Alabama requires at least $25,000 of bodily injury liability per person, $50,000 per accident and $25,000 of property damage liability, often written as 25/50/25. Uninsured motorist coverage at those same injury limits comes with every policy unless you reject it.
The state checks coverage electronically with insurers. If your car shows up as uninsured and you can’t prove otherwise within 30 days, the Alabama Department of Revenue suspends the registration, and getting it back costs $200 or more.
Key Takeaways
- Alabama requires 25/50/25 liability coverage. Uninsured motorist coverage is included unless the named insured rejects it, and in Alabama it also covers drivers who are underinsured.
- The Department of Revenue verifies insurance with insurers online. You get 30 days to answer a notice before your registration is suspended, and reinstatement costs $200 the first time and $400 for a second or later violation within two registration years.
- Driving uninsured is a Class C misdemeanor with a fine of up to $500, and Alabama law makes a second offense a Class B misdemeanor with a fine of up to $3,000.
- Without proof of registration and insurance at a stop or crash, your car can’t keep going. It’s moved off the road the first time, towed the second time and impounded the third time in a two-year registration period, and an officer can choose to impound it sooner.
Alabama Minimum Car Insurance at a Glance
| Coverage | Requirement |
|---|---|
| Bodily injury liability | $25,000 per person and $50,000 per accident |
| Property damage liability | $25,000 per accident |
| Uninsured motorist | Included at $25,000 per person and $50,000 per accident unless you reject it. It covers underinsured drivers too. |
| Personal injury protection | Not required |
| Collision and comprehensive | Not required by law, but lenders and lessors often require them |
The Alabama Department of Insurance (ALDOI) lists these limits in its auto insurance FAQ, and they’re set by Ala. Code 32-7-6. Under the Mandatory Liability Insurance law, Ala. Code 32-7A-4, you can’t drive or register a car without a policy, a liability bond or a cash deposit with the State Treasurer for at least those amounts. Some older websites still quote 20/40/10, which were the limits before a 2008 law raised them. RateFrog’s guide to liability limits explains how the numbers work.
Uninsured Motorist Coverage in Alabama
Under Ala. Code 32-7-23, every auto liability policy has to include uninsured motorist (UM) coverage at the state’s bodily injury limits, unless the named insured rejects it. If you reject it, the same insurer doesn’t have to add it back at renewal unless you ask for it in writing.
Alabama law doesn’t treat underinsured motorist coverage as a separate coverage. The statute’s definition of an uninsured vehicle includes one whose liability limits are less than the damages the injured person is legally entitled to recover, so UM covers both situations. The same law limits stacking within one policy to your primary coverage plus no more than two additional coverages for other vehicles. RateFrog’s guide to uninsured and underinsured motorist coverage explains how these coverages work.
Proof of Insurance in Alabama
Under Ala. Code 32-7A-6, you have to keep proof of insurance in the car and show it when an officer asks. An insurance card or the current declarations page works, and you can show it on paper or on your phone. Showing the phone doesn’t give the officer consent to look at anything else on it. RateFrog’s guide to getting proof of insurance fast can help if you need a card right away.
How Alabama Checks Your Coverage
You give your policy details when you register a car. After that, the Department of Revenue (ALDOR) uses its online insurance verification system to check coverage “with insurers in real time,” and police can check it during a stop.
If a vehicle can’t be verified, ALDOR mails a notice, and you have 30 days to show you had continuous coverage. If you don’t, the registration is suspended. Under Ala. Code 32-7A-12, reinstating takes proof of current insurance and a fee of $200 for a first violation or $400 for a second or later one within the preceding two registration years. There’s no fee if it turns out you were insured on the verification date. After a suspension, the law also requires you to keep insurance for one year, or two registration years after a repeat violation. You can answer a notice online through ALDOR’s mandatory liability insurance page.
Penalties for Driving Without Insurance in Alabama
Alabama has three separate kinds of consequences, and you can face more than one.
