Best Birmingham, AL Auto Insurance in 2024 (Find the Top 10 Companies Here)

Top Pick in Alabama: State Farm

17,760 reviews

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4.3

Company Facts

Full Coverage in Birmingham

$99/mo

A.M. Best

B

Complaint Level

High

» State Farm Auto Insurance Review

17,760 reviews

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Best Birmingham AL Rates: Erie

1,814 reviews

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4.3

Company Facts

Full Coverage in Birmingham

$140/mo

A.M. Best

A+

Complaint Level

Medium

» Erie Auto Insurance Review

1,814 reviews

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Best Birmingham AL Coverage: Progressive

13,128 reviews

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4.4

Company Facts

Full Coverage in Birmingham

$145/mo

A.M. Best

A+

Complaint Level

Low

» Progressive Auto Insurance Review

13,128 reviews

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The best Birmingham, AL auto insurance plans start at just $99 per month, with leading providers such as State Farm, Erie, and Progressive. This guide delves into how factors like age, ZIP code, and driving record affect your insurance rates.

Understanding these factors will help you find the most cost-effective and appropriate coverage for your needs. Compare your options now to get the best value for Birmingham, AL, auto insurance.

Our Top 10 Company Picks: Best Birmingham, AL Auto Insurance

Company	Rank	Bundling Discount	A.M. Best	Best For	Jump to Pros/Cons
	#1	25%	B	Customizable Plans	State Farm
	#2	13%	A+	Competitive Rates	Erie
	#3	17%	A+	Affordable Coverage	Progressive
	#4	25%	A+	Nationwide Availability	Allstate
	#5	5%	A+	Senior Focus	Nationwide
	#6	10%	A	Flexible Policies	Farmers
	#7	25%	A++	Federal Discounts	Travelers
	#8	20%	A++	Defensive Discounts	Geico
	#9	25%	A+	Customer Services	The Hartford
	#10	20%	A	Broad Coverage	Liberty Mutual

Understanding how your driving history and local conditions affect rates helps you choose the best auto insurance in Birmingham, AL. This guide will help you compare your options.

Start comparing the best auto insurance in Birmingham, AL, right now by entering your ZIP code into our FREE tool above.

Auto Insurance Rates in Birmingham, AL

How much is auto insurance in Birmingham? On average, residents pay $359.78 a month or $4,317.41 annually. That’s much higher than the average Alabama auto insurance rate.

So, how much is car insurance in Alabama per month overall? The average rates are $68/month. Why is Birmingham so expensive? Let’s look at the factors.

Birmingham, AL Auto Insurance Monthly Rates by Provider & Coverage Level

Insurance Company	Minimum Coverage	Full Coverage
	$47	$160
	$35	$140
	$52	$190
	$29	$358
	$55	$300
	$40	$183
	$37	$145
	$28	$99
	$50	$250
	$34	$373

Companies will also change your rates for auto insurance by ZIP code, commute length, credit history, and driving record.

Ready to get affordable automobile insurance in Birmingham, Alabama? Keep reading, and we’ll help you secure Birmingham’s best auto insurance rates.

Birmingham Auto Insurance Premiums Report

Birmingham, Alabama, shows a mixed picture of auto insurance premiums, influenced by factors that drive costs above the national average. The city’s average claim size scores a B-, indicating higher repair expenses driven by frequent severe weather events and accidents in busy urban traffic.

Dealing with your insurance company when your car needs repairs can often be more complicated due to these higher repair costs.

Birmingham, Alabama Report Card: Auto Insurance Premiums

The vehicle theft rate is C+, as Birmingham experiences a higher theft rate than the national average, particularly in its more densely populated urban areas. This not only impacts insurance rates but also contributes to the city’s traffic density, which is rated C+ due to high congestion, especially during rush hours in downtown Birmingham.

Weather-related risks in Birmingham are considered C, as the city faces moderate to high risks from frequent thunderstorms, occasional tornadoes, and occasional hurricane impact, all of which can lead to significant vehicle damage.

Birmingham, Alabama, sees approximately 1,500 auto accidents and 1,200 insurance claims annually, driven by heavy traffic and frequent weather-related incidents. The average claim cost is around $7,500, and with 19% of drivers uninsured, it complicates the claims process.

