assess various factors, such as crime rates, traffic conditions, car theft incidents and population density, to evaluate the level of risk in different areas and determine car insurance premiums.
This means that residents in higher-risk neighborhoods in Alabama have to bear greater financial burdens than those in areas with lower risks.
With our easy-to-use tool, you can get insurance quotes for different coverage limits for your ZIP code in minutes. Enter your ZIP code into our free tool to see how much you can save.
Calculate car insurance rates by ZIP code in Alabama
Rates vary by location. Our tool helps you understand how your ZIP code impacts your premium.
For 30 year old Male ( Liability - Minimum)
Estimate car insurance in Alabama by car model
Alabama car insurance providers use the make and model of your vehicle to determine premiums. If you drive a luxury car, which can be expensive to repair, expect to pay more for insurance than cars that are easier and cheaper to fix.
For example, luxury brands like Maserati, BMW, Porsche and Audi tend to have higher insurance costs. On the other hand, more affordable brands like Subaru, Hyundai, Honda and Mazda typically come with the cheapest insurance cost.
See how much you’ll pay for car insurance for your specific make and model in Alabama.
Insurance rates by car model
Guide: How to estimate car insurance using our car insurance estimator tool
Car insurance rates by age group in Alabama
As you age, the cost of your car insurance might change. As a young driver, you’ll pay more than an experienced, older driver. This is because younger drivers are more prone to accidents. The Insurance Institute for Highway Safety reports that the crash rate for teen drivers is four times higher than for drivers 20 years old or older.
Insurers know that teenage drivers are less experienced and pose a higher risk, resulting in higher insurance premiums. Alabama drivers between the ages of 30 to 60 typically enjoy the lowest average auto insurance rates, at about $1,807 annually.
Drivers aged 16-19 pay $4,188 more for car insurance than Alabama drivers aged 30-60 per year.
See the average rates by age group below:
- For teen drivers: Teens aged 16-19 can expect to pay $5,995 per year for a full coverage car insurance policy.
- For young adults: Drivers aged 20-25 can expect to pay $2,709 yearly for a full coverage policy.
- For average-aged adult drivers: Drivers aged 30 to 60 can expect to pay $1,807 annually in Alabama.
- For senior drivers: Drivers aged 65 and older can expect to pay $1,835 per year.
Check out our detailed guide on average car insurance rates by age
Rates based on driver profile, history and habits in Alabama
Having a DUI, speeding ticket or being at fault in an accident can substantially increase your insurance rates. In Alabama, a DUI conviction often results in higher premiums and you may see an increase of up to 56% as insurers perceive you as a high-risk driver.
Similarly, if you get a speeding ticket in Alabama, you’ll likely see an increase in your car insurance premium by up to 30% upon your policy renewal. Typically, you’ll pay more for three years. However, your rate increase also depends on state laws, your insurance company and your driving record.
Here’s a breakdown of how much your car insurance rate goes up in Alabama following driving incidents:
- Speeding ticket: Up to 30% increase
- DUI conviction: 56% increase
- At-fault accident (bodily injury and property damage): 48% increase
Even if you’ve received a traffic ticket, comparing quotes can still help you save money.
Car insurance cost in Alabama for high-risk drivers
In Alabama, drivers deemed high-risk face higher car insurance premiums due to the increased risk. Factors such as past accidents, traffic infractions and low credit scores significantly affect premium costs.
Luckily, there are ways for high-risk drivers to reduce their premium payments. Shopping around and comparing quotes is a great place to start, as each company will have its own rate structure tailored to individual needs.
Use this tool to determine which company has the best prices for drivers with speeding tickets, DUIs, or at-fault accidents on their driving records.
Select your state and risk factor below to see the insurance company and its average annual full coverage rates.
Learn more: The 10 most important factors that affect car insurance rates
Explore car insurance costs in your neighboring states
Compare car insurance quotes in Alabama
In Alabama, drivers can save on car insurance by comparing prices from different companies. Many factors affect how much you pay, like your driving history and the type of car you drive. Luckily, there are plenty of choices to help you find good insurance that fits your budget.
Compare the best car insurance options in Alabama by getting quotes from different insurance companies.
Below are the details of Alabama car insurance companies and their annual premiums.
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Car insurance rates by city in Alabama
Tarrant is Alabama’s most expensive city for car insurance at an average cost of $2,084 annually. Fort Rucker is the state’s least expensive city, with an average car insurance rate of $1,664 annually.
Car insurance premiums differ across cities in Alabama and are influenced by traffic conditions. Cities with heavier traffic often experience more frequent accidents and insurance claims, which results in higher insurance costs.
Other factors that can affect rates include the number of uninsured drivers, the cost of repairs and medical bills and the crime rate in the city.
Below, you’ll see the average annual car insurance cost of major cities in Alabama.
Select your city below to see the insurance company and its average full coverage rates.
How much does car insurance cost in Alabama per month?
Car insurance in Alabama costs an average of $155 a month for a full coverage policy with limits of 100/300/100.
Opting for monthly car insurance payments can be a budget-friendly strategy for some people. It allows for spreading the cost throughout the year, making it easier to manage than a hefty annual payment. This approach provides more flexibility and avoids the burden of a large upfront sum.
On the other hand, paying for car insurance in full at renewal time can often result in a discount. Ultimately, your best option will depend on your needs and circumstances.
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Final thoughts on choosing car insurance in Alabama
When it comes to car insurance, one size doesn’t fit all. Drivers prioritize different things. Some value top-notch customer service and are willing to pay extra for it. Others focus on finding the cheapest rates possible. Some look for insurance companies with user-friendly mobile apps for managing claims and payments.
Understanding your needs and finding the best insurance policy at a great price are important. So, take your time and check out different options to find the right policy for you.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety. “Teenagers.” Accessed September 2025.
- USAA. “How credit affects insurance premiums.” Accessed September 2025.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates in Alabama. The average premiums are based on the sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and a clean driving record.
The rates are for different coverage limits. It includes:
- Full coverage car insurance with a coverage limit of $100,000 in bodily injury per person, $300,000 in bodily injury coverage per accident, $100,000 in property damage coverage per accident and a $500 collision/comprehensive deductible.
- Liability-only car insurance rates with a limit of 50/100/50.
- State minimum coverage limit of 25/50/25.
To evaluate the rates, we have compared 53,409,632 insurance quotes from 75 company groups across 34,588 ZIP codes. The average premiums are for comparison purposes only; your exact rates may vary.
Note: USAA is only available to military community members and their families.
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