BIRMINGHAM, Ala. (WBRC) – Finding ways to save money on insurance could take less than 15 minutes, but many people don’t take the time, and one local expert says it could cost hundreds of dollars a year.
According to The Zebra, a popular online insurance comparison marketplace, the average annual full coverage premium for Alabamians is $1,937. That’s $319 less than the national average.
Shopping around can save up to $600 a year for coverage in Alabama, but some aren’t getting those discounts.
“We’re just so busy nowadays a lot of people don’t want to take the time to sit down and jump through those hoops to do the comparison shopping,” said Clay Ingram, AAA Alabama spokesperson.
Skipping this step is possibly costing money, according to Ingram.
“Usually you can get a quote in, you know, just 10-15 minutes or so. Most places it’s free,” Ingram said.
How insurance rates are calculated
Insurance companies use algorithms to calculate rates based on factors like age, driving record, where you live, and credit score.
“And they’re all different, and they all change frequently,” Ingram said.
That’s why what you were quoted one year may be different the next.
Home insurance costs even higher
Shopping around when buying home insurance is just as important, with the state outpacing the national average by more than 50%. The average homeowner in Alabama pays $3,400 a year, according to NerdWallet 2026 data.
“I think the biggest mistake most people make is they don’t really understand what type of insurance coverage they have. And sometimes they have more coverage than they need. Sometimes they don’t have coverage for some things they do need. And so it’s important that you ask questions and you get a very good understanding of exactly what kind of coverage you have and what kind of coverage you need,” Ingram said.
Ingram said it costs more to insure homes and cars these days because it costs more to repair or replace things.
For those thinking about changing insurers or wanting to see if there’s a better deal available, Ingram said to call a trusted insurer or use online search engines. He recommends doing research and making sure the website is legitimate.
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