*Recent rate context from Bankrate’s Alabama analysis and other 2024–2025 studies.

**J.D. Power 2024 U.S. Auto Insurance Study (Southeast region). Based on a 1,000-point scale.

The Average Cost of Car Insurance in Alabama

Recent statewide studies indicate Alabama drivers pay roughly $1,650–$2,200 per year for full coverage and about $400–$600 per year for minimum coverage, based on 2024 rate analyses from Bankrate, NerdWallet and The Zebra. If you own a newer-model vehicle or finance one, full coverage may be required by your lender  since it helps pay to repair or replace your vehicle in addition to covering the damages and injuries to others if you’re at fault in a crash. The cheaper car insurance range reflects minimum limits you’ll need to legally drive in the state, but that only helps financially protect you against damages and injuries you cause to others. Elevated auto-insurance inflation since 2023 means many drivers will see higher quotes than in prior years (BLS CPI).

The rates presented are an average and vary depending on many factors. A clean driving record, and a claims-free history means you’ll likely pay less for car insurance than other drivers. To find the lowest price, it’s always best to get several car insurance quotes before choosing the best car insurance company for your needs, and consider a telematics program for potential additional savings.

Top 3 Cheapest Car Insurance Companies in  Alabama

* Based on recent Alabama comparisons from Bankrate and similar 2024–2025 studies; individual premiums vary.

Top 3 Most Expensive Car Insurance Companies in Alabama

* Based on cross-source national patterns reflected in 2024–2025 studies (e.g., Bankrate, NerdWallet, The Zebra); state results vary by profile.

Top 3 Cheapest Cities for Car Insurance in Alabama

* Rankings reflect consensus across 2024–2025 Alabama analyses (e.g., Bankrate, NerdWallet, ValuePenguin); exact dollar averages vary by source and profile.

Top 3 Most Expensive Cities for Car Insurance in Alabama

* Rankings reflect consensus across 2024–2025 Alabama analyses (e.g., Bankrate, NerdWallet, ValuePenguin); exact dollar averages vary by source and profile.

Guide to Alabama Car Insurance 

If you’re new to Alabama, you’ll need to visit the Alabama DMV to change your driver’s license or register your vehicle. New residents should complete registration and licensing promptly; check the state site for current deadlines and requirements. 

Alabama’s move-over law requiring Alabama drivers to pull into the passing lane applies when you see a vehicle with flashing or emergency lights on the shoulder. If it isn’t safe to change lanes — or if you’re on a two-lane highway with oncoming traffic — you are required to slow significantly below the posted limit.

Other things you should know about car insurance in Alabama are:

• Car insurance is mandatory in Alabama.
• Alabama drivers must carry at least a minimum amount of car insurance.
• Alabama is an at-fault state — the driver who caused the crash is financially liable.
• It’s legal for an insurance company to check your credit-based insurance score before it insures you.

Alabama Minimum Insurance Requirements

Alabama requires that drivers carry at least 25/50/25 liability insurance, per state MLI guidance. It’s the minimum amount of insurance required to legally drive in the state.

Minimum liability required in the state of Alabama is divided as follows:

• $25,000 bodily injury liability coverage per person
• $50,000 bodily injury liability coverage per accident
• $25,000 property damage liability coverage per accident

Uninsured motorist coverage must also be offered but can be declined in writing (Ala. Code § 32-7-23). Most insurance agents recommend that you consider purchasing higher limits for more financial protection.

Car Insurance Coverage Options 

Flooding, tornadoes, and hurricanes happen in Alabama, and recent severe weather across the Southeast has kept comprehensive auto losses elevated (NOAA). If you only have minimum coverage and your car is flooded, or a tree branch falls on your vehicle, you won’t have coverage. Minimum coverage doesn’t provide any coverage for damage to your vehicle — only damage you cause to the other party. You would need to pay for repairs out of pocket if you don’t have comprehensive and collision coverage. For more protection, you may want to consider some additional coverage types:

• Collision insurance: Collision coverage could pay for repairs or replacement to your vehicle if the damage is caused by a collision, regardless of who is at fault.
• Comprehensive insurance: Comprehensive coverage is designed to pay to repair or replace your car if it’s damaged by non-collision events like weather, fire, animals, or theft (see III).
• Uninsured and underinsured insurance: Alabama has a high percentage of uninsured drivers (about 19.5% (2022 estimate)). Underinsured and uninsured motorist coverage could help cover your repair costs if you’re in an accident with an uninsured driver or a driver who doesn’t have enough coverage to pay for your damages. 

Frequently Asked Questions

Methodology

Reviews.com reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers — referencing current sources such as U.S. News, Bankrate and J.D. Power (2024).

As for average pricing, we referenced 2024–2025 rate studies for car insurance in Alabama (e.g., Bankrate’s state analysis), which use modeled driver profiles and filed-rate data. For full coverage, a typical profile includes higher liability limits plus comprehensive and collision; details vary by source.

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a common mid-size sedan, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes.

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