On this page
Alabama sets its minimum liability limits at 25/50/25, and the Department of Revenue enforces them through the vehicle registration itself. When a vehicle is found to be uninsured, the state suspends the registration, and getting it back means showing proof of current liability coverage and paying a reinstatement fee of $200 for a first violation or $400 for later ones.
The state's fault rules also shape how much coverage matters. Alabama still follows contributory negligence, so a driver who is found even partly responsible for a crash can lose the right to recover from the other driver. That makes your own protection, such as collision and medical payments coverage, more important than the bare minimum suggests. Weather is the other local factor: hail, tornado outbreaks and Gulf Coast hurricanes make comprehensive coverage a practical question for many owners, especially anyone with a car loan. Insurers may use credit-based scores in Alabama, but only within limits set by state regulation.
| Minimum liability | 25/50/25 (BI per person / BI per accident / PD, in $1,000s) |
|---|---|
| Other required coverage | None beyond liability |
| Fault system | At-fault (tort) |
| Credit-based insurance scores | Restricted |
Alabama minimum liability limits
To register and drive a car in Alabama you need at least this much liability coverage:
- $25,000 for injuries to one person in an accident you cause.
- $50,000 in total for injuries to everyone in that accident.
- $25,000 for damage to other people's property, such as their car.
Alabama requires a liability policy issued by an insurer qualified to write motor vehicle liability insurance in the state.
Tip: The minimum is a legal floor, not a recommendation. If a serious crash costs more than your limits, you could be personally responsible for the rest. See how much liability coverage you may need.
Is Alabama a no-fault state?
Alabama is an at-fault (tort) state. The driver who causes a crash is responsible for the other people's injuries and property damage, which is normally paid by that driver's liability insurance. Injured people can claim against the at-fault driver's insurer or, in some cases, sue.
Alabama is one of the few states that still applies contributory negligence, which can bar an injured driver from recovering anything if that driver is found even partly at fault.
Read more: at-fault vs. no-fault states explained.
Can insurers use your credit in Alabama?
Status: Restricted. Alabama regulations let insurers use credit-based scores for personal lines only under conditions: the score may not rest on a lack of credit history and may not be the sole reason to deny coverage or refuse to renew.
See how credit affects car insurance for the bigger picture.
Penalties for driving uninsured in Alabama
If a vehicle is found uninsured under the Mandatory Liability Insurance law, the Department of Revenue suspends its registration. To reinstate it, the owner must show proof of current liability insurance and pay a reinstatement fee of $200 for a first violation or $400 for later violations.
Alabama runs an Online Insurance Verification System (OIVS) as part of its Mandatory Liability Insurance program to check registered vehicles for coverage.
If you are ordered to file proof of insurance, see what SR-22 insurance is.
Tips for Alabama drivers
- Keep proof of current liability coverage with the vehicle. In Alabama the main consequence of an uninsured vehicle is a registration suspension, and reinstatement requires proof of coverage plus a fee.
- Make sure any policy you buy is issued by an insurer qualified to write motor vehicle liability insurance in Alabama, since the state's requirement is specific about that.
- Because Alabama applies contributory negligence, take photos, get a police report and avoid guessing about fault at the scene. Even a small share of blame can affect an injury claim against the other driver.
- Treat 25/50/25 as a floor. If you finance or lease, your lender will likely also require comprehensive and collision coverage, which is separate from the state requirement.
- When switching insurers, line up the new start date with the old end date. Alabama checks registered vehicles for coverage electronically, so a gap in coverage could trigger a suspension notice.
- Ask what your comprehensive deductible is before storm season. Hail and wind damage claims fall under comprehensive, not liability.
When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.
Official resources
- Insurance regulator: Alabama Department of Insurance
- Motor vehicle agency: Alabama Department of Revenue – Motor Vehicle Division
Your state insurance department can answer questions about your rights and handle complaints about insurers.
Frequently asked questions
What are the minimum car insurance limits in Alabama?
Alabama requires $25,000 for bodily injury or death to one person, $50,000 for all injuries or deaths in one accident, and $25,000 for property damage. This is commonly written as 25/50/25. The policy must come from an insurer qualified to write motor vehicle liability insurance in Alabama. These are minimums, and a serious crash can cost far more.
What happens if my Alabama vehicle is found uninsured?
The Department of Revenue suspends the vehicle's registration. To reinstate it, you must provide proof of current liability insurance and pay a reinstatement fee, which the Department lists as $200 for a first violation and $400 for subsequent violations. Contact the Department of Revenue's Mandatory Liability Insurance unit for your specific situation.
Is Alabama a no-fault or at-fault state?
Alabama is an at-fault state, so the driver who causes a crash is responsible for the other party's damages. It also follows contributory negligence, which can prevent an injured person from recovering anything if they share any fault. That rule makes accurate documentation and your own coverage especially important after a collision.
Can Alabama insurers use my credit to set auto rates?
Yes, but with limits. Alabama regulations require insurers that use credit scoring to file their scoring model, and they may not build a score from a lack of credit history or use the score as the sole reason to deny coverage or refuse to renew. Rules can change, so ask your insurer how credit is used in your rate.
Does Alabama require uninsured motorist coverage?
Alabama's Department of Revenue lists only liability limits as the mandatory minimum. Uninsured motorist coverage is not part of that requirement on the Department's page, though insurers commonly offer it. Whether to add it is your choice, and a licensed agent or the Alabama Department of Insurance can explain how it works with your policy.
Sources
- Alabama Department of Revenue – Mandatory Liability Insurance
- Alabama Department of Revenue – Online Insurance Verification System (OIVS) brochure
- NAIC – Use of Credit Reports/Scoring in Underwriting (state chart, Summer 2025)
General information only. State rules change. Confirm current requirements with the Alabama Department of Insurance or your insurer before you buy. This page is not insurance or legal advice.