One of the most important determinants of car insurance cost in Alabama is the type of vehicle you drive. Generally speaking, the more expensive the car is, the more expensive the insurance premiums will be. Other factors that insurers take into consideration include the driver’s age, gender, driving record, credit score, and the area where the car is registered. In Alabama, the average annual cost of car insurance is around $1,500. However, this figure can be higher or lower depending on the factors mentioned above.
For example, drivers under the age of 25 tend to pay higher rates due to their higher risk of being involved in an accident. Similarly, drivers with poor credit scores may also be charged higher premiums. In addition to the cost of the insurance policy, drivers in Alabama also have to pay for mandatory coverage. This includes liability coverage, which is designed to protect the driver if they are found to be at fault in an accident, and uninsured motorist coverage, which covers a driver’s medical bills in the event that the other driver is not insured.
It is important for drivers in Alabama to shop around for car insurance. Different insurers offer different rates and levels of coverage, so it is important to compare policies to find one that fits your budget and provides you with the right level of protection. Additionally, drivers can potentially lower their premiums by taking defensive driving courses and having a clean driving record. Overall, the cost of car insurance in Alabama can vary greatly from one driver to the next.
| Alabama | Average Annual Premium: | Min | Max | Monthly Avg: |
|---|---|---|---|---|
| Car | $1,908 | $1,644 | $2,360 | $159 |
| SUV | $1,859 | $1,606 | $2,283 | $155 |
| EV / Electric | $2,122 | $1,834 | $2,609 | $177 |
| Luxury | $2,714 | $2,355 | $3,281 | $226 |
| Truck | $2,268 | $1,969 | $2,787 | $189 |
With a mix of large cities and rural charm, Alabama is a melting pot of cultures and personalities. This is no more apparent than it is on the roads, as drivers of all types battle traffic together. In Alabama, you must have auto insurance according to the Alabama Liability Insurance Law (32-7A). If you drive a registered vehicle in Alabama, you must have insurance that meets the law’s minimum requirements. The Alabama minimum requirements are as follows:
If you’re caught on the road without insurance, you’ll potentially receive fines and a license suspension. The most common way you can prove that you have a policy is with an insurance card. A valid insurance card includes the policy’s effective date, the insurer’s National Association of Insurance Commissioners number, the vehicle identity number, and the policy number.
| Auto Insurance Costs by Age: | Male | Female | Average Monthly Payment: |
|---|---|---|---|
| Age: 16 - 20 | $4,122 | $3,763 | $329 |
| Age: 21 - 30 | $2,091 | $2,021 | $171 |
| Age: 30 - 40 | $1,679 | $1,712 | $141 |
| Age: 40 - 50 | $1,620 | $1,644 | $136 |
| Age: 50 - 64 | $1,597 | $1,591 | $133 |
| Age: 65+ | $2,035 | $1,896 | $164 |
See below a list of the average annual premium yearly and monthly costs for each vehicle type by city in Alabama for any used vehicle make and model between 2015 to 2020.
We pulled costs data from 400+ cities in Alabama, we found that you can expect to pay anywhere from $1,606 at the cheapest rate to $3,281 at the most expensive rate across all vehicle types. The average cost for insurance on a typical used car or sedan is around $1,908 a year or $159 a month for state minimum coverage for a single driver with a good driving record.
| AL City: | Avg. Annual Premium: | Avg. Monthly Costs: | Luxury | EV / Electric | SUV | Truck | Car /Sedan | |
|---|---|---|---|---|---|---|---|---|
| Abbeville | $1,978 | $165 | $2,469 | $1,927 | $1,696 | $2,062 | $1,734 | |
| Adamsville | $2,490 | $208 | $3,064 | $2,439 | $2,139 | $2,605 | $2,205 | |
| Adger | $2,337 | $195 | $2,877 | $2,290 | $2,006 | $2,449 | $2,066 | |
| Akron | $2,194 | $183 | $2,809 | $2,126 | $1,856 | $2,278 | $1,903 | |
| Alabaster | $2,298 | $192 | $2,799 | $2,266 | $1,980 | $2,407 | $2,040 | |
| Albertville | $2,159 | $180 | $2,657 | $2,118 | $1,851 | $2,257 | $1,913 | |
| Alexander City | $2,024 | $169 | $2,546 | $1,969 | $1,725 | $2,109 | $1,772 | |
| Alexandria | $2,154 | $179 | $2,651 | $2,114 | $1,848 | $2,248 | $1,908 | |
| Alpine | $2,170 | $181 | $2,718 | $2,120 | $1,850 | $2,264 | $1,900 | |
| Andalusia | $1,951 | $163 | $2,515 | $1,882 | $1,643 | $2,026 | $1,686 | |
| Anniston | $2,133 | $178 | $2,630 | $2,094 | $1,829 | $2,226 | $1,888 | |
| Arab | $2,109 | $176 | $2,601 | $2,068 | $1,809 | $2,206 | $1,863 | |
| Ardmore | $2,111 | $176 | $2,604 | $2,076 | $1,814 | $2,201 | $1,863 | |
| Argo | $2,174 | $181 | $2,685 | $2,135 | $1,863 | $2,272 | $1,916 | |
| Ariton | $1,930 | $161 | $2,412 | $1,880 | $1,656 | $2,012 | $1,692 |
* FIND YOUR CITY – SEARCH BAR – TOP RIGHT OF TABLE *
As mentioned newer vehicles can often be more expensive to insure as the cost to replace them after an accident can be significantly more of a risk for your insurance provider. However, in some cases you may find that a newer vehicle that has upgraded safety and security features can be cheaper to insure than an older model vehicle from 5 years ago. Here is a breakdown of costs found on vehicles types that were produced from 2020 to 2023 along with their average annual premium and monthly rates:
| AL City | Annual Premium | Avg. Monthly Costs | Luxury | EV / Electric | SUV | Truck | Car /Sedan | |
