The Risks of Driving Without Insurance in Alabama

An uninsured driver is one who lacks sufficient coverage in the eyes of the law. This may be a driver who doesn’t have any insurance coverage or whose policy fails to meet the legal minimum coverage required by law. In Alabama, drivers must have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident, otherwise noted as 25/50/25 liability coverage. All drivers who fail to maintain at least 25/50/25 liability coverage on their policies are considered uninsured.

Let’s check out what can happen to those who drive without adequate coverage and how you can create your Alabama auto insurance policy to ensure you’re protected from legal penalties and in any accident scenario.

The laws regarding auto insurance for Alabama state all drivers must have a policy with at least 25/50/25 liability coverage. Those who finance or lease their vehicles may be legally required to have collision and comprehensive coverages on their auto insurance policy as a stipulation on their contracts. Those that fail to meet this legal minimum are considered uninsured and may face severe penalties for breaking the law.

Carrying the minimum legal coverage limit in the state will help ensure your safety and the safety of other drivers on the road. Drivers must have liability coverage because the coverage helps the victim in an accident caused by the policyholder pay for their medical expenses and vehicle repairs after paying their deductible. Those who fail to meet the liability coverage requirement will be liable for any and all expenses the victim of an at-fault accident may incur.

Having the minimum liability coverage required by law will help you cover the expenses associated with an at-fault accident and will protect you from the legal penalties for driving without insurance. Driving without insurance can be highly costly, from fines to reinstatement fees to the expenses associated with an accident. It’s often much more cost-effective to pay the premiums for an insurance policy than cash in on the short-term savings of forgoing one altogether.

In Alabama, the penalty for driving without insurance may be an expensive fine, license or registration suspension, jail time, or any combination of these penalties. Drivers may face a fine of up to $1,000, having their license and registration suspended for several months, and having their vehicle impounded, or they may have a $500 fine and a couple of points on their license. The penalty’s severity depends on the crime’s severity and frequency.

If a driver has a clean driving record and causes an accident, only to find their insurance policy lapsed a week ago, the legal penalty may be less severe than that associated with a more significant crime or a longer time spent uninsured. 

The average full coverage policy in the Heart of Dixie costs about $1,670 annually, just a bit over the cost of a fine for driving uninsured. While it can be tempting to forgo the premiums associated with an auto insurance policy in the name of some short-term savings, the penalties for driving uninsured can add up quickly and far surpass the annual cost of a full coverage premium.

Those caught driving uninsured may also require SR-22 insurance for years following the incident. SR-22 insurance isn’t actually a type of insurance or a specific coverage but rather a document filed by a policyholder’s insurer that verifies with the state they have an active and adequate policyholder. Typically, drivers deemed high-risk because of a severe traffic violation, like driving uninsured or while intoxicated, will require this form.

While an SR-22 itself isn’t costly, the existence of the form on one’s record may cause a significant increase in insurance premiums for years to come. High-risk drivers often have a difficult time binding a cheap policy and especially struggle with binding a policy through one of the state’s top insurers. 

Insurers use several factors to determine one’s premiums, like one’s age, gender, ZIP code, and driving record. Insurers use these characteristics to determine one’s risk of filing a claim. If an insurer considers a driver at high risk of filing a claim, they translate this risk into higher premiums. Thus, high-risk drivers, like those who’ve driven uninsured, may be unable to find rates that align with the cheapest policy in the state.

The fine for driving without insurance in Alabama begins at $500 for the first offense and can go p to $1,000 for second or subsequent offenses. However, a fine isn’t the only monetary penalty for this crime. An uninsured driver may also have to pay fees to reinstate their license, recover their vehicle from impoundment, and pay for bail should they be jailed. 

There are other monetary penalties related to driving without insurance in the Heart of Dixie. For starters, those who cause an accident while driving uninsured will be liable for all expenses incurred in the accident, both their own and the other party’s. If you’ve ever been to a hospital in America, you know this won’t be cheap. Plus, since Alabama isn’t a no-fault state and is instead a tort state, the victim of an accident has the right to sue the at-fault party for pain and suffering. Legal battles can tally up fast, as legal defense alone is quite expensive. 

That’s not to mention your income. If an uninsured driver has their vehicle impounded or their license and registration suspended as a penalty for driving without coverage, this may significantly impact how the driver earns and saves money. Paying off one’s expenses can be extremely challenging without transportation to and from work. 

Setting and sticking to a budget for one’s car insurance can take a bit of discipline, but the investment goes a long way in the end. Budgeting for an insurance premium is far easier than for the costs associated with an at-fault accident while driving uninsured. 

If you’re interested in binding an auto insurance policy or checking out the rates you may be offered for your desired coverage, the best way to start your journey is to get and compare quotes online. Getting and comparing quotes from several insurers is a great way to tailor your policy to fit your specific needs and ensure your premiums remain within your budget.

Luckily, you’ve come to the right place for quotes. Here at Clovered, we have a free quoting tool you can use to get quotes tailored to your needs in minutes. If you prefer to speak with someone about your quote, you can contact one of our licensed agents at 833-255-4117 or agent@clovered.com.