The state of Alabama protects drivers through mandatory insurance laws.
The state of Alabama requires all drivers to carry liability insurance on their automobiles. The liability insurance protects drivers on the road in the event of an accident. Drivers may also purchase a liability bond or deposit $50,000 with the Alabama State treasurer to meet the requirements of the state.
Minimum Requirements
Motorists must carry liability insurance policies in Alabama, which provide $25,000 for bodily injury to one person in an accident, $50,000 for bodily injury per accident and $25,000 for property damage. The state of Alabama is a tort state, which allows drivers involved in accidents to sue the insurance company of the at-fault driver. The state does not require uninsured or underinsured motorist coverage to drive in the state.
Proof of Insurance
Drivers must provide proof of insurance at the time a vehicle is registered with the state department of motor vehicles. In addition to providing proof during registration, the driver must carry proof in the vehicle at all times. Police officers may request an insurance card at the scene of an accident or during a routine traffic stop. The state of Alabama also sends insurance questionnaires to drivers to determine the vehicle is covered by insurance. The state sends questionnaires during a random sampling of motor vehicle registrations in the state, after a driver is issued a ticket for a violation of the insurance law and if the state receives notice that the driver's license associated with the vehicle is suspended. The state may also send a questionnaire if the vehicle registration has been suspended within the previous four years.
Penalties
Alabama suspends the registration of any vehicle that is operated without liability insurance coverage. Drivers may reinstate the registration for a fee of $100 on a first offense. Second offenses of the mandatory insurance law will require a $200 fee to reinstate the registration. The reinstatement fee is in addition to fines issued to the driver. A first offense of driving without insurance in Alabama Carries a fine of up to $500 and up to $1,000 for second and subsequent offenses. The state may also impose a six-month license suspension in addition to the fines and registration reinstatement fee. All fees, fines and penalties are as of October 2010.
Tags: liability insurance, state Alabama, addition fines, bodily injury, carry liability
