The State of Alabama has five major interstate roads: I-65, I-20/I-59, I-85, I-10 and I-22 providing residents with ample transportation options. If you plan on driving in Alabama, you will need to carry car insurance. Here are the laws and regulations for Alabama car insurance.
Alabama Mandatory Liability Insurance Law
All operators of motor vehicles in the State of Alabama must carry insurance according to the Alabama Mandatory Liability Insurance Law. Even if you don’t drive, but have registered your motor vehicle, you will need insurance. Unfortunately, too many Alabama drivers are uninsured and the state is trying to improve this statistic.
“We dare defend our rights” is the Alabama state motto
When an uninsured driver gets in an accident, the citizens of Alabama are forced to pay the medical costs. By requiring all Alabama drivers to hold insurance, the risk is shared by all parties. The rate for uninsured drivers in Alabama is the 6th worst in the nation.
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St. Clair County
What Must Liability Insurance Cover?
Minimum liability insurance is required on all self-propelled motorized vehicles. This does not include trailers. Your Alabama car insurance must adhere to the following state minimums for coverage:
- $25,000 for death or bodily injury to one person
- $50,000 for death or bodily injury to two persons
- $25,000 for property damage or destruction
What is Proof of Insurance?
When applying for new license plates, Alabama drivers should present their insurance card for verification. The State of Alabama Online Insurance Verification System will be used to check insurance status. This proof of insurance must include the insurance company’s National Association of Insurance Commissioner’s (NAIC) number, Vehicle Identification Number (VIN) and policy number. The individual must also have a valid identification card. State troopers can also request that you provide a valid insurance policy number during traffic stops.
What Are Penalties for Not Having Insurance?
If you are caught without valid insurance, then you could receive fines, license revocation or mandatory reinstatement fees. For the first violation, you might be fined $500; for the second violation, you might be fined $1,000. The second violation could also lead to a six-month driver’s license suspension.
A vehicle registered or operated without the necessary car insurance could lead to the vehicle registration being suspended or revoked. The owner may be required to pay a $200 reinstatement fee for the first offense and $400 for the second offense. So, it pays to keep your insurance coverage current.
The State of Alabama is hoping to increase the percentage of drivers who carry the right car insurance. Alabama hopes that all drivers will remain in compliance. Now that you know the rules, fill out the form above for a free quote.