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Alabama

Alabama Car Insurance


Find out what you need to know about car insurance in Alabama. Below you can find out what coverage is required by law in Alabama and what experts recommend, plus a comparison of state car insurance rates in every city from Fort Payne to Mobile.

Alabama Car Insurance Requirements
Alabama Car Insurance Average Rates by ZIP Code
Uninsured Motorist Coverage in Alabama
Alabama Car Insurance Laws
Car Insurance Companies in Alabama

Alabama car insurance requirements

Alabama state law requires the following minimum car insurance coverage:
Minimum bodily injury liability $25,000/$50,000
Minimum property damage liability $25,000

Alabama Car Insurance Rates by ZIP Code & City

To learn more about the most and least expensive cities for car insurance, click the link below. Car insurance rate comparison >
Top Cities
Priciest Neighborhoods
In Alabama
  • 36688: $1,509
    MOBILE
  • 36446: $1,479
    THOMASVILLE
  • 35228: $1,406
    BIRMINGHAM
  • 35234: $1,398
    BIRMINGHAM
 
Cheapest Neighborhoods
In Alabama
  • 36532: $1,063
    FAIRHOPE
  • 36551: $1,081
    LOXLEY
  • 36561: $1,084
    ORANGE BEACH
  • 36527: $1,087
    SPANISH FORT


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What you need to know about car insurance in Alabama

Penny Gusner
CarInsurance.com
Consumer Analyst

Uninsured motorist coverage in Alabama

Alabama does not require you to buy uninsured motorist coverage – but perhaps it should.

Alabama, along with its neighbors Mississippi, Tennessee and Florida, ranks among the states with the most uninsured motorists, according to the Insurance Research Council. If you don't have good health insurance and are hit by an uninsured driver, you are stuck paying your own medical bills.

With so many uninsured drivers all around you, we recommend you consider uninsured motorist bodily injury coverage. Alabama law requires that your insurance company offers you the coverage and that you reject it in writing if you don't want it.

Alabama Car Insurance Laws

To drive legally in Alabama, motorists need to carry $25,000 of bodily injury liability per person (up to $50,000 per accident) and property damage liability of $25,000.

If you don't buy insurance and get caught, you can be fined up to $500, have your registration suspended and pay up to $200 to reinstate it. The penalties get worse if you are caught again.

  • Total loss: Alabama law says that damage greater than 75 percent of a car's value means it can be considered a total loss. At that point, the insurer can total out the vehicle and instead of repairing it pay you its fair market value.
  • Grace period: The Alabama Department of Insurance notes that to cancel your Alabama auto insurance policy a company must give you a 10-day notice for nonpayment of premium and 20-day notice for cancellation for any other reason.
  • Uninsured motorist penalties for Alabama: You may be fined up to $500 and your registration may be suspended.
  • No-insurance ticket penalty: In Alabama, driving without the mandatory liability insurance needed for a vehicle is termed a MLI violation. If the conviction is final, the court will notify the department of revenue, which will then suspend your license plate registration. For a first time license plate registration suspension in Alabama, you can immediately get it reinstated if you pay a reinstatement fee of $100 and show current proof of insurance. Any subsequent suspensions are 4 months and require a $200 reinstatement fee, plus proof of insurance. Beyond the registration suspension, MLI violations can cost you $500 for the first offense. If convicted again, the fine may be up to $1,000 or a 6 month driver's license suspension or both.
  • No-license penalty: The fine for driving without a license in Alabama is no more than $100 at the discretion of a judge, plus a flat $50 fee.
  • Seat belt ticket penalty: The maximum seat belt ticket penalty in Alabama is $25.
  • No age restriction on owning a vehicle: In Alabama, there's no age restriction on owning a car and having the title and bill of sale in your name. Most car insurance companies require drivers under 18 to have a parent or guardian on the policy.
  • Proof of insurance via smartphone: Alabama is one of 31 states that allow drivers to show electronic proof of insurance during a traffic stop.

Severe Weather in Alabama

Alabama also ranks among Weather.com's top 10 states for tornadoes, and its coast is hit once every 7.5 years by a hurricane and once about every 1.5 by a tropical storm. If you want your vehicle covered for damage from hurricanes and tornadoes, such as winds blowing an object onto your car, hail damage or flooding, then you will want to carry comprehensive coverage on your vehicle.

Largest car insurance companies in Alabama by market share

Rank Company / Group Direct Premiums Written ($) Market Share (%)
1 State Farm Group 604,955 23.94
2 Alfa Insurance Group 390,185 15.44
3 Allstate Insurance Group 270,293 10.70
4 Berkshire Hathaway Insurance 228,534 9.04
5 Progressive Insurance Group 171,360 6.78
6 USAA Group 151,411 5.99
7 Nationwide Group 97,039 3.84
8 Farmers Insurance Group 85,110 3.37
9 Liberty Mutual Insurance Companies 62,525 2.47
10 Travelers Group 55,880 2.21
Source: A.M. Best market share rankings are based on direct premiums written in 2013.