Car Insurance Requirements in Alabama (2024)

Alabama requires all drivers to carry a minimum amount of bodily injury and property damage liability insurance.

Jess Ullrich
Written byJess Ullrich
Jess Ullrich
Jess UllrichInsurance Writer
  • 10+ years writing insurance and personal finance topics

  • Former associate finance editor for Investopedia

Jess is a subject matter expert in insurance, banking, and other personal finance topics. Her byline has appeared in numerous top web media, including Investopedia.

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Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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Updated June 20, 2024

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Cheapest recent rates in Alabama

Drivers using Insurify have found quotes as cheap as $36/mo for liability only and $66/mo for full coverage in Alabama.

*Quotes generated for Insurify users from Alabama within the last 10 days. Last updated on June 20, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users from Alabama within the last 10 days. Last updated on June 20, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Whether you’re moving to Alabama or you’re a homegrown, new Alabama driver, you’ll need car insurance to protect you behind the wheel. Alabama law requires a minimum amount of car insurance coverage.

Here’s what you need to know about the state’s car insurance requirements, insurance rates, penalties for driving without proper coverage, and more.

Quick Facts
  • Alabama allows insurers to review your credit history when formulating rates during the underwriting process.

  • You’ll need a minimum of $25,000 per person and $50,000 per accident in bodily injury liability coverage and $25,000 in property damage liability coverage to drive legally in Alabama.

  • Insurance rates in Alabama are more affordable than in many other states, including Florida.

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Rates start at $37 per month for liability-only policies

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Alabama car insurance requirements

Alabama drivers must obtain a certain amount of bodily injury and property damage liability coverage to meet state minimum insurance requirements.[1]

You may also need additional coverage if you have an existing auto loan, as lenders often require collision insurance and comprehensive insurance on financed vehicles.

Here are Alabama’s minimum car insurance requirements.

Bodily injury liability insurance

Bodily injury liability insurance can cover medical expenses for other drivers, their passengers, pedestrians, and your unrelated passengers if you’re found responsible for a car accident. For instance, if the other driver is brought to the emergency room by ambulance after the accident, your bodily injury insurance would compensate them for that expense.

This coverage can also pay for other things, such as legal costs if you’re sued after an accident. And it can cover lost wages for injured parties and funeral costs if someone dies due to injuries from the accident.

Alabama requires drivers to obtain at least $25,000 in bodily injury liability insurance per person and $50,000 per accident.

Property damage liability insurance

You’ll also need property damage liability insurance to drive legally in Alabama. Like bodily injury liability coverage, this insurance offers financial protection if you’re at fault in an accident. It can pay for repairs to another driver’s vehicle after an accident or to an object like a mailbox, lamppost, garage door, or home. 

For instance, if you mistakenly put your car in reverse and back into the side of your friend’s home, your property damage liability insurance can compensate your friend for the damage.

You must have at least $25,000 in property damage liability insurance in Alabama.

Alabama car insurance laws

Alabama state legislators enacted the Mandatory Liability Insurance Law to help ensure the state’s drivers have proper auto insurance coverage.[2] People who are found driving without proper car insurance are subject to civil penalties, including fines and driver’s license and car registration suspensions. Fines can be costly, totaling over $1,000 for repeat offenders.

Do you need more than state-minimum coverage in Alabama?

Alabama law only requires you to obtain liability insurance, but you may want more coverage depending on your needs and preferences.

Many drivers opt for full-coverage insurance for added protection on the road. A full-coverage insurance policy typically includes bodily injury and property damage liability, collision coverage, and comprehensive coverage.

Full-coverage car insurance often makes sense if you drive a new car and want help paying for any damage to it. Your lender may also require you to obtain full coverage if you’ve financed your vehicle.

People who drive an older-model, high-mileage vehicle might choose a liability insurance policy instead, especially if the full-coverage insurance premiums exceed the vehicle’s total value.

On average, Alabama drivers pay around $159 monthly for full-coverage car insurance. A liability-only policy averages $60 per month, but it also offers less protection.

The cost of liability-only car insurance in Alabama

Drivers who opt for liability-only car insurance in Alabama pay around $60 per month, according to Insurify data. These low rates are offset by the fact that liability-only insurance offers limited protection, only compensating others for their injuries and damages if you’re found responsible for a car accident.

Here’s a look at how much liability-only auto policies cost from different insurance companies.

The below rates are estimated rates current as of: Tuesday, June 18 at 12:00 PM PDT
Insurance CompanyAverage Monthly Quote
USAA$37
State Farm$37
Auto-Owners$37
Allstate$40
COUNTRY Financial$41
Travelers$51
National General$54
GEICO$55
Direct Auto$57
Nationwide$63
Progressive$67
Farmers$68
Safeco$72
Clearcover$75
AssuranceAmerica$75
Foremost$85
Midvale Home & Auto$88
Liberty Mutual$110
GAINSCO$114
Bristol West$120
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

The cost of full-coverage car insurance in Alabama

Full-coverage car insurance is more expensive than liability only, costing Alabama drivers an average of $159 per month. While it may cost more, it also provides more protection.

