Alabama Car Insurance Requirements

 Alabama Auto Insurance

Am I required to have auto insurance in Alabama?

Yes, in order to legally drive a vehicle in Alabama you are required to carry the state minimum liability insurance coverage.

 

What is the state minimum liability insurance required in Alabama?

The basic requirements for liability insurance coverage in Alabama are:

  • $25,000 property damage in one accident
  • $25,000 injury liability for one person in an accident
  • $50,000 for all injuries in one accident

These specific coverage amounts are the minimum amount of insurance you can purchase to drive legally in Alabama.  You might want to consider purchasing more coverage depending on your unique situation.

 

What is considered proof of insurance coverage?

You are required to carry proof of auto insurance coverage in your vehicle at all times.  According to the Alabama Department of Revenue Motor Vehicle Division, here are some ways to show proof of insurance:

  • An insurance card issued by your auto insurance company
  • The declarations page of your liability insurance policy
  • A premium receipt
  • Certificate of liability policy
  • Insurance binder
  • Proof of purchase of a motor vehicle within the previous 60 days and a valid car insurance card issued for the motor vehicle replaced by such purchase.
  • If you are renting the vehicle, you can provide a copy of your rental agreement

 

Do I have any options other than purchasing liability insurance?

If you choose not to buy liability insurance, there are 2 other ways you can meet Alabama’s financial responsibility requirements.

1)    Purchase a cash deposit certificate not less than $50,000

2)    Purchase a motor vehicle liability bond not less than $50,000

 

Penalties for driving without auto insurance

If you are caught driving without liability insurance, the Alabama MVD will suspend the vehicle tag registration.  If this is your first offense you will be charged a $100 reinstatement fee and will be required to buy and show proof of liability insurance.  If this is your second offense or greater you will be charged a $200 reinstatement fee after you serve a four month suspension period and provide proof of liability insurance.

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