The city’s vehicle theft rate is 450 annually, contributing further to insurance challenges. In such a scenario, negotiating a car’s value after an accident can be particularly challenging, given the complexities surrounding uninsured drivers and high claim costs.

Birmingham, Alabama Auto Accident & Insurance Claim Statistics

Due to these factors, Birmingham residents face higher insurance premiums than residents of other parts of Alabama. Weather conditions, such as heavy rain and storms, combined with high accident rates, push insurance rates up, making comprehensive coverage and safe driving practices essential for managing costs.

How Gender and Age Affect Auto Insurance in Birmingham, AL

It’s common for companies to determine auto insurance rates by gender and age. Statistically, young and inexperienced drivers are the most likely to get into an accident. These factors affect your auto insurance rates significantly.

According to DataUSA, the average age in Birmingham is 36. See how much people your age are paying on average for auto insurance in Birmingham, AL, in the table below. Birmingham, AL Auto Insurance Monthly Rates by Age

Teenagers face the highest auto insurance costs in Birmingham. However, as you get older, you can expect to see reductions in your premiums. The graph below compares monthly car insurance quotes in Birmingham, AL, for car insurance for teenagers versus 34-year-old drivers.

Auto Insurance Discounts From the Top Providers in Birmingham, AL

Insurance Company	Available Discounts
	Safe driving, New car, Multi-policy, Good student, Anti-theft device
	Safe driver, Multi-car, Reduced usage
	Multi-policy, Safe driver, Good student, Pay-in-full
	Military, Federal employee, Good student, Bundling policies
	Multi-policy, Vehicle safety features, Good student
	Multi-policy, Accident-free, Defensive driving
	Multi-policy, Safe driver, Continuous insurance, Pay-in-full
	Good student, Safe driver, Multi-policy, Anti-theft device
	Home-auto bundle, Defensive driving courses, Vehicle safety features
	Safe driver, Multi-car, Home-auto bundle, New vehicle

If you are a young teenage driver, try looking into good student discounts, as well as Drivers Ed and defensive driving courses. Gender has a lesser impact on your average auto insurance rates. See what we mean in the table below. Birmingham, AL Auto Insurance Monthly Rates by Gender

Our analysis of the data shows the difference in monthly premiums between male and female drivers to usually be between 2 and 3 percent.  Now, let’s combine age and gender so you can get a clearer idea of what your individual quotes might be. Birmingham, AL Auto Insurance Monthly Rates by Age and Gender

Women aged 60 have the lowest average auto insurance rates monthly, with men of the same age also benefiting from lower costs. By age 35, gender has a minimal impact on your average auto insurance rates, with any difference being negligible. These are key factors that affect your car insurance premium.

Cheapest Auto Insurance Rates by Company

Let’s look at who has the cheapest auto insurance rates in Birmingham by company. Check out the following table. Birmingham, AL Auto Insurance Monthly Rates by Provider

Insurace Company	Married 60-year-old female	Married 60-year-old male	Married 35-year-old female	Married 35-year-old male	Single 25-year-old female	Single 25-year-old male	Single 17-year-old female	Single 17-year-old male	Average
	$105	$103	$113	$114	$147	$159	$340	$377	$182
	$122	$122	$129	$131	$122	$139	$721	$1,140	$328
	$140	$145	$154	$156	$171	$192	$414	$533	$238
	$162	$165	$178	$169	$198	$201	$639	$688	$300
	$182	$190	$191	$191	$202	$187	$514	$505	$270
	$193	$206	$216	$215	$245	$253	$856	$882	$383
	$195	$208	$237	$222	$278	$298	$1,010	$1,127	$447
	$231	$259	$283	$306	$301	$320	$1,061	$1,181	$493
	$274	$274	$301	$301	$341	$395	$942	$1,177	$501

USAA auto insurance rates are very competitive. However, only active or retired military personnel and their families are eligible to use their services.

Don’t skip over Travelers insurance; while their rates for teenagers are unreasonable, they offer some of the best rates for drivers who are 25 and older.

If you have a teenager on your policy, Nationwide and Geico may be better options for you than Travelers.  The following graph shows monthly rates from different auto insurance agencies in Birmingham.

Remember that there are other factors to consider when searching for the best auto insurance in Birmingham, AL.

