
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.
AL 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 or auto insurance in
Alabama. The card shows:
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.
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