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Alabama Car Insurance Laws: Minimum Coverage, Penalties and SR-22

Alabama car insurance law: minimum liability limits, fault or no-fault, uninsured motorist coverage, proof of insurance, penalties for driving uninsured, SR-22, title and registration.

Quick answers for Alabama

Minimum coverage required
Alabama's Mandatory Liability Insurance Law says no one may operate, register or keep registered a motor vehicle unless it is covered by a liability policy from an insurer licensed in Alabama, with limits of at least $25,000 for death or bodily injury to one person, $50,000 for death or… Alabama Department of Insurance, Automobile Insurance FAQs; Alabama Department of Revenue, Mandatory Liability Insurance brochure
At-fault or no-fault
Alabama is an at-fault (tort) state: the Alabama Department of Insurance lists Alabama among the "Tort States," where the driver who causes an accident (and that driver's liability insurer) is responsible for the resulting injuries and damage. Alabama Department of Insurance, State Auto Insurance Laws
Driving without insurance
An owner or operator convicted of a mandatory liability insurance violation may be fined up to $500 for a first violation; a second or later violation carries a fine of up to $1,000 and/or a six-month driver license suspension. Alabama Department of Revenue, Mandatory Liability Insurance brochure; Mandatory Liability Insurance Instructions and Appeal Rights
SR-22 filing
Alabama's driver manual lists failure to maintain SR-22 insurance, when it is required, as a ground for suspension or revocation of a driver license. ALEA, Alabama Driver Manual (Nov. 2024)

Last verified: 2026-10-27

Required coverage

Minimum coverage requiredAlabama's Mandatory Liability Insurance Law says no one may operate, register or keep registered a motor vehicle unless it is covered by a liability policy from an insurer licensed in Alabama, with limits of at least $25,000 for death or bodily injury to one person, $50,000 for death or bodily injury to two or more people, and $25,000 for property damage (25/50/25). Minimum liability insurance is required on all self-propelled motor vehicles; some vehicles, such as trailers, government-owned vehicles and vehicles covered under a commercial auto liability policy, are exempt (Ala. Code § 32-7A-5 lists other exemptions).
Source: Alabama Department of Insurance, Automobile Insurance FAQs; Alabama Department of Revenue, Mandatory Liability Insurance brochure
At-fault or no-faultAlabama is an at-fault (tort) state: the Alabama Department of Insurance lists Alabama among the "Tort States," where the driver who causes an accident (and that driver's liability insurer) is responsible for the resulting injuries and damage. Alabama is not listed as a no-fault state or as a state where personal injury protection is required.
Source: Alabama Department of Insurance, State Auto Insurance Laws
Uninsured motorist coverageAlabama law reflects a public policy of requiring minimum amounts of uninsured/underinsured motorist (UM) coverage to be provided in every automobile liability policy (Ala. Code § 32-7-23). In a 2010 bulletin the Department of Insurance said policy "setoff" provisions cannot reduce UM benefits paid below the statutory minimum, which it stated was $25,000 per person.
Source: Alabama Department of Insurance, Bulletin No. 2010-04 (Apr. 20, 2010), citing Ala. Code § 32-7-23(a)
Proof of insuranceDrivers must show evidence of insurance to any law enforcement officer on request; the driver license, proof of insurance and vehicle registration are the documents required at traffic stops. Alabama uses the State of Alabama Online Insurance Verification System (OIVS): county license plate officials check it when issuing or renewing registrations, and officers check it during traffic stops and crashes. If insurance cannot be verified through OIVS, the owner must show proof; the insurance card is the most common evidence, and it must show the current effective date, the insurer's NAIC number, the VIN and the policy number. The Department of Revenue may also mail insurance verification requests to vehicle owners.
Source: Alabama Department of Revenue, Mandatory Liability Insurance brochure; ALEA Alabama Driver Manual (Nov. 2024)

Driving without insurance and SR-22

Driving without insuranceAn owner or operator convicted of a mandatory liability insurance violation may be fined up to $500 for a first violation; a second or later violation carries a fine of up to $1,000 and/or a six-month driver license suspension. Separately, if a vehicle is registered or operated without liability insurance, the vehicle's registration is suspended, and reinstating it requires proof of current Alabama insurance and a reinstatement fee of $200 for a first violation or $400 for a second or later violation. A vehicle may not be driven while its registration is suspended or revoked.
A registration suspension can be appealed to the Alabama Tax Tribunal within 30 days of the date the notice was mailed.
Source: Alabama Department of Revenue, Mandatory Liability Insurance brochure; Mandatory Liability Insurance Instructions and Appeal Rights
SR-22 filingAlabama's driver manual lists failure to maintain SR-22 insurance, when it is required, as a ground for suspension or revocation of a driver license. The Alabama Law Enforcement Agency's Safety Responsibility Unit handles financial-responsibility matters after crashes: if a crash causes injury, death, or $500 or more in damage and the at-fault party was uninsured, the driver involved must send a written report (Form SR-31) to the Safety Responsibility Unit within 30 days.
Source: ALEA, Alabama Driver Manual (Nov. 2024)