Look into the company’s customer service reviews. Find out if they’re available 24 hours a day if you need to file a claim during non-business hours.

These questions can help you determine what company truly is best for you and your circumstances.

Best Auto Insurance for Commute Rates

Some companies will charge you more if you have an extra-long commute. Fortunately, the average commute time in Birmingham is only 2 minutes, 5 minutes less than the national average. Wondering how to lower premiums?

To insurance companies, a shorter commute means less of a chance of an accident. You guessed it — that means lower auto insurance premiums. What companies will charge you more for a long drive to work? Find out in the table below. Birmingham, AL Auto Insurance Monthly Rates by Commute

Insurance Company	10 Miles Commute 6,000 Annual Mileage	25 Miles Commute 12,000 Annual Mileage	Average
	$174	$191	$182
	$238	$238	$238
	$265	$275	$270
	$300	$300	$300
	$328	$328	$328
	$383	$383	$383
	$447	$447	$447
	$488	$513	$501
	$493	$493	$493

USAA, Geico, and State Farm are the only companies that charge more for longer commutes. To avoid the extra charges, consider using Nationwide, Allstate, or Travelers.

Best Auto Insurance for Coverage Level Rates

You may consider purchasing higher coverage for your vehicle if you have a new car, especially if you’re financing or leasing it. Compare auto insurance to see how much extra coverage may cost you, as shown in the table below. Birmingham, AL Auto Insurance Monthly Rates by Coverage

Insurance Company	Low Coverage	Medium Coverage	High Coverage	Average
	$176	$181	$190	$182
	$237	$236	$241	$238
	$249	$269	$293	$270
	$288	$299	$312	$300
	$311	$335	$339	$328
	$360	$378	$412	$383
	$401	$445	$495	$447
	$469	$490	$519	$493
	$473	$500	$529	$501

Fortunately, you can choose higher coverage while still securing low-cost auto insurance in Birmingham. With USAA and Nationwide, comprehensive coverage is only about $100 more per year than basic coverage. The graph below illustrates the difference in monthly rates between standard coverage and more extensive auto insurance plans, including options like Snapshot (Telematics).

The more extensive your insurance coverage, the higher your monthly premiums will be. Nevertheless, you can manage to keep your monthly rate lower by increasing your deductible.

Although this means higher out-of-pocket costs in the event of a claim, your monthly premiums will be reduced as a result. For details on how to balance coverage and costs, consider the “Auto Insurance Coverage: what events are and are not covered by your policy.”

Best Auto Insurance for Credit History Rates

Your credit score plays a significant role in the monthly charges you get for your vehicle insurance. See how having fair or poor credit can increase your rates in the table below. Birmingham, AL Auto Insurance Monthly Rates by Credit History

Insurance Company	Good Credit	Fair Credit	Poor Credit	Average
	$143	$160	$245	$182
	$203	$224	$287	$238
	$222	$245	$344	$270
	$239	$292	$370	$300
	$278	$411	$813	$501
	$317	$311	$357	$328
	$340	$433	$705	$493
	$351	$370	$429	$383
	$406	$433	$502	$447

Auto insurance companies in Birmingham, Alabama, consider your credit score to be a sign of financial responsibility. Therefore, if you have poor credit, your rates will skyrocket. Take a look at the following chart, which shows how your monthly rates can double if you have poor credit.

If you don’t have a great credit score and qualify for USAA, their rates are the most affordable. Civilians should consider looking into Nationwide.

Best Auto Insurance for Driving Record Rates

The more tickets, citations, and violations you have on your driving record, the higher your monthly premiums will be. Furthermore, if you have serious mistakes on your record, such as a DUI, your insurance company may refuse to cover you at all. Car insurance after a DUI can be particularly challenging. Take a look at the table below to see how just one violation can increase your rates. Birmingham, AL Auto Insurance Monthly Rates by Driving Record

Insurance Company	Clean Record	One Accident	One DUI	One Speeding Violation	Average
	$140	$176	$262	$152	$193
	$181	$293	$366	$241	$280
	$208	$208	$304	$233	$240
	$254	$300	$358	$288	$304
	$273	$286	$421	$332	$327
	$322	$418	$408	$385	$383
	$386	$539	$526	$521	$483
	$403	$510	$435	$442	$449
	$450	$563	$495	$495	$503

A single speeding ticket can raise your rates by up to $200. However, if you have a poor driving record, there’s still hope for lower premiums. For minor infractions, you might be eligible for an accident forgiveness discount. The graph below illustrates how your monthly premiums could rise following a traffic violation, reflecting the impact of Reckless Driving and Auto Insurance Rates.

