Alamaba Car Insurance Requirements, Laws and Coverage
In Alabama, the government uses the Tort system to verify the person who is at fault. You need to prove to the insurance company that you are at fault before you can be eligible to receive the compensation. Alabama requires the car owners to possess the liability insurance. There are two types of liability insurance that are required in Alabama including bodily injury liability and property damage liability insurance. If you are not covered by insurance, you cannot register a motor vehicle, You are not allowed to maintain or drive a motor vehicle as well.
For injury liability, the minimum requirement is $25,000. The minimum requirement for multiple passengers involved in the accident is $50,000. The minimum requirement for the property damages is $25,000. All drivers are advised to carry the insurance card to prove that they are covered by the insurance. The insurance card must be issued by your insurer in Alabama. It contains information about the model of the vehicle, identification number of the vehicle, name, company and policy number. Most insurers will issue multiple cards per year. The insurance card that the motorist carries must be current.
If you forget to bring your insurance card, you can use other documents to prove that your motor vehicle is covered. Some of the documents that can be used to prove insurance include temporary insurance card, premium receipt, and liability insurance policy certificate. In addition, you can also use the proof of purchase for the motor vehicle to prove insurance.
If you don’t want to meet the insurance requirements, you have to possess a motor vehicle liability bond or a certificate of cash bond. The motor vehicle liability bond and certificate of cash bond worth lesser than $50,000.
The Department of Revenue in Alabama will randomly pick a vehicle owner to show proof of insurance. The vehicle owner that is picked must provide the document of proofs to the department within the allotted time frame. If he fails to provide the document, he will be fined for $100. His vehicle will be suspended until he is able to provide liability insurance proof. The fine will be $200 if the person had been suspended for more than 4 months before. The registration of the motor vehicle will be suspended if you provide a false document or refuse to cooperate as requested by the regulations regarding the proof of insurance.
It is important that you buy higher insurance coverages so that you will be safe. If you did not buy enough insurance coverage, you will be liable to settle the rest of the amount that is not covered by the insurer. Most accidents will incur damage costs that surpass the minimum amount. Therefore, you should buy more insurance than the minimum coverage. You can discuss with your insurance agent to determine the amount of coverage you need. Your insurance agent can also help you to find an affordable car insurance that suits your needs because he is more familiar with the market. You can also perform shopping comparison yourself and determine the most affordable insurance.
Alabama Department of Insurance
- 201 Monroe Street, Suite 1700
- Montgomery, AL 36104
- Phone: (334) 269-3550
- Fax: (334) 241-4192
- www.aldoi.org
Alabama Department of Transportation
- 1409 Coliseum Blvd.
- Montgomery, AL 36110
- Phone: (334) 242-6358
- www.dot.state.al.us
Alabama Department of Revenue
- 50 North Ripley Street
- Montgomery, AL 36132
- Phone: (334) 242-1170
- www.revenue.alabama.gov
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