Alabama Insurance Requirements & Rates

Alabama requires minimum liability coverage of 25/50/25 (bodily injury per person / per accident / property damage). Alabama is an at-fault state, meaning the driver who caused the accident is responsible for paying damages. Uninsured motorist coverage is not required but recommended.

Alabama homeowners face risks from hurricanes, tornadoes, flooding, severe thunderstorms. The flood risk level is moderate and earthquake risk is low. Standard deductibles apply. The average annual home insurance premium is $3,801.

Alabama requires all motorcycle riders to wear helmets. Lane splitting is not legal. Eye protection is required for all riders. The riding season is year-round.

Yes, workers' compensation insurance is required in Alabama. Businesses with fewer than 5 employees exempt. Alabama has approximately 400,000 small businesses, with top industries including Automotive Manufacturing, Aerospace & Defense, Agriculture.

No, Alabama has not expanded Medicaid. The state uses the federal marketplace at healthcare.gov. The uninsured rate is 10%.

Yes, landlords in Alabama can require tenants to carry renters insurance as a condition of the lease. About 32% of Alabama residents are renters, with average monthly rent of $875.

Alabama has an uninsured motorist rate of 19.5%, which is above the national average. Factors include one of the highest uninsured motorist rates nationally at nearly 20%. Although uninsured motorist coverage is not required, it is strongly recommended.

With a median household income of $56,929, most Alabama families should consider 10-12x their annual income in life insurance coverage. Alabama has below-average life expectancy, making adequate coverage especially important. Currently, 46% of Alabama households have life insurance.