Alabama Auto Insurance Requirements

Answer 1

The state of Alabama requires all registered vehicles to be covered by insurance that has been written by a company licensed to do business in the state of Alabama. In addition, there are options to self-insure through liability bonds and cash deposits. The liability bond and the cash deposit are a minimum of $50,000 and are paid through the Department of Motor Vehicles.

Those purchasing auto insurance will find the minimum coverage required by Alabama law is $25,000 liability for one person against injury or death. Additional injuries or death must be covered for $50,000 total, no matter how many people are injured, and property damage must be covered for $25,000.

When requested, a registered owner must be able to show proof of insurance. This can be in the form of an insurance card, declaration page, insurance binder or copy of a rental agreement that shows the insurance information.

Alabama does not require a registered owner to carry any uninsured or underinsured motorist coverage.

Any lapses in insurance coverage results in the registered owner being considered uninsured and is subject to the penalties of driving without insurance. A first time offense of driving without insurance can result in a $500 fine and a license suspension. If a license is suspended, there is a reinstatement fee. This is in addition to any fees paid for the ticket issued for driving without insurance.

The state of Alabama requires owners of motorcycles to carry the same liability insurance coverage as the owners of motor vehicles. The same cash and bond options apply to motorcycles. There is a helmet law in the state of Alabama for both operators and passengers.

Alabama has a Mandatory Liability Insurance Unit, which has the sole responsibility of checking to make sure people are carrying insurance. They send out questionnaires to a random selection of registered owners, they follow up on suspended insurances and they report offenses and require the questionnaires to be returned to them in a set period or risk suspension. Alabama does not require insurance companies to report cancelled policies to the Department of Motor Vehicle, so the insurance unit is responsible for tracking the uninsured.

Alabama is not a no-fault state.

Blood alcohol limits over 0.8 percent will result in a driving while intoxicated ticket and can result in a fine anywhere from $600, up to $2,100 for the first offense. The driver's license will be suspended for 90 days.

Punishment for additional offenses can result in larger fines and possibly jail time.