Average Cost Of Car Insurance In Alabama In June 2023 

Car Insurance In Alabama: This article will brief you about how much it cost for Car Insurance in Alabama and much other detailed information. The average cost of Car insurance in Alabama is less than the national cost. In Alabama, full coverage Car insurance costs an average of $1,843 per year, while the national average is $2,014 per year. 

Alabama’s minimum coverage is also less expensive, costing $441 per year as opposed to $622 per year nationwide. Several factors affect how much auto insurance costs in Alabama. Your rate is affected by your gender, age, car, marital status, and driving history.  

Average Cost Of Car Insurance In Alabama In June 2023

The number of miles traveled, and the credit-based insurance score is two more factors. As each carrier gives different weight to each of these factors, it is even more crucial to compare different carriers to make sure you are getting the best deal for your financial circumstances. The average Minimum Coverage Premium In Alabama is $441 and the Average Annual Full Coverage Premium In Alabama is $1,843.

Alabama Car Insurance Rates By City

Because each region in a state has a distinct risk profile, vehicle insurance costs differ from city to city. In one place, rates may be higher due to a higher accident risk or higher cost of living, while in another, rates may be lower due to a lower accident risk or reduced cost of living. Below is a list of Alabama’s top five cities, along with information on each city’s average annual premium for comprehensive coverage and how it compares to the state average.  

Alabama city Average full coverage premium (annual)
Birmingham $1,959
Huntsville $1,761
Mobile $1,958
Montgomery $1,871
Tuscaloosa $1,828

Average Car Insurance In Alabama – Price by Age & Gender

In most places, including Alabama, a driver’s age is a significant determinant of their vehicle insurance rates. As you can see from these typical full coverage premiums, your premiums can often go down as you age. In Alabama, gender also has an impact on the average cost of Car insurance; males often pay more than ladies do, especially when they are younger.  

Age Average monthly full coverage premium in Alabama (Male) Average annual full coverage premium in Alabama (Female)
Age 16* $352 $4,227
Age 18 $563 $6,752
Age 20 $385 $4,617
Age 25 $201 $2,416
Age 30 $165 $1,979
Age 40 $155 $1,865
Age 50 $143 $1,712
Age 60 $139 $1,672
Age 70 $154 $1,843

*16-year-old computed using discounts from parents’ policy; 18- and 20-year-old renters on their own policies; no discounts. 

How will Drive Record affect The Price Of Car Insurance In Alabama?

As you might expect, a moving vehicle infraction in Alabama, like a speeding ticket or collision, increases premiums. A DUI will undoubtedly result in a significant increase in injury rate. The average full coverage premium for each of these occurrences is shown in the table below, along with the percentage increase from the standard rate for a clean driving record in the state. 

Driving incident Average annual full coverage premium in Alabama Percentage increase in average annual premium
Clean driving record $1,844 1%
Speeding ticket $2,204 21%
Accident $2,713 48%
DUI $3,322 81%

Car insurance rates in Alabama by credit score

Your insurance premium in Alabama is also influenced by your insurance score, which is dependent on your credit score. In places where insurers are permitted to use credit scores as rating factors, rates tend to vary widely because, statistically speaking, drivers with lower credit scores are more likely to submit claims. In Alabama, there is a $1,600 gap in the average annual premium between drivers with bad credit and those with outstanding credit. 

Credit tier Average annual full coverage premium in Alabama Percentage difference in average annual premium
Poor $3,271 74%
Average $1,987 9%
Good $1,844 1%
Excellent $1,615 -11%

How To Save On Car Insurance in Alabama?

There are numerous ways to reduce the cost of Car insurance in Alabama, some of which require little to no time or effort. 

Compare prices: Shopping around is a great method to get a great deal on your insurance. Prices differ from company to provider, with some offering rates that are hundreds of dollars higher or lower than the next carrier. By comparing prices, you can find the exact coverage options you desire for your policy while also saving money. 

Use discounts: Nearly all carriers provide a few discounts, allowing you to take advantage of larger savings. You can save money by enrolling in a telematics program, switching to paperless billing, and setting up payments. 

Combine your coverage: Combining your vehicle and home, renters, or condo policies with one company frequently results in the biggest reductions. Discounts on additional product categories, such as boat or RV insurance, may also be offered by some businesses. 

Increase your deductibles: Generally, the bigger your Car insurance deductibles, the less you’ll pay in premiums. But bear in mind that greater deductibles result in higher out-of-pocket costs if you need to submit a claim. 

Boost your credit score: While this may be a long-term strategy, it will often have a beneficial effect on your premiums. As you are deemed to be less of a financial risk to the carrier, you will pay lower premiums if your score is higher. 

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FAQs for Car Insurance In Alabama In June 2023

Which Is The Best Car Insurance Company In Alabama?

You can select the best Alabama car insurance company depending on your circumstances. You can be looking for a provider with excellent customer service, while another driver might choose affordable rates, a simple app, or a certain kind of insurance coverage. The company that best meets your demands will be determined by your unique requirements and your rating criteria. You might find the appropriate fit by doing some research on the company and comparison shopping. 

Which Car Insurance Company Is said to be The Cheapest In Alabama?

According to our survey, Travelers, Geico, Nationwide, and Allstate have some of the lowest car insurance prices in Alabama. The least expensive Car insurance will, however, vary depending on your unique rating variables, much as the best Car insurance. The most affordable provider for you can differ from someone who doesn’t have the additional risk, for instance, if you have a teen driver. 

Car Insurance In Alabama
Car Insurance In Alabama

Is Uninsured Motorist Coverage Essential in Alabama?

There are no regulations requiring uninsured motorist coverage in Alabama. Insurance companies are required to provide you the coverage, but if you don’t want it, you can deny it in writing. With almost 19% of its inhabitants driving without insurance, Alabama is now ranked 7th overall for having the largest number of uninsured drivers. If you choose to purchase this optional policy, you may have more financial security if you have an accident with someone who does not have insurance.

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