Birmingham is a thriving city with a small-town feel. It’s home to state parks, nature trails, and an abundance of attractions like the Birmingham Zoo, Alabama Theatre, and the Birmingham Museum of Art. It’s located in Jefferson County, the most populous county in Alabama, which could be why its liability-only car insurance rates are higher than the state average.

On average, Birmingham residents pay $73 per month for liability-only insurance and $161 per month for full coverage. The state averages, by comparison, are $64 and $132, respectively.

Your car insurance rates may be more or less than the averages, depending on factors like your driving history, age, gender, and more. Here’s what you need to know about finding an affordable auto policy in Birmingham.

7 of the cheapest car insurance companies in Birmingham 

Finding the best car insurance company for you depends on different factors, such as your budget, coverage preferences, and driving record. To help you start your search, Insurify analyzed and identified the best auto insurers in Birmingham, based on customer satisfaction, AM Best financial strength ratings, average quotes, and more.

Best insurer for liability-only coverage: Auto-Owners

Best insurer for military members: USAA

Best insurer for high-risk drivers: AssuranceAmerica

It will take some time and effort to find the cheapest car insurance for your unique situation. To land the best deal on an auto policy in Birmingham, follow these tips:

• Shop around. It may be tempting to choose a policy from the first car insurance company you find. But if you’d like to save as much money as possible, it’s a good idea to get quotes from several companies and compare your insurance options.

• Consider pay-per-mile insurance. If you’re an infrequent driver, pay-per-mile insurance might be a smart choice. You’ll only pay for the number of miles you drive.

• Ask about discounts. It’s common for car insurance companies to offer a variety of discounts. A few examples include the anti-theft device discount and loyalty discount.

• Bundle policies. You likely need more than one type of insurance policy. If this is the case, you can usually get a discount for bundling an auto policy with homeowners insurance, renters insurance, or life insurance.

Cheapest liability-only car insurance in Birmingham: National General

The state of Alabama requires liability-only car insurance. All drivers must carry minimum limits of 25/50/25.² This type of policy covers the other driver’s property damage and injury expenses after an at-fault accident, not your own. It’s bare-bones car insurance and typically cheaper than full-coverage policies. But if you lease or finance your vehicle, your leasing company or lender will require you to carry full coverage on the vehicle.

Drivers can find the cheapest minimum-coverage policies from National General, with rates as low as $59 per month. Here average monthly quotes from other top insurers offering cheap liability-only car insurance in Birmingham.

Cheapest full-coverage car insurance in Birmingham: USAA

If you’d like extra protection on the road, full-coverage car insurance may be worth it. It usually includes liability, collision, and comprehensive insurance. Your lender or lessor may require you to purchase a full-coverage policy if you have a lease or loan on your vehicle.

USAA offers the cheapest full-coverage policies in Birmingham. Its rates start at $121 per month. Here’s a look at other affordable full-coverage car insurers in Birmingham.

Car insurance requirements in Alabama

Like many states, Alabama is an at-fault, or tort, state. This means that after a car accident, the at-fault driver must cover the medical expenses and property damage costs of the other parties.

Alabama is unique in that it follows the contributory negligence rule. Per the contributory negligence rule, if you’re partly at fault for an accident, you may not be able to recover damages. Drivers must also show proof of insurance while driving to avoid consequences.

Alabama requires 25/50/25 minimum liability insurance, which translates to the following coverages:

While purchasing liability-only insurance is a cost-effective option, it may not be enough to fully protect your vehicle or cover any medical expenses after an accident. If you’re looking for additional protection as a driver in Birmingham, you may want to consider these optional car insurance policies:

Cheapest car insurance for drivers with an incident

At-fault accidents, speeding tickets, and DUIs are a few examples of incidents that can increase your car insurance rates. Birmingham drivers with clean records typically lock in the lowest prices. Fortunately, you can still find affordable car insurance with incidents on your driving record. Here are the cheapest insurers in Birmingham for drivers with incidents on their records.

Cheapest car insurance for drivers with a speeding ticket: National General

In Alabama, speeding was a top contributor to fatal crashes in 2022.³ Speeding can make it difficult to take proper action in dangerous situations and often leads to car accidents. This is why drivers who get speeding tickets can expect higher car insurance costs, even if they don’t cause an accident.⁴

On average, Birmingham drivers with speeding tickets pay $219 per month for full coverage and $99 for liability-only coverage. The table below shows the cheapest liability car insurance for Birmingham drivers with a speeding ticket on their records.

Cheapest car insurance for drivers with an at-fault accident: National General

In 2022, law enforcement recorded 144,263 accidents in Alabama.5 Most of those occurred in urban areas, but the number of fatalities was higher in rural areas. If you cause an accident, your car insurance premiums will likely increase due to your higher risk of another accident.

An at-fault accident pushes average car insurance rates in Birmingham to $220 per month for full coverage and $100 for liability only. The insurers in the table below offer the cheapest car insurance quotes for Birmingham drivers with an at-fault accident.

Cheapest car insurance for drivers with a DUI: National General

In 2022, 6,751 Alabama drivers received DUI citations and 197 people died in drug- or alcohol-related crashes.⁵ Not only can a DUI lead to hefty fines and jail time, but it may also result in more expensive car insurance coverage. This is particularly true if you have to file an SR-22, per Alabama law.

Birmingham drivers with DUIs pay the most for car insurance. Their average monthly rates are $259 for full coverage and $118 for minimum coverage. The table below shows the average monthly liability car insurance quotes for Birmingham drivers with a DUI on their records.

Cheapest car insurance for seniors: National General

Though experienced drivers, seniors are more likely to get into an accident or seriously injured in an accident than middle-aged drivers. Average premiums usually decrease around age 35 and then increase a bit around age 70, but senior drivers still tend to have lower-than-average rates.

Senior drivers see average monthly insurance rates of $141 for full coverage, and $64 for liability-only. Here’s a look at the lowest auto insurance quotes for seniors in Birmingham.

Cheapest car insurance for teens: National General

Teenagers and young adults have less experience behind the wheel than older drivers and face higher car insurance premiums as a result. To save money on auto insurance, teens can stay on their parents’ policy, lock in a good student discount, and complete an approved driving course.

Teen drivers in Birmingham have average car insurance costs of $338 per month for full coverage, and $153 for liability-only policies. For teens and young adults in search of cheap car insurance in Birmingham, start with the insurers in the table below.

Birmingham car insurance quotes by credit tier

Car insurers believe that drivers with good to excellent credit are less risky and usually file fewer claims than drivers with poor credit. As a result, some car insurance companies look at credit histories of prospective policyholders to determine rates. While a handful of states prohibit insurers from considering credit history, Alabama allows it.

The chart below shows that Birmingham drivers with excellent credit pay $196 per month for car insurance, on average, while drivers with poor credit pay an average of $394 per month.

Is car insurance more expensive in Birmingham?

The average cost of a liability-only auto policy in the U.S. is $104 per month, according to Insurify data. For full coverage, the average monthly cost is $184. At $73 and $161, respectively, Birmingham’s car insurance rates are lower than the national average. But Birmingham's averages are higher than the Alabama state averages of $64 for liability-only coverage and $132 for full coverage.

Note that car insurance rates vary by city and ZIP code within Alabama due to factors like population, crime rates, and the number of uninsured drivers. For example, full-coverage quotes for Birmingham are cheaper than they are in Bessemer, Mobile, and Montgomery.

More cities in Alabama

Here’s a look at average monthly car insurance quotes for other cities in Alabama compared to Birmingham’s rates.