Avoid the extra fees altogether by practicing safe driving. You could save even more by qualifying for safe driver discounts.  At the beginning of 2020, Alabama changed a state auto insurance law that previously suspended your driver’s license if you were caught driving without proof of insurance two times within a four-year span.

Previously, your license would be suspended for four months even if you could prove you were covered by insurance

The new law no longer leads to a mandatory registration suspension. Local news station WAAY31 covers the story in more detail in the following video. https://youtu.be/WDaX_KyTtbE While the new law gives motorists more leeway, if you’re caught driving without insurance, you still must pay a $400 fine.

Factors That Affect Auto Insurance Rates in Birmingham, AL

Several elements beyond just your gender, age, credit history, and driving record impact your auto insurance rates. Insurers frequently use auto insurance rating tiers to set premiums. If you’re classified as a higher-risk driver, your government auto insurance rates will be higher.

Low-risk drivers get the best auto insurance quotes.

The goal is cheap car insurance, so keep reading. To fully answer the question of how auto insurance premiums are calculated, we also have to consider the city’s road conditions, crime rates, and traffic congestion.

Road Conditions in Birmingham, AL

Road conditions significantly affect the average auto insurance rates in Birmingham. Poorly maintained roads lead to more accidents, which in turn results in higher rates. Review the table below for details on Birmingham’s road conditions and how they influence insurance costs. Also, consider the Minimum Car Insurance Requirements when evaluating your coverage options. Birmingham, AL Road Conditions

The good news is over 75 percent of Birmingham roads are in fair or good condition. The vehicle operating cost is just under $500.

Vehicle Theft in Birmingham, AL

If you live in an area with a high number of vehicle thefts, your auto insurance rates will rise. According to Neighborhood Scout, Birmingham’s property crime rates are high compared to the national average. See what we mean in the table below. Birmingham, AL Property Crime Rates

The elevated rate of vehicle theft in Birmingham results in higher auto insurance premiums. This is because insurers adjust rates to cover the risk of replacing stolen vehicles. If your car model is prone to theft, it may be wise to consider additional coverage for better protection. For insights on how coverage options might affect your premiums, check out the “Auto-Owners Auto Insurance Review.”

Vehicle Type and Auto Insurance

If you have a luxury vehicle, chances are you’ll have to pay more for auto insurance. Why? The car will cost more to replace than a basic sedan. See the chart shown below for more details about how your car type impacts your monthly rates.

There’s a notable disparity in insurance costs between a standard sedan and a high-end sports car. If you’re aiming for cheap auto insurance, you might want to opt for a more budget-friendly vehicle. Also, be aware of the common problems with electric cars which could impact your overall expenses.

Traffic Conditions in Birmingham, AL

When it comes to traffic problems in Birmingham, the major causes of traffic jams are usually due to rush hour traffic.

Rush hour traffic is one of the nation’s most common causes of traffic congestion.

If you drive to work between seven to nine in the morning and drive home between four and six in the evening, TomTom warns that you’ll feel the effects of traffic congestion.  During peak traffic congestion, drivers spend nine extra minutes for every half-hour-long drive in the morning stuck in traffic. You lose another 14 minutes stuck in traffic for every half-hour-long trip in the evenings.

Inrix reports that Birmingham drivers lost a total of 34 hours to traffic congestion in 2019. How does this impact your auto insurance in Birmingham, AL? Bumper-to-bumper traffic increases your risk of getting into an accident.

If you’re wondering how to reduce traffic congestion, try driving when the roads are less busy. Or use public transportation or a bike whenever possible.

If you reside in a high-traffic zone known for frequent car accidents, expect your monthly premiums to increase accordingly due to the elevated risk. The chart below displays fatal accident statistics for Birmingham, which can impact your automobile liability coverage costs.

There were 38 fatalities recorded in 2013, which is low compared to some major cities. Your automotive insurance company will adjust their rates accordingly.

Compare the best auto insurance in Birmingham, AL now by entering your ZIP code into our FREE tool below.