How much car insurance do I need in Alabama?

Learn about minimum insurance coverage requirements for vehicles in Alabama, consequences for driving without insurance, and more.

Searching for the right  car insurance coverage  can be a difficult undertaking. One of the first places to start is with the minimum insurance coverages that are legally required in Alabama.

Alabama requires you to purchase and maintain liability insurance on your vehicle if it is registered and in operation in the state. The purpose of this law is to protect other drivers and passengers on the roadways who might be involved in an accident. This law was in response to a study by the Insurance Research Council that found at the time that 22% of all Alabama drivers were uninsured.

The minimum requirements for insurance coverage in Alabama are shown below:

Coverage Type

Alabama Requirements

Bodily Injury Liability

$25,000 per person/$50,000 per accident

Property Damage Liability


Uninsured Motorist

Not required

Underinsured Motorist

Grouped with Uninsured Motorist

Medical Payments

Not required


Not required


Not required

In Alabama, if you fail to carry the proper insurance on your car or truck, you can be fined up to $500 for the first violation, and up to $1,000 for the second violation. Fines are not the only punishment that might be imposed for violating the insurance requirement.

For each incident where you are convicted of violating the mandatory insurance law, your driver’s license may be suspended for a period of up to six months. The administrative penalties imposed by Alabama do not end there. Each conviction for failing to carry the proper insurance subjects the vehicle owner to the following penalties:

  • For a first violation, your vehicle registration is revoked. A $200 reinstatement fee is required to obtain a new registration.
  • For any subsequent violation, the registration is automatically suspended for a period of four months and you will pay a fee of $400 to reinstate the registration.

Minimum insurance requirements such as those shown above are not recommendations for a particular amount or type of coverage. Depending on your personal circumstances, different coverage options might be appropriate. For example, even though Alabama does not require  uninsured motorist coverage, adding that option to your policy can be crucial if you're in an accident that is caused by an uninsured driver. Talking with your local insurance agent is a good way to learn more about the insurance that will best fit your situation.

You can also get more details on car insurance requirements in Alabama in our article  Alabama Auto Insurance Laws and Regulation  and in the Alabama Department of Public Safety’s Publication  Alabama Mandatory Liability Insurance Law.

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