Alabama Car Insurance Laws

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  • Insurance requirements in Alabama
  • Alabama liability insurance
  • Mandated insurance limits
  • Should I get more than what’s required?
  • Penalties
  • Other options
  • Cheap car insurance
  • FAQs
Alabama requires drivers to carry a minimum amount of liability car insurance on their vehicles. The insurance minimums in Alabama are listed as 25/50/25. This stands for: $25,000 of bodily injury liability per person; $50,000 of bodily injury liability per accident; and $25,000 of property liability per accident.
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Read on to find out more about car insurance laws in Alabama.
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What insurance do I need in Alabama?

Drivers in Alabama are legally required to carry car insurance. Alabama drivers are required to carry a minimum amount of liability insurance. Here is a breakdown of the Alabama minimum car insurance requirements.

Alabama minimum car insurance

Minimum liability coverage25/50/25
Bodily injury per accident$25,000
Bodily injury per person$50,000
Property damage per accident$25,000
You might also have to show valid proof of insurance if you are stopped by law enforcement when you are behind the wheel.
Key Takeaway Drivers in Alabama need to carry a minimum amount of liability insurance as well as proof of insurance when driving.

Liability insurance in AL

The only type of car insurance that Alabama drivers are legally required to carry is liability coverage.
There are two main types of liability insurance. Bodily injury liability helps cover the cost of injuries and lost wages for the other party if you are at fault. Property damage liability helps cover the cost of property damage for any other parties involved in an accident where you are at fault.

What are the mandated car insurance limits in Alabama?

Alabama car insurance laws require drivers to carry insurance coverage limits listed as 25/50/25.
Insurance limits are the maximum amount that an insurance company will pay out if you cause an accident. The first two numbers are bodily injury liability limits. The last number is a property damage liability limit.
If you choose to purchase the minimum car insurance in Alabama, this is how much coverage you will have if you cause an at-fault accident.
$25,000 of bodily injury liability coverage per person
Your insurance company will pay up to $25,000 to cover the cost of injuries for each person injured.
$50,000 of bodily injury liability coverage per accident
$50,000 is the total amount that your insurance company will pay out to cover the costs of injuries in an at-fault accident.
$25,000 in property damage liability per accident
Your insurance company will pay up to $25,000 to cover the cost of property damage associated with an at-fault accident.
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Should I get more coverage than Alabama’s required insurance minimum?

If you carry only Alabama minimum car insurance—you could be left vulnerable if you are involved in an accident.
Liability insurance only covers the costs associated with another party if you are found at fault. You will need to purchase additional comprehensive or collision insurance to help cover your own expenses in an at-fault accident.
Even then, medical costs and property damage can easily exceed the minimum state limits. For instance, if multiple people are injured, and the total medical expenses exceed $50,000, you could be sued for the remainder of the damage. In addition, the average cost of a new vehicle is well over $25,000—so you could be on the hook for property damage as well.
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Key Takeaway Alabama’s minimum car insurance requirements often don’t provide enough coverage.

What is the penalty for not having car insurance in Alabama?

Alabama drivers who are caught without the minimum car insurance coverage can face serious fines and penalties. If drivers continue to incur penalties after their second offense, they might face consequences like having to carry an SR22or even jail time.
Penalties for not having car insurance in Alabama
OffenseMinimum fineRegistration suspensionReinstatement feeLicense suspension?
First$50045 days$200No
Second (or subsequent)$10004 months$400Possibly - up to 6 months

Additional coverage options

You can choose to purchase additional coverage options to upgrade your minimum liability insurance coverage in Alabama. Here are some more popular insurance options that insurance carriers typically provide.
Collision insurance Collision insurance will help cover the cost of the damage to your car after a collision with another object like a tree or another vehicle. Comprehensive insurance Comprehensive insurance will help cover the cost of non-collision-related damage to your car—including theft, fire, and storms. Medical payments (MedPay) insurance
Medical payment insurance will help cover medical expenses for you and the people in your car.
Uninsured/underinsured motorist coverage
Even if you have enough insurance, the other motorist might not. If you get an accident with a driver who doesn’t have sufficient coverage, uninsured/underinsured motorist insurance will help cover the costs.
Gap insurance If your loaned or leased car is totaled after an accident, gap insurance will help make up the difference between your insurance payout and the money you still owe on your car. Rental car reimbursement insurance Rental reimbursement insurance will help cover the costs of a rental car or alternate transportation while your vehicle is in for repairs after a claim. Roadside assistance insurance Many insurance companies will offer roadside assistance coverage that will help cover the costs of popular emergency roadside services, like towing or gas delivery.
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How to get cheap car insurance in Alabama

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Frequently asked questions

Is Alabama a no-fault state for car insurance?

No. Alabama is considered an at-fault or tort state for car insurance. The at-fault driver is responsible for making a claim and covering the cost of an accident.

What car insurance is required in Alabama?

Alabama drivers are required to carry a minimum of 25/50/25 of liability insurance. This stands for: $25,000 of bodily injury liability per person; $50,000 of bodily injury liability per accident; and $25,000 of property liability per accident.
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