Cheap Auto Insurance Quotes in Birmingham, AL (2023)

With 550 technology companies as well as manufacturing, healthcare, and banking jobs, Birmingham is bustling. The population and business density may be why Birmingham residents looking for car insurance can expect to pay an average of $167 per month for minimum-coverage car insurance, and $252 per month for full-coverage car insurance. 

In Alabama, the average cost of auto insurance is $185, making full-coverage car insurance in Birmingham $67 (36%) more expensive than the state average.

How much does car insurance in Birmingham, Alabama, cost?

Insurify data scientists analyzed Birmingham car insurance data to identify the cheapest quotes in the area. However, car insurance costs can vary depending on personal factors including your driving record, age, gender, the type of car you have, and even your credit history.^[1] You should compare quotes to ensure you’re getting the best combination of price and coverage to fit your personal car insurance needs.

• The car insurance company with the cheapest liability-only insurance coverage in Birmingham is State Farm, averaging $64 per month.

• The car insurance company with the cheapest full-coverage car insurance in Birmingham is State Farm, averaging $105 per month.

• The car insurance company with the cheapest coverage for new/young drivers in Birmingham is Travelers, averaging $173 per month.

Learn More: Cheap Car Insurance in Alabama

Cheapest car insurance in Birmingham: State Farm 

The cheapest car insurance company in Birmingham is State Farm, with an average rate of $84 a month. Its average liability-only insurance coverage costs $64 per month and its average full-coverage insurance costs $105 a month.

Not every driver in Birmingham will be able to secure the lowest car insurance rates. Your car insurance premium payment will depend on numerous factors like your age, credit history, and driving record.^[1] 

Below are the insurers, including State Farm, that offer cheap car insurance rates in Birmingham.

Average cost of auto insurance in Birmingham

The average cost of car insurance in Birmingham, Alabama, is $154 a month. Your actual car insurance premium will depend on whether or not you choose liability-only or full coverage, as well as other personal factors like age, driving history, and more.^[1]

The following table provides insight into the average monthly cost of car insurance in Birmingham by insurer.

Average car insurance premiums in Birmingham by marital status

Insurify data shows those who are married pay less for car insurance than single people. In Birmingham, the average single person pays $218 a month and the average married person pays $207 a month for car insurance.

It’s more likely for married couples to bundle their auto policies if they have more than one vehicle or a home, which saves money. Be upfront about your driving history if you get married; if one of you has bad credit or a poor driving history, you might not be eligible for a lower rate.

How much car insurance do you need in Birmingham?

The minimum insurance requirements for Birmingham are:

• $25,000 bodily injury liability per person

• $50,000 maximum for all bodily injuries in a singular accident

• $25,000 maximum for property damage in a singular accident ^[2]

But drivers may want to consider purchasing higher coverage limits.

Hear from the experts:

Eyal Ron

Founder, Iron City Insurance

“We encourage our clients to pay at least 100/300/100 in order to avoid any future liability suit against them,” says Eyal Ron, founder of Iron City Insurance, an independent insurance agency located in Birmingham, Alabama.

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Ron recommends the following instead of the state minimum:

• $100,000 bodily injury liability per person

• $300,000 maximum for all bodily injuries in a singular accident

• $100,000 maximum for property damage in a singular accident.

Ron explains that property damage coverage should be adequate to cover more than just a vehicle. For example, he says if your car hits a telephone pole, you could be liable for costs associated with fixing or replacing the pole.

When you receive your insurance cards, place them in your vehicle. You are required to show proof of insurance if a law enforcement officer requests it. In Alabama, as of Jan. 1, 2023, officials can verify your car insurance by using OIVS, the Online Insurance Verification System, when you get or renew your car registration. But if they can’t verify it online, you can show them your proof of insurance.^[3]

Alabama DMV information

If you want to get a driver’s license, renew your registration, or access motor vehicle records, visit the Alabama Law Enforcement Agency, where you can access online services and find in-person locations near you.

Tips for getting cheap car insurance in Birmingham

When it comes to car insurance, here are a few key steps you can take in order to reduce your overall premiums.

• Consider bundling your auto and homeowners insurance. By combining different types of insurance policies together with the same provider, you can often save on both premiums. 

• Shop for discounts. Different insurers offer various discounts, such as those for multi-car households or good student grades. Do your research and speak with an insurance agent to see what savings you could benefit from by switching providers. 

• Increase your deductible. Doing this may initially cost you a little bit more if an accident does occur, but it will often result in significantly lower premiums overall. Weigh your options carefully before making any major changes. 

• Drive safely. This not only saves you from hefty fees but will also reflect positively on your record should you need to switch providers or renew existing policies in the future.^[4]

Check Out: Compare Home and Auto Insurance Bundles

How age affects car insurance rates in Birmingham 

A driver’s age is a crucial component when insurance companies calculate premiums because it helps predict someone's driving history and tendency to make claims. Because they may lack experience, younger drivers could be charged higher car insurance rates compared to older drivers who have a longer track record behind the wheel.^[1]

The table below provides insight into how a driver’s age can affect their monthly premiums in Birmingham.

