7 Key Changes to Alabama Automobile Insurance in 2023

According to the Alabama Department of Insurance, there were over 1.5 million registered vehicles in the state in 2022. Of these, over 1 million were insured by private companies. The average cost of auto insurance in Alabama is $1,042 per year, which is below the national average of $1,231.

Key Changes to Alabama Automobile Insurance in 2023

There are several key changes to Alabama automobile insurance laws that took effect in 2023. These changes include:

• Increase in minimum liability coverage: The minimum amount of liability coverage required by law in Alabama has increased from $25,000 per person/$50,000 per accident to $30,000 per person/$60,000 per accident.
• New distracted driving law: It is now illegal to use a handheld cell phone while driving in Alabama. This law applies to all drivers, regardless of age.
• Changes to the uninsured motorist law: The uninsured motorist law has been expanded to include coverage for underinsured motorists. This means that you can now collect damages from your own insurance company if you are injured in an accident with a driver who does not have enough insurance to cover your damages.
• New requirements for SR-22 insurance: SR-22 insurance is required for drivers who have been convicted of certain traffic violations, such as DUI or reckless driving. The new law requires SR-22 insurance to be maintained for three years, instead of two years.

How These Changes Will Affect You

These changes to Alabama automobile insurance laws will have a significant impact on drivers in the state. The increase in minimum liability coverage will provide more protection for victims of car accidents. The new distracted driving law will help to reduce the number of accidents caused by distracted drivers. The changes to the uninsured motorist law will provide more protection for drivers who are injured in accidents with uninsured or underinsured drivers. The new requirements for SR-22 insurance will help to ensure that high-risk drivers maintain insurance coverage.

What You Can Do to Prepare

There are several things you can do to prepare for these changes to Alabama automobile insurance laws. First, make sure that you have adequate liability coverage. The minimum amount of coverage required by law is not always enough to cover the costs of a serious accident. You should consider purchasing additional liability coverage to protect yourself from financial ruin.

Second, be aware of the new distracted driving law. It is important to obey this law to avoid getting a ticket and to protect yourself and others from harm.

Third, make sure that you have uninsured motorist coverage. This coverage will protect you if you are injured in an accident with an uninsured or underinsured driver.

Finally, if you have been convicted of a traffic violation, be sure to maintain SR-22 insurance for the required period of time. Failure to do so could result in your license being suspended.