Alabama Car Insurance

Last Updated on

The Alabama Mandatory Liability Insurance Law was enacted in 2013 to set forth the Alabama car insurance rules for all drivers. This law requires all drivers to purchase car insurance for their registered vehicles. Continue reading this article to get more insights on Alabama car insurance laws, programs, requirements, rates and discounts.

Car Insurance Requirements

To fulfill the requirement of Alabama car insurance laws, you must purchase liability insurance. This insurance cover helps you cover the cost of property damage and injuries that your car causes as a result of accidents. The minimum insurance coverages for liability insurance are:

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

Optional Car Insurance

Your liability insurance alone cannot cover all costs of damage and injuries that your car causes. You need additional insurance coverages. These optional insurance coverages help you cover additional costs resulting from accidents that your car causes. These are some of the optional car insurance covers in Alabama:

  • Collision – Insurance cover that helps pay for damages made to your car after an accident
  • Comprehensive – Insurance cover that pays for damages resulting from all accident related events such as fire, floods etc
  • Uninsured motorists – Covers the cost of damage caused by uninsured drivers
  • Medical and funeral cover – This will cover medical costs and funeral expenses.

NOTE: If you intend to purchase your car through a loan or lease agreement, both comprehensive and collision car insurance are needed. They are only optional with regard to the state’s car insurance laws.

AL Insurance Violations and Penalties

If you are caught driving a car without the required car insurance, you will face the following penalties:

  • A fine of $500 for first offenders
  • A fine of $1,000 for subsequent offenses
  • Suspension of your driver’s license for 6 months
  • 4 months car registration suspension for first offenders.

If you are caught violating insurance rules and your car registration is suspended, you will have to pay the following fees to get the suspension lifted:

  • $200 for your first offense
  • $400 for your subsequent offenses.

SR22 in Alabama

If your car driver’s license is reinstated after a period of suspension, Alabama car insurance law requires you to always carry SR22 certificate. This form acts as a proof of assurance that you will maintain the minimum requirements for Alabama car insurance.

Alabama Auto Insurance Plan

Car insurance companies have the right to deny insurance coverage for high risk drivers. So, if you are considered a high risk driver, you can apply for insurance coverage through Alabama Auto Insurance Plan (ALAIP). Through this plan, Alabama car insurance companies share the risk associated with high-risk drivers. To get started, you can apply for coverage to the Alabama Auto Insurance Plan through any local car insurance agent in Alabama.

Determining Your Premiums

When shopping for insurance cover for your vehicle, most companies look at various factors to determine your insurance rates. These factors include:

  • Driving record
  • Age
  • Gender
  • Credit card history
  • Your car’s make and model
  • Your deductible(s) that include the amount paid for your claim.

Insurance Discounts in AL

You can save on your Alabama car insurance by taking advantage of many discounts offered by most car insurance companies in this state. These discounts include:

  • Good driver discounts
  • Good student discounts
  • Anti-theft device discounts
  • Multi-car discounts
  • Discounts for homeowner’s or people with parking space.

Discounts can be a good way of getting cheap insurance rates, the best way is through keeping a clean driving history.

Most Stolen Cars in Alabama

Driving a car that is always targeted by thieves may increase your car insurance rates. According to, the 2013 most stolen cars in Alabama include:

  1. Chevrolet Pickup (Full Size)
  2. Honda Accord
  3. Ford Pickup (Full Size)
  4. Chevrolet Impala
  5. GMC Pickup (Full Size)
  6. Toyota Camry
  7. Dodge Pickup (Full Size)
  8. Ford Explorer
  9. Nissan Altima
  10. Chevrolet Pickup (Small Size).