Alabama Auto Insurance Laws

As per Alabama auto insurance laws, it is mandatory for all drivers to carry adequate insurance coverage on their vehicles. This is in the best interest of the drivers only, as the liability insurance coverage protects (at least financially) them on the road in case of an accident. An alternative way to meet this legal requirement is to make a cash deposit $50000 with the Alabama State treasure. Another alternative is to secure a liability bond of the same value ($50000). Following is a brief rundown on some of the most important aspects of these laws that you must be well aware of.

Penalty Of Driving Without Insurance

Random surveys are conducted by the traffic officials to ensure all drivers meet the requirements set by the Alabama auto insurance laws. If you are caught driving without proper car insurance coverage, the registration of your vehicle is very much likely to be suspended. You will have to pay the reinstatement fee of $100 to get your vehicle registered again. But, all these penalties are applicable for the first offence. If you are found guilty of this offence for the second time, the registration of your vehicle will be suspended for four months. You can get the registration back only after 4 months – this time, the reinstatement fee will be $200. It is also important for you to keep in mind that vehicle registration can be reinstated only after you pay the required fee and provide valid proof of insurance.

Proof Of Insurance

As per Alabama auto insurance laws, law enforcement officers have the right to stop you anytime on the road and ask you to show proof of car insurance. Therefore, you must carry proper proof of insurance all the time, especially while you are driving a vehicle. If you have bought a policy from an insurance company, the certificate of insurance issued by that company can be provided as proof. This policy certificate must include all necessary details, such as effective and expiration dates, the policy number, contact details of the insurance company, and the name, age and residential address of the policyholder (you).

Alabama auto insurance laws require you to carry liability insurance policy that must provide $25,000 of coverage for property damage, $50,000 for bodily injury per accident, and $25,000 for bodily injury to one person in an accident.