Understanding Liability Car Insurance Requirements in Alabama
Why You Can Trust EverQuote
EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.
Every state has laws that govern vehicle ownership and driving on public roads. In Alabama, one of the laws vehicle owners must follow is the mandatory liability insurance law.
Use this guide to understand how much auto insurance coverage you need to meet these requirements, and learn some tips for finding affordable liability car insurance in Alabama.
Importance of Liability Insurance in Alabama
Liability coverage helps protect everyone on the road from the financial consequences of accidents caused by other drivers. If someone else causes an accident and damages your vehicle, you can file a claim with their liability insurance provider. Even if the driver doesn’t have enough personal assets to cover the damages you incurred, their mandatory liability insurance should pay for them up to the policy limits. That’s why Alabama and many other states require every driver to purchase a liability insurance policy for their vehicle.
As a driver, meeting the minimum coverage requirements helps protect you from the legal consequences of being underinsured or uninsured. Your liability insurance will also cover the damage you cause to other people or property when you’re at fault for a car accident, protecting you financially.
Consequences of Driving Without Insurance
Despite the mandatory liability insurance law, an estimated 22% of motorists in Alabama are uninsured. The consequences for violating this law can add up quickly.
The Alabama Department of Revenue Motor Vehicle Division will fine a driver up to $500 for the first offense. For all subsequent violations, the driver will face up to a $1,000 fine and/or a six-month driver's license suspension. The department will also suspend the driver's motor vehicle registration on each offense. To reinstate the registration, the driver will have to acquire an insurance policy that meets the minimum coverage requirements and pay a $200 fee for the first violation. The registration reinstatement fee increases to $400 for all subsequent offenses.
Minimum Auto Insurance Coverage in Alabama
In Alabama, your liability insurance policy must meet the following coverage minimums:
- $25,000 for the bodily injury or death of one person in an accident
- $50,000 for the bodily injury or death of multiple people in an accident
- $25,000 for property damage in an accident
Bodily injury liability coverage will help pay medical bills related to injuries you cause others in a vehicle accident. This part of your insurance coverage may also help pay for a loss of income from those injuries, pain and suffering, or funeral costs if there’s a loss of life.
The property damage portion of your liability coverage will help pay to repair or replace items you damage in an accident, like a fence, building, or another driver’s vehicle. It may cover towing fees for the other driver and a rental vehicle while their vehicle is being repaired, if necessary.
Review the insurance requirements of your state:
Optional Insurance Coverage Options
Many drivers choose to purchase additional coverage beyond the required minimums for car insurance in Alabama. You can buy a liability insurance policy with higher coverage limits or purchase optional coverage types, such as the following.
Collision Coverage
Collision coverage helps pay to repair or replace your vehicle if you damage it in an accident you cause.
Comprehensive Coverage
Comprehensive coverage helps pay for vehicle repairs or replacements from covered adverse events like hail, fire, theft, and vandalism.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage may help cover your medical bills if the person who causes your accident doesn’t have enough vehicle liability insurance.
Evaluating Your Coverage Needs
All drivers in Alabama must meet the minimum insurance coverage requirements. Beyond that, it’s up to you how much more car insurance coverage you want, if any.
For example, if your vehicle is essential to you and you cannot afford to replace it if it is stolen, you may want to buy comprehensive coverage to protect against that possibility. On the other hand, if you’re trying to save money and find cheap car insurance in Alabama, you may not want any additional coverage.
Costs of Liability Insurance in Alabama
It’s easier to find cheap liability car insurance in Alabama than in many other states. The average cost of minimum coverage in Alabama is $556 per year, less than the national average cost of $678 annually.
Tips for Maintaining Insurance Compliance
If you’re an Alabama driver, following the state’s insurance laws is very important. Follow these tips to maintain insurance compliance:
- Purchase an insurance policy from an insurance provider that's qualified to issue motor vehicle liability insurance in Alabama.
- Read your policy’s terms carefully to make sure you don’t break them and invalidate your coverage.
- Pay your insurance bill on time to ensure a smooth continuation of coverage.
- Follow state news about insurance minimums so you’re aware of any changes.
Using these tips will help you avoid the consequences of failing to meet Alabama’s insurance requirements.
Protect Your Ride: Get the Best Deals on Liability Car Insurance
Carrying car insurance isn’t just the law — it’s the smart thing to do. Your liability insurance coverage helps you meet Alabama’s legal requirements and protects you financially in case you cause an accident. You don’t have to overpay for it, though.
The best way to find a great deal on car insurance is to compare your options. It only takes a few minutes to get a free custom comparison from EverQuote today.