Guide to Car Insurance in Alabama

Alabama requires only liability coverage, which breaks down into bodily injury and property damage coverage. Here are the minimum liability limits required:

• Bodily injury per person: $25,000
• Bodily injury per accident: $50,000
• Property damage: $25,000¹

Liability coverage only covers the injuries and damages of the other party in accidents you cause, which means that Alabama’s minimum coverage isn’t enough. Unlike full coverage, it does not cover any of your injuries or damages in accidents you cause or incidents like hail; that would require medical payments coverage, collision coverage, and comprehensive coverage.

We recommend full coverage vs. liability, with limits as high as you can afford. Learn more about how much car insurance you need.

Because Alabama’s car insurance requirements are so minimal, car insurance in Alabama costs 15 percent less than the national average as of 2019. Alabama drivers spent an average rate of $918 annually on car insurance, which breaks down into $517 for liability insurance, $377 for collision insurance, and $186 for comprehensive coverage.²

That being said, you could pay more or less than the average cost of insurance; we’ve seen rates range from $322 all the way up to $7,768.48 for teen drivers.

When you’re shopping for car insurance in Alabama, you can choose from the following providers:

• Allstate
• Auto-Owners
• California Casualty
• Cincinnati
• Country
• GEICO
• Liberty Mutual
• MetLife (now Farmers)
• Nationwide
• Progressive
• Safeway
• State Farm
• Travelers
• USAA

Even though Alabama already has affordable car insurance, there are a few ways to lower your costs even more.

1. Increase your deductible. If you raise your deductible, your auto insurance premiums will drop. But make sure that you could actually afford your deductible if you had a collision or comprehensive claim tomorrow.
2. Ask your agent about discounts. Different car insurance companies offer different discounts. For example, some companies will give you a discount if you have multiple vehicles on your policy. Ask your insurance agent for the discounts that apply to you.
3. Lower your limits. Lowering your limits will also decrease your premiums, but keep in mind that you’ll get less coverage under a covered claim. In other words, saving money now could mean paying more in the future.
4. Drop coverages. Cars that don’t run don’t need collision coverage, for example, and older cars don’t need comprehensive coverage. You could also drop unnecessary coverage like rental car coverage or roadside assistance.
5. Bundle. Do you have another home, life, or business policy? Bundle your car insurance with any other insurance policies under the same provider to unlock savings.

If you have car insurance but no proof of it, can you still get in trouble for driving without insurance? The answer is yes; you must have proof of insurance when you drive in Alabama, be it digital or physical. If you are caught driving without insurance, you could face financial and legal consequences.

Once you’ve purchased minimum coverage or more, it’s time to learn about the ins and outs of driving in Alabama.

At-Fault State

Alabama is an at-fault state, which means that the at-fault driver is responsible for the other driver’s bodily injuries and property damage losses. That’s why the state requires liability coverage.

The victim can sue the perpetrator, but they won’t receive compensation if they acted negligently in any way, according to Alabama’s contributory negligence laws. So even if an accident was 96 percent not your fault, that 4 percent of negligence will prevent you from recovering any money in a civil suit.

Uninsured Motorists

Uninsured motorist coverage isn’t a requirement in Alabama, and insurance companies don’t have to offer it. We recommend it, though, as 1 in 5 Alabama drivers are uninsured, according to the Insurance Research Council. This is 36 percent higher than the national average.³

If you have multiple cars with uninsured motorist coverage, you can stack your coverage, meaning you multiply your limits with your number of cars. You’ll appreciate it the next time you’re involved in a hit-and-run!

Driving Under the Influence

A DUI will stay on your record for five years in Alabama. For the first offense, the state will suspend your license for 90 days, but you can apply for a hardship license if you need to drive to or from work.

The penalties are worse if your blood alcohol concentration (BAC) is 0.15 percent or above, and the state could require DUI interlocks.

Here is everything you need to know about registering a car or requesting a duplicate title in Alabama.

Registering a Car in Alabama

Follow these steps to register a new vehicle in Alabama:

1. Meet the deadline. You’ll need to register your car no more than 20 days after you purchase it.
2. Collect the required information. You’ll need your car title, vehicle identification number (VIN), and insurance card.
3. Gather the fee. Find out what fee you’ll need to pay below.

4. Visit a license plate-issuing office. Go to your county’s license plate-issuing office and register your car in person.

DMV Contact Information

There are a few ways to contact Alabama’s DMV.

• Mailing address:
  • Alabama Department of Motor Vehicles
    2545 Taylor Road
    Montgomery, AL 36117
• Phone number: 334-242-9000
• URL:
  • https://contact.revenue.alabama.gov/jira/servicedesk/customer/portal/6/user/login?destination=portal%2F6

How to Get a Duplicate Car Title

Lost your car title? You can get it without leaving your chair if you want:

• Request it online. You can request a duplicate car title here: https://title.mvtrip.alabama.gov/Account/Login?ReturnUrl=%2FHome%2FDashboard
• Use the mail instead if you want. If you prefer mail, print and fill out the form (https://www.montgomeryprobatecourtal.gov/home/showpublisheddocument/234/636913950660870000) and mail it to this address:
  • Alabama Department of Revenue Motor Vehicle Division – Title Section
    P.O. Box 327699
    Montgomery, AL 36132
• Pay the fee. You must include a $15 fee with the form.
• Notarize the document, if you’re not the owner. If you’re not the owner and you completed Section 1 of the application, you’ll need to get the document notarized.

How to Contact the Alabama Department of Insurance

Whether you want to dispute a claim decision or get your state’s filings, contact the Alabama Department of Insurance.

• URL: http://www.aldoi.gov
• Phone number: 334-269-3550
• Mailing address:
  • Alabama Department of Insurance
    201 Monroe St., Suite 502
    Montgomery, AL 36104

Despite relatively low car insurance costs, car repairs in Alabama cost 4 percent more than the national average at $398.01. On average, Alabama drivers pay $156.82 for labor and $241.19 for parts, according to a 2020 report from CarMD.⁹

The prevalence of auto theft and traffic fatalities are two factors that affect the cost of insurance in Alabama. But how common are they?

Auto Theft

Auto theft, be it of an entire car or its parts, is a pervasive problem in the U.S., but it’s less of a problem in Alabama. The annual rate of car thefts in Alabama is 222 per 100,000 inhabitants, 11 percent less than the rest of the country, according to FBI data. Rates are higher in cities like Mobile, Montgomery, and Columbus.

Traffic Fatalities

The state doesn’t fare as well here, with 930 fatalities per 100 million vehicle miles driven. That’s 24 percent higher than the national average.

Your best bet to get the cheapest car insurance in Alabama is to maintain a good driving record by driving defensively, avoiding distracted driving, and following the state’s traffic laws. We hope we’ve provided the information you were looking for, but if not, keep reading to see our FAQs.