Alabama Minimum Auto Insurance Requirements in 2026 (What AL Drivers Need)

You must carry 25/50/25 in liability insurance coverage to meet Alabama minimum auto insurance requirements, and rates start at just $36 per month.

Alabamians who don’t carry insurance face fines of $1,000 or more and license suspension for up to one year. Unfortunately, 19.5% of AL drivers, nearly one in five, are uninsured (Learn More: Driving Without Insurance).

Alabama Minimum Auto Insurance Coverage Requirements & Limits

Get the best Alabama car insurance by comparing quotes and coverage options near you. Enter your ZIP code into our free rate tool above to get cheap AL minimum insurance coverage.

Car Insurance Requirements for Alabama Drivers

Every driver in Alabama must meet insurance requirements to drive legally. The bodily injury minimums are $25,000 per person and $50,000 per accident. Drivers must also carry $25,000 in property damage insurance.

Bodily injury insurance is critical, as it pays the cost of medical bills for other drivers and passengers involved in an accident. Property damage covers the cost of damages to the car of someone else involved in the accident if you are the at-fault driver.

Minimum coverage may not be enough if you have a car lease or loan. Lenders often require full coverage insurance, as the vehicle technically belongs to them until it’s fully paid off. Your lender will also inform you of the required coverage when you buy the car.

If you don’t get the required insurance, your lender will notify you to obtain it immediately. If you still don’t comply, they’ll place their own insurance on the car, which would likely be more expensive and not offer total protection.

Best Cheap Minimum Coverage Car Insurance in AL

Most drivers will find the cheapest Alabama auto insurance from USAA, Travelers, and Geico, with rates as low as $20 per month. Check out our review of USAA to find low rates and reliable coverage for Alabama military families.

However, only military members and their families qualify for USAA. Compare free quotes in your area to find the most affordable Alabama insurance provider now.

Generally, since state requirements are so low, you won’t pay much for Alabama insurance requirements. Check out the table below to compare the cost of minimum coverage in AL by ZIP code:

As you can see, rates in Alabama start at $36 monthly for minimum coverage. You can also see how much you could pay for a policy in your AL city here:

Alabama Min. Coverage Auto Insurance Monthly Rates by City

However, you should still compare car insurance quotes in Alabama to find the cheapest and most reliable coverage near you.

Other Important Coverages AL Drivers Should Know About

You might not be required to purchase more insurance, but you should consider the additional insurance options you’re missing out on when you only buy the bare minimum.

Your liability insurance policy does not cover the following:

• Collision
• Comprehensive
• Uninsured Motorist Coverage
• Your Medical Bills

Collision insurance helps you pay for the cost of repairing your car if it’s damaged in an accident, in a storm, or in any other capacity. Comprehensive coverage protects you from situations outside the realm of your control, such as hurricanes, storms, earthquakes, and fire damage.

You could also consider medical/funeral coverage to cover medical and/or funeral expenses after a wreck, or uninsured motorist coverage to protect you from drivers with inadequate coverage.

If you are involved in an accident with someone who doesn’t carry insurance, you need a way to pay for your vehicle repairs and your medical expenses. This option is going to protect you when someone else is driving illegally.

Penalties for Driving Without Insurance in Alabama

If you don’t have insurance, you’re not making a personal decision. You’re breaking the law in Alabama, and you face serious consequences for driving without insurance.

If you’re caught driving without insurance in Alabama, you’ll face a $500 fine. For a second offense, the fine goes up to $1,000, and you’ll continue to be fined $1,000 each time you’re caught driving without insurance. You could also face license suspension of up to one year.

In addition, your car registration will be suspended, and you’ll need to pay fees and prove you have insurance if you’d like to reinstate either during the suspension period. The cost is $200 for the first reinstatement fee, and it goes up to $400 if you’re involved in the same situation a second time.

Finding Discount for Alabama Insurance Policies

If you are a driver who doesn’t have insurance in Alabama, it’s time to get insurance. If you’re worried it’s not affordable, you can go through the long list of discounts available for many drivers. These discounts include the following:

• Good Driver
• Bundling
• Multi-Car
• Good Student
• Safety Features

Read More: Auto Insurance Discounts

Getting More Affordable Coverage in Alabama

If you want the most affordable car insurance policy, you must have good credit. Your credit is imperative. Most car insurance companies look at your credit score to determine your risk factor as a driver.

Many agencies feel people with good credit are less risky drivers, and they offer lower rates to those who have better scores. Free reports are issued to all consumers by each of the major credit bureaus annually.

You may also find your insurance policy is less expensive if you are married, if you drive a car that’s considered safe, and if you have a good driving record.

Some companies offer much better rates for certain people, and you never know if you fall into that category until you ask around.

Another way to ensure you’re given more affordable insurance is to raise your deductible. When you choose a high car insurance deductible, you choose a much lower monthly premium. Just be sure you can afford to make the deductible payment if you’re involved in an accident.

It’s not helpful if you’re unable to make the payment and use your insurance should anything happen to you while driving.

Driving Without Alabama Insurance Is a Costly Decision

In Alabama, you must carry 25/50/25 in bodily injury and property damage liability insurance coverage to drive legally, or you face fines and/or license suspension.

In addition to the fees and fines you face if caught driving without insurance, there are additional costs associated with forgoing insurance. If you are involved in an accident and you’re the at-fault driver, you face many financial challenges.

Read More: Can you claim auto insurance if it’s your fault?

The other driver could sue you for damages that include the cost of their medical bills and even their property damage. Driving without insurance could cost you tens of thousands of dollars or more depending on the situation.

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— AutoInsurance.org (@AutoInsurance) February 28, 2024

Alabama law requires you are purchase insurance. So, it’s wise to shop around to find the cheapest AL insurance policy in your area. Compare Alabama insurance quotes right here to find the most affordable option for the coverage you desire. Enter your ZIP code below to begin.