Alabama Minimum Car Insurance Requirements
Alabama has a required minimum amount of liability auto insurance every driver must carry. The mandatory minimums for the state of Alabama are as follows:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage per accident
Alabama drivers must also carry proof of insurance and present it when asked to by law enforcement. Keep in mind that the minimum liability insurance may not be enough to cover you entirely in an accident. If your car is being leased, you may be required to obtain full coverage auto insurance.
Alabama Liability Coverage
The state of Alabama only requires drivers to carry liability insurance. As outlined above, it is generally broken down into bodily injury and property damage coverage. Bodily injury coverage pays for medical expenses and lost wages that you have caused to another driver in an accident. Property damage coverage pays for the damage that you have caused. This type of insurance does not cover your car or your injuries in an accident.
Car Insurance Limits in Alabama
Almost every state in America has a mandated minimum amount of liability insurance you must carry as a driver. As we have outlined, Alabama has a required liability insurance minimum of 25/50/25. The first two numbers refer to bodily injury, while the last refers to property damage.
- Bodily injury per-person coverage limit is the maximum amount of money your insurance policy will pay for one person you have injured in an accident.
- Bodily injury per-accident coverage refers to the most amount of money insurance pays for all injured parters in an accident you have caused.
- Property damage per accident is the maximum amount your insurer will pay for damage you caused to someone else’s property in an accident.
Is Alabama’s Mandatory Insurance Minimums Enough Coverage?
In short, no. Carrying strictly the state-mandated minimum for liability insurance is never enough. It leaves a lot of room for you and your assets to be unprotected following an accident you have caused. Medical expenses can get very pricey, very fast, and the property damage liability minimum does not even cover the average price of a new car should you total someone else’s. It is always recommended you purchase insurance well beyond the state-mandated liability minimums.
Driving Without Insurance in Alabama
If you choose to forego car insurance in the state of Alabama, you could be hit by some severe penalties. The chart below outlines what you may be facing if caught driving without insurance in Alabama: