Key Alabama facts: Insurance & Collisions
Minimum liability coverage per person hurt or killed is $25,000. Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70 Minimum liability coverage when two or more people are hurt or killed is $50,000. Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70 Minimum liability coverage for property damage is $25,000. Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70 A first conviction for violating the mandatory liability insurance law can bring a fine of up to $500; a later one up to $1,000, and a six-month suspension is possible. Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70 When a crash causes injury, death or $500 or more in damage and the party at fault was uninsured, the driver must send a written SR-31 report within 30 days. Chapter 4, The Driver, Report All Traffic Mishaps, PDF p. 40 Sample Insurance & Collisions questions
What is the minimum liability coverage for death or injury to two or more people in one crash?
$50,000 $30,000 $300,000 $20,000 Show the answer
$50,000
The required limits are $25,000 per person, $50,000 per crash and $25,000 for property.
Source: Alabama Driver Manual, Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70
What is Alabama's minimum liability coverage for property damage?
$75,000 $15,000 $25,000 $5,000 Show the answer
$25,000
The policy must come from an insurer licensed to do business in Alabama.
Source: Alabama Driver Manual, Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70
After a crash, another driver involved asks about your insurance. What should you give them?
A copy of your title Nothing until you see a lawyer Your insurer and local agent Only your phone number Show the answer
Your insurer and local agent
If you cannot give the details at the scene, provide them later.
Source: Alabama Driver Manual, Chapter 4, The Driver, When Involved in a Crash, PDF p. 40
What is the highest fine for a first violation of Alabama's mandatory liability insurance law?
Show the answer
$500
A second or later violation can cost up to $1,000, and the license can be suspended for six months.
Source: Alabama Driver Manual, Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70
The at-fault driver was uninsured and no one was hurt. From what amount of damage is an SR-31 report needed?
$5,000 or more $500 or more $25,000 or more $50 or more Show the answer
$500 or more
Any injury or death also triggers the report.
Source: Alabama Driver Manual, Chapter 4, The Driver, Report All Traffic Mishaps, PDF p. 40
While waiting for medical help at a crash, how should you care for an injured person?
Drive them home yourself Walk them around to keep them awake Move them into your car right away Keep them lying or sitting; treat for shock Show the answer
Keep them lying or sitting; treat for shock
Keep them as comfortable as you can, and avoid doing more than you know how to do.
Source: Alabama Driver Manual, Chapter 4, The Driver, What to Do If You Have a Crash, PDF p. 39
When an SR-31 crash report is required, how soon must it be sent?
Within 30 days Within 7 days Within one year Within 24 hours Show the answer
Within 30 days
The form goes to ALEA's Safety Responsibility Unit and can also be filed online.
Source: Alabama Driver Manual, Chapter 4, The Driver, Report All Traffic Mishaps, PDF p. 40
What is Alabama's minimum liability coverage for death or injury to one person?
$25,000 $10,000 $100,000 $5,000 Show the answer
$25,000
Policies must also cover $50,000 for two or more people and $25,000 for property.
Source: Alabama Driver Manual, Chapter 6, Traffic Laws, Mandatory Liability Insurance Law, PDF p. 70
Both drivers in a crash had insurance at the time. Must either of them file an SR-31?
Only the older driver Only the driver with more damage No, neither has to Yes, both must Show the answer
No, neither has to
The SR-31 is needed only when the party at fault was not insured.
Source: Alabama Driver Manual, Chapter 4, The Driver, Report All Traffic Mishaps, PDF p. 40
Someone is injured in a crash on a state highway outside any town. Whom do you notify?
No one, if you exchange details Your insurance agent only The county probate judge The State Troopers Show the answer
The State Troopers
Inside a city or town the local police take the report; on a state highway, the State Troopers.
Source: Alabama Driver Manual, Chapter 4, The Driver, Report All Traffic Mishaps, PDF p. 40
Take this topic's test
More Alabama practice
Full practice test All topics, as in the knowledge test Road Signs What signs mean and what to do when you see them 89 questions, 11 on Alabama rules Right-of-Way Who goes first at intersections, crosswalks and roundabouts 33 questions, 13 on Alabama rules Traffic Signals Lights, arrows and pedestrian signals 28 questions, 11 on Alabama rules Lanes & Turns Lane markings, turns, passing and merging 37 questions, 13 on Alabama rules Speed Limits Limits and how to adjust your speed 22 questions, 11 on Alabama rules Parking Curb colors, hills and where you can't park 23 questions, 9 on Alabama rules Safe Driving Following distance, weather, night driving and sharing the road 60 questions, 28 on Alabama rules Alcohol & Drugs Blood alcohol limits, DUI rules and medication 27 questions, 14 on Alabama rules Emergencies Breakdowns, emergency vehicles and railroad crossings 27 questions, 15 on Alabama rules License Rules Permits, restrictions for new drivers and points 25 questions, 25 on Alabama rules Phones & Distraction Phone rules and other distractions 11 questions, 8 on Alabama rules
Share this test
Copy link
Email
About these questions
We wrote these practice questions from the facts in the Alabama Driver Manual (November 2024 (cover), PDF created 2024-12-05 and modified 2025-01-23, read 2026-11-09, plus ALEA's Graduated Driver License and Alabama Move Over Act pages. Pages cited are PDF pages (printed page = PDF page - 2); PDF pp. 20-21 repeat the suspension list. edition) and from official sources on road signs. Every answer links to its source, so you can check it and read more.
DMV Decoded is an independent guide, not a government agency. This practice test is not connected to the Alabama Law Enforcement Agency, and your actual test will have different questions. Study the handbook, and check the agency's website for current rules.
