Alabama Auto Insurance Requirements

The Alabama State laws governing auto insurance require you to carry a minimum amount of liability insurance.  The two options available to you besides a liability auto policy is a bond or a cash deposit, making up for a more unique styling for Alabama auto insurance requirements.  You will need to provide proof that you possess one of these three methods to pay for injuries to another person or damages to their property in case of an accident.  The amount of liability insurance, bond or cash deposit must have the minimum limit of $50,000.00.

The Alabama State Department of Revenue is the government agency you need to provide your proof of insurance, bond, or cash deposit to. Within this department, you will need to contact the Motor Vehicle Division, as they are the body that delegates Alabama auto insurance laws.  Furthermore, if you choose the cash method, it must be deposited with the Alabama State Treasurer in the amount of $50,000.00.

In order to register your car in Alabama, you must prove that you either have the proper liability auto insurance coverage or some other acceptable means of covering accident damages and injuries.  All eligible drivers in a household must be covered under a liability auto insurance policy.  However, the state of Alabama does not require drivers to carry underinsured or uninsured auto insurance coverage, making Alabama auto insurance laws to be a bit more lax than other states.

Alabama is a Torte state. This means that the individual who is at fault in an accident may be sued by those injured in the accident for pain, suffering, and lost wages.  That individual will also be held responsible for all medical expenses connected to the accident.

You must have proof of insurance with you at all times, as Alabama auto insurance requirements need to be adhered to.  In 2008, Alabama raised its mandatory minimum liability auto insurance limits to $25,000.00 per individual injured, $50,000.00 for all injured persons, and $25,000.00 for damage to property.  Auto insurance policies purchased in Alabama will include the mandatory liability minimum insurance limits.  If you rent a car in Alabama and your personal auto insurance nor your credit card provides rental car insurance, you must have the rental car agreement with you which includes proof of insurance through the rental car company, as Alabama auto insurance laws dictate.

Alabama requires motorists to be covered by the mandatory liability policy at all times.  Should you become involved in an accident and you do not have the required liability policy, you will be cited as an uninsured motorist.  This will result in the suspension of your license as well as a $150.00 fine for the first offense.

Understanding Alabama auto insurance laws are important if you’re going to operate a vehicle in full accordance of the state’s regulations. The Alabama Department of Revenue performs periodic checks on motorists for liability auto insurance coverage.  If you do not have the correct liability insurance, constituting a failure to adhere to Alabama auto insurance requirements, the Department of Revenue can suspend your vehicle registration.  Upon the first offense, you will be charged $100.00 and will have to provide proof of proper insurance to get you vehicle registration reinstated. 
The fee rises to $200.00 with the second offense plus your vehicle registration is suspended for four months.  Vehicle registrations will also be suspended if you are found guilty of driving without proper liability auto insurance or submit false proof of insurance.  Failure to comply with the laws or to submit proof of insurance upon request by the authorities may also result in vehicle registration suspension and fines.

You must produce proof of insurance upon request by the authorities.  This proof needs to include the name of the insurance company, the dates of coverage, and the amount of liability coverage.  It also needs to include the policy number, VIN number of the vehicles covered, the make and model of all vehicles as well as the name of the policy holder.  The auto insurance policy needs to be authorized by a qualified auto insurance company, as per Alabama auto insurance laws dictate.

Some of the acceptable forms your proof of insurance may take are a temporary insurance card from the issuing company, a premium receipt or insurance binder issued by an authorized company agent, a current declaration page of liability coverage or the actual liability insurance policy from the insurer or agent, or proof that you carried insurance on a vehicle which has been replaced in the last 60 days.

Alabama auto insurance laws state that you’ll need verifiable proof. This proof can be in the form of a valid insurance card for the previous vehicle, a copy of the bill of sale dated within the last 60 days for the new vehicle, owners permit copy of your application for insurance, certificate of liability, or copy of a rental agreement which includes insurance coverage specifics.