How Much Car Insurance Do I Need in Alabama?

To make sure that Alabama drivers can pay for harm they might cause to others in a car accident, state law requires vehicle owners to meet minimum financial responsibility requirements. Most people comply with this law by buying a liability car insurance policy that meets these minimum coverages:

• $25,000 per person injured or killed in an accident caused by a driver covered under the policy
• $50,000 total for two or more people injured or killed in an accident caused by a covered driver, and
• $25,000 total for all vehicle/property damage resulting from an accident caused by a covered driver.

(Ala. Code § 32-7-6.)

Alabama Is a Fault-Based Car Insurance State

Alabama, like most states, has adopted a fault-based auto insurance system. A driver who causes an accident is legally responsible for all resulting personal injuries and property damages. In most cases, the at-fault driver's liability auto insurance pays compensation (what the law calls "damages") to those who are hurt or whose property is damaged or destroyed, up to the at-fault driver's coverage limits. (Note: Alabama's neighbor, Florida, is one of a dozen or so no-fault car insurance states.)

What Does Liability Car Insurance Cover in Alabama?

Your liability insurance pays drivers, passengers, pedestrians, and others you injure, or whose property you damage, in a wreck that's your fault. It covers, up to the limits of your insurance, damages like:

• medical bills
• lost wages
• property losses
• other out-of-pocket expenses
• pain and suffering
• emotional distress
• disability and disfigurement, and
• other intangible losses.

Who Is Covered Under My Alabama Liability Car Insurance?

You and anyone else who's named as an insured under your auto policy will be covered. Most often, your liability policy will also insure family members who live in your household, as well as anyone else who has your permission to drive your car. Finally, your coverage likely also applies if you get into an accident in a rental car or temporary loaner vehicle.

Should I Carry More Than the State Minimum Liability Coverage?

Probably, if you can afford it. A serious crash resulting in significant car accident injuries and property damage will burn through Alabama's minimum liability coverage amounts very quickly.

Keep in mind the basic idea behind fault-based insurance systems: A driver who causes an accident is legally responsible for all resulting damages. You're on the hook financially regardless of whether you have enough liability insurance. Carrying higher liability limits might save you from financial ruin. Speak to your insurance agent about the kinds and amounts of insurance coverage that are right for you.

Your Liability Insurance Won't Cover Your Own Car Accident Losses

Your liability insurance only pays for damages you cause to others. It doesn't pay for your medical bills, lost wages, property damages, or any other losses you suffer. To cover those, you'll need to buy additional (optional) insurance, such as:

• medical payments (MedPay) coverage, which will pay your medical bills, as well as those of your passengers, regardless of who's to blame for the crash, and
• collision coverage, which pays to repair (or replace) your damaged vehicle after an accident, even if you caused it.

Do I Need Uninsured Motorist Coverage in Alabama?

Unless you waive it in writing, Alabama law requires a car insurance policy to include uninsured motorist (UM) coverage, which will pay your damages—as well as those of your passengers—if you're hurt by an uninsured driver, or you're the victim of a hit-and-run car accident. (Ala. Code § 32-7-23(a).)

Proof of coverage. You're required to provide proof of liability insurance coverage at the request of a police officer. This proof can be in paper or electronic form. (Ala. Code § 32-7A-6.)

What's the Penalty for Driving Without Insurance in Alabama?

Driving without the required auto insurance is a Class C misdemeanor in Alabama. The penalty for a first offense is up to three months in jail and a fine of up to $500. For second and subsequent offenses, on top of a fine and jail time, your driver's license can be suspended for six months.

These penalties likely pale in comparison to the financial hit you'll take if you cause a wreck and you don't have auto insurance.

What's Next After an Alabama Car Accident?

Learn more about the Alabama car accident laws that could come into play after a crash. And if you're involved in a car accident in Alabama, you might need more than just information. For legal advice that's tailored to your situation, talk to a car accident lawyer in your area.