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Alabama car insurance

Alabama Auto Insurance Minimums, Laws and Requirements

Each state requires registered drivers to carry a certain amount of Minimum Liability Coverage auto insurance.

Alabama mandates all drivers in a household to be covered by liability insurance and have proof of insurance in the vehicle with them at all times. Alternatively, drivers can cover themselves with cash deposit - not less than $50,000 – or a vehicle liability bond filed with the Alabama DMV.

Drivers are required to show proof of insurance the time of registration or if they are stopped or involved in an accident. If you are caught operating a vehicle without insurance coverage, you could have your license suspended and face fines and penalties up to $500, first offense.

Furthermore, drivers must submit proof of insurance before they can register their vehicle.

Alabama Minimum Liability Coverage
Each state sets its own minimum liability amounts. In Alabama they are as follows:

  • Bodily Injury for One Person: $25,000
  • Bodily Injury for All Injuries: $50,000
  • Property Damage: $25,000

Alabama Uninsured/Underinsured Motorist Coverage
Some states require drivers to carry Uninsured/Underinsured (UM/UIM) motorist coverage. This protects a driver in case they are involved in an accident and the other person is not adequately covered by an auto insurance policy.

Alabama does not require this coverage.

No Fault Insurance
In Alabama, you are not required to carry no-fault insurance.

Alabama is a Tort state meaning that the driver at fault must pay a victim’s medical expenses. Further, the victim can also pursue compensation for additional lost wages as well as pain and suffering.