Car insurance in Alabama costs roughly $1,028 per year, or $86 per month, on average, and drivers can pay even less by comparing quotes from different car Alabama car insurance providers. That is less than drivers in other states typically pay for car insurance.
How Much Insurance Costs in Alabama for:
- Good drivers: $1,276
- New student drivers: $4,692
- High-risk drivers: $2,156
Where Alabama Insurance Rates Rank Nationally
Alabama ranks 7 out of 50 for the most affordable car insurance rates in the U.S. For context, Michigan has the most expensive insurance in the country, with drivers paying an average of $2,693 per year. And on the other end of the spectrum, Maine has the lowest average car insurance rate, at $896 per year.
Below, you can see how car insurance costs in Alabama compare to rates in other states.
||Average Cost of Car Insurance per Year
Why Is Alabama Car Insurance So Cheap?
Low Crime Rate
Alabama has a high crime rate compared to other parts of the country. However, Alabama is mostly a rural state with small cities and towns. This means cars aren't parked in busy downtown areas or getting into crashes on crowded highways, so insurance costs stay low.
Lower Insurance Requirements
State laws affect insurance costs, too. Alabama has lower insurance requirements than many other states, which means insurance is slightly cheaper.
State fault laws: Since Alabama's insurance is at-fault, car insurance costs are a bit cheaper. No-fault insurance states tend to see a lot of fraud, which raises costs.
In addition to these statewide factors influencing car insurance costs, your personal information also affects the price you pay for insurance. Some of the most impactful data points are high-risk violations on your record (e.g. DUI), your age, and your car’s make and model. In Alabama, a driver's credit score affects their insurance costs, too - a driver with no credit pays an average of 28% more than a driver with a good credit score.
Whether you are considered a responsible or high-risk driver, it is always worthwhile to compare costs between several insurance companies. In other words, make sure to shop around to find a good deal for your demographic.
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