Yes, the state of Alabama has increased their minimum limits for auto insurance. Recent legislation has made it so that the minimum liability limits for car insurance in AL will increase from 20/40/10 to 25/50/25.

The new auto insurance limits must provide a minimum of $25,000 for injury liability for one person in an accident, $50,000 for all injuries in an accident, and $25,000 for property damage in an accident. The policy must be issued by an insurance company qualified to issue motor vehicle liability insurance in Alabama.

In May 2008 Alabama Governor Riley signed into law Senate Bill (SB) 4, increasing the auto liability minimum limits from 20/40/10 to 25/50/25. A similar bill was vetoed by the governor in 2007 due to the lack of any implementation period, which was corrected this year in SB 4.

This year’s version of SB 4, the minimum limits legislation, provides for a 90-day implementation period for new policies and 180 days for renewal policies, which is believe by the state to be a reasonable amount of time for carriers to adjust their operational procedures and for policyholders to be given timely notice. The 2007 bill would have been effective upon the governor’s signature.

This new Alabama law (Act 2008-393) increases the minimum auto insurance requirements for the first time in 25 years in this state. With a change from limits of 20/40/10 to 25/50/25 the new amounts increased liability limits $5,000, $10,000, and $15,000, respectively. This law also ups the minimum level of uninsured motorist coverage, which is optional according to Alabama state law. The minimum amount available for uninsured motorist coverage is now raised to the same level as liability coverage.

So in Alabama the minimum car insurance limits increase to $25,000 per person and $50,000 per accident for bodily injury or death and $25,000 for property damage liability will take effect on or after August 30, 2008 for new business (90 days from signing of the legislation into law) and on or after November 28, 2008 (180 days after the signing of the law) for renewal policies.

It is expected that those who carried only AL minimum liability coverages previously and thus now must raise their limits will see their rates go up a minimal amount, probably up $20 to $30 a year. Rates for uninsured motorist coverage are expected to increase around $13 for those who also need to up their minimum coverage limit now to at least the same as their bodily injury liability limit amount.

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