Short answer: Alabama requires liability insurance of at least $25,000 per person and $50,000 per accident for injuries, plus $25,000 for property damage. Uninsured motorist coverage comes with the policy unless the named insured rejects it in writing. Alabama also follows contributory negligence, so being even slightly at fault can bar your claim against the other driver.
The Mandatory Liability Insurance law
The Alabama Department of Revenue explains the rule: nobody may operate, register or keep registered a motor vehicle unless it's covered by a liability policy, a liability bond or a cash deposit. The policy must be an Alabama policy from an insurer qualified to write auto liability in the state, with at least:
| Coverage | Minimum |
|---|---|
| Bodily injury or death, one person | $25,000 |
| All injuries or deaths, one accident | $50,000 |
| Property damage, one accident | $25,000 |
The limits come from Section 32-7-6 of the Code of Alabama; the mandatory insurance rules sit in Chapters 7A and 7B of Title 32.
Uninsured motorist: on unless you turn it off
Under Ala. Code §32-7-23, auto liability policies must include uninsured motorist coverage unless the named insured rejects it in writing. The rejection has to be signed by a named insured, not just any driver on the policy. If you're unsure what you signed, ask your insurer for a copy of the UM selection form. In Alabama, UM also responds when the at-fault driver is underinsured.
How Alabama checks coverage
Since 2013, license plate issuing officials have used the state's Online Insurance Verification System (OIVS) when you register or renew, according to the Department of Revenue's mandatory insurance brochure. The department can also send insurance verification requests to owners.
Penalties for driving uninsured
The brochure lists two separate tracks.
Court fines for a conviction:
- first violation: up to $500;
- second or later: up to $1,000 and/or a six-month driver license suspension.
Registration consequences if a vehicle is registered or operated without coverage:
- the registration is suspended;
- reinstatement costs $200 for a first violation and $400 for later ones;
- you must show current insurance to reinstate.
Contributory negligence: Alabama's harsh fault rule
Many states let an injured driver recover something even if partly at fault. Alabama doesn't. The Alabama Supreme Court has kept the common-law rule of contributory negligence, reaffirming it in Williams v. Delta International Machinery Corp. (1993). If the other side proves your own negligence helped cause the crash, that can bar your recovery entirely.
This makes your own coverage more important in Alabama:
- Collision pays to fix your car regardless of fault.
- Medical payments coverage pays medical bills regardless of fault.
- UM still requires showing the uninsured driver was legally liable, so the fault rule can matter there too.
What the minimum leaves out
- Your vehicle. 25/50/25 only pays others.
- Big injury claims. One serious injury can exceed $25,000.
- Storm damage. Tornadoes, hail and falling trees are comprehensive claims.
- Gaps from rejected UM. If you or a co-owner signed a rejection, you may have no protection against uninsured drivers.
Scenarios
You're stopped and can't show proof, and you really had no policy. Expect a fine of up to $500 on a first conviction and, separately, a suspended registration until you pay $200 and prove coverage.
A driver runs a stop sign, but a jury finds you were speeding. Under contributory negligence, your claim against that driver may fail. Your collision and med pay still respond.
You signed a UM rejection years ago to save money. Ask your insurer whether it still applies, and request UM in writing if you want it back.
Choosing limits
Drivers with homes or savings often consider limits well beyond 25/50/25, and an umbrella policy will require certain underlying auto limits. Keep UM at limits that match your liability. Compare states in our car insurance minimums by state table.
Bottom line
Alabama's legal minimum is 25/50/25 with UM unless rejected. Because contributory negligence can wipe out a claim, coverages that pay regardless of fault, like collision and med pay, carry extra weight here.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Alabama and auto insurance.
Frequently asked questions
What is the minimum car insurance in Alabama?
$25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage.
Is uninsured motorist coverage required in Alabama?
It must be included in the policy unless a named insured rejects it in writing.
What is the reinstatement fee for an uninsured registration suspension in Alabama?
$200 for a first violation and $400 for later violations, plus proof of current insurance.
Does Alabama use comparative fault?
No. Alabama follows contributory negligence, which can bar recovery if you were partly at fault.
How much is the fine for no insurance in Alabama?
Up to $500 for a first conviction and up to $1,000 for later ones, with a possible six-month license suspension.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.