Average insurance rates across 87 cities in Alabama
| City | Population | Home /yr | Auto /yr | Health | Renters |
|---|---|---|---|---|---|
| Birmingham | 782,111 | $1,961 | $1,505 | $519/mo | $17/mo |
| Huntsville | 215,006 | $2,029 | $1,558 | $521/mo | $18/mo |
| Montgomery | 200,603 | $1,938 | $1,488 | $518/mo | $17/mo |
| Mobile | 187,041 | $1,915 | $1,470 | $517/mo | $17/mo |
| Tuscaloosa | 164,414 | $1,961 | $1,505 | $519/mo | $17/mo |
| Auburn | 105,386 | $1,961 | $1,505 | $519/mo | $17/mo |
| Hoover | 91,995 | $1,961 | $1,505 | $519/mo | $17/mo |
| Florence | 81,268 | $1,961 | $1,505 | $519/mo | $17/mo |
| Anniston | 79,717 | $1,961 | $1,505 | $519/mo | $17/mo |
| Dothan | 73,037 | $1,961 | $1,505 | $519/mo | $17/mo |
| Decatur | 57,525 | $1,961 | $1,505 | $519/mo | $17/mo |
| Madison | 56,967 | $1,961 | $1,505 | $519/mo | $17/mo |
| Vestavia Hills | 38,600 | $1,961 | $1,505 | $519/mo | $17/mo |
| Phenix City | 38,413 | $1,961 | $1,505 | $519/mo | $17/mo |
| Prattville | 38,124 | $1,961 | $1,505 | $519/mo | $17/mo |
Alabama residents pay an average of $2,280 per year for home insurance and $1,750 for auto insurance. Alabama follows an at-fault insurance system, meaning the driver who caused the accident is responsible for damages. The minimum auto liability coverage required is 25/50/25.
Health insurance in Alabama averages $530 per month for an individual Silver marketplace plan. The weather risk level is high, with significant exposure to hurricanes. Top insurance providers in Alabama include State Farm, Allstate, USAA.
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Policygenius The ZebraThe average home insurance cost in Alabama is $2,280 per year. Rates range from $1,500 to $3,200 depending on home value, location, and coverage level.
Auto insurance in Alabama averages $1,750 per year for full coverage. The state minimum coverage is 25/50/25.
Alabama has moderate insurance costs, with home insurance at $2,280/yr and auto at $1,750/yr compared to national averages of $2,300 and $1,800 respectively.
Alabama requires minimum liability coverage of 25/50/25 (bodily injury per person / per accident / property damage in thousands). It follows an at-fault system.
Last updated: March 2026. Insurance cost estimates are averages for informational purposes.