Alabama Auto Insurance Guide

Whether you’re rolling with the Crimson Tide on the I-59 to Bryant Denny Stadium, jamming along the I-20 to Talladega, cruising down the 65 to Mobile Bay or taking Highway 227 to Lake Guntersville for some world-class bass fishing, car insurance is crucial to being a responsible Alabama driver.

 

Auto Insurance Resources for AL State Residents

As of 2010, there are nearly 3.6 million licensed drivers in the Heart of Dixie. The Insurance Research Council estimates that 26% of Alabama’s drivers are uninsured – the third highest rate in the nation! Alabama also ranks fifth as a state where you’re most likely to be ticketed for speeding, according to the National Motorist Association. Uninsured drivers and speeders are good reasons to be sure you have enough car insurance while living and driving in the Yellowhammer State.

 

Alabama State Minimum Car Insurance

Alabama state law requires you to carry a minimum amount of car insurance or face severe penalties. Alabama has a traditional tort-based system. Cause an accident and you can be sued. While Alabama does not require that you carry Uninsured/Underinsured Motorist Coverage, additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the minimum requirements shown below:

• $25,000 bodily injury per person per accident
• $50,000 bodily injury for all persons per accident
• $25,000 property damage liability

 

Alabama State Car Insurance Laws

Alabama requires that you carry proof of Alabama auto insurance in your vehicle and produce it if a law enforcement officer asks to see it. Failure to do so will result in the suspension of your vehicle registration and a $100 fine to reinstate it. You’ll also have to show proof of Alabama insurance at that time or pay a $500 fine. A second offense brings a 4-month registration suspension, a $200 reinstatement fine, a 6-month driver’s license suspension and up to a $1,000 fine.

Alabama Department of Revenue conducts random survey checks on registered car owners to check on their insurance status. Failure to comply carries the same fines mentioned above.

State law permits Alabama insurance companies to use your personal credit history to assign your car insurance premium, and to determine if you can make payments or must pay your annual premium in full.

 

Regulating Agency and References

Alabama Department of Insurance
This agency is responsible for regulating vehicle insurance policies sold in the Alabama. For more information, visit their website at http://www.aldoi.gov/

Alabama Department of Revenue Motor Vehicle Division
This agency is responsible for licensing drivers and registering vehicles. You can learn more about Alabama auto insurance requirements, penalties and related information at http://www.ador.state.al.us/motrovehicle/index.html

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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