Skip the auto shop - Our mechanics make house calls

Insurance Requirements for Car Registration in Alabama

Insurance Requirements for Car Registration in Alabama

The Mandatory Liability Insurance law in Alabama requires that every driver carry automotive insurance, or “financial responsibility,” in order to operate a vehicle legally. This law applies to any passenger vehicle that is operated by a private individual on public roadways.

The minimum liability insurance required for private individuals under this law is as follows:

  • $25,000 per person, for bodily injury or death. This means that each policy needs to include a minimum of $50,000, to cover, at the least, the two drivers involved in an accident.

  • $25,000 for property damage

Types of insurance

In addition to the required liability insurance, the state of Alabama also recognizes these types of insurance:

  • Uninsured Motorists insurance, which covers the costs related to an accident involving an uninsured driver.

  • Comprehensive insurance, which covers damage to a vehicle caused by uncontrollable circumstances, such as the weather.

  • Collision insurance, which covers damages to the individual’s car.

  • Medical and Funeral insurance, which covers medical or funeral costs related to a car accident.

Proof of insurance

Any private individual who is operating a vehicle on public roadways must carry proof of insurance. Proof of insurance is also required in order to register a vehicle with the Alabama DMV, and to reinstate a driver’s license after being convicted of a reckless driving charge.

Acceptable documents to prove insurance include:

  • An insurance card issued by an authorized insurer

  • A declarations page or certificate from a liability insurance policy

  • A rental agreement including the insurance information as provided by the rental company

  • A proof of purchase for the vehicle that is no more than 20 days old, as well as the current, valid insurance card for the vehicle owned prior.

If the vehicle is new, and is not replacing another vehicle (such as a young adult’s first car), these forms of proof are also acceptable:

  • The legal bill of sale

  • The certificate of title, or the application for certificate of title

Violation penalties

There are four types of penalties related to vehicle insurance in Alabama

  • Felony violations include forging proof of insurance, or selling invalid or counterfeit insurance. The punishment for this violation includes a fine of $500 to $5,000, imprisonment of up to ten years, or both.

  • Misdemeanor violations include operating a vehicle without insurance, failing to present proof of insurance to an officer of the law, operating a vehicle with suspended registration, or knowingly displaying void or outdated proof of insurance. Those convicted of these violations can be subjected to a fine of up to $1,000, or a license suspension of up to six months, or both.

  • Knowingly presenting false proof of insurance carries a six-month suspension of registration, followed by a $200 reinstatement fee. Anyone convicted of this violation requires an SR22 for three years. An SR22 is a specific proof of insurance that is issued to “high risk” policy holders, such as those who have been convicted of reckless driving. This document is required proof that must be carried by anyone found guilty of reckless driving, such as driving under the influence, in Alabama.

  • Aiding and abetting in any of the previously mentioned violations carries the possibility of fines, imprisonment, or license suspension.

For more information, contact the Alabama Motor Vehicle Division of the Department of Revenue.

The statements expressed above are only for informational purposes and should be independently verified. Please see our terms of service for more details
Icon-warranty_badge-02

Skip the repair shop, our top-rated mechanics come to you.

At your home or office

Choose from 600+ repair, maintenance & diagnostic services. Our top-rated mechanics bring all parts & tools to your location.

Fair & transparent pricing

See labor & parts costs upfront, so you can book with confidence.

12-month, 12,000-mile warranty

Our services are backed by a 12-month, 12,000-mile warranty for your peace of mind.

Get A Quote

Need Help With Your Car?

Our certified mobile mechanics make house calls in over 2,000 U.S. cities. Fast, free online quotes for your car repair.

GET A QUOTE

More related articles

How to Buy Fuel Treatments
Adding a fuel additive to your gas tank when you fill up is one way to clean vital engine parts of deposits, improve the performance of your engine,...
How to Transfer a Car Title in Idaho
In order to prove ownership of a car, you must have the title. However, when a car is sold, given away or inherited, the title needs...
How to Avoid Back Pain in a Car
If you have back problems, sitting in a car for an extended period of time can be excruciating. Even without back problems, you could experience discomfort and soreness from...


Related questions

Q: Advice on buying a car with hail damage

Realize that hail damage is just pieces of ice falling down on the car and denting the heck out of everything. It may look horrible but the actual hail itself doesn't damage the car. So as long as it runs...

Q: Do I need gap insurance?

Gap insurance is designed to cover the difference between what is owed on the vehicle (your car loan) and what the insurance company may pay out in the event of an accident or loss. Any example might be a situation...

Q: what would be the average cost to own my vehicle over a ten year period

Typical "lifecycle" vehicle ownership and operation costs, such as you are inquiring about, are calculated on a 5 year interval. Going out 10 years has too much inherent uncertainly in inflation projections, and the costs of fuel, insurance, and repairs....