The best car insurance in Birmingham, AL

By

Erin Gobler

Erin Gobler

Insurance Expert

Erin Gobler is a freelance insurance writer at Policygenius, specializing in auto insurance. Erin has been writing about insurance and other personal finance topics since 2018 and has been published in some of the industry’s leading publications.

Published November 19, 2021

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The average car insurance rate in Birmingham is $1,971, slightly higher than the average cost of car insurance in Alabama, which is $1,726 per year. Drivers in the state pay a rate that’s slightly higher than the national average, which could partially be due to the fact that Alabama has one of the highest rates of uninsured drivers in the country. Luckily, several insurance companies offer rates in Birmingham that are below the state’s average.

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Because Alabama drivers pay higher insurance rates, it’s important to shop around for the best rates. Policygenius can help you get quotes from the top insurance companies in Birmingham and find the best policy for you.

Key Takeaways

  • USAA offers the cheapest insurance rates in Birmingham, on average

  • GEICO has the lowest insurance rates for Birmingham drivers with bad credit

  • Alabama drivers are required to have at least $25,000 per person and $50,000 per accident in bodily injury coverage and $25,000 in property damage liability coverage

Cheapest car insurance companies in Birmingham, AL

Insurance companies use a variety of factors to set car insurance rates. Those factors include your age, gender, driving history, credit score, and more. And while they all use the same information to set rates, they each have their own internal systems to decide just how much weight each factor should have. As a result, one driver could get very different rates from different insurers. Below, you can see how some of the different Birmingham insurance companies stack up when it comes to rates.

Company

Average cost

JD Power Rating

USAA

$1,032

890

GEICO

$1,119

871

COUNTRY Financial

$1,273

863

Nationwide

$1,285

876

Cincinnati Insurance

$1,494

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Cheapest car insurance rates by ZIP code in Birmingham, AL

You already know that your location impacts your insurance rates, but it’s not just your state and city that insurers consider. The ZIP code you live in can also impact your insurance rates. Some neighborhoods have higher rates of uninsured drivers, more accidents, or higher crime rates. As a result, drivers in those neighborhoods are likely to pay higher insurance rates. On the other hand, drivers in lower-risk neighborhoods are likely to pay lower insurance rates.

ZIP code

Average cost

35203

$1,963

35204

$2,011

35205

$1,938

35206

$1,977

35207

$1,973

35208

$2,028

35211

$1,995

35212

$1,940

Choosing the right car insurance company in Birmingham, AL

With Alabama's above-average insurance rates, it’s important to shop around for a good insurance rate. Policygenius can help you get quotes from the top insurance companies in Birmingham. Additionally, our insurance experts can answer all of your insurance questions.

Car insurance rates for drivers with driving violations in Birmingham, AL

Your driving history is one of the most important factors when it comes to your insurance rates. Having a violation like a speeding ticket or at-fault accident on your driving record can cause a huge spike in your insurance rates. And unfortunately, some of these offenses stay on your record for several years, causing your rates to stay high. Certain insurance companies offer more favorable rates to drivers with violations on their records. You can see below just how each insurer treats different driving offenses.

Violation

USAA

GEICO

COUNTRY Financial

Nationwide

Cincinnati Insurance

At-fault Accident

$1,604

$1,920

$1,755

$2,306

$2,696

DUI

$2,329

$2,451

$2,194

$2,905

$3,661

Driving with a suspended license

$2,205

$2,451

$2,194

$2,905

$3,661

Driving with an open container

$1,679

$2,451

$1,729

$2,905

$3,007

Driving with expired registration

$1,283

$1,341

$1,729

$1,727

$1,891

Driving without Lights

$1,283

$1,341

$1,729

$1,727

$1,891

Failure to show documents

$1,283

$1,291

$1,729

$1,727

$1,891

Failure to stop at a red light

$1,283

$1,341

$1,729

$1,727

$1,891

Cheapest car insurance for drivers with bad credit in Birmingham, AL

You may be surprised to learn that your credit score can have a significant impact on your car insurance rates. Research has shown drivers with poor credit are more likely to file insurance claims. As a result, those drivers are likely to pay higher insurance rates. On the other hand, drivers with good credit are likely to pay lower insurance rates. As you can see below, GEICO offers the best average rates for drivers with bad credit.

Company

Rates for drivers with bad credit

GEICO

$1,686

USAA

$1,888

Safeway Insurance

$2,005

COUNTRY Financial

$2,084

Nationwide

$2,141

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Buying car insurance in Birmingham, AL

Like most states, Alabama requires drivers to carry a certain amount of insurance to legally operate a vehicle in the state. Alabama requires that drivers carry the following liability insurance coverages:

  • Bodily injury liability coverage of $25,000 per person and $50,000 per accident

  • Property damage liability coverage of $25,000

Alabama isn’t a no-fault insurance state. As a result, the at-fault driver in an accident is financially responsible for any damages. Your required insurance coverage is designed to cover your liabilities in the event that you cause an accident. But remember that the damages for an accident could exceed your insurance coverage limits. In that case, you would have to pay the remainder of the costs out of your own pocket.

Alabama is one of the strictest states in the nation for its penalty for driving without insurance. If you’re caught driving without insurance coverage in the state, you could be subject to a misdemeanor charge and a fine of $500 to $1,000. Additionally, you may have your driver’s license and vehicle registration suspended for up to 180 days, and even run the risk of spending time in jail.

How to get cheap car insurance in Birmingham, AL

Alabama drivers pay insurance rates that are higher than the national average. As a result, you’re probably looking for ways to save money on your car insurance. Here are a few strategies that can help you get cheaper insurance in Birmingham:

  • Shop around. Insurance rates can vary significantly from one company to the next. Policygenius can help you get quotes from the top companies in Alabama to help you get the best coverage for the best price.

  • Save with discounts. Most insurance companies offer discounts to help customers save even more. Discounts are available for safe driving, bundling your policies, having vehicle safety features, and more.

  • Raise your deductible. Your deductible is the amount you pay out of pocket before your insurance coverage kicks in. In general, insurance premiums decrease as your deductible increases.

Frequently asked questions

How much is car insurance in Birmingham?

The average car insurance premium in Alabama is $1,726 per year, which is slightly higher than the national average, and the average Birmingham insurance premium is even higher at $1,971 per year.

Who has the cheapest car insurance in Birmingham?

USAA has the cheapest insurance rates in Birmingham, with an average rate of $1,032. However, USAA policies are only available to military members, veterans, and their families. GEICO has the cheapest insurance available to all drivers, with an average rate of $1,119.

Why is car insurance in Alabama expensive?

Alamaba has one of the highest rates of uninsured drivers in the country, which could contribute to the state’s above-average insurance rates.

What factors affect my car insurance rates?

Your insurance rates are determined by factors that include your age, gender, location, driving history, credit score, driving frequency, and coverage amount.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.