Alabama Car Insurance

Vehicles registered or operated in Alabama are required to be covered by a liability insurance policy. No one is allowed to operate, register or maintain registration of, and no owner shall permit another person to operate, register or maintain registration of, a motor vehicle designed to be used on a public highway unless the motor vehicle is covered by a liability insurance policy.

Car insurance must provide a minimum of $25,000 for injury liability for one person in an accident, $50,000 for all injuries in an accident, and $25,000 for property damage in an accident. The auto policy must be issued by an insurance company qualified to issue motor vehicle liability insurance in Alabama.

Proof of this liability insurance coverage must be in your vehicle. The preeminent proof of liability insurance is the insurance card issued by the insurance company. The insurance cards are issued by companies qualified to issue motor vehicle liability insurance in Alabama. The card shows:

•  vehicle year model 
•  vehicle make 
•  vehicle identification number 
•  name of the insured 
•  name of the insurance company 
• policy number 
• effective and expiration dates of the policy 

Insurance companies often issued cards two or more times a year. Motorists must be sure that the insurance card carried within the vehicle is current.

Other acceptable documents to prove insurance include:

•   A temporary insurance card issued by the insurer. 
•   A premium receipt or insurance binder issued by the motorist's insurance agent. 
•   The current declarations page of a liability insurance policy. 
•   The actual liability insurance policy issued for the vehicle. 
•   A certificate of liability insurance policy issued by either the insurer or an authorized agent. 
•   Proof of purchase of a motor vehicle with the previous 60 days and a valid insurance card issued for the motor vehicle replaced by such purchase. The proof of purchase is to be a copy of the bill of sale if the vehicle is a pre-1975 year model, or the owner's permit (yellow) copy of the application for certificate of title for a 1975 and subsequent year model vehicle. 
•   A copy of the rental agreement when renting a motor vehicle which specifies the insurance coverage. 

There are alternatives to motor vehicle liability insurance requirements. In lieu of liability insurance the vehicle may be covered by a motor vehicle liability bond or deposit of cash. The bond shall be conditioned on the payment of the amount of any judgment rendered against the principal in the bond or any person responsible for the operation of the principal’s motor vehicle with his or her express or implied consent, arising from injury, death, or damage sustained through the use, operation, maintenance, or control of the motor vehicle within the State of Alabama. The deposit of cash with the State Treasurer shall be a sum of not less than fifty thousand dollars ($50,000).

The "Motor Vehicle Liability Bond" (Form MV-MLI-004) shall be filed with the Department of Revenue’s Motor Vehicle Division. The bond must be executed by a company qualified to conduct a surety business in Alabama, and shall be conditioned on the payment of the amount of any judgment rendered against the principal in the bond or any person responsible for the operation of the principal’s motor vehicle with his or her express or implied consent, arising from injury, death, or damage sustained through the use, operation, maintenance, or control of the motor vehicle within the State of Alabama.

 In order to prove their coverage, persons who purchase a motor vehicle liability bond, shall carry within each vehicle the "Motor Vehicle Liability Bond Certificate" (Form MV-MLI-005) (or legible copy thereof) as issued by the Department of Revenue. The "Motor Vehicle Liability Bond Certificate" shall contain the vehicle identification number.

  The "Motor Vehicle Liability Bond Certificate" (or legible copy thereof) shall be displayed upon request by any law enforcement officer in order for the officer to ascertain that the vehicle owner or operator is covered under the provisions of Chapter 7A of Title 32. If the owner refuses or fails to provide proof of exemption as provided in this rule, the person shall be in violation.

 In the event that the person to whom a "Motor Vehicle Liability Bond Certificate" is issued, elects to and does terminate the bond, the person is canceled by the surety, or the bond otherwise becomes invalid, the owner or operator shall obtain insurance coverage as provided by Chapter 7A of Title 32. Anyone who cancels or has his/her liability bond canceled shall not display the "Motor Vehicle Liability Bond Certificate" (or legible copy thereof). Anyone displaying a "Motor Vehicle Liability Bond Certificate" knowing the Certificate has been canceled or knowing the Certificate is illegally altered, counterfeit or otherwise invalid, is in violation of the law.

 Note: State Car Insurance regulations can change. Please check with your state's Motor Vehicle Department   for the most current regulations.