For instance, collision insurance can compensate you if your car is damaged in an accident and needs repairs. Comprehensive can cover the cost of fixing your car if it’s damaged due to a weather event, fire, burglary, or theft.

Here’s a look at the full-coverage rates Alabama insurers offer.

The below rates are estimated rates current as of: Tuesday, June 18 at 12:00 PM PDT
Insurance CompanyAverage Monthly Quote
USAA$69
State Farm$69
Auto-Owners$69
Allstate$75
COUNTRY Financial$76
Travelers$94
GEICO$103
Nationwide$118
Safeco$122
National General$122
Progressive$126
Farmers$127
Clearcover$130
AssuranceAmerica$135
Direct Auto$141
Midvale Home & Auto$151
Liberty Mutual$189
State Auto$202
Foremost$213
GAINSCO$238
Bristol West$288
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest recent rates in Alabama

Drivers using Insurify have found quotes as cheap as $36/mo for liability only and $66/mo for full coverage in Alabama.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 20, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 20, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Penalties for driving without proof of insurance in Alabama

If you drive without the required car insurance in Alabama, you may be subject to the following penalties:

  • Fines: You’ll pay a $500 fine the first time you’re caught driving without car insurance and $1,000 for each subsequent offense.

  • Suspensions: Your driver’s license may be suspended for up to six months if you’re caught driving without insurance on multiple occasions.

  • Reinstatement fees: You’ll pay a $200 fee to reinstate your car registration after your first offense and a $400 fee for each subsequent offense.[3]

Optional car insurance coverages to consider

In many cases, you may want more than just minimum liability coverage. Additional car insurance coverage is often a good idea because it provides added protection and more peace of mind.

Here are some optional types of insurance Alabama drivers might consider:

  • illustration card https://a.storyblok.com/f/162273/x/169fdfde11/liability-coverage.svg

    Collision coverage

    If your car is damaged in an accident, no matter who’s responsible, your collision insurance can pay for the vehicle damage. It can also cover repair costs whether you’re involved in a single- or multi-car accident.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    If your car is damaged due to a natural event, like a hailstorm, your comprehensive insurance can compensate you for repairs. It also offers protection from things like fires, fallen tree limbs, burglary, and theft.

  • illustration card https://a.storyblok.com/f/162273/x/5285c4cd74/uninsured-or-underinsured-motorist-coverage.svg

    Uninsured/underinsured motorist coverage

    While penalties for being caught without proper auto insurance are hefty in Alabama, that doesn’t mean all drivers have coverage. Suppose you’re involved in a crash with an at-fault driver who’s uninsured. In that case, uninsured/underinsured motorist coverage can compensate you for your car repairs or the cost of medical bills.

  • illustration card https://a.storyblok.com/f/162273/x/4c9753bdbe/medical-payments.svg

    Medical payments coverage

    Medical payments coverage, often called MedPay, can pay for your medical bills after a car accident. It can also cover funeral expenses if you die from your injuries.

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Check Out: Gap Insurance – How It Works and What It Covers

Alabama car insurance requirements FAQs

If you’re still wondering about car insurance requirements in Alabama, here are answers to some of the most commonly asked questions about coverage.

  • Does Alabama require car insurance?

    Yes, car insurance is required in Alabama. The state mandates that drivers obtain a certain amount of bodily injury and property damage liability insurance.

  • What is the minimum car insurance coverage for Alabama?

    You’ll need a minimum of $25,000 per person and $50,000 per accident in bodily injury liability coverage and a minimum of $25,000 in property damage liability coverage.

  • Do you need car insurance to register a car in Alabama?

    You may need car insurance to register your vehicle in Alabama. The Alabama Department of Motor Vehicles will attempt to verify your insurance as part of the registration process. If they can’t verify it with your insurance company, they will likely ask you for proof of insurance.

  • Does insurance follow the car or the driver in Alabama?

    Car insurance generally follows the car in the state of Alabama, not the driver. This means if a friend uses your car and crashes it into a guardrail, your insurance will kick in to pay for repairs. Such an event also likely means higher car insurance rates for you.

  • What is considered full coverage in Alabama?

    A full-coverage car insurance policy in Alabama includes bodily injury and property damage liability, collision, and comprehensive insurance.

Sources

  1. Alabama Department of Insurance. "AUTOMOBILE INSURANCE FAQS."
  2. Alabama Department of Revenue. "Mandatory Liability Insurance."
  3. Be Sure to Insure Alabama. "Alabama Insurance Checklist."
Jess Ullrich
Jess UllrichInsurance Writer

Jess is a personal finance writer who's been creating financial and business content for over a decade. Her work is published on Investopedia, MoneyWise, NextAdvisor, The HuffPost, and more. Prior to freelancing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz. Connect with her on LinkedIn.

Chris Schafer
Edited byChris SchaferSenior Editor
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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