Alabama Car Insurance
Alabama drivers must carry 25/50/25 liability under the Alabama Mandatory Liability Insurance Act (Ala. Code § 32-7A-1 et seq.)1. UM is a must-offer at the compulsory liability limits under Ala. Code § 32-7-232, with written rejection required to decline. Electronic verification runs through the Alabama Online Insurance Verification System (OIVS) under Ala. Code § 32-7B3.
YesWeSure Bottom Line
Traditional tort state. Alabama does not require PIP. First-party medical bills typically flow through health insurance or optional MedPay; tort recovery against the at-fault driver remains the primary mechanism4.
UM default is on. Every Alabama personal auto policy includes UM unless the named insured rejects the coverage in writing2. Rejecting in writing is a choice, not an oversight.
How to make a real decision. Treat 25/50/25 as a floor, not a target. For how to think about higher limits, see how to choose coverage limits.
State requirements at a glance
What Alabama car insurance law requires
Minimum liability limits
25 / 50 / 251
$25,000 bodily injury per person, $50,000 per accident, $25,000 property damage per accident, under the Alabama Mandatory Liability Insurance Act (Ala. Code § 32-7A-1 et seq.).
Personal Injury Protection (PIP)
Not required4
Alabama is a traditional tort state. No PIP is required on personal auto. Medical Payments coverage is an optional first-party add-on insurers typically offer.
Uninsured / Underinsured Motorist
Must offer; 25 / 50 BI if purchased2
Ala. Code § 32-7-23 requires insurers to offer UM at the compulsory liability limits. Alabama courts have treated UIM as an integral component of UM. The named insured may reject in writing.
Coverage verification
Alabama Online Insurance Verification System (OIVS)3
Ala. Code § 32-7B-1 et seq. establishes OIVS, administered by the Alabama Department of Revenue. Law enforcement and the DMV query OIVS at traffic stops and registration.
Rate approval regime
ALDOI oversight4
Alabama does not maintain a headline statewide prohibition on credit-based insurance scoring, gender, or age as personal-auto rating factors.
25/50/25 compulsory liability
The Alabama Mandatory Liability Insurance Act (Ala. Code § 32-7A-1 et seq.) compels every registered Alabama vehicle to carry 25/50/25 liability1. Many Alabama drivers carry higher limits.
PIP: not required in Alabama
Alabama does not require Personal Injury Protection. Medical Payments coverage is an optional first-party add-on that insurers typically offer. For how MedPay compares to PIP in states that require it, see our medical payments coverage guide.
UM must-offer under Ala. Code § 32-7-23
Every Alabama personal auto policy must include UM at not less than the compulsory liability limits (25/50 BI), unless the named insured rejects the coverage in writing2. Alabama courts have treated UIM as an integral component of UM, so written rejection of UM also reaches UIM.
OIVS verification and lapse enforcement
Ala. Code § 32-7B-1 et seq. establishes the Alabama Online Insurance Verification System, administered by the Alabama Department of Revenue35. Law enforcement and the DMV query OIVS at traffic stops and registration; a confirmed lapse can trigger registration suspension and reinstatement fees. For a general lapse treatment, see our after-a-lapse guide.
Rating-factor landscape
Alabama does not maintain a headline statewide prohibition on credit-based insurance scoring, gender, or age4.
Where the Alabama situation rules live on YesWeSure
This State Guide owns the Alabama pricing and legal framework. Situation-specific mechanics live on the sibling Situation guides:
- After an accident. See our after-an-accident guide.
- After a DUI. Alabama SR-22 and reinstatement mechanics are treated in our after-a-DUI guide.
- After a lapse. OIVS consequences of a lapse are treated in our after-a-lapse guide.
- Moving into Alabama. New-resident registration is treated in our moving-to-another-state guide.
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Common questions
What is the minimum car insurance required in Alabama?
25/50/25 liability under the Alabama Mandatory Liability Insurance Act (Ala. Code § 32-7A-1 et seq.)1. UM is a must-offer at the compulsory liability limits and ships on the policy unless rejected in writing2.
Is Alabama a no-fault state?
No. Alabama is a traditional tort state and does not require PIP4.
Is UM/UIM required in Alabama?
UM is must-offer. Every Alabama personal auto policy includes UM at the compulsory liability limits unless the named insured rejects the coverage in writing under Ala. Code § 32-7-232.
Sources & methodology
- Ala. Code § 32-7A-1 et seq.: Alabama Mandatory Liability Insurance Act; 25/50/25 compulsory liability. (Alabama Legislature)
- Ala. Code § 32-7-23: Uninsured Motorist coverage; must-offer at compulsory liability limits; written rejection required. (Alabama Legislature)
- Ala. Code § 32-7B-1 et seq.: Online Insurance Verification System administered by the Alabama Department of Revenue. (Alabama Legislature; Alabama Department of Revenue)
- Alabama Department of Insurance: Automobile Insurance consumer page. (Alabama Department of Insurance)
- Alabama Department of Revenue: Online Insurance Verification System program page. (Alabama Department of Revenue)
- YesWeSure: Car insurance after an accident (YesWeSure)
- YesWeSure: Car insurance after a DUI (YesWeSure)
- YesWeSure: Car insurance after a lapse in coverage (YesWeSure)
- YesWeSure: Car insurance when moving to another state (YesWeSure)
- YesWeSure: What is medical payments coverage? (YesWeSure)
- YesWeSure: How to choose coverage limits (YesWeSure)
- YesWeSure: How insurers calculate rates (YesWeSure)
Every claim on this page traces to a source listed above. Every legal number traces to an Alabama primary source: Ala. Code §§ 32-7A, 32-7-23, 32-7B. This page is informational and does not constitute legal, tax, or insurance advice. Last reviewed .