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Alabama Car Insurance Requirements and Coverage

The state of Alabama requires all of its drivers to carry auto insurance for their registered vehicles. Alabama insurance laws help keep their residents safe and covered in case an accident occurs on the road. However, many people purchasing Alabama car insurance don’t know the minimum coverages required. Here’s a primer on the ins-and-outs of car insurance in Alabama.

Alabama Car Insurance Minimums

Alabama auto insurance has to fulfill certain coverages and minimums in order to adhere to the state law. Most insurance companies in Alabama are aware of these minimums and will craft a policy that will meet all the requirements. However, it is your responsibility to make sure your policy adheres to the Alabama car insurance laws.

For car insurance, AL state law requires the following:

  • $25,000 liability coverage for bodily injury or death per person
  • $50,000 total liability coverage for bodily injury or death per accident
  • $25,000 for property damage

When purchasing car insurance, Alabama drivers are encouraged to purchase additional protections and coverage. When shopping for minimum car insurance quotes, Alabama law doesn’t require coverage for injuries or damages done to you or your car so you’ll probably want to those protections to your policy.


Cheap car insurance in Alabama is achievable if you find the right insurance company. On top of reasonable rates, many insurers can offer drivers discounts for good driving records, being a good student, or combining your car insurance with other offers.

Other Alternatives

If for some reason you want to opt out of auto insurance, Alabama provides other alternatives in order for you to drive legally. You can get a “Motor Vehicle Liability Bond Certificate” made payable for $75,000 and get it approved by Alabama’s Department of Revenue. This bond of promise ensures that a surety company will pay in your place in case you cause damage in an accident.

Sometime the Department of Revenue will grant you a “Cash Bond Certificate” if you deposit $75,000 in cash with the State Treasurer’s office. This certificate can act as proof of insurance and any damages you cause in an accident will come out of your deposit.

Penalties for Driving Uninsured

If you drive without car insurance, Alabama will hand out some heavy consequences. If you are caught driving without proper coverage, you are subject to the following penalties:

  • $500 fine for your first violation
  • $1,000 fine for your second and subsequent violations
  • Suspension of your driver’s license
  • Suspension of your car’s registration
  • 4 month mandatory suspension of your car registration for your second and subsequent offenses

Even after you pay the fines, you’ll end up paying more. In order to get your vehicle registration reinstated, you’ll have to pay a $200 fee for the first offense and $400 for your second and subsequent offenses.

To get your driver’s license reinstated, you might be required to get an SR-22 as proof of insurance coverage. SR-22 insurance is typically reserved for people with multiple traffic violations or a DUI, typically who have trouble getting insured. People required to get an SR-22 usually end up paying higher premiums for coverage that would otherwise be cheaper. It’s overall a better idea for both your protection and your wallet to just purchase a car insurance plan that adheres to Alabama state law.

Don’t get penalized, drive protected. USAgencies can provide a wide variety of great car insurance plans at the most affordable prices. Call our offices today at (800) 420-3712 or get a free car insurance quote online to get started.