Cheapest car insurance for young drivers in Birmingham: Travelers

The cheapest car insurance for young drivers with full-coverage policies in Birmingham is Travelers, at an average cost of $173 a month. Young drivers might be able to save on car insurance premiums by taking a defensive driving course. Additionally, asking for a student discount and maintaining a positive driving record can also help lower car insurance premiums over time.^[4]

Here’s a look at car insurance premiums for young drivers in Birmingham.

Cheapest car insurance for middle-aged drivers in Birmingham: Foremost Signature

The cheapest car insurance for middle-aged drivers with full-coverage policies in Birmingham is Foremost Signature, at an average cost of $126 a month, followed closely by Amigo USA. To get the best price, middle-aged drivers should compare quotes from several companies as well as maintain good credit and a good driving record.^[4] The following table shows average car insurance quotes for middle-aged drivers in Birmingham.

Cheapest car insurance for senior drivers in Birmingham: Assurance America

The cheapest car insurance for senior drivers with full-coverage policies in Birmingham is AssuranceAmerica, at an average cost of $122 a month, followed closely by Progressive. Senior drivers can potentially lower their insurance premiums by reducing coverage on older cars and bundling their homeowners and car insurance.^[4] Here’s a look at auto insurance rates for senior drivers in Birmingham.

How credit scores affect cheap car insurance in Birmingham

Your credit score is a numerical reflection of your personal financial history, based on criteria such as payment record, debt levels, and past borrowing activity.

Insurance providers often take credit scores into account when assessing an individual driver's risk of filing a claim.^[5] As such, having a strong credit score can result in lower insurance rates, while someone with poor credit may experience higher costs as they are deemed more likely to cause an accident or submit claims.

Although five states have outlawed the use of credit scores in calculating premiums, Alabama isn’t one of them.^[6] This means that Alabama car insurance companies are free to consider your credit score when determining what you pay for insurance.

Here are the averages for full-coverage monthly car insurance premiums in Birmingham, Alabama, based on credit score.

Read More: Car Insurance Rates by Credit Tier

The effect of driving habits on car insurance in Birmingham

Your driving habits can significantly influence your car insurance rates. If you have a serious driving offense, like a record of speeding tickets, then your insurer may deem you as a high-risk driver and charge higher premiums.^[1]

Alternatively, if you drive safely and responsibly by following traffic laws and refraining from distracted driving, your insurance company may reward you with lower rates.

Cheapest car insurance with a clean record in Birmingham: State Farm

Having a clean driving record can help you save on car insurance premiums compared to drivers who have a history of unsafe habits. How much you save will depend on where you live, the type of car you drive, your age, and other factors.^[1]

The following table provides a snapshot of the rates good drivers can expect to find in Birmingham.

Cheapest car insurance with an accident in Birmingham: State Farm

Getting into a car accident can seriously affect your car insurance rates. In fact, your rate can increase by $45 to $169 on average in Alabama after an accident. How much your rate increases depends on how serious the car accident is, what type of insurance you have, and your past driving record. In some states, whether or not you were at fault in the accident also affects the rate.^[7]

The table below shows the average increase in car insurance rates after an accident in Alabama.

Cheapest car insurance with a DUI in Birmingham: State Farm

A DUI is a serious offense, and it can be difficult to get car insurance if you have this type of traffic violation on your record. In fact, according to the Insurance Information Institute, “a drunk driving incident is likely to trigger a nonrenewal from virtually every insurance company.”^[7] Even if your insurance company doesn’t reject your car insurance policy, your premium can increase by as much as $104 to $385 a month on average. 

Below are the cheapest car insurance companies in Birmingham for drivers with a DUI.

Cheapest car insurance with a speeding ticket in Birmingham: State Farm

If you get a speeding ticket while driving, it’s an indication you may have unsafe driving habits. As such, it’s likely your car insurance rates will increase. The amount will depend on how fast you were driving, your past driving record, and your car insurance company. 

Below are the average rates of car insurance companies for drivers with a speeding ticket:

Car insurance in other Alabama cities

Where you live affects your car insurance costs. Rates can vary widely, even among cities in the same state. Check out these articles for insight into car insurance costs in some other Alabama cities.

• Cheapest Car Insurance Quotes in Mobile, AL

• Cheapest Car Insurance Quotes in Auburn, AL

• Cheapest Car Insurance Quotes in Bessemer, AL

• Cheapest Car Insurance Quotes in Madison, AL

Birmingham driving conditions

Birmingham has poor driving conditions, with 41% of major roads in poor or mediocre conditions, according to the transportation issues nonprofit TRIP. These bad roads may cause damage to vehicles and expenses for Birmingham drivers. Additionally, the city has significant traffic, with the average driver losing 40 hours per year in jams.^[8]

Auto theft statistics in Birmingham

There’s been an increase in auto thefts in Birmingham, especially in the east and west areas, which saw a 140% increase and an 83.3% increase, respectively, in 2023 compared to 2022.^[9] Police also caution that auto theft rates increase during the wintertime as many people may keep their cars running while they make quick errands.^[10]

Find local Birmingham agents

Birmingham car insurance FAQs

Here are answers to some commonly asked questions about car insurance in Birmingham.