To legally drive a vehicle on public roads in the State of Alabama you need to meet the State’s financial responsibility requirements. Specific Alabama auto insurance requirements are detailed below.

Meeting Financial Responsibility Requirements In Alabama

The easiest way to meet Alabama’s liability requirements is to purchase an auto insurance policy but you can also meet your obligations by providing proof of financial responsibility by either:

1. Obtaining a Motor Vehicle Liability Bond
2. Obtaining a Certificate of Cash Bond

Both options above require a minimum bond of $50,000.

Alabama Auto Insurance Minimum Requirements

Assuming you do not wish to opt for one of the bond options above, your Alabama auto insurance policy should have the following levels of coverage as a minimum to comply with the State requirements.

1. $25,000 to cover injury for one person
2. $50,000 to cover all injured persons
3. $25,000 to cover damage to property

Bear in mind that these are only Alabama’s minimum auto insurance requirements. To further protect yourself and your vehicle we recommend looking for a higher level of cover. Some companies will offer higher levels of coverage than others so it pays to get several quotes.

Proof of Meeting Alabama Auto Insurance Requirements / Financial Liability

You must provide proof of financial responsibility and keep this proof in your vehicle at all times. Several options of providing proof are detailed below.

• A copy of your Alabama Auto Insurance Policy
• An insurance card / premium receipt / declarations page or certificate from your provider
• A copy of your proof of vehicle purchase and your old insurance card for your previous vehicle (only valid for 60 days after purchase of your new vehicle)
• A copy of your rental agreement if you are driving a rented vehicle
• A copy of your Motor Vehicle Liability Bond
• A copy of your Certificate of Cash Bond

Penalties for Failure to Maintain Financial Responsibility in Alabama

Failure to maintain Alabama’s auto insurance requirements or financial responsibility bond can result in the suspension of your vehicle’s tag registration by the MVD. Certain steps are then required to reinstate registration depending on the number of offenses.

• 1st Offense: You must provide proof that you have obtained liability insurance and then pay a reinstatement fee of $100
• 2nd Offense: Your registration will be liable to a four month suspension after which point you must provide proof of liability insurance and also pay a reinstatement fee of $200

Should you need more specific information regarding any details of Alabama car insurance requirements, you can contact the MVD on (334) 242-3000

Can you secure the best auto insurance rate for your vehicle? If you are unsure then you should take a moment to read the checklist below to see if you can secure a discount.

Compare Auto Insurance Rates

Auto insurance rates vary by hundreds of dollars between companies so it is important to make sure you are not paying more than you need to by comparing rate quotes. The easiest way to compare insurance rates is by using a comparison website like autoinsurelist.com.

By using the comparison features of this website for example, you simply need to enter you zip code to be shown a list of the cheapest providers in your area and recieve multiple quotes. You can choose to go direct or use one of the multi-quote options provided in the results.

After choosing a provider you will be asked for information about your vehicle, driving record and the level of cover you require. Submitting this information into an easy form, you will then be presented with numerous quotes from several of the country’s top insurance companies.

All you need to do once you recieve your quotes is choose the policy which  best fits your needs. It is advisable to look at the reputation of the company & their customer service record aswell as the price of your policy.

Discounts for cheaper Auto Insurance Rates

Another way you can lower your auto insurance rate is by obtaining a discount. The are numerous discounts offered by insurance companies that will directly lower your annual premium. Some of the more common discounts available are:

• A Multi-Policy Discount – Available if you insure your auto and home with the same company
• A Multi-Vehicle Discount – Available for policyholders with more than one vehicle
• A Low Mileage Discount – For drivers covering less than 10,000 miles per year
• A Good Driver Discount – Great if you have had no tickets or accidents for three years
• A Good Student Discount – Another good reason for students to get good grades
• An Anti-Theft Devices Discount – Make sure your vehicle has an alarm or other anti-theft device fitted

Other Auto Insurance Rate Tips

• Increase your deductible for a reduction in your premium
• Drop comprehensive and collision coverage on low-value vehicles
• Keep your credit rating high to make sure you qualify for the best rates

1. Use a Price Comparison Website
   Prices vary considerably between insurance companies, so it makes sense to use a price-comparison website like AutoInsureList.com. Ideally you should obtain quotes from at least three different insurers, and research the company’s reputation. Pay extra attention to any discounts or special arrangements they may offer.
2. Go for a higher deductible
   A deductible is the amount of money you have to pay before your insurance kicks-in. Opting for a higher deductible will normally result in a lower premium. According to data from the III, increasing your deductible from $250 to $500 could reduce your premium by 15 to 30 percent, while increasing it to $1000 could save you 40% or more. Make sure you don’t set it too high – remember you will need to pay this sum in the event of a claim.
3. Older car? – Drop your collision/comprehensive cover
   For older cars of lesser value it may not make financial sense to maintain such a high level of cover. According to the Insurance Information Institute it doesn’t make sense to maintain comprehensive collision coverage for any vehicle worth less than $1000.
4. Go “low-profile”
   Opting for a car which is less expensive to repair and/or has a lower theft rate will result in lower insurance premiums. It is also worth checking the safety record of the car you intend to buy. You can check safety ratings at the Insurance Institute for Highway Safety.
5. Ask about low-mileage discounts
   If your average annual mileage is less than the predetermined standard you may find your insurance company will offer you a discount. It makes sense to share cars whenever possible which will result in cheaper insurance premiums and less money spent at the gas station.
6. Location, Location, Location
   Living in a rural community will result in cheaper premiums than your city counterparts where the risk of accident and theft is much greater. Even city dwellers can save money by keeping their vehicles off-road at night, or better still – in a locked garage.
7. It pays to be safe
   If your car is equipped with the latest and greatest safety features you may find that you qualify for a discount on your auto insurance. Many companies will offer discounts for cars which have airbags, antilock brakes and approved car alarms.
8. Other discounts for multiple policies
   Some companies will offer discounts for insuring a second car. Despite this multi-policy discount, you may be able to find cheaper insurance from two separate companies, so it still pays to shop around.