Auto Insurance Laws and Trends in AL

As in every state in the country, Alabama requires motorists to carry minimum automobile insurance coverage. The Compulsory Liability Insurance Law, as well as the Financial Responsibility Law, was passed to ensure that every driver acquires and maintains financial responsibility in the case of a vehicle accident. This financial responsibility is most commonly issued in the form of an automobile insurance policy.

In Alabama, the law requires every motorist to secure liability insurance. This covers any property damage (PD) or bodily injury (BI) to a third party should they be involved in an at fault motor vehicle accident.

There are several optional, but recommended, auto insurance policies that can be added as well. One of the most important coverage types is uninsured / under-insured motorist coverage. This will help to pay for any damages or injuries incurred in an accident that is the fault of someone who has inadequate or no auto insurance at all. In Alabama, 26% of drivers are uninsured, which makes this type of coverage especially important.

Personal Injury Protection (PIP) is also a recommended coverage. This will help pay for medical expenses, funeral expenses, or loss of wages if injured in a car accident.

Alabama auto insurance regulations & laws

If a motorist is stopped by a law enforcement officer, is registering or re-registering a vehicle, is involved in an accident, or is bringing a vehicle to have a mechanical inspection done, then they are required to provide proof of insurance. If this proof cannot be produced, then he or she may be subject to fines or suspensions. The driver will be required to secure a SR-22 in order to once again be eligible for auto insurance.

Alabama auto insurance premiums are slightly lower than the national average and have been slowly decreasing over the past year.

Request a quote for auto insurance in Alabama today!