Auto Insurance in Alabama (AL)
Auto Insurance Rates in Alabama
Although Alabama requires drivers to carry liability insurance, it still has one of the highest rates of uninsured drivers in the United States: one out of every four drivers does not have car insurance. The state also suffered widespread devastation from hurricanes Katrina and Rita in 2005. Both of these factors impact insurance rates. On the other hand, the rural character of Alabama means there are fewer car accidents, which helps lower rates.
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Alabama Auto Insurance Requirements
In Alabama, the law requires all drivers to carry both bodily injury and property damage liability coverage from an insurance company that is licensed to offer motor vehicle insurance in the state. Drivers are required to carry the following amount of coverage:
- $20,000 per person for bodily injury liability coverage
- $40,000 per accident for bodily injury liability coverage
- $10,000 for property damage liability coverage
Drivers are also legally required to carry proof of this insurance with them in their vehicle at all times. This usually takes the form of an insurance card issued by the company, but it can also be a temporary card issued by the insurer or a copy of the policy.
The state enforces its liability coverage requirements with random surveys of vehicle owners. Alabama drivers without the minimum required levels of insurance are subject to having their vehicle tags suspended and a $100 reinstatement fee. Penalties for not having the required liability coverage increase with each offense.
Auto Insurance Discounts in Alabama (AL)
Some insurance companies offer special discounts to Alabama residents for the following:
- Taking a defensive driving course
- Maintaining a good credit histories and driving record
- Being past retirement age
- Farmers and ranchers may also be entitled to discounts on vehicles used mainly for farming and ranching work.
Companies Providing Auto Insurance in Alabama (AL)
The following companies offer auto insurance in Alabama:
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For More Information, Please Contact the Alabama DMV
50 North Ripley Street, Room 1212
Montgomery, AL 36104
www.ador.state.al.us.
*Auto Insurance Options is a free information resource that provides content on auto insurance products and policies for informational purposes only, but is not an agency or insurer. Products and policies may not be available in all states.
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