State of Alabama Insurance Requirements
What is OIVS? (On-Line Insurance Verification System)
In 2013, Alabama enacted the Mandatory Liability Insurance Law to help define Alabama car insurance rules for all drivers. The law now requires Alabama drivers to carry auto insurance for their registered vehicles.
Read more to learn about Alabama car insurance requirements, programs, rates and discounts.
Car Insurance Requirements
To fulfill Alabama car insurance laws, you must have liability insurance to help pay for any damages or injuries you may cause to others in a car accident.
Your liability coverage must include the following minimums:
- $25,000 for bodily injury or death per person.
- $50,000 total for bodily injury or death per accident.
- $25,000 for property damage.
Optional Car Insurance
Your liability insurance will not cover damages to your car or your personal injuries. However, most Alabama car insurance companies offer optional types of coverage to help with these costs.
When shopping for car insurance, consider these optional types of coverage:
- Collision – This will help pay for accident-related damages to your car.
- Comprehensive – This will help pay for damages to your car that are out of your control, such as those caused by inclement weather.
- Medical and funeral – This will help cover medical bills or funeral costs after an accident.
- Uninsured motorists –This coverage will help protect you after accidents involving drivers who don’t hold insurance or have policies that are not adequate to cover your costs.
NOTE: If your car is being financed or leased, you may be required to buy collision and comprehensive coverage as part of your finance agreement.
AL Insurance Violations and Penalties
If you are caught driving without proper Alabama car insurance, you face the following penalties:
- A fine of:
- $500 upon your first violation.
- $1,000 upon your second or subsequent violation.
- Suspension of your driver’s license for 6 months.
- Suspension of your car registration.
- For a second or subsequent violation, your registration will be suspended for a mandatory 4 months.
If your vehicle registration is suspended due to a car insurance violation you will have to pay the following fees to have it reinstated:
- $200 for your first offense.
- $400 for your second and subsequent offenses.
SR22 in Alabama
When you have your driver’s license reinstated after a suspension, you may be required to file an SR22 with the state.
An SR22 certificate is not insurance; it is a form of proof of insurance that guarantees you will maintain the minimum requirements for car insurance.
Alabama Auto Insurance Plan
Since liability car insurance is required in Alabama, all licensed drivers are guaranteed access to car insurance. However, auto insurance companies are afforded the right to deny coverage to high-risk drivers.
If you are unable to find an insurance company willing to provide you coverage, you can purchase your insurance through the Alabama Auto Insurance Plan (ALAIP).
Through the ALAIP, Alabama car insurance companies share the risk associated with high-risk drivers . You can apply to the ALAIP through any Alabama car insurance agent.
Determining Your Premiums
When looking to buy car insurance, most car insurance companies will factor in the following when determining your rate(s):
- Driving record.
- Gender.
- Age.
- Credit.
- Your car’s make and model.
- Your deductible(s).
- This is the amount of your claims you must pay out of pocket.
- The higher your deductible, the lower your premium.
Insurance Discounts in AL
When comparing car insurance quotes, ask about discounts that may apply to you.
Most auto insurance companies offer the following discounts:
- Good driver discount.
- Good student discount.
- Multi-car discount.
- Homeowner’s discount.
Taking advantage of car insurance discounts is a great way to find affordable Alabama car insurance, but don’t forget that the best way to maintain low car insurance rates is to drive safely and obey traffic laws.
