What are the minimum car insurance limits in Alabama?

Car wrecks are a reality of life — so what are the minimum car insurance requirements in Alabama?

What are the minimum car insurance limits in Alabama?Alabama is what is known as a “fault-based” state which means that if the other driver is at fault, you can make a claim against that driver.  If the driver has insurance, then the car insurance will be there to pay for at least some of your damages.

The minimum vehicle insurance in Alabama is normally described as “25/50/25” which means:

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury in total
  • $25,000 for property damage per wreck

Normally you will also have “uninsured or underinsured” coverage.  This is typically described as UM/UIM for “uninsured” or “underinsured” motorist coverage.  The number is normally at least $25,000 per person and up to $50,000 total per wreck.

So let’s look at these a bit more.

Liability car insurance is for when you have caused injury to someone else

Liability car insurance protects you by defending you (hiring a lawyer for you) and paying up to the amount of your insurance limits as damages.  This can be for personal (bodily) injuries and also for property damage to someone’s vehicle. 

Here’s how it works:

If you have 25/50/25 and you hit someone and injure three people in the vehicle, each person could receive up to $25,000 but the total cannot be more than $50,000.  And the property damage is limited to $25,000 to repair or replace the car.

UM/UIM is for when the person who hit you does not have insurance or enough insurance

The reality is the minimum limits described above are usually NOT enough to cover your injuries.  And many people on the roads in Alabama have no car insurance.  So the way to protect yourself is by having uninsured motorist coverage in case the person who was negligent has no insurance.

And you will have “under-insured” motorist coverage in case the at fault person does not have enough coverage.

Here’s an example:

You are hit by someone who blows through a red light.  You have $145,000 in total damages.

The person had the minimum limits of 25/50/25.  The $25,000 in bodily injury is helpful, but not nearly enough.  You are dealing with an “under” insured defendant by $120,000 (145-25=120).

So if you have, as we suggest to have, 250/500 in UM/UIM car insurance, this means you have up to $250,000 in insurance per person or up to $500,000 maximum for all persons who were injured by the uninsured or underinsured defendant.

If you have questions about how insurance will work if you are the victim of a car wreck, contact us and we are happy to help you.

We have been representing Alabama consumers in car wrecks since 1995 (for John Watts) and 1997 (for Stan Herring) so we have seen all different types of cases.  “Small cases” but really there are no small cases.  When a car hits you, it causes damage and it is not minor.  And we have handled cases with wrongful deaths and terrible injuries and everything in between.

So whatever type of car insurance or car wreck issue you have, we are happy to help you think through your options.

Call us at 205-879-2447 or contact us through our webform and we will get right back with you the same day.

Looking forward to talking to you and have a great day.

John Watts

Leave a Comment