Anamarie Waite, Car Insurance Writer
@anamarie.waite
Drivers in Alabama need $25,000 of bodily injury liability insurance per person (up to $50,000 per accident) and $25,000 of property damage liability insurance. Collision, comprehensive and gap insurance may also be required by a lender or lessor if your vehicle is financed.
In addition, an optional but recommended type of coverage in Alabama is uninsured/underinsured motorist insurance. It replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits.
Here’s How Much Car Insurance Drivers Need in Alabama:
| Coverage Type | Minimum Coverage Limit |
| Bodily Injury Liability Coverage (per person) | $25,000 |
| Bodily Injury Liability Coverage (per accident) | $50,000 |
| Property Damage Liability | $25,000 |
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Alabama law. Lenders or lessors usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle is worth if it has been stolen or totaled.
Even if you’re not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in Alabama to make sure you’re paying for the coverage you need.
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