Alabama requires every driver to carry auto insurance. As of August 30, 2008, the minimum requirement for Alabama drivers is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage liability. All coverage’s are limited to any terms and liabilities of your auto insurance company, so be sure to understand the coverage they offer by speaking with one of their representatives.

Bodily injury liability will cover someone else’s injuries or death when you’re at fault in the accident, but this does not cover the injuries or death of you, your passengers, or anyone else on your policy. It will also cover any pain and suffering and lost wages the other driver sustains. If you need medical attention, you will need your own health insurance to cover medical expenses, or you may additionally purchase Medical Payment coverage. In the event you need a lawyer to defend you in court for your accident, this coverage provides you representation from your auto insurance company.

Property damage liability covers damage you incur to property that is not your own, be it someone’s car, fence, pole, guardrail, et cetera. Remember you should carry enough to cover any damages you could possibly cause. Any cost that exceeds your coverage amount will leave you paying the difference between the two numbers for the repairs out of pocket. If you want coverage of your own vehicle in this instance, you will need to purchase Collision coverage.

In the state of Alabama you must always have auto insurance. Your vehicle registration will be suspended if the Alabama Department of Revenue realizes you are not currently carrying auto insurance. Once you have insurance again, you will be expected to pay a $100 reinstatement fee. More than one offense will get you a four month suspension of your vehicle registration on top of a $200 reinstatement fee once your auto insurance is current.

To prove you have auto insurance, you may use a few different items. The card issued by your auto insurance company or a premium receipt issued by your insurance agent meet the requirement. If you have purchased your vehicle in the last 60 days and have proof of this, and a valid insurance card from your previous vehicle, or your actual policy for your vehicle may be used. For a rental car, the copy of the rental agreement will suffice. Keeping one of these options in your vehicle at all times when driving is necessary to avoid any problems proving you have auto insurance and are complying with the state law.

Alabama follows a tort auto insurance system instead of a no-fault system. In a tort system, the driver who is at fault in an accident and their auto insurance company are responsible for all medical expenses of the driver and passengers in the other vehicle, including any lost wages or pain and suffering claims. This information may factor your decision of how much liability you purchase for your auto insurance policy.

Alabama Auto Insurance Requirement Chart:

• Bodily Injury Liability: $25,000/$50,000 Limit
• Property Damage Coverage: $25,000 Limit

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