Alabama Car Insurance Laws
Individual states determine their own car insurance laws, and it is important to be aware of the laws within any state you drive in. Alabama, much like most states, does require drivers to have car auto insurance. Alabama, however, does offer their drivers options. This article will explain the options in insurance, as well as the acceptable methods of providing proof of insurance.
Facts
Alabama drivers are required to carry liability insurance. The state minimum is $25,000 injury liability for one individual, $50,000 for all injuries in one accident, and $25,000 for property damage caused by the accident. Alabama drivers with insurance are also required to carry proof of insurance at all times. Drivers without proof of insurance will have their registration tagged, and their driving privileges will be suspended until they can provide proof of insurance and pay a $100 fine.
Types
There are several acceptable ways to provide proof of insurance. You can carry an insurance card issues by the insurance company. You can carry your premium receipt issued by your insurance agent. You can carry the actual policy. If the car is new, you can provide a proof of purchase and a valid insurance card from your previous car. If you are driving a rental, you only need a copy of your rental agreement in the car.
Misconceptions
Drivers can choose to not carry auto insurance, in which case they have two options. They can either purchase a motor vehicle liability bond or have a deposit of cash in the amount of $50,000 or more, which is given to the State Treasurer. The liability bond must also be a minimum of $50,000. For more information on obtain a motor vehicle liability bond, or obtain a Cash Deposit Certificate, you can go to the Alabama State Revenue website.
Considerations
Many people who drive without insurance think they won't get caught as long as they aren't in an accident or get pulled over. However, the Department of Revenue administers random surveys throughout the year. If you are contacted during a survey, you'll be required to provide proof of insurance. If you are unable to do so, your registration will be tagged, and you'll owe the $100 fine to get your registration reinstated. If you are caught without insurance a second time, your license will be suspended for four months, and you'll have to pay a $200 fine.
Function
The purpose of a liability auto insurance law is to protect all drivers. If a driver decides it is worth the risk not to have insurance on themselves or to fix his own car in the case of an accident, that is his choice. The law is to protect the other driver -- the one who didn't cause the accident, and doesn't deserve to have to pay to fix his own damages, or pay the hospital bills due to a personal injury.
Tags: proof insurance, provide proof, auto insurance, liability bond, provide proof insurance, Alabama drivers, Alabama Insurance
