Do You Need Insurance to Register a Car in Alabama in 2025
State law in Alabama mandates that all motor vehicle owners secure liability insurance coverage before registering or operating vehicles on public roadways. The Alabama Mandatory Liability Insurance Law, established under Title 32, Chapter 7A of the Code of Alabama, creates enforceable financial responsibility standards that apply to vehicle registration, renewal transactions, and continuous operation throughout each registration period. Compliance with these insurance provisions represents a foundational requirement for lawful vehicle ownership and operation in Alabama.
Legal Requirement for Insurance Coverage
Alabama's mandatory liability insurance framework prohibits any person from operating, registering, or maintaining registration of a motor vehicle intended for public highway use without establishing financial responsibility through approved mechanisms. According to the Alabama Department of Revenue, no person shall operate, register, or maintain registration of, and no owner shall permit another person to operate, register, or maintain registration of, a motor vehicle designed to be used on a public highway unless the motor vehicle is covered by a liability insurance policy, commercial automobile liability insurance policy, motor vehicle liability bond, or deposit of cash.
The Alabama Department of Revenue administers the state's Mandatory Liability Insurance program through its Motor Vehicle Division. This division maintains operational facilities throughout Alabama's 67 counties and processes all vehicle registration applications, renewals, and compliance enforcement actions. The Department implements electronic insurance verification protocols to confirm coverage during registration transactions and conducts ongoing monitoring to identify coverage lapses after registration completion.
Vehicle owners must maintain uninterrupted insurance coverage throughout the entire registration period. Allowing coverage to lapse constitutes a violation of Alabama law and may result in registration suspension, monetary penalties, and criminal charges.
Alabama Department of Revenue - Motor Vehicle Division
50 North Ripley Street, Montgomery, AL 36104
Phone: (334) 242-9000
Official Website: Alabama Department of Revenue
Minimum Insurance Coverage Requirements
Alabama establishes specific minimum liability insurance coverage amounts that all policies must meet or exceed. According to the Alabama Department of Revenue's Mandatory Liability Insurance requirements, the insurance policy must provide a minimum of $25,000 for bodily injury/death liability for one person in an accident, $50,000 for all injuries/deaths in an accident, and $25,000 for property damage in an accident in accordance with Section 32-7-6, Code of Alabama 1975. The policy must be an Alabama policy issued by an insurance company qualified to issue motor vehicle liability insurance in Alabama.
| Liability Coverage Type | Statutory Minimum Amount |
|---|---|
| Bodily injury or death per person | $25,000 |
| Bodily injury or death per accident | $50,000 |
| Property damage per accident | $25,000 |
These minimum coverage limits apply exclusively to liability insurance. Alabama law does not require collision coverage, comprehensive coverage, medical payments coverage, or uninsured/underinsured motorist coverage. Lending institutions typically mandate comprehensive and collision coverage as conditions for vehicle financing. Vehicle owners may purchase coverage amounts exceeding statutory minimums for enhanced financial protection.
Alabama Department of Insurance
201 Monroe Street, Suite 1700, Montgomery, AL 36104
Phone: (334) 269-3550
Official Website: Alabama Department of Insurance
Proof of Insurance Documents
Alabama law requires every motor vehicle operator subject to mandatory liability insurance provisions to carry evidence of insurance within the vehicle during operation. The state accepts multiple formats of insurance documentation:
- Insurance Identification Card: Standard card issued by the insurance carrier containing vehicle year model, vehicle make, vehicle identification number (VIN), name of insured(s), insurance company name, policy number, effective date and expiration date covering a period not exceeding 12 months, and the insurance company's NAIC number
- Electronic Evidence of Insurance: Digital proof of insurance displayed on a smartphone, tablet, or other electronic device
- Temporary Insurance Card: Short-term documentation issued during policy processing periods
- Current Declarations Page: Declaration page from the liability insurance policy showing coverage details
- Liability Insurance Binder: Temporary proof of coverage document issued by an insurance agent or carrier
- Certificate of Insurance: Official certificate verifying active coverage
- Motor Vehicle Rental Agreement: Rental contract specifying insurance coverage by the rental company or operator in the minimum required amounts
Law enforcement officers, court officials, and license plate issuing officials may request proof of insurance during traffic stops, accident investigations, court proceedings, or registration transactions. Failure to provide valid evidence of insurance when requested may result in citations and penalties.
Exceptions to Insurance Requirements
Alabama law provides specific statutory exemptions from mandatory liability insurance requirements for certain vehicle categories under Section 32-7A-5 of the Code of Alabama:
- Trailers: Including semitrailers, travel trailers, boat trailers, pole trailers, and utility trailers
- Motor vehicles owned and operated by the US government: Or any agency thereof, the State of Alabama, or any political or governmental subdivision thereof
- Federally regulated vehicles: Any motor vehicle subject to supervision and regulation of the Federal Motor Carrier Safety Administration or Alabama Public Service Commission
- Vehicles complying with other insurance laws: Motor vehicles complying with laws requiring insurance in amounts meeting or exceeding the minimum amounts
- Self-insured vehicles: Motor vehicles covered by a certificate of self-insurance issued by the Department of Public Safety
- Inoperable or stored motor vehicles: Vehicles not operated on public roadways
- Implements of husbandry: Agricultural equipment and farm machinery
- Vehicles moved solely by animal power: Animal-drawn vehicles
- Special mobile equipment: Equipment not designed for highway transportation
- Dealer inventory vehicles: Motor vehicles owned by a licensed motor vehicle dealer, wholesaler, rebuilder, or reconditioner held in inventory covered by a blanket liability insurance policy or commercial automobile liability insurance policy
- Vehicles properly registered in another jurisdiction: Vehicles not legally required to be registered in Alabama
- Financial institution vehicles: Vehicles owned by a financial institution covered by a blanket liability insurance policy or commercial automobile liability insurance policy
- Blanket policy coverage: Vehicles covered by a blanket liability insurance policy or commercial automobile liability insurance policy
These exemptions apply only under the specific circumstances described in Alabama statutes. Vehicles qualifying for exemptions may still require registration with appropriate designation indicating exempt status.
Insurance Requirements for Vehicle Registration
The Alabama Department of Revenue verifies insurance coverage as a mandatory element of all vehicle registration transactions.
- Registration applicants must provide insurance policy information, including the insurance company name, policy number, and effective dates. The Motor Vehicle Division confirms this information through the Online Insurance Verification System before processing registration applications or renewals.
- New residents relocating to Alabama must obtain Alabama-issued insurance coverage before registering vehicles in the state. Insurance policies issued by carriers in other states do not satisfy Alabama registration requirements. The policy must be an Alabama policy issued by an insurance company qualified to issue motor vehicle liability insurance in Alabama.
- Registration renewals require active insurance coverage verified through OIVS. The system performs electronic insurance verification when processing renewals submitted at county license offices, by mail, or through online channels. Vehicles with lapsed or unverifiable insurance coverage cannot complete renewal transactions until valid coverage is established and confirmed through the verification system.
