Business & Finance Alabama (AL) Rank #44 of 50

Insurance Underwriter Salary in Alabama

The median insurance underwriter salary in Alabama is $67,738 per year, which is 13% below the national median of $77,860.

Median Salary
$67,738
vs National
$-10,122
State Rank
#44 of 50
Cost of Living
87%

Insurance Underwriter Salary Overview in Alabama (2026)

Alabama ranks #44 out of 50 states for insurance underwriter compensation. Insurance Underwriter salaries in Alabama are below the national median, though the lower cost of living can offset the difference. At $67,738 per year, insurance underwriters in Alabama earn $10,122 less than the national median of $77,860.

A key advantage of working in Alabama is its below-average cost of living (87% of the national index). This means the $67,738 salary has the purchasing power of roughly $77,860 in an average-cost area.

The salary spread in Alabama is significant: insurance underwriters at the 10th percentile earn $42,282, while those at the 90th percentile bring home $109,968 — a $67,686 gap that reflects differences in experience, specialization, employer type, and metro area. The highest-paying city in Alabama for this role is Huntsville, where the median reaches $71,631.

Nationally, insurance underwriter employment is projected to grow -2% over the next decade (decline). Despite slower growth nationally, experienced insurance underwriters with in-demand specializations continue to command strong salaries.

Insurance Underwriter Salary in Alabama by Experience

In Alabama, an entry-level insurance underwriter earns around $43,500, while experienced professionals earn up to $100,050 per year. The cost of living index in Alabama is 87% of the national average.

Entry Level (0-2 yrs)
$43,500
$-6,500 vs national
Mid Level (3-7 yrs)
$67,860
$-10,140 vs national
Senior Level (8+ yrs)
$100,050
$-14,950 vs national

Build Wealth on Your Income

With a $67,738 income, financial advisors recommend investing 15–20% annually. Start building a diversified portfolio with as little as $10.

See Investment Options →

Salary Percentiles in Alabama

Percentile AL Salary
10th Percentile $42,282
25th Percentile $53,244
Median (50th) $67,738
75th Percentile $87,000
90th Percentile $109,968

Insurance Underwriter Salary by City in Alabama

The largest employment areas for insurance underwriters in Alabama include Birmingham, Huntsville, Montgomery, and Mobile. Salaries vary by city based on local cost of living and demand.

How to Become a Insurance Underwriter in Alabama

Education

Most insurance underwriter positions require a bachelor's degree. Alabama has several accredited institutions offering relevant programs.

Key Skills

Risk AssessmentAnalytical SkillsInsurance RegulationsUnderwriting SoftwareDecision-MakingAttention to Detail

Job Outlook in Alabama

Nationally, insurance underwriter employment is projected to grow -2% over the next decade (decline). Alabama's demand may vary based on local industry trends.

Negotiate Your Way to Senior Pay

Data shows Insurance Underwriters who negotiate earn 7–15% more. A single negotiation could add $32,312 over your career trajectory.

Get Negotiation Scripts — $197 →

Open to Insurance Underwriter Roles in Alabama?

Get matched with recruiters hiring insurance underwriters in Alabama at competitive salaries.

Or browse positions directly:

Frequently Asked Questions: Insurance Underwriter Salary in Alabama

How much does a Insurance Underwriter make in Alabama? ▼
The median insurance underwriter salary in Alabama is $67,738 per year, which is 13% below the national median of $77,860. Salaries range from $42,282 (10th percentile) to $109,968 (90th percentile).
How much does a Insurance Underwriter make per hour in Alabama? ▼
Based on the median annual salary of $67,738, a insurance underwriter in Alabama earns approximately $33 per hour assuming a standard 2,080-hour work year.
Is Alabama a good state for insurance underwriters? ▼
Alabama ranks #44 out of 50 states for insurance underwriter pay. The cost of living index is 87% of the national average. Entry-level insurance underwriters earn $43,500, while senior professionals earn $100,050.
How does Alabama compare to other states for insurance underwriter salary? ▼
The highest paying state for insurance underwriters is Hawaii at $132,362. Alabama's median of $67,738 ranks #44 nationally. Nearby-ranked states include Missouri ($68,517) and South Dakota ($68,517).
What is the entry-level insurance underwriter salary in Alabama? ▼
An entry-level insurance underwriter in Alabama earns approximately $43,500 per year. With 3-7 years of experience, pay increases to around $67,860. Senior-level professionals with 8+ years earn up to $100,050.
What city in Alabama pays insurance underwriters the most? ▼
Huntsville is the highest paying city in Alabama for insurance underwriters, with a median salary of $71,631. Other cities include Birmingham and Montgomery.