Alabama Car Insurance


Every state has its own unique set of rules and regulations governing the operation of a vehicle. These rules dictate not only the licensing and registration requirements, but the guidelines for obtaining car insurance as well. The state of Alabama is certainly no exception, requiring all drivers to obtain bodily injury and property damage liability coverage before driving a new vehicle. Our goal at is to ensure you understand Alabama’s guidelines so that you can obtain the best legal coverage at the most affordable price.

Alabama’s Car Insurance Requirements

The state of Alabama gives motorists three options for proving financial responsibility, or the ability to pay for damages if a driver causes an accident. These options include acquiring a Motor Vehicle Liability Bond, obtaining a Certificate of Cash Bond, or purchasing a state regulated car insurance policy. Those opting to purchase a bond must have one valued at $50,000 or more.

Most people choose to purchase car insurance coverage instead of a bond. As noted, Alabama state law requires car insurance policies to include a set list of basic coverage options including bodily injury liability and property damage liability.

Bodily injury liability refers to the damages you may cause to another person’s physical body if you are found at fault for an accident. The state of Alabama will require you to purchase a limit of $25,000 per person with a cap of $50,000 per accident. No matter how many people are involved no one person can collect more than $25,000 for their injuries and the insurance company will never pay more than $50,000 in bodily injury for the entire accident.

Alabama’s car insurance requirements also state that you must purchase a minimum of $25,000 in property damage liability coverage. This coverage will pay for the damage you cause to another person’s property if you are found responsible for an accident. The property may include another vehicle (moving or parked), a telephone pole, or any other object that your vehicle comes into contact with.

The minimum car insurance limits set forth by the governing bodies in Alabama are higher than the minimum limits of most other states but it is important to recognize that, in terms of a serious accident, these limits are still incredibly low. The medical bills associated with a serious car accident can easily exceed $25,000 and your insurance carrier will never pay more than your policy states. If the bills are higher, you’ll be sued and you will be expected to pay the balance out of your own pocket.

Let Help

Finding affordable car insurance in Alabama isn’t always easy, especially if you have a motor vehicle violation or accident on your record. Our goal is to provide you with free insurance quotes from some of the state’s best insurers.

Obtaining great car insurance quotes has never been this easy – that’s our guarantee! Simply give us your zip code and we’ll put you in touch with trusted Alabama auto insurance carriers today.

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