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Are you looking for auto insurance in Birmingham, AL? At AutoInsuranceEZ.com, you’ll find the cheapest insurance rates locally. To acquire free car insurance quotes from the very best providers today, type your zip code into the quote box on this page.

Known by locals as “The Magic City”, Birmingham has come a long way from its humble post-civil-war beginnings. Its troubled history includes two major economic depressions, high crime rates, outbreaks of disease, and volatile protests during the Civil Rights Movement. Luckily, the city has rebounded in ways which may seem magical to outside observers. Today, Birmingham boasts a thriving service industry, dynamic culture, and is the second largest economic powerhouse in Southeast.

Fun fact: did you know that Birmingham, AL is #8 on the list of “Top 101 cities with largest percentage of males in occupations: Supervisors, construction and extraction workers (population 50,000+)”?

Auto Insurance Coverage Requirements in Alabama

Alabama has the following mandatory minimum auto insurance requirements:

Coverage Requirements Most Common
Bodily Injury Liability 20,000/40,000 100,000/300,000
Property Damage Liability 10,000 50,000
Uninsured Motorist Bodily Injury Not required 20,000/40,000
Medical Payments Not required 2,000
Collision Not required 500 deductible
Comprehensive Not required 0 deductible

Because Alabama only requires drivers to carry mandatory Liability coverage, it gives drivers the opportunity to save money each month by only purchasing a minimal amount of insurance. But keep in mind that Liability does not cover you if you get into an accident which was not your fault, if your car is damaged by severe weather, or if your car gets vandalized or stolen. You will have to purchase additional coverage to protect against such events. To find out whether you’re still receiving the most favorable rate, compare cheap Alabama car insurance quotes online.

Based on our research, the average monthly premium for Alabama motorists can be as high as $174 per month. However, if you have a clean record and a relatively good credit history, you could get insured by some of Alabama’s top insurance companies for less than $38/month, as you can see in the chart below:

Average Monthly Auto Insurance Premiums Legend: Birmingham Farmers State Farm Allstate ALFA Nationwide 5 10 15 20 25 30 35 40 45 $31 $43 $45 $32 $41

 
Based on the data above, it looks as though Farmers, and ALFA are vying for lowest premiums in the state. But keep in mind there are other factors to consider, also. How good is their customer service record? Are they available 24/7 if you need to file a claim during non-business hours? How high will your monthly rate spike if you get a ticket? All of these questions can change what is and is not affordable based on your circumstances.

Auto insurance companies evaluate various variables when establishing insurance quotes, including marital status, Type of vehicle owned, driving distance to work, and current insurance coverage and limits. Additionally, premiums differ from carrier to carrier.

Major Car Insurance Factors in Birmingham

There is a wide array of many things that could factor into the rate quotes you are provided with. While many of these issues aren’t actually anything you can do something about, a few of them are elements that you can change for the better. Here are some elements which might change your car insurance premium:

  • Your Zip code

Your auto insurance rates may differ depending on where you call home. In general, highly populated cities have higher auto insurance rates because the extra amount of drivers on the road increases the likelihood of an accident! The population of Birmingham was right around 212,113 as recently as 2013. The Median household income is $31,152.

Auto Insurance by Zip Code Legend: Tuscaloosa Montgomery Mobile Huntsville Birmingham Farmers State Farm Allstate ALFA Nationwide 5 10 15 20 25 30 35 40 45 $27 $30 $34 $25 $31 $33 $33 $36 $36 $43 $40 $39 $45 $41 $45 $29 $30 $31 $28 $32 $40 $43 $43 $39 $41

 

  • Automotive Accidents

If you live in a high-traffic area notorious for motor vehicle accidents, it is likely that your monthly premiums will reflect this danger in the form of a higher payment. You can see the fatal accident statistics for Birmingham in the chart below. There were 38 fatalities recorded in 2013, which is low compared to some areas, but your automotive insurance company may still adjust their rates accordingly.

Fatal Accidents in Birmingham, AL Legend: Birmingham Fatal accident count Vehicles involved in fatal crashes Fatal crashes involving drunk persons Fatalities Persons involved in fatal crashes Pedestrians involved in fatal accidents 10 20 30 40 50 60 70 33 54 8 38 77 4

 

  • Auto Thefts in Birmingham

Auto theft is a major problem, especially in densely populated cities. If your location and/or vehicle model put you at a greater risk for theft, you may have trouble finding low-cost car insurance. The total number of stolen vehicles in Birmingham was 1,478 back in 2013, which is a significant spike from the previous year. The only way to protect yourself from vehicle theft is to purchase Comprehensive coverage on your insurance policy. But, as you can tell from the chart below, that will also raise your monthly premium.

Basic vs. Comprehensive Auto Policy Legend: Basic Coverage Comprehensive Coverage Farmers State Farm Allstate ALFA Nationwide 15 30 45 60 75 90 105 120 $31 $85 $43 $124 $45 $120 $32 $119 $41 $90

 

  • Your Credit Score

Your credit score plays a significant role in what you get charged monthly for your vehicle insurance. As this chart clearly demonstrates, having a poor credit score can almost double – or even triple – what you pay each month to remain insured.

