The Yellowhammer State

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Alabama Auto Insurance Coverage

From the warm Southern charm to the low cost of living, there’s a lot to love about living in Alabama. Whether you’re a new resident or have deep roots in the Yellowhammer State, it’s important to understand the auto insurance requirements in Alabama.

Required Auto Insurance in Alabama

Alabama requires all drivers to have liability insurance for both property damage and bodily injury, which pays for any damage or injuries caused by an accident in which you were at fault. Alabama requires the following minimum liability coverage:

  • Bodily Injury: $25,000 per person and $50,000 per accident.
  • Property Damage: $25,000 per accident.

Alabama Teen Driving Laws

Alabama operates under a Graduated Driver's License (GDL) Law, which includes three stages: Learner’s Permit, Restricted License, and Unrestricted License. 

  • Learner’s Permit: At 15, teens can obtain a learner’s permit after passing a written exam. A learner’s permit allows teens to drive with a parent, legal guardian, licensed driver over 21, or a certified driving instructor. 
  • Restricted License: At 16, teen drivers can apply for a restricted license after completing a state-approved driver’s course or a minimum of 30 hours of behind-the-wheel driving practice. The restricted license also requires passing a road skills exam. With a restricted license, drivers are prohibited from driving between midnight and 6:00 AM unless accompanied by a parent, guardian, or a licensed driver over 21.
  • Unrestricted License: To obtain an unrestricted or regular license, drivers must be at least 17 years old and have had their restricted license for six months. Applicants who are 18 years old may apply immediately for a full license.

Alabama Auto Insurance Discounts

Looking to save? You may qualify for one or more auto insurance discounts that are available for drivers in Alabama. Some examples of common discounts include:

  • Safe driver
  • Good student
  • Installed anti-theft systems
  • Multi-vehicle
  • Accident-free
  • Multi-policy




Read more about potential discounts by visiting our auto insurance discounts page.

Optional Coverage Options in Alabama

No law in Alabama states that you must settle for the state's minimum auto insurance requirements. You can always expand your coverage by purchasing optional insurance policies that cover a broader range of expenses and situations.

Start your Alabama auto insurance quote online, or by calling (888) 772-4247.

Learn More About Alabama

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About Alabama

Alabama is America's 22nd state. Known nationwide for its college football and stunning gulf beaches, the Yellowhammer state offers a variety of attractions for the whole family.