|---|---|---|---|---|---|---|---|---|
| Abbeville | $2,097 | $175 | $2,715 | $1,928 | $1,700 | $2,251 | $1,889 | |
| Adamsville | $2,631 | $219 | $3,365 | $2,446 | $2,139 | $2,826 | $2,378 | |
| Adger | $2,478 | $207 | $3,177 | $2,294 | $2,012 | $2,667 | $2,242 | |
| Akron | $2,350 | $196 | $3,104 | $2,147 | $1,878 | $2,518 | $2,105 | |
| Alabaster | $2,429 | $202 | $3,077 | $2,269 | $1,984 | $2,615 | $2,200 | |
| Albertville | $2,293 | $191 | $2,933 | $2,126 | $1,865 | $2,465 | $2,077 | |
| Alexander City | $2,154 | $179 | $2,805 | $1,977 | $1,738 | $2,309 | $1,940 | |
| Alexandria | $2,285 | $190 | $2,924 | $2,119 | $1,856 | $2,454 | $2,069 | |
| Alpine | $2,314 | $193 | $3,006 | $2,131 | $1,866 | $2,485 | $2,083 | |
| Andalusia | $2,088 | $174 | $2,774 | $1,897 | $1,665 | $2,239 | $1,866 |
* FIND YOUR CITY – SEARCH BAR – TOP RIGHT OF TABLE *
You have many resources available to learn about Alabama insurance requirements. To start, you can go to the Alabama Department of Motor Vehicles (DMV). You can also talk with local insurers to learn about policies and coverage options.
If you have an accident with an uninsured or underinsured driver, there is no need to panic. Alabama’s Uninsured Motorist Statute requires insurers to provide you with uninsured coverage on every policy. When an uninsured or underinsured driver collides with your car, your policy will cover damages and injuries without raising your rates.
If you have trouble buying car insurance, you can obtain proof of financial responsibility with a Motor Vehicle Liability Bond or a Certificate of Cash Bond. For these bonds, you’ll need to fill out an application and bring your Alabama certificate of title and VIN.
Although a car insurance plan that fits your needs is important, you should also consider options that work with your budget. Some companies charge very different rates for similar plans. You should get quotes from at least three insurers in your area to find the best rate. Some other money saving tips include:
You can also raise your deductible to save a bit of overall cost. Higher deductibles result in lower monthly payments. If your car is old, you should fix minor damage yourself and let your insurer take care of the more expensive issues.
The best way to save on your policy is to have a good driving record, as that greatly affects what you pay. Any Alabama drivers seeking a new auto policy should compare multiple auto insurance company rates to make sure they are getting the best price in their area.
When you move to Alabama, you have 30 days to get your Alabama driver’s license. You’ll need to visit an Alabama Department of Public Safety office to obtain your new license. Make sure that you bring a valid copy of your out-of-state license, birth certificate, Social Security card, and proof of address. If all of your information is accepted, you won’t have to take an eye vision exam or a written test.
Additionally, you have 30 days to register your vehicle. To register your vehicle, you must do the following:
After these two requirements are met, a licensing official will collect fees and then issue a license plate. The state of Alabama doesn’t require an emissions test.
While driving in Alabama, you must be aware of Alabama’s unique driving laws.
The state of Alabama has strict laws regarding cell phones use. Text messaging is forbidden for everyone. If you are 16 or 17 with an intermediate driver’s license, you cannot talk on your cell phone. Additionally, Alabama is part of the “Click It or Ticket” program, so you must wear your seatbelt at all times.
Like most states, Alabama has very strict and serious driving under the influence (DUI) laws. If you’re caught with a blood alcohol content (BAC) over 0.08 percent, you’ll face large fines, a jail sentence up to a year, and license suspension. Multiple offenses result in increased penalties. Alabama police officers can issue underage drivers a DUI with only a 0.02 percent BAC.
There are many factors that affect the price of your premium. Some of these factors include:
If you are considered a high risk individual or you have a DUI on your record, an SR-22 insurance policy is required by the state. This policy proves that you have taken financial responsibility for your vehicle if your license has been suspended or revoked.
Even though the cost of your premium may be more than your car is worth, you still need to purchase auto insurance. If repairs cost more than the car, the insurer will total the car and give you a check worth its value.
Finding an auto insurance quote can seem overwhelming – but insuranceQuotes.com helps you find the best car insurance policy at the best price. Every year, we match 15 million consumers to the nation’s biggest auto insurance companies, including State Farm, Allstate and Liberty Mutual.
insuranceQuotes.com connects you with local and national insurance companies that give you free car insurance estimates by phone or email within minutes. By comparing multiple quotes, you can be sure that you’re getting the best price for car insurance.
Rates are based on one vehicle and one driver who has state minimum coverage with $500 deductibles. The hypothetical driver is 35 years old, female or male, employed, a college graduate, and has good credit. She has no traffic violations, claims, or lapse in coverage. The vehicle is assumed to be a sedan that is garaged on premises, used primarily for commuting, and driven 16,000 miles per year. Rates include commonly available carrier discounts and are estimates and not guaranteed.
