Mandatory Liability Insurance

In Alabama, the uninsured motorist rate is estimated to be 22%, which ranks 6th worst in the nation.*

The Alabama Mandatory Liability Insurance Law provides that no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy. The law was passed to protect consumers when they are involved in an accident.

Liability insurance policies must be issued by insurers licensed to do business in Alabama for no less than:
  • $25,000 for death or bodily injury to one person;
  • $50,000 for death or bodily injury to two or more persons; and
  • $25,000 for damage or destruction of property.

Minimum liability insurance is required on all self-propelled motor vehicles. Some vehicles that are exempt from the law include trailers, government-owned vehicles and vehicles covered under a commercial automobile liability insurance policy. Section 32-7A-5, Code of Alabama 1975, provides a list of other vehicles that are specifically exempt from the law.

*Insurance Research Council 4/2/2011

For additional information concerning Alabama’s mandatory liability insurance law, contact:
Alabama Department of Revenue
Motor Vehicle Division
Mandatory Liability Insurance Unit
P.O. Box 327650
Montgomery, AL 36132-7650
Phone: (334) 242-9000 (Option 4)
Fax: (334) 353-8105