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Alabama law dictates the minimum requirements for insurance coverage that all drivers must carry. All drivers in Alabama must hold 25/50/25 in bodily injury liability per person, bodily injury liability per accident, and property damage liability per accident. Additionally, drivers can pick from a long list of additional coverages for added protection.
Quick Facts
Car insurance is required by law in Alabama.
Drivers in Alabama must carry 25/50/25 in bodily injury liability and property damage liability coverage.
If caught driving uninsured, drivers face at least $500 in fines and potential jail time.
Minimum Car Insurance Requirements in Alabama
The minimum car insurance requirements in Alabama[1] are:
$25,000 for bodily injury liability per person
$50,000 for bodily injury liability per accident
$25,000 for property damage liability per accident
Alabama is an at-fault or tort state. This means that in the event of an accident, the at-fault driver will need to file a claim with their car insurance company. Once they do, their insurer is required to cover the cost of the accident up to their policy limits. If there are remaining costs, the at-fault driver will have to pay for them out of pocket.
Why is car insurance required in Alabama?
Auto insurance protects drivers from financial liability in the event of an accident. Depending on a policy’s specific coverage limitations, car insurance may cover everything from vehicle damage to medical bills.
Bodily Injury Liability
Bodily injury liability is part of your liability car insurance coverage. If you cause an accident, this coverage will help cover the other party’s medical expenses. This type of coverage will not cover your own medical expenses for injuries sustained in a car accident you caused. Bodily injury liability coverage is required in Alabama.
Property Damage Liability
Property damage liability is the other half of your liability car insurance. It covers repair costs and damage expenses to the other cars involved in an accident you caused. This coverage does not cover damage to your own car in an accident you were at fault for. Property damage liability coverage is required in Alabama.
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Is state minimum car insurance enough in Alabama?
The minimum required car insurance coverage in Alabama provides drivers with a solid foundation of auto insurance coverage, but it may not be enough for everyone. If you cause an accident, for example, and the property damage exceeds $25,000, you’ll be on the hook for the rest of it. You'll need additional coverage if you want to avoid hefty out-of-pocket costs.
Optional Car Insurance Coverage for Alabama
Alabama drivers who want to be protected in any situation should consider bolstering the minimum car insurance coverage with the following supplemental car insurance coverages:
Collision Coverage
Collision coverage covers damages to your car after a collision with another vehicle or object. If your vehicle is a total loss, collision coverage will reimburse you for the actual cash value of your vehicle. This is a great addition to the required property damage liability coverage in Alabama, which applies only to the damages to the other driver’s vehicle.
Comprehensive Coverage
Complementing your collision coverage, comprehensive insurance covers damage to your vehicle that occurs during an event that is not a collision with another vehicle or object. This may apply in situations of vandalism, theft, weather damage, or a run-in with an animal. Adding comprehensive and collision coverage together creates a full-coverage car insurance policy.
Uninsured/Underinsured Motorist Coverage
If an uninsured (or underinsured) driver causes an accident and you suffer bodily injury, uninsured motorist coverage will cover your medical expenses. If the at-fault driver surpasses their bodily injury liability coverage limits, your underinsured motorist coverage will cover the rest of your medical expenses.
Other Supplemental Coverage
There are other forms of supplemental coverage you may want to consider. MedPay, which stands for medical payments coverage, is one example. It will help pay for medical expenses, like doctor visits, X-rays, surgery, and hospital stays, as well as funeral expenses after an accident, no matter who’s at fault.
There’s also rental car reimbursement, which may come in handy if your car is being repaired after an accident and you need a rental car to get around. We can’t forget roadside assistance, which is designed to pay for expenses from a disabled or broken down vehicle. It can be a real lifesaver if you run out of gas, get a flat tire, or need a tow to a repair location.
Minimum Requirements for High-Risk Drivers in Alabama
If you’ve committed a high-risk traffic offense like reckless driving or DUI, Alabama may suspend your license. To reinstate it, you’ll need to file an SR-22 insurance certificate, which is a form your car insurance provider will submit to the government stating you meet the minimum car insurance requirements. You’ll likely be required to carry an SR-22 for three years.
Car insurance companies weigh different factors to determine what to quote drivers on their car insurance policies. Minimum coverage generally means lower car insurance rates. It also means low coverage limits, which may cost you if you’re ever involved in an accident. Here are the cheapest car insurance quotes for minimum coverage in Alabama.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
If you’re in search of cheap car insurance in Alabama, Insurify should be on your radar. Once you share a few details about yourself and your vehicle, you’ll receive personalized quotes from the top auto insurance companies. You don’t have to pay a fee or sign up. This tool offers a simple way to compare car insurance quotes.
Frequently Asked Questions
Is car insurance mandatory in Alabama?
Yes. The required minimum coverage in Alabama is 25/50/25 in bodily injury liability and property damage liability. Driving without it can lead to serious penalties, like fines, jail time, license suspension, and reinstatement fees.
Is Alabama a no-fault state?
No. Alabama is an at-fault or tort state. This means that the driver who caused the accident is responsible for compensating the injured parties. They can file a claim with their car insurance company to do so. If there are any remaining costs after their policy kicks in, they’ll have to pay for them out of pocket.
Does Alabama require uninsured motorist protection?
Technically, Alabama law does require that all car insurance policies include uninsured motorist protection. However, it also states that car insurance companies must offer drivers the chance to “opt out” or refuse this coverage. Therefore, if you don’t want uninsured motorist protection, you’re not obligated to get it.
Do you need car insurance to register a car in Alabama?
You will need proof of car insurance when you register a car in Alabama. If you’re new to the state, you’ll have 30 days to register once you take ownership of your vehicle. If you’re a resident, you’ll have 20 days. You’ll also be required to complete a vehicle information number inspection and pay registration fees.
How can I find cheap car insurance in Alabama?
If you’d like to shop around and find a cheap car insurance policy in Alabama, consider the free Insurify tool. It will allow you to compare carinsurance quotes without having to visit the websites of individual car insurance companies. Simply provide some basic information about yourself and your car to get started.
Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.
