Alabama Auto Insurance Requirements
In the state of Alabama, it is required by law that you carry the state minimum liability insurance. Every state has its own rules and regulations that mandate the minimum amount of coverage that a driver/owner of any type of vehicle must carry. In Alabama, you must carry at least $25,000 for personal injury, $50,000 for all injuries, and $25,000 for property damage. However, there is an alternative method.
The state of Alabama also gives you the choice of giving a deposit, or getting a liability bond, that you must forfeit if you are at fault in an accident in order to cover the other party’s injuries and personal losses. This deposit or bond can be no less than $50,000.
Whether you purchase liability insurance or deposit cash or bond, you may be held personally liable for any costs or damages caused in the accident that exceed the amounts of your insurance coverage, bond, or cash deposit. In this case, the other party can file a lawsuit for the amount beyond the coverage limits.
KEEP A COPY OF YOUR INSURANCE WITH YOU
It is very important that you keep some type of proof of insurance in the vehicle that you own or are driving. If a police officer stops you, the state of Alabama requires that you have this proof available on demand. There are several different acceptable types of proof, including (but not limited to): temporary insurance card, premium receipt, declarations page, certificate of liability insurance policy, copy of a rental agreement specifying insurance coverage, or proof of purchase within the previous 60 days. Ramifications of not carrying the state required minimum liability insurance can include a license suspension, fines, and time in prison.
It is highly recommended that you carry more than the state minimum liability insurance in order to protect yourself as much as possible in the event of an accident. Keep in mind that the other party in the accident may be able to file a lawsuit if your insurance does not cover all damages caused by the accident.