Your rights with insurers

Cancellation and nonrenewalAn insurer must give 10 days' notice to cancel an auto policy for nonpayment of premium and 20 days' notice for any other reason. Once a policy has been in effect 60 days (or is a renewal), it may be canceled only for listed reasons, including nonpayment, material misrepresentation, violation of policy terms, failure to disclose accidents or violations in the past 36 months when asked, a false or fraudulent claim, a license suspension or revocation within the prior 36 months of the named insured or a regular driver in the household, certain criminal and DUI convictions in the prior 36 months, and certain conditions of the vehicle.
The notice periods come from the Department's FAQ page: https://aldoi.gov/consumers/AutoFAQ.aspx.
Source: Alabama Department of Insurance, Automobile Insurance FAQs; Cancellation of Automobile Liability Insurance (Ala. Code § 27-23-21)
Total loss rulesA vehicle becomes a salvage vehicle (total loss) when an insurer or anyone else pays a monetary settlement for a vehicle whose damage is equal to or greater than 75% of its fair retail value before the damage, as shown in a current nationally recognized compilation of retail values. A salvage vehicle cannot be registered or driven on public roads until a rebuilt title is issued. An owner who owned the vehicle before it became salvage applies by mail for a rebuilt inspection, with the salvage title, bills of sale for replacement parts, the pre-salvage registration receipt and a $90 inspection fee in certified funds; someone who did not own it before salvage needs a master dealer regulatory license to apply.
Source: Alabama Department of Revenue, Salvage and Rebuilt Vehicles; FAQs; Alabama Department of Insurance, Automobile Insurance FAQs (Ala. Code § 32-8-87(d))
Complaints about an insurerContact the insurer or agent first. If the problem is not resolved, file a complaint with the Alabama Department of Insurance using its Online Consumer Complaint Form (a PDF form is also available), including your contact information, the company or agent involved, your policy number, any claim number and a detailed description. Phone: 334-241-4141 (8:00 am to 5:00 pm); mail: Alabama Department of Insurance, P.O. Box 303351, Montgomery, AL 36130-3351.
Source: Alabama Department of Insurance, File a Complaint

Title and registration

Transferring a car titleTitle applications are made through a designated agent of the Alabama Department of Revenue: a county license plate issuing official, a licensed Alabama dealer, or an Alabama bank or credit union. The applicant surrenders the title (or manufacturer's certificate of origin) in the applicant's name or assigned to the applicant, with any documents supporting the transfer. The title application fee is $15 for a motor vehicle, plus a $1.50 designated-agent commission; license plate officials may add another $1.50, and some counties charge local fees. A person who acquires a new or used vehicle must get a license plate within 20 calendar days of acquisition, and a title application must be completed before the vehicle can be registered. When the owner has died, the person signing for the estate provides letters testamentary or letters of administration if the estate is probated, or a Next of Kin Affidavit (MVT 5-6) and a copy of the death certificate if it is not.
Other FAQ pages used: https://www.revenue.alabama.gov/faqs/where-do-i-apply-for-an-alabama-certificate-of-title/ ; https://www.revenue.alabama.gov/faqs/i-just-acquired-a-vehicle-how-many-days-do-i-have-to-title-and-register-this-vehicle/ ; https://www.revenue.alabama.gov/faqs/how-do-i-apply-for-title-if-the-owner-is-deceased/
Source: Alabama Department of Revenue, Motor Vehicle FAQs (title application, fees, 20-day registration, deceased owner)
Registering after you moveA new resident with a valid license from the previous state may drive without an Alabama license for 30 days after becoming a resident. Out-of-state license transfers must be done at an ALEA office; a holder of an out-of-state license that has not been expired more than one year does not have to take the driver exam, and all other licenses must be surrendered. The owner of a non-commercial vehicle with a valid registration from another state has 30 days from the date the vehicle enters Alabama to register it (Ala. Code § 40-12-262). Alabama does not require emissions testing, and the licensing official inspects the vehicle before issuing a registration.
Registration rule: https://www.revenue.alabama.gov/faqs/i-just-moved-to-alabama-how-long-do-i-have-before-i-must-register-my-vehicle/ ; emissions and inspection: https://www.revenue.alabama.gov/faqs/what-are-the-prerequisites-for-registering-a-vehicle-in-alabama/
Source: ALEA, Driver License Information; Alabama Department of Revenue FAQs

