Alabama Car Insurance Requirements (Updated for 2025)
Driving in Alabama requires you to carry a minimum level of auto liability insurance. Failure to comply with state insurance laws can result in fines, license suspension, and other serious penalties. Here’s what you need to know for 2025.
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Minimum Liability Coverage in Alabama
As of 2025, Alabama law mandates that all drivers carry at least the following liability coverage:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $25,000 per accident
This is often referred to as 25/50/25 coverage.
Uninsured/Underinsured Motorist Coverage
Alabama requires insurers to offer uninsured/underinsured motorist (UM/UIM) coverage, but you may reject it in writing. This coverage helps protect you if you’re hit by a driver who doesn’t have enough (or any) insurance.
Optional Coverages to Consider
- Comprehensive Coverage
- Collision Coverage
- Roadside Assistance
- Rental Reimbursement
Note: If your car is leased or financed, your lender may require full coverage.
Penalties for Driving Without Insurance
- Fines: $500 for first offense; $1,000+ for repeat offenses
- License and registration suspension
- Reinstatement fees
- Possible vehicle impoundment
- SR-22 filing requirement
Proof of Insurance Requirements
Alabama drivers must present proof of insurance when requested by law enforcement or during an accident. Acceptable proof includes:
- Insurance ID card
- Digital proof via mobile app
- Electronic verification by the Alabama Insurance Verification System (ALIVS)
Compare Auto Insurance Quotes in Alabama
Your premium can vary based on age, location, driving record, and vehicle. Use the tool below to compare quotes from top Alabama insurance companies:
FAQs
Is Alabama a no-fault state?
No. Alabama is an at-fault state, meaning the driver who causes an accident is responsible for damages.
Is UM/UIM coverage mandatory in Alabama?
No, but it must be offered. You can decline it by signing a waiver.
What is an SR-22 in Alabama?
An SR-22 is a form your insurer files with the state to verify that you carry the required liability insurance, usually after a major violation like a DUI or driving without insurance.