Alabama Car Insurance Requirements

Alabama enacted the Mandatory Liability Insurance Law in 2013. The law provides that “no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy.”

The law was designed to protect consumers who get into an accident, as the uninsured motorist rates in Alabama are some of the highest in the nation.

Alabama Auto Insurance Minimums

To comply with Alabama insurance laws, your liability insurance must meet 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

More comprehensive insurance might be required if you have leased your car. Check your finance agreement to see if you are required to buy collision and/or comprehensive coverage.

Alabama Auto Insurance Exemptions

Certain vehicles are exempt from this law. These include trailers and government-owned vehicles covered under commercial auto liability insurance.

Alabama Auto Insurance Alternatives

If you are a high-risk driver, insurance companies have the right to deny you coverage.

If you cannot find a company that is willing to cover you, you have the right to purchase insurance through the Alabama Auto Insurance Plan (ALAIP). The ALAIP distributes risk across several car insurance companies. You may apply for the plan through any car insurance agent in the state.

Optional Alabama Auto Insurance

Personal injury insurance and property damage insurance are not required. However, most insurance companies will offer these types of additional coverage to help offset your costs in the case of an accident. The following types of insurance may be available:

• Collision – For accident-related damages to your car
• Comprehensive – For any damages to your car that are out of your control, such as weather-related damages
• Medical and funeral – For any medical bills or funeral costs resulting from an accident
• Uninsured motorists – For costs resulting from an accident involving drivers that don’t hold insurance or cannot cover costs with their insurance policy.

Alabama Auto Insurance Violations and Penalties

An owner or operator caught driving without the requisite insurance may be fined up to $500. In addition, the vehicle’s registration may be suspended for up to six months, and the driver’s license may also be suspended for up to six months.

For a second or subsequent violation, a driver can be fined up to $1,000. The driver will again face license suspension for up to six months, and vehicle registration will be mandatorily suspended for four months. Also, the driver will have to pay a $400 reinstatement fee.

If you have your license reinstated after suspension, you may be required to file an SR22. This form is a guarantee that you will maintain the minimum requirements for car insurance.

Alabama Auto Insurance Premiums

To determine your insurance premiums, insurance companies will look at the following factors:

• Driving record
• Age
• Gender
• Credit score
• Car model, make, and year
• The cost of your deductible (what you pay out-of-pocket)

Note that insurance companies will often offer discounts for good drivers, multi-car owners, good students, and homeowners. Inquire with them if any discounts apply to you.

Most Stolen Cars in Alabama

You might pay higher premiums if your car is commonly targeted by car thieves. The following cars are the most-stolen in Alabama:

1. Chevrolet Pickup (Full Size)
2. Ford Pickup (Full Size)
3. Honda Accord
4. Chevrolet Impala
5. Toyota Camry