+120 more)
Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
Birmingham’s car insurance rates are lower than the national average, with drivers paying $115 per month for car insurance. Still, the city’s rates are higher than the statewide average.
The city’s combination of busy highways, residential neighborhoods, and University of Alabama at Birmingham traffic may contribute to its higher insurance rates.
Fortunately, companies like National General, Auto-Owners, and USAA consistently offer some of the cheapest car insurance rates in Birmingham.
This guide breaks down the best options in Birmingham by driver profile, coverage level, and more to help you save money.
National General offers Birmingham's cheapest car insurance, at $58 per month.
Birmingham drivers pay an average of $78 per month for liability coverage and $152 per month for full coverage.
Alabama requires drivers to have 25/50/25 liability coverage.[1]
From the Medical District near UAB Hospital to the historic neighborhoods of Highland Park and Forest Park, Birmingham is a hot market for car insurance. That means top insurers may offer big savings if you know where to look.
We analyzed current market data to find the companies that provide the lowest premiums for Birmingham drivers. The table below shows Birmingham’s most affordable insurance companies according to our data.
Company  | Average Monthly Premium |
|---|---|
| National General | $58 |
| Auto-Owners | $64 |
| USAA | $64 |
| State Farm | $65 |
| Direct Auto | $68 |
| Allstate | $70 |
| COUNTRY Financial | $71 |
| The General | $87 |
| Travelers | $88 |
| Bristol West | $90 |
| GEICO | $96 |
| AssuranceAmerica | $100 |
| Root | $103 |
| Nationwide | $110 |
| GAINSCO | $111 |
| Foremost | $113 |
| Safeco | $115 |
| Farmers | $120 |
| Dairyland | $128 |
| Liberty Mutual | $209 |
Your age, coverage choices, driving record, and ZIP code can all affect your car insurance costs. Understanding that each company weighs these risk factors differently can help you make more informed, smarter decisions.
The table below shows the average cost of car insurance for various driver categories and coverage types, according to Compare.com data.
Driver or Policy Type | Cheapest Insurer | Average Monthly Premium |
|---|---|---|
| Liability only | National General | $58 |
| Full coverage | Auto-Owners | $109 |
| Teens | COUNTRY Financial | $120 |
| Seniors | National General | $46 |
| Recent speeding ticket | National General | $74 |
| Recent at-fault accident | National General | $77 |
| DUI conviction | National General | $83 |
| Excellent credit | National General | $51 |
| Poor credit | National General | $72 |
Comparing quotes can save you up to $867.†
Like most states, Alabama requires drivers to have the minimum coverage of basic liability coverage that pays for the injuries and property damage you cause to others. Since this bare-bones policy doesn’t cover your own vehicle or medical bills, it usually makes sense for older cars with low value or drivers on a tight budget.
The average rate for minimum coverage in Birmingham is $78 per month. Below are five of the cheapest companies for liability-only coverage, according to our data.
Full-coverage insurance includes state liability coverage to protect other drivers and comprehensive and collision insurance to protect your own car. This type of policy is ideal if you drive a newer car, want extra vehicle protection, or are financing or leasing your vehicle.
Birmingham’s full-coverage rates average $152 per month. The chart below highlights the five cheapest insurers in Birmingham for full coverage, according to our data.
Because teen drivers have less experience and are more likely to be in crashes, they face some of the highest insurance costs. In fact, no other age group has more accidents than teen drivers, according to the Centers for Disease Control and Prevention.
Teens in Birmingham pay an average of $232 per month for coverage, based on our data. But just because you have a teen on your policy doesn’t mean you’re stuck with sky-high rates forever.
Here are five companies in Birmingham offering the most competitive rates for young drivers, according to our research.
Seniors typically snag the lowest car insurance rates. They’ve often spent decades behind the wheel working on driver safety, and insurers reward that experience with cheap premiums. The average rate for a senior driver in Birmingham is $101, according to Compare.com data.
But you can find an even lower rate if you know where to look. Let’s start with the five companies offering the cheapest coverage for Birmingham’s seniors in the chart below, based on our data.
Tickets and traffic violations can put you in a high-risk category with insurers, triggering more expensive premiums. If you get a speeding ticket on routes like Interstate 65 — which seems constantly under construction — average car insurance prices jump to $153 per month, according to our data.
Switching to an insurance company that’s more forgiving can help you dodge steep premium increases. The insurers in the chart below offer Birmingham’s best insurance rates for drivers with recent tickets, according to our data.
Car accidents are strong predictors of future claims, causing insurers to charge higher prices. The average driver pays an average of $156 per month after a fender-bender in Birmingham.
But you’re not stuck with high costs forever. Many insurers have accident forgiveness programs, even if the accident was your fault. And if yours doesn’t, you can still switch to a company that offers lower rates.
Our research shows that these five Birmingham insurers have some of the best deals on coverage after an accident.
