Alabama Auto Insurance Guide for New Drivers
Alabama requires 25/50/25 liability coverage and is an at-fault state.
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Alabama at a Glance
25/50/25
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Optional
PIP and uninsured motorist coverage are not required by law
15
Minimum learner's permit age, 50 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
Minimum Coverage Requirements in Alabama
Alabama operates under a traditional tort liability system, meaning the at-fault driver is financially responsible for injuries and damage they cause. You must carry proof of insurance in your vehicle at all times — digital proof on your phone is accepted.
Bodily Injury Liability
Property Damage Liability
Uninsured Motorist Coverage
Collision Coverage
Comprehensive Coverage
What Drivers Pay in Alabama
$282/mo
Typical monthly rate in Alabama, new drivers
Rate data: Insurify, 2026
Bring Your Under 25 Rate Back to Earth
Compare Rates for Drivers Under 25Rules for new drivers
Night driving
midnight-6am
Passengers
no more than 1 passenger
Source: IIHS and state DMV records, verified July 2026
Coverage Types
Liability Insurance
The foundation of every Alabama auto policy — this pays for injuries and property damage you cause to others. It does not cover your own injuries or vehicle damage, only what you're legally responsible for.
Full Coverage
Industry shorthand for a policy that includes liability plus collision and comprehensive, covering both your legal responsibility to others and damage to your own vehicle from accidents, weather, theft, and other perils.
Comprehensive Coverage
Covers damage to your vehicle that doesn't involve a collision — stolen cars, vandalism, broken windows, hail dents, flood damage, and animal strikes. You choose a deductible (typically $250–$1,000) that applies each time you file a claim.
Uninsured Motorist Coverage
Pays your medical bills and vehicle repairs when you're hit by a driver with no insurance or a hit-and-run driver who flees the scene. It mirrors your liability limits — if you carry 50/100 liability, you can buy 50/100 uninsured motorist.
Collision Coverage
Pays to repair or replace your vehicle after a collision with another car or object, regardless of fault. Your deductible applies first — if repairs cost $3,000 and you have a $500 deductible, you pay $500 and insurance pays $2,500.
SR-22 Insurance
Not a separate coverage type, but a certificate your insurer files with the state proving you carry coverage. Required after DUI, multiple violations, or driving without insurance. You pay a one-time filing fee plus higher premiums due to high-risk status.