State guide
Insurance in Alabama
Required coverage, penalties, official contacts and sources for Alabama, reviewed 2026-10.
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Car insurance
What Alabama requires.
Liability minimum 25/50/25. Claims system: fault-based claims.
| Coverage | Requirement in Alabama |
|---|---|
| Bodily injury liability | $25,000 for one person / $50,000 for all injuries or deaths in an accident |
| Property damage liability | $25,000 per accident |
| Injury protection | Not listed as required |
| Uninsured / underinsured motorist | Not listed as required |
Required coverage
- Bodily injury or death: at least $25,000 for one person in an accident
- All injuries or deaths: at least $50,000 in an accident
- Property damage: at least $25,000 in an accident
- An Alabama policy from an insurer qualified to issue motor vehicle liability insurance in Alabama, or a commercial auto liability policy, a motor vehicle liability bond or a cash deposit
Other coverage commonly available
- Uninsured motorist
- Collision
- Comprehensive
- Medical payments
If you drive without required coverage
The Department of Revenue says an uninsured vehicle's registration is suspended, with a reinstatement fee of $200 for a first violation and $400 for later ones, and proof of current insurance is required. A conviction can bring a fine of up to $500 for a first violation, and up to $1,000 and/or a six-month license suspension for later ones (Department of Revenue brochure, 2017). Alabama Law Enforcement Agency (ALEA) civil penalties of $200, $300 and $400 apply to uninsured drivers in an incident who were not cited, with a 90-day license suspension if not paid within 45 days (ALEA, 2017). These amounts come from official materials dated 2017 to 2023, so confirm current amounts.
Notices
What to know in Alabama.
- Alabama's Mandatory Liability Insurance law says no one may operate, register or maintain registration of a motor vehicle designed for public roads unless it is covered by a liability insurance policy (Code of Alabama section 32-7A-3).
- The Department of Revenue verifies insurance by sending requests to vehicle owners, and law enforcement and county license offices also verify insurance.
- Under Act 2016-361, a driver in a motor vehicle incident who was not insured and was not cited at the time is subject to a civil penalty assessed by ALEA.
- The penalty and fee figures above come from older official materials. Alabama's minimum limits are set in section 32-7-6 of the Code.
General information only. It is not legal advice. Rules change, so confirm with the official sources listed below.
Home insurance
Start with the Department of Insurance
- Standard homeowners policies typically exclude flood. Flood coverage is bought separately, including through the National Flood Insurance Program.
- The Alabama Department of Insurance is the state authority for questions about insurers, agents and complaints.
Health insurance
HealthCare.gov
HealthCare.gov (federal marketplace)
- Alabama residents use the federal marketplace, HealthCare.gov, according to KFF's 2026 listing of marketplace types.
- Confirm current enrollment dates and eligibility for financial help on HealthCare.gov.
Contacts
Who to contact.
- Alabama Department of Insurance
- Website: aldoi.gov
- NAIC directory of state insurance departments
Sources
Where this summary comes from.
Reviewed 2026-10. Check each source for the current rule.
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