Alabama Auto Insurance Information
Under Alabama law, all motorists must carry a minimum of $25,000 per person and $50,000 per accident in Bodily
Liability (BIL) insurance, and at least $25,000 in Property Damage Liability (PDL) insurance. BIL coverage pays
the medical and other accident-related expenses of the other driver, pedestrian or cyclist when the insured is
fault, while PDL pays for damage to the other party’s vehicle or premises property damage due to the collision
the insured is at fault. In either case, this coverage extends only to the monetary limits, so it is wise to
purchase additional BIL and PDL insurance to lessen the odds of personal assets becoming vulnerable in a
BIL and PDL coverage do not apply to medical expenses or vehicle damage incurred by the insured.
Alabama does not require drivers to carry uninsured or underinsured motorist coverage, but that is also good
to purchase in case the insured gets into an accident with someone with no or insufficient insurance.
Property Damage Liability insurance does not pay for damages incurred by the insured’s car when property damage
occurs. It is a liability coverage, so it may pay for the dent on the car you hit, but not the dent on their own
Failure to carry auto insurance in Alabama can lead to a fine of $500 for a first offense and $1,000 for a second
offense, along with a six-month driver’s license suspension, vehicle impoundment and potential jail time of
SR-22 Insurance in Alabama
In Alabama, anyone convicted of motor vehicle violations, including driving without insurance, must have their
insurance company file an SR-22 Form with the Alabama Department of Revenue, Motor Vehicle Division. This form
certificate guaranteeing the motorist will have an Alabama auto insurance policy with at least the minimum
coverage for the following three years. While SR-22 is
not an insurance policy, those required to file an SR-22
expect their motor vehicle premiums to rise, perhaps significantly.
Alabama Driver Statistics
It’s sweet home, Alabama, for approximately 4.8 million people, and about 3.9 million of them have drivers’
The population has remained relatively stagnant over the past decade, with 45 out of 67 counties, almost all
This Deep South state boasts mild winters but has an overall humid, subtropical climate, with parts of Alabama
located in “Tornado Alley.” Known as the “Heart of Dixie,” popular tourist attractions include the U.S. Space
Rocket Center, Huntsville; the Birmingham Zoo; the USS Alabama Battleship Memorial Park, Mobile, and Dr. Martin
Luther King Jr’s Church and the Rosa Parks Museum in Montgomery, the state capital.
Top industries in the state include agriculture, aerospace, automotive manufacturing, forestry, chemical
manufacturing, and biosciences.
Alabama Auto Insurance & Accident Facts
According to Drive Safe Alabama, sponsored by the Alabama Department of Transportation, the typical Alabama
driver has more than a 33 percent chance of involvement in a serious or fatal car accident during their
lifetime. In 2017, a traffic crash was reported every 200 seconds, and someone was injured in a traffic accident
every 11 minutes. Sixty percent of fatalities in 2017 involved people not wearing seatbelts and nearly half of
all injuries involved those not wearing seatbelts. Speed was the top contributing factor in fatal crashes, while
failure to yield the right-of-way was the top factor in non-fatal crashes. Alcohol and drug use were also major
components in fatal crashes.
While the majority of crashes occurred in urban areas, the majority of deaths occurred in rural areas. In 2016,
the state’s fatal crash rate was higher than the national fatal crash rate. The National Highway Safety Traffic
Commission ranks Alabama 12th out of the 50 states in traffic fatalities related to speeding.