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Guide to auto insurance in Alabama

Car insurance quotes for the state of Alabama have to comply with the following legal requirements:

Alabama requires the following insurance coverage or financial responsibility at a minimum:

25/50/25 – This is shorthand for the liability policy limits required which means you need a minimum coverage of:

  • $25,000 for death or injury to one person;
  • $50,000 for death or injury to two or more people; and
  • $25,000 for property damage to others

Nearly all car insurance policies have a provision that will adjust your coverage from the minimums required in your state to the minimum insurance or proof of financial responsibility in another U.S. state. So you do not need to get a new insurance policy for each state you are driving through.  However, if you buy a policy in a low limits state (like Alabama) but live in a high limits state (like Alaska), insurers will only write a policy where your car is principally garaged. So if your home is in Alaska, you should buy the minimum limits for Alaska.

Alabama’s required insurance limits, especially for personal injury damages, are low considering the cost of damages likely to occur in an accident.  If you are in a serious collision and the damages you caused are greater than the coverage limits you purchased, you may be personally liable to pay for those damages that exceed your insurance coverage.

Car Insurance Law in Alabama

Alabama is a contributory negligence state. A contributory defense based on negligence applies to cases where a plaintiff or claimant “contributed” to his or her own harm through his or her own negligence. If it is found that the claimant was even 1% at fault, the claimant may be denied any compensation.  For example, if you are a pedestrian crossing a street outside the crosswalk and a speeding driver hits you, you may be denied any compensation.  Alabama is one of the few states that follow the contributory negligence standard.

Driving Under the Influence

In Alabama, Driving Under the Influence (or DUI) is a misdemeanor.

1st DUI

You will automatically have your license suspended for 90 days (although you can apply for a restricted license for work or school within ten days after arrest with the Alabama Department of Public Safety.)  A court can mandate treatment or screening for alcohol or substance abuse.  Penalties may include up to 1 year in jail, fines from $600-$1200 plus additional cost of any alternative sentence arrangement.

2nd DUI

The minimum jail sentence is 5 days.  If alternative sentencing is available, you may be able to complete 30 days community service in lieu of jail time.  You will automatically have your license suspended for 1 year for a second conviction within 5 years.  No restricted license is permitted.  Once you get your license back, you have a SR-22 insurance requirement for three years after arrest. A court will mandate treatment for alcohol or substance abuse.  Penalties may include up to 1 year in jail, fines from $1100-$5000 plus additional cost of any alternative sentence arrangement.

Alabama Resources


Data from 2010 Market Share of Private Auto Insurance (List does not contain duplicates of associated or affiliated insurance companies.)

Other useful links

Top Ten Car Insurance Companies in Alabama:

These are the top ten insurance companies rated by market share in Alabama:

  1. State Farm Mutual Insurance
  2. Alfa Mutual Insurance Company
  3.  Allstate Property & Casualty Insurance Company
  4. Progressive Specialty Insurance Company
  5. United Service Automobile Association
  6. Geico General Insurance Company
  7. Progressive Direct Insurance Company
  8. Farmers Insurance Exchange
  9. Nationwide Mutual Fire Insurance Company
  10. Travelers Home and Marine Insurance

Once you’ve decided what you need, just give it a shot! will get you quotes from major car insurance companies, customized to your needs. You can start saving now and enter your information to get instant car insurance quotes!

Disclaimer: Information Current as of 2011