All You Need to Know about Alabama Car Insurance Law

3 minute read

By Olivia Parker

Alabama drivers need to be aware of the state’s car insurance laws to ensure they are compliant. In Alabama, all drivers are required to have a policy with a minimum amount of liability coverage. This regulation is designed to protect you from the financial impact of an accident. Driving without this minimum coverage is illegal, and if you are found at fault in an accident without it, you could be responsible for covering damages or injuries out-of-pocket.

Almost every state mandates a minimum level of insurance coverage for drivers, and Alabama is no exception. Although there are various car insurance options available in Alabama, it is crucial to understand the mandatory requirements. The state’s minimum car insurance liability limits are often expressed as 25/50/25, which breaks down to:

In Alabama, liability insurance is required for all drivers and includes both bodily injury and property damage coverage. Bodily injury coverage helps cover the costs of injuries and lost wages for other drivers or passengers involved in accidents you cause, while property damage coverage pays for repairs to the other driver’s vehicle. It’s important to note that this coverage does not apply to your own injuries or vehicle damage.

Minimum liability coverage might not be enough to cover all expenses if you’re at fault in a major accident. To ensure better protection, consider increasing your coverage limits. For additional security, you might also opt for comprehensive and collision insurance, which together are known as full coverage and help cover damages to your own vehicle. Adding personal injury protection (PIP) can further assist with medical expenses for you and your passengers, regardless of fault in an accident.

Alabama operates under a fault-based system for car accidents, meaning the driver who causes the accident is responsible for covering the other driver’s expenses through their insurance. Fault is determined by police and insurance companies based on available evidence. The at-fault driver’s insurance pays for the other driver’s damages, and the at-fault driver is liable for any costs exceeding their insurance coverage limits.

In Alabama, fault can be shared between drivers. For instance, one driver might be deemed 25 percent responsible for the accident, while the other driver is 75 percent responsible.

Alabama is one of only five states that follows contributory negligence laws. Under this system, if you are found to be even 1 percent at fault for the accident, you cannot sue the other driver. Only if one driver is 100 percent responsible can the other party pursue legal action.

Driving without insurance in Alabama is a violation of state law and carries significant penalties. For a first offense, you may face a $500 fine, a 45-day registration suspension, and a $200 reinstatement fee. For a second or subsequent offense, the penalties increase to a fine of up to $1,000, a four-month registration suspension, a $400 reinstatement fee, and potentially up to six months of license suspension.

Additional consequences for more severe offenses may include jail time and the requirement to carry an SR-22 certificate, also known as a “Certificate of Financial Responsibility.” This document proves that you maintain car insurance meeting the state’s minimum coverage requirements.

While Alabama’s minimum requirement is liability coverage, there are several additional options to enhance your protection:

Contributor

Tessa Thompson is a passionate writer with a keen eye for uncovering emerging trends and thought-provoking discussions. With a background in journalism and digital media, she has spent years crafting compelling content that informs and engages readers. Her expertise spans a variety of topics, from culture and technology to business and social movements, always delivering insightful perspectives with clarity and depth. When she's not writing, Tessa enjoys exploring new coffee shops, reading historical fiction, and hiking scenic trails in search of inspiration.