Car Insurance in Alabama

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. 

The cheapest car insurance companies in Alabama

These companies offer the cheapest rates in the following scenarios.

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

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.

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 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. 

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.

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.

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.