In Alabama, you need $25,000 in bodily injury coverage per person ($50,000per accident). Bodily injury liability insurance pays for other people’s injuries after a car accident that you cause, and it can also cover your legal fees if you are sued after a crash.
In addition to bodily injury liability insurance, drivers in Alabama need to purchase $25,000 in property damage liability insurance. Property damage liability coverage pays for damage to others’ property after an accident caused by the policyholder.
Together, these Alabama liability insurance requirements are often written as 25/50/25. Even though Alabama only requires 25/50/25 in liability insurance, it’s a good idea to purchase more coverage if you can afford it. Buying higher coverage limits can protect you financially if you cause a serious accident.
Alabama is an at-fault state, which means that the at-fault driver is responsible for paying for everyone injured in the accident. There are no restrictions on the right to sue after an accident in at-fault states, even if the insured buys personal injury protection (PIP).
On average, state minimum coverage costs $558 per year in Alabama, but there are many factors that can affect how much you pay for a policy. Any coverage above and beyond what is required by Alabama law is optional, but it’s usually worth the money to get some additional protection. The biggest reason is that state minimum coverage doesn’t protect your personal vehicle. For insurance to pay for damage to your car, you’ll need full coverage.
In Alabama, full coverage refers to a policy that includes collision and comprehensive, plus higher coverage limits than what is required by state law. Full coverage car insurance costs about $1,379 per year in Alabama. There may be cases when you don’t need full coverage insurance, but Alabama drivers should buy as much coverage as they can afford as a general rule.
Most policies offer coverage for six months to one year at a time and can be paid in a variety of ways, including monthly payments. The best car insurance companies in Alabama balance affordability with quality coverage and strong customer service. You can easily get a quote from top companies like State Farm, Geico, Nationwide, Erie Insurance, Alfa Insurance, and Farm Bureau Insurance online or over the phone, or use WalletHub’s comparison tools to find the best car insurance policy for your needs.
Car insurance in Alabama costs $58 per month, on average, or $697 per year. The average cost of car insurance in Alabama is 3% lower than the national average auto insurance premium, and Alabama ranks 29 out of 50 for the most affordable car insurance rates in the U.S.
There are several factors that affect how much you’ll pay for car insurance in Alabama, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from. On average, the cheapest insurance companies in Alabama are Geico, Country Financial, and USAA. But every insurer has their own way of calculating premiums, so it’s a good idea to get quotes from at least three different companies to make sure you find the best deal.
Finally, it’s worth noting that car insurance premiums in Alabama are low, compared to the cost of coverage in neighboring states like Georgia and Louisiana. You can find more details in the table below.
Cost of Car Insurance in Alabama vs. Neighboring States
No, uninsured motorist coverage is not required in Alabama, as drivers can reject the coverage in writing. Still, insurance companies are required to offer at least $25,000 in uninsured motorist bodily injury coverage per person (up to $50,000 per accident).
Additionally, drivers have the option to purchase $25,000 in underinsured motorist bodily injury coverage per person (up to $50,000 per accident).… read full answer
For Alabama drivers who do not opt out by rejecting the coverage in writing, uninsured/underinsured motorist coverage helps pay for a car accident in which the other driver doesn’t have car insurance, or doesn’t have enough coverage for the damage they caused.
Why You Should Get Uninsured Motorist Coverage in Alabama
Normally, an at-fault driver’s insurance helps pay for any damage after an accident. However, if the other driver doesn’t have any – or enough – coverage, it can be time-consuming and difficult to sue them for funds to cover any medical or repair bills. That’s where this optional insurance coverage can help you save time and money.
Even though Alabama does not require uninsured and underinsured motorist coverage, you should still consider buying it. In Alabama, an average of 18% of drivers on the road don’t have car insurance, which means there is a 1 in 6 chance that the other driver won’t have coverage if you get into an accident. Car accidents in Alabama can be very expensive, too.
Key Facts About Uninsured Motorist Coverage in Alabama:
Minimum Uninsured Motorist Bodily Injury: $25,000 per person and up to $50,000 per accident
Minimum Underinsured Motorist Bodily Injury: $25,000 per person and up to $50,000 per accident
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