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Alabama Car Insurance Requirements

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 Car Insurance 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 Car 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 Car 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:

1st Offense
2nd Offense
Registration Suspension
45 days, includes a $200 reinstatement fee
4 months, includes a $400 reinstatement fee
License Suspension
Up to 6 months

Depending on the circumstances of your case, you could be facing even more penalties, including jail time and the requirement to carry SR-22 insurance.

Extended Car Insurance Coverage in Alabama

While Alabama only requires liability insurance coverage, there are multiple add-ons for your policy to give you stronger protection in the event of an accident.

  • Comprehensive: Protects your car in the event that it sustains damage while not being used. This can include perils such as extreme weather or theft.
  • Collision: Pays for damage to your car after an accident, no matter who was at fault. Medical Payments: Assists you with medical fees you or your passenger accumulates after an accident.
  • Roadside Assistance: Insurance companies may offer assistance to help you when your car is stranded somewhere. This can be from a dead battery or flat tire.
  • Uninsured Motorist Coverage: Despite nearly every state having mandated liability insurance coverage in order to drive, many drivers still forego obtaining policies. If you get into an accident with one of these drivers, uninsured motorist coverage will assist you with paying for medical expenses and property damage when the other driver cannot.
  • Loan/Lease Payoff: Also known as gap coverage, loan or lease payoff will cover the difference in your car's actual cash value and the amount you still own if it is totaled.

Car Insurance is Important For Any Driver in Alabama

While accidents cannot be predicted, being ready for one can be incredibly helpful. You can stay prepared by keeping up with your insurance policy and obtaining the proper amount of coverage. Failure to do so can result in hefty fines and license suspension. Not to mention someone still needs to pay for the damage you have caused. More likely than not, those expenses will fall on you. Insurance is very important no matter what state you are in.

Looking to get your vehicle insured? Let Insurance Navy help. With cheap car insurance rates, Insurance Navy offers you high-quality coverage at an affordable price tag. Get a quote today online or call us at 888-949-6289. Our agents are well-versed and ready to help either via the phone or in person at one of our locations.

*This product may not be available in every state, please call an agent for more information.

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