Alabama Car Insurance

Alabama’s open expanses of farmland and floodplains make cars a necessity for many of its residents, and in turn car insurance is crucial to many of Alabama’s residents peace of mind on the road. With all the advertisements out there, it can be difficult to find the right resources for car insurance in Alabama, so The Simple Dollar has put together a one-stop resource for drivers in the Cotton State to find everything they need to know about car insurance, auto insurance claims, rates, premiums, and more.

Enter Your Zip Code:

Stats in Your State

To see how Alabama car insurance premiums compare to the rest of the Southern states and the U.S., read through the stats below. You might find that you’re paying too much for Alabama car insurance, or that you’re beating the statewide average rates.

Auto Insurance Premiums

Alabama has steadily clocked in annual car insurance rates at more than $100 below the national average over the course of the mid 2000’s. Alabama’s warm weather and flat landscape of course contribute to fewer auto claims than the national average.

Traffic Fatalities over time

With the federal government implementing stricter safety standards for auto manufacturers, Alabama’s annual auto accident fatalities have dropped during the mid 2000’s. This mirrors the national average, resulting in decade-low number of fatalities across the country.

Auto Repair Costs

In recent years, the average cost of repairing an automobile in Alabama has flip-flopped with the national rate. In 2010, Alabama car owners paid roughly $369 for repairs, exceeding the national average by more than $12. The following year, however, Alabama vehicle owners paid $326.73 for repairs, or $7.20 less than their nationwide counterparts.

Rules in Your State

Beyond carrying the state required auto liability coverage, drivers in Alabama need to be aware of different types of car insurance coverage as well as the rules of the road in the Heart of Dixie. Below you’ll find some crucial rules for car insurance, DUI laws, and licensing for new drivers in Alabama.

Alabama Car Insurance Minimum Requirements

Source: The Code of Alabama
Liability insurance minimum limits for Alabama drivers:

  • $25,000 of bodily injury to another person
  • $50,000 of bodily injuries to all other persons
  • $25,000 of injury to or destruction of property of others in any one accident

For drivers asking themselves, “Is Personal Injury Protection required in Alabama?”, the answer is no. Medical payments are not required by state law, but many drivers choose to buy the additional coverage to pay for their injuries in case of a serious accident.

Alabama Required Proof of Insurance

You must carry in your vehicle an information card issued by your insurer with the following information:

  • Name of Insurance Company
  • Insurance Policy Number
  • Effective Date/Expiration Date of Policy
  • Year, make/model, and vehicle identification number of registered vehicle
  • Name of Insured Driver

Alabama Licensing Facts for New Drivers

Licensing requirements for new Alabama drivers allow a teen driver to get their permit at age 15, which is slightly younger than the national average. To keep your facts straight and to be sure your teen driver is logging enough practice hours and keeping their curfew, check through the facts below.

Hardship License for Minors?
No.

Learner’s Permit Age:
15 years old and the learner must also log 30 practice hours or take driver training with permit.

Restricted License Age:
16 years old.

Restricted license achievable after reaching age 16 and holding permit for six months. No driving from midnight to 6:00 a.m. and no more than three passengers for six months or reaching age 17, whichever is sooner.

Full License (Unrestricted) Age:
16 years, 6 months

DUI/DWI Laws:

While it may seem OK in the moment, getting behind the wheel after you’ve been drinking poses a serious risk to you and to others. As such, Alabama impose strict fines and penalties for DUI offenders.

Administrative license suspension 1st offense? 90 Days to 1 year
Restore driving privileges during suspension? No
Are ignition interlocks mandatory for first offenders for the following offenses? High-BAC offenders only.
Are ignition interlocks mandatory for repeat offenders for the following offenses? yes
Fine for first offense? $500 - $2,000
Jail sentence for first offense? Up to 1 year

Representatives & Resources in Your State

Whether dealing with a car insurance claim, licensing question, or if you need to register your car in Alabama, The Simple Dollar has compiled the necessary resources in one easy to find place. Check through the resources below to get the information you need.

Alabama Department of Insurance (ADOI)
P O Box 303351
Montgomery, AL 36130-3351
(334) 269-3550
Contact Information for ADOI
ADOI Consumer’s Guide to Auto Insurance
The ADOI has compiled a general consumer guide to understanding and purchasing auto insurance in the Cotton State.
ADOI Consumer Complaint Resource
Big corporations don’t always have the upper hand — the Alabama DOI has a convenient resource for consumers to file complaints against their insurer and request help from their government for difficult claims.
ADOI Regulations for Alabama Insurers
The rules for Alabama car insurance fall under the general regulations of Alabama insurers, as well as each individual policyholder’s insurance policy. The above link directs readers to the regulations governing how insurers must conduct themselves and how they must treat consumers.
ADOI: Alabama Car Insurance Premium Comparisons
The Department of Insurance has put together a comparison of car insurance rates for different Alabama insurers, as well as a look at the different types of car insurance coverage for drivers in the state.
ADOI: General Tips When Shopping For Insurance
Here consumers will find some useful tips on shopping for insurance in general, with strategies that apply to car, life, home, and health insurance.

Alabama Department of Transportation
P.O. Box 303050
Montgomery, Alabama 36130-3050
(334) 242-4395
The Department of Transportation will help readers understand the rules of the road, driving laws, as well as highway information and resources for public transportation in Alabama.

Alabama Department of Revenue: Motor Vehicle Division
2545 Taylor Rd
Montgomery, AL 36117
Contact Information for Motor Vehicle Division
The Motor Vehicle Division is responsible for vehicle registration in Alabama, vehicle titles, as well as enforcing mandatory liability insurance requirements throughout the state.

Alabama Department of Public Safety
Licensing Division
Alabama Department of Public Safety
Driver License Division
PO Box 1471
Montgomery, AL 36102
New drivers seeking their license or drivers who need to reapply for a license will find the tools they need to do so with the Alabama Department of Public Safety Licensing Division.

National Association of Insurance Commissioners
2011 Guide to Auto Insurance
The NAIC’s 2011 guide walks consumers through the basics of auto insurance from start to finish, and provides a good general resource for consumers across the country. However, it does not deal with state specific requirements and regulations, so it should be treated as a general primer and not a definitive resource for the rules in your state.