How Much Is Car Insurance In Alabama? 2025 Rates

Car insurance in Alabama is reasonably priced. The average yearly cost for full coverage is $2,054, which is lower than the national average of $2,629. For minimum coverage, the average cost is $545 per year, also less than the national average of $742.

In this article, we’ll look at the various types of car insurance in Alabama, their costs, and the key factors that impact your rates. With over 12 years of experience as a licensed insurance agent, I’m here to guide you in making a smart decision.

Cost Of Car Insurance In Alabama – By Age

In Alabama, a driver’s age plays a big role in determining auto insurance rates, just like in many other states. Younger drivers usually pay more because they’re considered higher risk due to their inexperience. However, rates start to drop in the early to mid-20s and are typically reduced by more than half for drivers aged 30 and older.

On average, 25-year-olds pay 25% more for full coverage and 20% more for minimum coverage than 40-year-olds. When compared to 65-year-olds, the cost of car insurance starts to increase a bit for drivers.

Below is a table showing the average car insurance costs by age:

Average Alabama Auto Insurance Rates – By Insurance Company

The cost of car insurance in Alabama depends on many different factors, such as the type of coverage, your driving history, and even where you park your car. Although each car insurance company in Alabama may look at different things, common factors include your driving record, location, credit score, gender, the car you drive, your coverage level, and your age.

Some of the most popular car insurance companies in Alabama are State Farm, Geico, Progressive, USAA, and Farmers.

It’s important to compare quotes from different companies to find the best deal for your needs and budget.

Below is a table showing the average auto insurance rates from six major providers in Alabama:

Average Alabama Car Insurance Premiums – By Credit Score

In states like Hawaii, Massachusetts, Maryland, California, and Michigan, using credit scores to determine insurance rates is not allowed. However, in Alabama, your credit-based insurance score significantly affects your car insurance costs.

Drivers with good credit scores typically pay lower rates compared to those with poor credit scores. Below is a table showing the average car insurance premiums based on different credit score categories in Alabama.

Note: It’s important to review your credit report for any errors, even if you have a good credit score. Mistakes on your report can impact your car insurance rates.

Average Car Insurance Costs In Alabama – By Gender

Alabama has a population of around 5 million, with women making up half of that number. This means many women could qualify for lower car insurance rates.

On average, men tend to pay higher premiums than women because they are more likely to engage in risky or distracted driving.

Here’s a table showing the average car insurance costs by gender in Alabama:

Cost Of Alabama Car Insurance – By Driver Record

Drivers with a clean driving record generally pay less for car insurance compared to those with a DUI, speeding tickets, or accidents on their record. Insurance companies consider drivers with a poor driving history to be a higher risk. In Alabama, drivers with a good driving history typically pay about $2,054 annually for car insurance.

Here is a table displaying average car insurance costs based on different driving records in Alabama:

Average Alabama Auto Insurance Costs – By Marital Status

Being married comes with several advantages, including possibly lower car insurance rates. Auto insurance companies often see married people as less risky to insure. While the savings may not be huge, it’s nice to know you can save a little extra when you can.

Here is a table displaying average car insurance costs by marital status in Alabama:

Cost Of Car Insurance In Alabama – By Coverage Type

The cost of car insurance in Alabama varies depending on the type of coverage you choose. Drivers who opt for minimum coverage only receive basic protection, while full coverage offers more extensive financial security in case of accidents or damage.

The amount you pay for each type of coverage can also be influenced by factors such as your driving history, age, and the type of vehicle you drive.If you add more coverage to your policy, you will spend more on your auto insurance.

Here is a table displaying average car insurance costs by coverage type in Alabama:

Average Alabama Car Insurance Rates – By City

Drivers in cities usually pay more for car insurance than those in smaller towns or rural areas due to higher rates of vandalism, theft, and accidents. The location where you park your car, such as on the street or in a secure garage, can also affect your insurance cost. Additionally, cars with anti-theft features may help lower your premium.

In the following table, we explore the average car insurance costs in eight different Alabama cities to illustrate these differences.

Average Alabama Car Insurance Rates – By ZIP Code

Some ZIP codes have higher insurance rates because of factors like crime, accidents, crowded areas, and weather risks. In Alabama, certain areas like Birmingham may have higher insurance rates due to factors such as higher crime rates, frequent traffic accidents, and population density.

The table below shows the average car insurance rates in various Alabama zip codes, highlighting how rates vary depending on the location.

Alabama Car Insurance Prices Compared To Other U.S. States

Car insurance in Alabama tends to be cheaper than the national average. However, your rates can still change depending on things like your driving history, age, and other factors. Knowing how Alabama’s car insurance rates compare to those in other states can help residents determine if they’re paying reasonable prices based on the average costs elsewhere.

In the following table, we provide you with a comprehensive comparison of average car insurance rates across all U.S. states, providing a clearer picture of how Alabama fares on the national stage.