Liability insurance is mandatory for all Alabama drivers.
Drivers are required to carry liability insurance in the state of Alabama. Like most states, Alabama uses a tort method of liability for auto insurance, meaning that insurance companies will assign fault for each accident and the responsible party is liable for all resulting damages, both bodily injury and property damage.
Minimum Liability Insurance
Alabama's minimum liability insurance coverage is 25/50/25. This denotes a policy that will pay up to $25,000 per person for bodily injury with an aggregate amount of $50,000 no matter how many people are injured, and up to $25,000 for all damaged property such as the other party's vehicle. Higher limits are available for additional premiums.
Alternatives to Insurance
Drivers may avoid purchasing an auto insurance policy by securing a motor vehicle liability bond of no less than $50,000 and filing it with the state. Drivers may also make a cash deposit of at least $50,000 with the state treasurer.
Proof of Insurance
All drivers are required to carry acceptable proof of insurance in their vehicles at all times and furnish it to law enforcement officers upon request. The most common form of proof is the certificate of insurance issued by the insurance company with the policy. The certificate will list the vehicle's year, make, model and identification number, as well as the names of the customer and insurance company, the policy number and both effective and expiration dates.
Penalties
Alabama conducts random surveys of registered drivers to determine if the drivers have valid auto insurance. If you are caught without insurance, your vehicle registration will be suspended until a $100 reinstatement fee is paid. A second offense will carry a mandatory four-month registration suspension and a $200 reinstatement fee. Valid proof of insurance is always required to reinstate vehicle registration.
Tags: auto insurance, bodily injury, insurance company, liability insurance, proof insurance, required carry