Car Insurance & Vehicle Laws FAQ

What is the minimum car insurance required in Alabama?
Alabama's Mandatory Liability Insurance Law says no one may operate, register or keep registered a motor vehicle unless it is covered by a liability policy from an insurer licensed in Alabama, with limits of at least $25,000 for death or bodily injury to one person, $50,000 for death or bodily injury to two or more people, and $25,000 for property damage (25/50/25). Minimum liability insurance is required on all self-propelled motor vehicles; some vehicles, such as trailers, government-owned vehicles and vehicles covered under a commercial auto liability policy, are exempt (Ala. Code § 32-7A-5 lists other exemptions).
Is Alabama a no-fault car insurance state?
Alabama is an at-fault (tort) state: the Alabama Department of Insurance lists Alabama among the "Tort States," where the driver who causes an accident (and that driver's liability insurer) is responsible for the resulting injuries and damage. Alabama is not listed as a no-fault state or as a state where personal injury protection is required.
Is uninsured motorist coverage required in Alabama?
Alabama law reflects a public policy of requiring minimum amounts of uninsured/underinsured motorist (UM) coverage to be provided in every automobile liability policy (Ala. Code § 32-7-23). In a 2010 bulletin the Department of Insurance said policy "setoff" provisions cannot reduce UM benefits paid below the statutory minimum, which it stated was $25,000 per person.
Can you show proof of car insurance on your phone in Alabama?
Drivers must show evidence of insurance to any law enforcement officer on request; the driver license, proof of insurance and vehicle registration are the documents required at traffic stops. Alabama uses the State of Alabama Online Insurance Verification System (OIVS): county license plate officials check it when issuing or renewing registrations, and officers check it during traffic stops and crashes. If insurance cannot be verified through OIVS, the owner must show proof; the insurance card is the most common evidence, and it must show the current effective date, the insurer's NAIC number, the VIN and the policy number. The Department of Revenue may also mail insurance verification requests to vehicle owners.
What is the penalty for driving without insurance in Alabama?
An owner or operator convicted of a mandatory liability insurance violation may be fined up to $500 for a first violation; a second or later violation carries a fine of up to $1,000 and/or a six-month driver license suspension. Separately, if a vehicle is registered or operated without liability insurance, the vehicle's registration is suspended, and reinstating it requires proof of current Alabama insurance and a reinstatement fee of $200 for a first violation or $400 for a second or later violation. A vehicle may not be driven while its registration is suspended or revoked.
When do you need an SR-22 in Alabama, and for how long?
Alabama's driver manual lists failure to maintain SR-22 insurance, when it is required, as a ground for suspension or revocation of a driver license. The Alabama Law Enforcement Agency's Safety Responsibility Unit handles financial-responsibility matters after crashes: if a crash causes injury, death, or $500 or more in damage and the at-fault party was uninsured, the driver involved must send a written report (Form SR-31) to the Safety Responsibility Unit within 30 days.
How much notice must an insurer give before canceling car insurance in Alabama?
An insurer must give 10 days' notice to cancel an auto policy for nonpayment of premium and 20 days' notice for any other reason. Once a policy has been in effect 60 days (or is a renewal), it may be canceled only for listed reasons, including nonpayment, material misrepresentation, violation of policy terms, failure to disclose accidents or violations in the past 36 months when asked, a false or fraudulent claim, a license suspension or revocation within the prior 36 months of the named insured or a regular driver in the household, certain criminal and DUI convictions in the prior 36 months, and certain conditions of the vehicle.
When is a car a total loss in Alabama?
A vehicle becomes a salvage vehicle (total loss) when an insurer or anyone else pays a monetary settlement for a vehicle whose damage is equal to or greater than 75% of its fair retail value before the damage, as shown in a current nationally recognized compilation of retail values. A salvage vehicle cannot be registered or driven on public roads until a rebuilt title is issued. An owner who owned the vehicle before it became salvage applies by mail for a rebuilt inspection, with the salvage title, bills of sale for replacement parts, the pre-salvage registration receipt and a $90 inspection fee in certified funds; someone who did not own it before salvage needs a master dealer regulatory license to apply.
How do you transfer a car title in Alabama?
Title applications are made through a designated agent of the Alabama Department of Revenue: a county license plate issuing official, a licensed Alabama dealer, or an Alabama bank or credit union. The applicant surrenders the title (or manufacturer's certificate of origin) in the applicant's name or assigned to the applicant, with any documents supporting the transfer. The title application fee is $15 for a motor vehicle, plus a $1.50 designated-agent commission; license plate officials may add another $1.50, and some counties charge local fees. A person who acquires a new or used vehicle must get a license plate within 20 calendar days of acquisition, and a title application must be completed before the vehicle can be registered. When the owner has died, the person signing for the estate provides letters testamentary or letters of administration if the estate is probated, or a Next of Kin Affidavit (MVT 5-6) and a copy of the death certificate if it is not.
How long do you have to register your car after moving to Alabama?
A new resident with a valid license from the previous state may drive without an Alabama license for 30 days after becoming a resident. Out-of-state license transfers must be done at an ALEA office; a holder of an out-of-state license that has not been expired more than one year does not have to take the driver exam, and all other licenses must be surrendered. The owner of a non-commercial vehicle with a valid registration from another state has 30 days from the date the vehicle enters Alabama to register it (Ala. Code § 40-12-262). Alabama does not require emissions testing, and the licensing official inspects the vehicle before issuing a registration.
How do you file a complaint against a car insurance company in Alabama?
Contact the insurer or agent first. If the problem is not resolved, file a complaint with the Alabama Department of Insurance using its Online Consumer Complaint Form (a PDF form is also available), including your contact information, the company or agent involved, your policy number, any claim number and a detailed description. Phone: 334-241-4141 (8:00 am to 5:00 pm); mail: Alabama Department of Insurance, P.O. Box 303351, Montgomery, AL 36130-3351.

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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.