Alabama Auto Insurance

State Insurance Requirements

All registered or operated vehicles must be covered by liability insurance. The Minimum amount of liability coverage required by the state of Alabama is $25,000 for injury, $50,000 for all injuries, and $10,000 in property damage. Commonly referred to as 25/50/10 coverage.

Alternatively, the vehicle can be covered by a ‘motor vehicle liability bond’ or a cash deposit of $50,000.

You are required to carry proof of insurance in the vehicle.

The list below constitute legal proof of insurance:

  • A temporary insurance card issued by the insurer.
  • A premium receipt or insurance binder issued by the motorist’s insurance agent.
  • The current declarations page of a liability insurance policy.
  • The actual liability insurance policy issued for the vehicle.
  • A certificate of liability insurance policy issued by either the insurer or an authorized agent.
  • Proof of purchase of a motor vehicle with the previous 60 days and a valid insurance card issued for the motor vehicle replaced by such purchase. The proof of purchase is to be a copy of the bill of sale if the vehicle is a pre-1975 year model, or the owner’s permit (yellow) copy of the application for certificate of title for a 1975 and subsequent year model vehicle.
  • A copy of the rental agreement when renting a motor vehicle which specifies the insurance coverage.
DMV Point System

This state enlists a point system to monitor and penalize driving infractions. If a driver is convicted of traffic law violations, the driver will gain points on their drivers license. If those points reach a state specified amount, their license will be suspended for a predetermined period based on the amount of points gained. After two years time, a traffic conviction loses its‘ point value for suspension purposes, however it will stay on your permanent driving record and may effect your insurance rates.

The point values for related infractions are listed below:

  • reckless driving – 6 points
  • speeding (85 mph or above) – 5 points
  • failure to yield right-of-way – 5 points
  • passing stopped school bus – 5 points
  • wrong side of road – 4 points
  • illegal passing – 4 points
  • following too closely – 3 points
  • disregarding traffic control device (stop sign, traffic light, etc.) – 3 points
  • speeding in excess of posted limits – 2 points
  • all other moving violations – 2 points
The number of points accrued by a driver within a 2 year period Result in the following suspensions:

  • 12-14 points = 60 days
  • 15-17 points = 90 days
  • 18-20 points = 120 days
  • 21-23 points = 180 days
  • 24 and above = 365 days

Disclaimer is in no way offering legal advice to consumers. Although we update our information regularly, and attempt to be as accurate as possible, state laws may change and we are not liable for any misinformation resulting in legal action or otherwise.

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