Auto Insurance by Credit Score Legend: Excellent Credit Poor Credit Farmers State Farm Allstate ALFA Nationwide 15 30 45 60 75 90 $26 $68 $30 $100 $36 $71 $31 $53 $38 $56

 

  • Your Age

Statistically speaking, young and inexperienced drivers are the most likely to get into an accident. That’s why older drivers get charged lower monthly rates – because the insurance company is not taking on a huge financial risk by insuring them. If you are a young teenage driver, try looking into good student discounts, as well as Drivers Ed and defensive driving courses.

Auto Policy Age Comparison Legend: 34 Year Old 17 Year Old Farmers State Farm Allstate ALFA Nationwide 20 40 60 80 100 120 140 160 180 200 220 $31 $233 $43 $102 $45 $194 $32 $62 $41 $86

 

  • Your Driving Record

The more tickets, citations, and violations you have on your driving record, the higher your monthly premiums will be. Furthermore, if you have some serious mistakes on your record, such as a DUI, your insurance company may refuse to cover you at all. But for minor incidents, like fender-benders, you could qualify for an Accident Forgiveness discount.

Driving Violations Legend: Perfect Record Minor Speeding Ticket DUI/Reckless Driving Major At-Fault Accident Farmers State Farm Allstate ALFA Nationwide 10 20 30 40 50 60 $31 $45 $53 $50 $43 $47 $47 $54 $45 $49 $58 $61 $32 $34 $43 $35 $41 $42 $66 $57

 

  • Your Vehicle

As this chart shows, there is a significant difference between insuring a regular sedan and a fancy sports car. A good chunk of that price increase comes from the fact that a luxury automobile will require more than just basic insurance coverage.

Car Insurance by Make/Model Legend: 2015 Honda Accord 2012 Porche Boxster Spyder Farmers State Farm Allstate ALFA Nationwide 15 30 45 60 75 90 105 120 135 150 $31 $129 $43 $154 $45 $119 $32 $118 $41 $106

 

Minor Car Insurance Factors in Birmingham

There are certain factors which may seem insignificant, but when compiled together they can have an impact on your overall rate. Those are:

  • Your Marital Status

When it comes to discounts associated with your marital status, most companies have very different opinions on whether married or single people should pay more. But one advantage that married couples have are bundling discounts. If you bundle your insurance policy with that of your spouse, or your homeowner’s insurance, you can get some pretty substantial discounts.

  • Your Gender

Our analysis of the data shows no significant difference in monthly premiums between male and female drivers. Some companies might charge women more, while others might charge men a higher rate. But even for companies who charge different prices, it usually varies by no more than 2-3%.

  • Your Driving Distance to Work

For Birmingham workers, the average daily commute takes about 10-15 minutes (although for some motorists, they could spend up to 20 minutes or more behind the wheel. Those who live closer to the heart of the city tend to carpool more (30-40% of workers), while those living in the outlying suburbs prefer to drive alone (up to 75%).

Some companies pay lip service to your purpose for driving, as well as the miles you drive each year. However, when you analyze the data, most of these factors barely make a dent in your monthly premium – for example, there may be no more than a 4% difference between driving fewer miles for work and tens of thousands of miles for pleasure each year. However, business vehicles tend to have about 10-15% higher premiums than regular vehicles.

  • Your Coverage and Deductibles

Naturally, the more insurance coverage you purchase, the higher your monthly premiums will be. However, you can purchase the coverage you need and keep your monthly rate relatively low by raising your deductible. Yes, you will have higher out-of-pocket expenses in the event of a claim, but you will have lower monthly premiums as a result.

  • Education in Birmingham, AL

Getting a higher education can lead to cheaper car insurance. But the job you end up getting with that education, as well as your yearly salary, do not influence your monthly rates. In Birmingham, most drivers have a high school diploma or some other equivalent level of education.

Birmingham makes getting a higher education easy with nearly a dozen different institutions offering graduate and undergraduate degrees to prospective students. These degrees vary across multiple disciplines, from business and the arts to medicine and engineering. The University of Alabama Birmingham campus is renowned for being one of the best centers for medical care in both the US and the entire western hemisphere.

Finding affordable auto insurance can be a hassle. There’s a lot of information you need to mull over, and figuring out how insurance companies evaluate your potential risk can be complicated. But don’t let the wrong insurance company talk you into purchasing the wrong policy.

How We Conducted the Analysis

*We calculated our average rate based on the following metrics: a married, 34 year old male with good credit, a 12-month history of maintaining auto insurance, a clean driving record, who owns his own home. Miles driven annually were based on the national average. The average rate was also calculated based on a financed 2015 Honda Accord with a pre-installed anti-theft device.

Sources:

Alabama Department of Insurance

Alabama Department of Finance

Department of Highway Safety and Motor Vehicles

City-Data.com

Census.gov

To find auto insurance companies that offer lowest rates in Birmingham, AL please enter your information into the quote box below.

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