Find Car Insurance in Birmingham, Alabama

What You Should Know About Car Insurance in Birmingham, AL

Birmingham, Alabama, was founded in 1871, where two railroad lines crossed each other near the world’s largest deposit of minerals that included iron ore, coal, and limestone. Birmingham was named after England’s iron industry center of the same name. In 1873, the city became the seat of Jefferson County, but soon after, a number of residents died from cholera, causing many to leave the area. Though the city has been through numerous ups and downs, its current economy thrives, in part, due to its steel production, world-class medical facilities, and the largest banking centers in the nation.

Located near the Appalachian Mountains’ foothills, Birmingham contains a large amount of green space, including such places as Oak Mountain State Park, Red Mountain Park, and Railroad Park, where residents and visitors alike can enjoy outdoor activities. Important places of interest include the Civil Rights Institute, McWane Science Center, the Southern Museum of Flight, and the Sloss Furnaces Historic Landmark. The Birmingham Barons — the city’s minor league baseball team — was established as the Birmingham Coal Barons in 1885.

Five major highways, including I-20, I-59, I-65, and I-22, pass through Birmingham, making for easy access to nearby cities and neighboring states. Before you take on these busy highways, protect yourself with the best car insurance in Alabama. Expert agents are ready to help you find the high-quality insurance you deserve.

How Much Does Car Insurance Cost in Birmingham, Alabama?

Alabama drivers pay a yearly average of $441 for minimum liability coverage and $1,843 for full coverage auto insurance premiums. These rates are lower than the national averages of $622 for minimum and $2,014 for full coverage.

Why Is Insurance So Cheap in Alabama?

Alabama’s cost of living is lower than the national average, meaning auto repair costs and medical expenses are less expensive. About 67% of Alabama’s residents are employed by private companies, while about 30% have a bachelor’s degree or higher — these educational level and employment history numbers may mean many Alabama drivers are a lower risk for insurers. Also, a recent study ranked Alabama as number 10 on a list of states with polite drivers who are more likely to stay calm on the road, which also means lower risk for insurers.

Affordable Car Insurance Rates Comparison by Cities in Alabama

Car insurance rates vary within the state due, in part, to a zip code’s crime and accident rates. Here is a comparison of rates within different cities in Alabama.

City	Full Coverage Insurance	Liability Insurance Coverage
Birmingham	$141	$40
Mobile	$136	$39
Jacksonville	$121	$33
Tuscaloosa	$127	$36
Huntsville	$120	$35

How Bundling Your Car and Homeowners Insurance Can Save You Money in Birmingham

You can save yourself from the hassle of dealing with multiple insurance carriers by bundling your insurance. Bundling gives you a one-stop-shop experience — it simply means buying more than one type of insurance coverage from just one carrier.

Besides streamlined service and policy management, bundling can provide you with discounts — up to 25% off your policies. So if you need auto insurance and homeowners coverage for your home in Shoal Creek or any other Birmingham neighborhood, ask your agent about bundling.

Your InsureOne agent will provide you with white-glove service by comparing policies to find you customized options, along with cost savings.

What Types of Car Insurance Discounts Are Available in Birmingham?

Bundling is just one way you can save money on your coverage. Here are some examples of other ways to save in the form of discounts for which you may be eligible:

• Full premium payment upfront
• Military
• Good student
• Clean driving record
• Safe driving class completion

Notable Car Insurance Laws in Birmingham

Birmingham follows Alabama law, which requires all drivers to have liability insurance. You will be required to have this insurance to register your vehicle. This requirement protects other drivers should you cause damage to them in an accident that is your fault.

Alabama law also requires insurers to offer you uninsured/underinsured motorist coverage when you buy a policy — you may decline the coverage, but you must do so in writing.

If you drive your vehicle for business purposes, such as for ride sharing, you may be required to purchase additional coverage beyond the state-mandated liability limits. Your insurance agent can answer questions about your specific situation and help you get the coverage you need.

What Are the Mandatory Car Insurance Requirements in Birmingham?

Alabama requires its residents who are drivers to carry the following minimum insurance:

• Bodily injury liability per person: $25,000
• Bodily injury liability per accident: $50,000
• Property damage liability: $25,000

If you still have a loan on your vehicle, your lender will most likely require you to purchase collision and comprehensive coverage to protect their investment. If you refuse to buy this coverage, your lender has the right to buy it for you and then charge you for the payments.

If you are unsure what to buy, your agent can help you decide on the insurance type and the right amount of coverage.

What Is the Penalty for Driving Without Insurance in Birmingham?

If a police officer catches you driving without insurance, you may be subject to the following consequences:

• Fine of up to $500 for a first offense
• Fine of up to $1,000 for a second and subsequent offenses
• Jail time of up to three months for a first offense
• Jail time of up to six months for a second and subsequent offenses
• Vehicle registration suspension
• License suspension
• Reinstatement fees

Driving uninsured is a misdemeanor in Alabama. Getting caught can label you as a high-risk driver, requiring your insurer to file an SR-22 with the state on your behalf and making insurance difficult to find and more expensive than before the offense.

What Factors Go into My Car Insurance Cost in Birmingham?

Your agent will review information about you in their underwriting process to help determine your rates. Here are some of these factors:

• Driving record
• Your age
• Your car’s age
• Your car’s make and model
• Your mileage
• Marital status
• Employment history

Typical Driving Conditions in Birmingham

About 20% of Alabama’s accidents are related to bad weather. Birmingham’s heavy rains can decrease visibility, cause slippery roads, and lead to hydroplaning. Other conditions that can increase your risk of an accident include:

• Speeding
• Failing to obey traffic laws and signals
• Blind intersections with obstructed views
• Distracted driving

A few of the most accident-prone areas in Birmingham are Valleydale Road, where heavy traffic increases your risk of an accident. Drivers at the junction of I-65 and University Boulevard tend to speed and make frequent lane changes. And roundabouts, such as 5 Points South, can be a source of confusion about right of way for some drivers.

Statistics show that about 52% of Alabama’s fatal accidents happen between dusk and dawn, and about three-fourths of the state’s car crashes happen in Jefferson County, where Birmingham is located. Whatever the time of day and conditions, stay alert and keep a safe distance between you and the driver ahead of you.

How Many Car Accidents Happen in Birmingham Per Year?

There were 974 fatal car crashes in 2023 in Alabama. Some cities within the state have more crashes than others due, in part, to population differences — there are typically more auto accidents in areas with more cars.

City	Annual Average Number of Fatal Car Crashes
Birmingham	43
Mobile	36
Jacksonville	0
Tuscaloosa	6
Huntsville	26

How Many Uninsured/Underinsured Motorists Are in Birmingham?

In 2023, Alabama ranked 15th among the 50 states for having the most uninsured/underinsured drivers — that means 16.8% or about 17 of every 100 Alabama drivers you encounter on the road have no insurance or inadequate coverage to pay for your damage if they crash into you. Your agent can answer all your questions about uninsured/underinsured motorist coverage.