Alabama’s Mandatory Liability Insurance law (MLI) states that no person shall register, operate or maintain registration of a motor vehicle designed to be used on public roads or highways unless it is covered by a liability insurance policy.
This law aims to protect consumers when they’re involved in an accident. Liability insurance policies must be issued by insurance companies licensed to do business in the state.
The minimum liability requirements in AL are:
Generally, if your vehicle is self-propelled — whether it is powered by gas, diesel, or electricity — it needs to be insured. A few vehicles are exempt from this law, including trailers and some government-owned vehicles.
Key Takeaways
In Alabama, a vehicle must be insured with liability coverage. You may hear AL insurance requirements described as “25/50/25.” This refers to your minimum amounts of liability coverage.
No Alabama law requires a driver to carry “full coverage” insurance. However, if you make a car payment to a bank, they may require you to carry this type of insurance. Full coverage insurance helps pay for other types of damage to your vehicle, like hail damage, collision damage, theft, and so on.
Alabama minimum auto insurance laws exist to protect everyone on the road, financially. In the realms of insurance, “liability” means financial responsibility.
Liability coverage protects a driver from paying for damages or injuries they cause. For instance, if you accidentally run a red light and crash into another vehicle in Alabama, your liability coverage will pay for damage to the other vehicle and injuries to the other driver and passengers.
Liability coverage will not cover damage to your vehicle, however, and it won’t cover your injuries, in the example above.
Alabama drivers should know the type of insurance they have and understand what’s covered by their policy. You can learn these details by reading the declarations page of your policy (it’s usually the first page of the policy), and by speaking to your insurance agent.
Aside from the liability coverages we’ve mentioned above, some other coverage types in AL include:
Alabama’s minimum auto insurance requirements protect you, financially, if you damage property or cause injury to another person.
$25,000 Bodily Injury for One Person
If you cause an accident, this coverage helps to pay for the injuries to one other person. It will pay for things like ambulance rides, surgeries, pain medications and medical devices. It will also pay for funeral expenses if you cause a fatality.
$50,000 Bodily Injury for More Than One Person
If you cause an accident that injures more than one individual, this part of your insurance comes into play. As above, it will pay for things like ambulance rides, surgeries, medications and so on. It caps at $50,000 per accident.
$25,000 Property Damage Liability Coverage
This coverage helps to pay for damage you might cause to someone else’s property. It covers vehicles, structures, fences, mailboxes and so on.
Alabama has a unique, new driving law, known as “Taylor’s Law.” It was enacted after a teen driver caused a fatal accident while driving 85 mph.
According to Taylor’s Law, a student’s grades and behavior at school are considered when they apply for a driver’s license. Once a child turns 13, the schools and state will keep a database of infractions and use a points system to monitor behavior. One day of suspension is worth 1 point, and expulsion is worth 20 points.
At the time of writing, this new points system is still being developed. However, bad behavior in school means you may need to wait longer to get your license. If you have, for example, 25 points when you turn 16, you might need to wait another year to apply for your driver’s license.
Alabama law enforcement officials are serious about insurance. The penalties for failure to insure your vehicle could include:
Auto insurance companies base their rates on driver behavior, the value of a vehicle, local claims amounts, gender, marital status, and more.
One of the best ways to make sure you’re getting a good price on auto insurance is to shop around every few years. You can shop for insurance online or call some local insurance agents.
It’s also imperative that you drive safely, obey the laws, and avoid distracted driving.
Read More: 8 Simple Ways to Save You 90% On Your Car Insurance
Insurers consider many factors about a driver and a vehicle. Then, based on these considerations, they place autos and drivers into “risk pools” to determine their prices. They may consider the following:
AL Auto Insurance Rates by Carrier
According to our research, the insurers listed below provide the most affordable liability insurance policies. But remember, your price can be affected by all the points we listed above.
| Insurer | Average Monthly Premium | Yearly Cost |
| Cincinnati Insurance | $64 | $772 |
| Country Financial | $65 | $781 |
| Travelers | $66 | $787 |
| Auto-Owners | $69 | $955 |
As licensed insurance agents in Alabama, we field many of the same questions every day. We’ve listed them below for your convenience.
Is auto insurance required by law in Alabama?
Yes, every self-propelled vehicle that’s driven on public roads must be insured. Exceptions include government vehicles and trailers.
Which insurance company is cheapest?
As of 2023, Cincinnati Insurance appears to be the most affordable insurance company for safe drivers who wish to purchase a liability-only policy.
Do I need full coverage auto insurance in AL?
No Alabama law requires you to carry full coverage auto insurance. However, if you make a car payment, the lender might require you to carry full coverage.
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