Alabama Auto Insurance

Alabama is one of the many states that follows a Tort insurance system – if you have caused an accident, you and your insurance carrier have to pay for the damage. The insurer pays up to the limits agreed in the policy, and you have to cover the rest.

Minimum Liability requirements

Minimum Liability in Alabama follows the national trend – a ratio of 25/50/25:

• $25,000 in Bodily Injury Liability per injured passenger, but not more than $50,000 for the whole accident;
• $25,000 in Property Damage Liability.

Average Liability premiums in Alabama

Alabama is one of the cheapest states to live in, so it shouldn’t come as a surprise that insurance is relatively cheap here. The average figure is of $1,187, which is considerably lower than what the average American has to pay – $1,678. Insurance is a bit more expensive in some major cities across the state – $1,412 in Montgomery, $1,330 in Auburn, $1,278 in Huntsville, $1,493 in Hoover and $1,479 in Gadsden.

Laws and regulations regarding the use of cellphones

Drivers aged between 16 and 17 may not use a cellphone at all when driving. No further bans are set, but the known recommendations hold – do not text while driving and use a hands-free device if you are going to answer or make a call.

A recent bill might prohibit operating a GPS device manually while driving, so you may have to pull over when typing in some street details.

Teenage driving laws in Alabama

Alabama uses a Graduated Driver License program. All teens of at least 16 years old may get a driver’s license, with no restrictions once you turn 18 or are still 17 but have had the Restricted License for more than six months. Restrictions are in line with the nation-wide GDL practices:

• Drivers under 18 may not drive between 12am and 6am unless accompanied by a parent, legal guardian or licensed driver of at least 21 years old;
• Teens may only drive unaccompanied on their way to/from school or work or in case of an emergency; in all other cases, they must be accompanied by an adult sitting in the front seat;
• There may not be more than four passengers in the car at any time, including the parent, legal guardian or supervisor.

Penalties for driving uninsured in Alabama

If you are caught without Liability coverage in Alabama, your vehicle tag registration will be suspended. Then you will be billed a reinstatement fee of $100 and be asked to show that you have purchased the minimum form of insurance. Upon the second offense, your license will be suspended for up to four months and the reinstatement fee will be of $200.