Having motor vehicle insurance is a requirement in Alabama.
Carrying insurance in Alabama is a must, as in most states. Insurance coverage prevents sudden costs of property damages and accident injuries. Alabama does allow different types of coverage to be obtained and different ways to show proof of insurance, as these topics will be explained in this article.
Requirements
Having car insurance is required in Alabama, as it is in most states. The minimal type of insurance, minimal liability coverage, is sufficient. Liability coverage covers $25,000 injury liability for one person, $50,000 for all injuries in one accident and $25,000 for property damage in one accident. The insurance requirement can also be met by getting an insurance liability bond or a certificate of cash bond.
Proof of Insurance
Carrying proof of insurance is a must in Alabama. Proof of insurance can be shown in more than one way, such as a temporary insurance card, permanent insurance card, the current declarations page of the liability insurance policy, or an insurance policy for the vehicle. If the vehicle is being rented, a copy of the rental agreement can be provided. If the car is new, proof of the vehicle purchase and the insurance card for the previous vehicle can be shown. Once the purchase of the vehicle is 60 days old, this type of proof is no longer acceptable.
Consequences
Consequences will arise if Alabama's state insurance requirements are not met. The registration of the vehicle's tag registration can be suspended by the Motor Vehicle Division if coverage is not obtained. Registration can be reinstated, but the steps vary with the number of offenses. For the first offense, proof of liability insurance and a fee of $100 is required. For the second offense, registration will not be valid for four months, proof of liability must be given, and a $200 fee must be paid. The Alabama Motor Vehicle Division can be reached for further information at 334-242-3000.
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