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Alabama Car Insurance Information

Requirement : Yes

Car insurance is required in Alabama . Drivers must have a minimum of liability insurance.


Minimum Coverage Car Insurance Requirements:

A minimum liability insurance policy is required:

  • $25,000 for injury/death to one person.
  • $50,000 for injury/death per accident.
  • $25,000 for damage to property.

Other Car Insurance Coverage Options:

Liability coverage is the only requirement for Alabama motorist to have, there are several other types of coverage available to drivers:

  • Comprehensive – Covers damages due to your non-accident related damages to your car, such as inclement weather.
  • Collision – Covers damages to your vehicle due to an accident.
  • Medical and funeral services coverage – Assists with medical payments, or funeral expenses due to an accident.
  • Uninsured/Underinsured motorist coverage – Covers you in case you’re involved in an accident with an uninsured party.
  • Note: Comprehensive and or collision coverage is optional, unless the vehicle is being financed or leased, the lending/leasing agency may require you to purchase comprehensive and collision coverage.

Other Forms of Financial Responsibility:

Other legal ways around buying car insurance include:  

    • $50,000 minimum Motor vehicle bond  
    • $50,000 cash or securities bond.

 

Proof of Insurance: Yes

You must carry proof of insurance with your vehicle at all times, you must also have proof of insurance in order to renew your registration. The insurance company (provider) will give you an insurance card as proof of insurance.


The card will include:

  • Vehicle’s information:
    • Make
    • Model
    • Year
    • Safety Rating
    • Value
  • Your policy name & name of any other drivers insured under the policy.
  • The policy term’s expiration date.
  • A new policy card will be provided every time you renew your car insurance policy.
  • * You may either use the Alabama’s Online Insurance Verification System, or a valid insurance card as proof of insurance.

Getting Pulled Over:

  • If you’re pulled over by a police officer, you must show your proof of insurance, along with your driver’s license and car registration.

Violations, Fines & Penalties:

You are required to have proof of car insurance in the state of Alabama , if you are pulled over and cannot provide proof of insurance, or other forms of financial responsibility, you may face the following fines:

  • $500 for first offense.
  • $1,000 for second or subsequent offense.
  • Suspension of driver’s license for 6 months.
  • Suspension of your car registration.
    • Second or subsequent offenses have a mandatory 4 month registration suspension.

Suspended Registration:

If your registration is suspended due to a car insurance violation the following fees have to be paid before your registration is reinstated:

  • $200 for first offense
  • $400 for second or subsequent offense(s)

SR22:

An SR22 may be required after a suspension in order to get your driver’s license reinstated. An SR22 certificate only certifies proof of insurance of minimum requirements, it is not insurance.


Credit Scores & Determining Your Insurance Premium :

All licensed drivers in the state of Alabama are guaranteed access to car insurance, however, insurance providers are reserved the right to deny coverage to high-risk drivers. Drivers unable to get private coverage can purchase insurance through the Alabama Auto Insurance Plan (AAIP).

Other factors that may be used to determine your premiums include:

  • Driving record
  • Gender
  • Age
  • Credit
  • Make/model of your vehicle
  • Your deductible(s)
    • The higher the deductible, the lower the premium.

Discounts : Yes

Discounts available in Alabama:

  • Good driver discount
  • Good student discount
  • Multi-car discount
  • Homeowner’s discount

Cellphone Use:

It is illegal to text, instant message, or send emails while driving. Individuals of 16 or 17 years old, and have held a license for under 6 months may not use a cellphone, or mobile device while driving.


Alabama Minimum Coverage Laws

Carriers in Alabama

Full Insurance Laws for Alabama

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