Court Penalties
Under Ala. Code 32-7A-16, driving without insurance is a Class C misdemeanor, punishable by a fine of up to $500 and up to three months in jail. Alabama law makes a second offense a Class B misdemeanor, which carries a fine of up to $3,000 under Ala. Code 13A-5-12 and up to six months in jail. If you show the court that you were insured when you were cited, you can’t be convicted of driving uninsured, though you can still be fined for not showing proof.
Failing to show proof when asked (unless the officer confirms your coverage online), driving a car whose registration was suspended under this law, or showing proof when there’s no valid insurance is a separate traffic violation. Under Ala. Code 32-7A-21, the fine is up to $200 for a first conviction and doubles with each later one. Forging or selling a fake insurance card is a Class C felony.
Some Department of Revenue documents still say a later offense brings a fine of up to $1,000 or a license suspension. The amounts above come from the current statutes.
Towing and Impound
Since January 1, 2024, a car stopped or in a crash without proof of registration and insurance can’t keep going on a public road. Within a two-year registration period, the law sets these steps:
- A first violation means the car is moved to a safe place off the road.
- A second means it’s towed to a place you choose.
- A third or later means it’s impounded until it’s insured and the towing and storage fees are paid.
The law also lets an officer impound a car at their discretion any time the driver can’t show proof of registration and insurance.
Registration and License Consequences
ALDOR handles registration suspensions and the reinstatement fees described above. Those fees are separate from any ticket fine. The Alabama Law Enforcement Agency (ALEA) handles your driver’s license. If you were in a crash or got a ticket while uninsured but weren’t cited for no insurance, ALEA can assess a civil penalty. Its mandatory liability insurance page explains the process. ALEA’s 2017 announcement of the program listed $200 for a first offense, $300 for a second and $400 after that. You have 45 days from the notice to pay or request a hearing, or your license is suspended for 90 days. If you show the vehicle was insured, ALEA voids the penalty. Check the amount on your notice, since that’s the figure that applies to you.
A Crash Without Insurance
Alabama’s Safety-Responsibility law applies to crashes that cause an injury, a death or more than $500 of damage to one person’s property. If you were uninsured and haven’t settled with the other side, Ala. Code 32-7-6 lets ALEA set an amount of security to cover possible claims. If you don’t deposit it, ALEA suspends your license and all your registrations. Under Ala. Code 32-7-8, the suspension can last up to three years unless you post the security, settle, win in court or two years pass without a lawsuit. RateFrog’s guide to what happens when insurance lapses covers the broader risks.
SR-22 Filings in Alabama
Alabama’s statutes don’t use the term SR-22. They call it proof of financial responsibility, and one way to give it is a certificate your insurer files with the state under Ala. Code 32-7-20 confirming that you have a liability policy. It can be required after a license suspension or revocation for certain convictions and after an unpaid crash judgment. Under Ala. Code 32-7-31, the state can generally agree to cancel the filing after three years if you’ve had no further convictions in that time, with exceptions such as a pending lawsuit or an unpaid judgment. Ask ALEA what your case requires. RateFrog’s SR-22 guide explains how these filings work in general.
If You Can’t Find Coverage
The Alabama Automobile Insurance Plan covers drivers who are entitled to insurance but can’t get it in the regular market. According to the plan’s page on AIPSO, drivers with a valid Alabama driver’s license and a car registered in Alabama are eligible, subject to the plan’s rules, and any agent with an Alabama property and casualty license can submit an application. AIPSO lists the private passenger line as 800-827-6370.
How Alabama Insurers Set Rates
Alabama law requires rates that aren’t unreasonably high, inadequate or unfairly discriminatory, and it tells insurers to consider factors reasonably related to the kind of insurance. Credit is allowed with limits. Under ALDOI rule 482-1-127-.06, an insurer can’t:
- Refuse to insure you, cancel or nonrenew based solely on your credit history
- Deny coverage solely because you have no credit history or a thin file, if you gave the insurer accurate and complete information
- Refuse to issue or renew a policy solely because you don’t have a credit card
Drivers 55 and older can get a discount. Under Ala. Code 27-13-120, insurers have to reduce premiums for a principal operator who completes an approved accident prevention course. The discount lasts three years, and you retake the course to keep it. Insurers can require a clean driving record during that time, a course a court orders you to take doesn’t count, and the law doesn’t set a percentage. RateFrog’s guide to the factors that affect car insurance rates covers the rest.