You’ll likely see the biggest rate hike after a driving under the influence (DUI) conviction. In some cases, standard insurance companies can even refuse to cover DUI drivers.
After a DUI, Birmingham drivers pay average monthly rates of $160, according to our data. It’s a reminder that one poor decision can have lasting financial consequences.
But some insurers specialize in high-risk drivers and offer more reasonable rates than traditional companies that might drop you altogether. The table below highlights Birmingham’s five most affordable options for drivers with DUI convictions on their records, according to our research.
Credit history influences what you’ll pay for car insurance in Alabama. Insurance companies link credit management and claims frequency, and charge higher rates to offset the risk.[2] Birmingham drivers with poor credit pay an average of $144 per month for coverage, based on our data.
Fortunately, not every insurer weighs credit history heavily in its pricing models, and some don’t use it at all. Here’s how Birmingham’s insurers stack up for drivers with less-than-stellar credit histories, according to our data.
Price matters when shopping for car insurance, but every driver’s situation is different. What’s cheapest for your neighbor might not be the cheapest for you. Even so, the cheapest insurance policy isn’t always the smartest choice.
The three options below stand out for pricing, available discounts, customer satisfaction ratings, and agent support in Birmingham. Consider getting quotes from these companies to lower your costs.
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $52/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $93/mo |
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
State Farm earns a top spot for Birmingham drivers who value local service and reliability. The company has more than 25 agents offering insurance assistance throughout the Birmingham area. You can save up to 30% by signing up for its Drive Safe & Save program, opting into roadside assistance protection, and taking advantage of discounts designed specifically for students.
| User Reviews | 3.2 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.3 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $60/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $116/mo |
Customers appreciate the initial affordability and claim handling but dislike the frequent and unexplained rate increases, as well as the poor customer service.
Customers appreciate the initial affordability and claim handling but dislike the frequent and unexplained rate increases, as well as the poor customer service.
Progressive offers maximum flexibility in building your coverage. The company has more than 35 agencies in the Magic City and an impressive menu of add-ons, from pet injury protection to rideshare coverage. You’ll get an automatic discount just for trying its Snapshot program. Plus, the Deductible Savings Bank can help lower your out-of-pocket costs over time.
Many customization options
More than 35 local insurance agencies in Birmingham
Low complaint ratings[6]
Rate increases possible with Snapshot
Below-average customer service standing
Loan/lease payoff coverage has low limits
| User Reviews | 3.1 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $88/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $158/mo |
Drivers appreciate the available discounts but dislike the high prices and lack of communication.
Drivers appreciate the available discounts but dislike the high prices and lack of communication.
Nationwide ranks high for drivers who prioritize customer satisfaction and rewards for safe driving habits. The SmartRide usage-based insurance program offers an automatic 15% discount for participating, plus your driving data won’t increase your rates. Pair that with accident forgiveness, and you can be sure that one mistake won’t wreck your rates.
Top-rated usage-based insurance program
Vanishing deductible program available
Great customer satisfaction rating
Limited policy customization options
Few local insurance agents in Birmingham
Android app lacks certain features
Local rates start as low as $58 per month.
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Your driver’s license grants you driving privileges, but you’ll need to understand Alabama’s state requirements before you get behind the wheel. Alabama doesn’t require comprehensive or collision coverage, but your lender will if you’re financing or leasing.
Here’s what Alabama state law requires every driver to have:
Bodily injury coverage: $25,000 per person, $50,000 per accident
Property damage coverage: $25,000 per accident
Uninsured motorist bodily injury: Required unless you opt out in writing[7]
Given that roughly 17% of Alabama drivers don’t have insurance, skipping uninsured motorist protection could prove costly if one of them hits you.[8]
Alabama’s insurance department notes that state minimums are just “basic coverages” and recommends drivers consider additional options depending on insurance needs. Besides higher auto policy liability limits, the state suggests an umbrella policy to boost your protection.
Consider that if you hit a $45,000 SUV on Highway 280, your $25,000 property damage limit leaves you personally on the hook for the remaining $20,000. You’ll be glad you got the extra coverage to protect yourself and your finances.
Birmingham drivers often have the same pressing questions about car insurance costs and coverage options. Here are the answers you’re looking for.
Birmingham drivers pay an average of $115 per month for car insurance. Liability-only coverage averages $78 per month, and full coverage is $152 per month, according to our data.
National General offers the most affordable rates in Birmingham, with average monthly premiums coming in at $58 per month, according to our data. Keep in mind that your rates may be higher or lower, depending on your driving history and other factors.
Not really. Our research shows that Birmingham’s average auto insurance costs $115 per month, while the national average is $137. How much you pay comes down to things like your coverage options, credit history, and vehicle type.
Alabama’s car insurance rates may seem expensive, but rates actually fall below the national average. The state’s moderate population compared to neighboring states with higher populations like Tennessee, Georgia, and Florida may help keep overall insurance costs down.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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