Auto Insurance Requirements

• All motor vehicles in Alabama must have insurance coverage. No one can register or operate a vehicle in the state if the vehicle is not covered by a minimum level of insurance.
  
  

Proof of Insurance

• People who own and operate motor vehicles in Alabama must carry proof of insurance whenever they operate an auto. Acceptable forms of proof of insurance are temporary or permanent insurance cards, insurance binders, auto insurance policies and auto rental agreements that state the vehicle is insured by the rental company.
  
  

Property Liability Auto Insurance

• The minimum amount of property liability insurance autos are required to have in Alabama is $25,000 as of March 2011. Property liability insurance covers damage that an auto causes to public or private property. For example, the insurance would cover the costs to repair damage a car caused to the side of a garage that it hit.
  
  

Bodily Injury Liability Auto Insurance

• Alabama drivers must also have bodily injury liability insurance on their autos. They must have at least $25,000 in bodily injury liability auto insurance to cover the cost of injuries or death caused to one person they are in an accident with. Additionally, they must have at least $50,000 in bodily injury liability insurance to cover the cost of injuries or deaths they cause to two or more people.
  
  

Penalties

• Driving in Alabama without the required levels of auto insurance can cause drivers to receive fines and penalties. For example, drivers can have their license suspended. Law enforcement officers can also give traffic tickets to drivers whose vehicles are not covered with the state's minimum levels of insurance. Of course, drivers can always cover their vehicles at insurance levels that exceed the minimum.