Cancellation and Nonrenewal Rules
Once a policy has been in effect for 60 days, or if it’s a renewal, Ala. Code 27-23-21 lets the insurer cancel only for listed reasons, such as nonpayment, a material misrepresentation or a license suspension in the household. These rules apply to personal auto policies covering up to four cars, and only to the liability, medical payments and uninsured motorist parts of the policy. They don’t apply to policies issued through the Alabama Automobile Insurance Plan. Under Ala. Code 27-23-23, those cancellations need at least 10 days’ notice for nonpayment and 20 days for other reasons. If the insurer cancels for a reason other than nonpayment, it has to tell you that you may be eligible for the state’s insurance plan.
New policies in their first 60 days aren’t covered by these rules, and Ala. Code 27-23-28 says the article doesn’t apply to nonrenewal, so this law sets no notice period when an insurer simply declines to renew. Check your policy, which may promise advance notice. RateFrog’s guide to car insurance grace periods explains what usually happens when a payment is late.
Is Alabama’s Minimum Coverage Enough?
A 25/50/25 policy can run out quickly in a serious crash, and $25,000 of property damage coverage may not replace a newer car. If a claim is more than your limits, you could owe the rest. Before you reject uninsured motorist coverage to save money, think about how you’d pay your own medical bills if the other driver has little or no insurance. RateFrog’s guide to how much car insurance you need can help you choose, and you can compare car insurance quotes at several coverage levels.
Where to Get Help
ALDOI’s Consumer Services Division takes calls at 334-241-4141 or 1-800-433-3966 and accepts complaints through its complaint page. For registration suspensions and insurance verification notices, contact the Department of Revenue. For license suspensions, civil penalties and uninsured crashes, contact ALEA.
Frequently Asked Questions
Is Uninsured Motorist Coverage Required in Alabama?
It’s included in every policy unless the named insured rejects it. In Alabama it also covers injuries caused by drivers whose limits are too low to pay what you’re owed.
What Happens If Alabama Can’t Verify My Insurance?
The Department of Revenue mails a notice, and you have 30 days to show you had continuous coverage. If you don’t, your registration is suspended until you pay a $200 or $400 reinstatement fee and show proof of current insurance.
What Is the Fine for Driving Without Insurance in Alabama?
Up to $500 for a Class C misdemeanor. Alabama law makes a second offense a Class B misdemeanor, with a fine of up to $3,000. Registration fees and an ALEA civil penalty can apply separately.
Can I Show Proof of Insurance on My Phone in Alabama?
Yes. Alabama law accepts an electronic image on a phone or other device, and showing it doesn’t let the officer look at anything else on the device.
Sources
- Alabama Department of Insurance: Auto Insurance FAQ
- Alabama Department of Revenue: Mandatory Liability Insurance
- Alabama Department of Revenue: How Does the State Confirm Insurance Coverage?
- Alabama Law Enforcement Agency: Mandatory Liability Insurance
- Ala. Code 32-7-6
- Ala. Code 32-7-8
- Ala. Code 32-7-20
- Ala. Code 32-7-23
- Ala. Code 32-7-31
- Ala. Code 32-7A-4
- Ala. Code 32-7A-6
- Ala. Code 32-7A-12
- Ala. Code 32-7A-16
- Ala. Code 32-7A-21
- Ala. Code 13A-5-12
- Ala. Code 27-13-120
- Ala. Code 27-23-21
- Ala. Code 27-23-23
- Ala. Code 27-23-28
- Ala. Admin. Code r. 482-1-127-.06
- AIPSO: Alabama Automobile Insurance Plan
- Alabama Department of Insurance: File a Complaint