Alabama Car Insurance Requirements

The State of Alabama follows a Tort system, meaning someone must be found to be at fault for causing the accident, and that person and their insurance company is responsible for all the damages.


In Alabama, drivers must carry a minimum of:

  • $25,000 for injury liability for one person in an accident
  • $50,000 for all injuries in an accident
  • $25,000 for property damage in an accident

Proof of Insurance:

The best proof is the insurance card issued by the insurance company. They contain the vehicle year model, vehicle make, vehicle identification number, and name of the insured, the name of the insurance company, the policy number, and the effective and expiration dates of the policy.

In lieu of liability insurance, drivers may obtain a liability bond of $50,000 or make a cash deposit of $50,000.

For more information:

Alabama Department of Revenue

50 North Ripley Street, Room 1226
Montgomery, AL 36104