Key Takeaways
- Alabama requires minimum auto liability limits of 25/50/25 ($25,000 per person/$50,000 per accident bodily injury/$25,000 property damage)
- Alabama is an "at-fault" state using contributory negligence, meaning any fault bars recovery
- Uninsured Motorist (UM) coverage is mandatory in Alabama at minimum liability limits
- Personal Injury Protection (PIP) is NOT required in Alabama
- Alabama has a financial responsibility law requiring proof of insurance after accidents
Alabama Auto Insurance Requirements
Alabama has specific auto insurance requirements that producers must understand.
Mandatory Coverage
Alabama requires all registered vehicles to have liability insurance with minimum limits:
Minimum Liability Limits (25/50/25)
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury per Person | $25,000 |
| Bodily Injury per Accident | $50,000 |
| Property Damage | $25,000 |
Memory Tip: Remember "25/50/25" for Alabama minimum limits.
Proof of Insurance
Alabama drivers must carry proof of insurance:
- Physical insurance card, OR
- Electronic proof on smartphone
- Penalties for driving without insurance include fines and license suspension
- SR-22 may be required after certain violations
Uninsured Motorist (UM) Coverage
Alabama requires Uninsured Motorist coverage:
UM Requirements
| Feature | Details |
|---|---|
| Required | Yes - mandatory in Alabama |
| Minimum Limits | Must equal liability limits (25/50/25) |
| Rejection | Can reject in writing |
| Coverage | Protects against uninsured at-fault drivers |
Rejection Requirements
- Must reject in writing to decline UM
- Written rejection form preserved by insurer
- Can add UM coverage later
Underinsured Motorist (UIM) Coverage
UIM coverage is optional in Alabama:
| Feature | Details |
|---|---|
| Required | No - optional |
| Availability | Must be offered |
| Coverage | When at-fault driver has insufficient limits |
Alabama's Contributory Negligence Rule
Alabama is one of only 4 states that uses pure contributory negligence:
How It Works
- If you are ANY percentage at fault, you cannot recover damages
- Even 1% fault bars all recovery
- Very harsh rule compared to comparative negligence states
- Applies to auto accidents and other negligence claims
Example
If Driver A is 1% at fault and Driver B is 99% at fault:
- Driver A cannot recover anything (even 1% fault bars recovery)
- Driver B may recover from Driver A
Exam Tip: Alabama, along with Maryland, North Carolina, Virginia, and DC, uses contributory negligence. This is a critical difference from most states.
Financial Responsibility Law
Alabama's financial responsibility law:
Requirements
- Must maintain liability insurance on registered vehicles
- Proof required after accidents involving injury or significant damage
- SR-22 filing required for certain violations:
- DUI convictions
- Driving without insurance
- Multiple violations
SR-22 Requirements
| Requirement | Details |
|---|---|
| Filing | Insurer files with ALDOI |
| Duration | Typically 3 years |
| Continuous | Must maintain without lapse |
| Higher Premiums | Usually results in higher rates |
Personal Injury Protection (PIP)
PIP is NOT required in Alabama:
- Alabama is NOT a no-fault state
- PIP coverage is optional
- Medical payments coverage available as alternative
What are Alabama's minimum auto liability insurance limits?
Under Alabama's contributory negligence rule, what happens if a driver is 5% at fault?
Is Uninsured Motorist (UM) coverage mandatory in Alabama?
What negligence system does Alabama use?