The Complete Guide to Alabama Car Insurance
Lemonade is on the way to the Heart of Dixie and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things AL car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in Alabama?
Car insurance in Alabama averages $181/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Huntsville | $175 |
| Birmingham | $206 |
| Montgomery | $196 |
| Mobile | $198 |
| Tuscaloosa | $184 |
Source: ValuePenguin
Why is car insurance so low in Alabama?
Alabama drivers face unique risks that drive insurance costs
Uninsured drivers
19.5% of drivers in Alabama are uninsured vs. 13% nationally, but other factors keep premiums lower here.
Car theft
FBI data shows there were 9,171 reported motor vehicle thefts in 2024 in AL, down 11% from the previous year.
Natural disasters
AL has a relatively moderate FEMA disaster rating of 63, with the highest risks of inland flooding and hurricane, driving up comprehensive coverage costs.
What car insurance do I need in Alabama?
All Alabama drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for Alabama drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Bodily injury liability | $25,000 (per person) $50,000 (per accident) | Medical bills, lost wages, and other costs when you hurt someone else in an accident | Your own injuries, damage to your car, amounts above your policy limits |
| Property damage liability | $25,000 | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
What additional car insurance coverages are offered in Alabama?
Beyond state minimums, these optional coverages provide
extra protection for Alabama drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in Alabama?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, damage from mudding in your cousin’s backyard
How much car insurance do I need in Alabama?
You need enough coverage to protect yourself financially when accidents happen. If your car needed major repairs, could you afford these local Alabama labor rates? Keep in mind, parts and materials cost extra.
| City | Body repair | Frame repair | Mechanical repair | Paint repair |
|---|---|---|---|---|
| Birmingham | $80 | $92 | $141 | $80 |
| Montgomery | $86 | $100 | $135 | $86 |
| Mobile | $80 | $93 | $142 | $80 |
| Auburn | $86 | $100 | $135 | $86 |
| Tuscaloosa | $80 | $92 | $141 | $80 |
Source: Caliber
What happens if I drive without insurance in Alabama?
Alabama takes uninsured driving seriously, and the penalties add up fast.
Fines
First time getting caught? You’re looking at up to $500. Get busted again? That jumps to $1,000.
Suspension
Your car registration gets suspended for 30 days, or until you can prove you’ve got insurance again.
Jail time
Good news: they won’t lock you up the first time. Bad news: second offense could mean up to six months behind bars.
What do you need to get a car insurance quote in Alabama?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in Alabama?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
Alabama car insurance FAQs
Is Alabama a no-fault state?
No, Alabama isn’t a no-fault state. Alabama uses an at-fault system, so if you cause an accident, you’re on the hook for injuries and property damage. If you get hurt in a crash, you’d file a claim against the other driver’s insurance. Heads up: Alabama has a strict contributory negligence rule, which means if you’re even slightly at fault, you might not recover anything.
Do I need insurance to register a car in Alabama?
Yes, you need auto insurance to register a car in Alabama. The state requires proof of minimum liability coverage before you can register a vehicle or renew registration. Alabama uses an electronic system to verify your coverage, and you need to keep insurance active the whole time your car’s registered.
What are the top risks for driving in Alabama?
Alabama faces several key driving challenges. Rural roads with limited lighting create hazardous nighttime conditions, while excessive speeding and impaired driving contribute significantly to crash rates. Most accidents occur on narrow two-lane highways where drivers have little room to maneuver. Severe weather, including heavy downpours and occasional tornadoes, can quickly transform routine drives into dangerous situations.
How long do I have to report an accident in Alabama?
In Alabama, you must report an accident immediately to law enforcement if it results in injury, death, or property damage of $500 or more. If a police officer responds to the scene, they’ll usually file the required report. If law enforcement doesn’t respond, you’re responsible for making sure the accident gets reported. Failing to report a qualifying accident can result in penalties.
What are the top safety tips for driving in Alabama?
In Alabama, slow way down on those rural back roads, especially after dark. Many have terrible lighting and basically no shoulder to escape to. Keep your eyes peeled for impaired drivers, particularly on weekends. When those sudden rainstorms hit, they’ll kill your visibility fast, so give yourself way more following distance. And seriously, buckle up and ease off the gas on those narrow two-lane highways.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
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