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Auto Insurance in Alabama

The State of Alabama currently requires that all drivers be covered under liability auto insurance and proof of car insurance always be accessible within the vehicle at any moment. Alternatively, coverage for drivers can come in the form of a cash deposit of no less than $50,000 or a vehicle liability bond filed with the Alabama DMV.

Proof of insurance is required to be shown at the time of an accident, if you are pulled over, and when you are registering your vehicle. If you are unable to provide proof of auto insurance when operating a vehicle, then your license could be suspended, and you will face fines up to $500 even for the first offense.

Alabama Minimum Liability Coverage

Liability coverage is required by law in Alabama. The minimum liability amounts for the State of Alabama are as follows:

  • $25,000 bodily injury per person.
  • $50,000 total bodily injury per accident.
  • $25,000 total property damage per accident.

Remember that these are only the minimum requirements set by the state. Experts always advise that drivers get more than the state-mandated minimums, particularly if you have assets you need to protect, since these limits have not kept pace with the skyrocketing costs of car repairs and medical care. Also, getting liability coverage alone will not cover you in case of damage to your own car, so most drivers will want to add collision and comprehensive coverage to their policies.

Uninsured/Underinsured Motorist Coverage

Some, not all, states will require that drivers carry UM/UIM, also known as uninsured/underinsured motorist coverage. This coverage will protect the driver in the event that an accident occurs and the other party does not have auto insurance.

The State of Alabama does not currently require this coverage.

No-Fault Insurance

Alabama is not a no-fault state, so no-fault insurance is not required.

As a tort state, Alabama requires that the at fault driver pay for the victim’s medical expenses. In addition, the victim may pursue compensation for lost wages from having to miss work as well as pain and suffering.

Alabama SR-22 Requirements

SR-22 is a document required to be filed with a state's DMV as proof that the minimum liability coverage for the state is being carried. Not everyone needs an SR-22 filing. SR-22s are typically required for a driver to reinstate their driving privileges after an offense such as a DUI conviction, uninsured auto accident, or driving without proof of insurance.

Some states do not require SR-22 filing to reinstate a driver's license, but Alabama is not one of those states.

Alabama DUI Laws

In Alabama, BAC (blood alcohol content) of 0.08% is considered to be enough for a DUI charge. Upon your first DUI offense, your driving privileges will be revoked immediately for the next 90 days in addition to possible fines and time in jail. Alabama also has an implied consent law allowing for your license to be automatically revoked if you deny a test if you are pulled over for an alleged DUI.

Additional Information on Alabama Insurance

For additional information, you can contact the Alabama Department of Insurance at 334-269-3550 or go to their website at Read more about the Most Popular Auto Insurance Carriers in AL.