Alabama Auto Insurance Laws, Minimums, Requirements

All Albama drivers must be covered by liability insurance or an acceptable alternative i.e. motor vehicle liability bond or deposit of cash. The motor vehicle liability bond must be filed with the Department of Revenue’s Motor Vehicle Division. The deposit of cash with the Alabama State Treasurer shall be a sum of not less than fifty thousand dollars ($50,000). - Alabama requires that driver’s provide proof of insurance at time of registration. - Proof of insurance is required at the time of accidents. - You must carry proof of insurance at all times while in a vehicle. - In the state of Alabama, you must carry minimum liability coverage of at least $25,000 for bodily injury to one person, $50,000 for all bodily injuries, and at least $25,000 for property damage. Alabama raised its limits in 2008 from 20/40/10 to 25/50/25. The new law went into effect on August 30, 2008.