Car Insurance in Alabama

Alabama Car Insurance

In 2013, Alabama enacted the Mandatory Liability Insurance Law to help define Alabama car insurance rules for all drivers. The law now requires Alabama drivers to carry auto insurance for their registered vehicles.

Read more to learn about Alabama car insurance requirements, programs, rates and discounts.

Car Insurance Requirements

To fulfill Alabama car insurance laws, you must have liability insurance to help pay for any damages or injuries you may cause to others in a car accident.

Your liability coverage must include the following minimums:

• $25,000 for bodily injury or death per person.
• $50,000 total for bodily injury or death per accident.
• $25,000 for property damage.

Optional Car Insurance

Your liability insurance will not cover damages to your car or your personal injuries. However, most Alabama car insurance companies offer optional types of coverage to help with these costs.

When shopping for car insurance, consider these optional types of coverage:

• Collision – This will help pay for accident-related damages to your car.
• Comprehensive – This will help pay for damages to your car that are out of your control, such as those caused by inclement weather.
• Medical and funeral – This will help cover medical bills or funeral costs after an accident.
• Uninsured motorists –This coverage will help protect you after accidents involving drivers who don't hold insurance or have policies that are not adequate to cover your costs.

NOTE: If your car is being financed or leased, you may be required to buy collision and comprehensive coverage as part of your finance agreement.

AL Insurance Violations and Penalties

If you are caught driving without proper Alabama car insurance, you face the following penalties:

• A fine of:
  • $500 upon your first violation.
  • $1,000 upon your second or subsequent violation.
• Suspension of your car registration.

If your vehicle registration is suspended due to a car insurance violation you will have to pay the following fees to have it reinstated:

• $200 for your first offense.
• $400 for your second and subsequent offenses.

SR22 in Alabama

When you have your driver's license reinstated after a suspension, you may be required to file an SR22 with the state.

An SR22 certificate is not insurance; it is a form of proof of insurance that guarantees you will maintain the minimum requirements for car insurance.

Alabama Auto Insurance Plan

Since liability car insurance is required in Alabama, all licensed drivers are guaranteed access to car insurance. However, auto insurance companies are afforded the right to deny coverage to high-risk drivers.

If you are unable to find an insurance company willing to provide you coverage, you can purchase your insurance through the Alabama Auto Insurance Plan (ALAIP).

Through the ALAIP, Alabama car insurance companies share the risk associated with high-risk drivers . You can apply to the ALAIP through any Alabama car insurance agent.

Determining Your Premiums

When looking to buy car insurance, most car insurance companies will factor in the following when determining your rate(s):

• Driving record.
• Gender.
• Age.
• Credit.
• Your car's make and model.
• Your deductible(s).
  • This is the amount of your claims you must pay out of pocket.
  • The higher your deductible, the lower your premium.

Alabama Car Insurance FAQs

What is the basic car insurance in Alabama?

Alabama's basic liability insurance requirements are a minimum of $25,000 for property damage, $25,000 for injury/death to one person, and $50,000 for total injury/death per accident.

What type of insurance is mandatory in Alabama?

Alabama only requires liability insurance as mandatory insurance. All other insurance types in the state are optional.

Can someone drive my car if they are not on my insurance in Alabama?

Yes, someone else can drive your car in Alabama, even if they are not listed on your insurance. In Alabama, insurance follows the car, not the driver. As long as you've given your explicit permission, they should be covered under your policy. 

Is Alabama a no-fault state?

Alabama is not a no-fault state. It follows a fault-based insurance system, where the driver found at fault for the accident is liable for damages.

What happens if you drive without insurance in Alabama?

Driving without insurance in Alabama could result in hefty fines and license suspension. You face paying $500 for a first offense, and $1,000 for each offense thereafter.