If you are going to drive a car in the state of Alabama you must have Alabama car insurance.  What this means is that if you drive your car on a public road and you are involved in a car accident you have the financial means to cover loses involved to yourself; and if the accident was your fault cover the loses of the other party involved.

In order to meet the Alabama car insurance requirements you can either purchase traditional automobile insurance coverage from a licensed dealer in the state of Alabama.  You also have the option of proving financial liability by having one of two bonds: a Motor Vehicle Liability Bond, or a Certificate of Cash Bond both have to have the value of at least $50,000.

If you go the traditional car insurance route from a licensed broker you have to have a policy that is inclusive of $25,000 worth of injury liability for a single individual and property damage.  In addition to that you have to have $50,000 to cover all of the personal injuries in one accident.  This is the bare minimum of Alabama car insurance requirements.

You can also purchase additional coverage, but that is your personal choice.

The law requires that you have on your person while driving on a public road proof of your vehicle’s insurance coverage.  You can do this in several ways: your insurance card, a copy of your insurance card, a copy of your bond (if that is how you choose to insure yourself) or the rental agreement if the vehicle you are driving is a rental car.

If you fail to show proof of Alabama car insurance, if asked by an officer, than by law the MVD can pull your car’s registration.  If it is a first time offense once you have shown proof and you can reinstate your registration with a $100 fine.  On your second offense your registration will be pulled for 4 months, even if you show proof of insurance and you have to pay a $200 fine.

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Filed under: Auto Insurance By States

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