Alabama Mandatory Liability Insurance Law
Nov 1st the Alabama Mandatory Liability Coverage Law goes into effect. Any drivers caught driving without insurance will face a civil penalty.
- First violation – up to $500 fine.
- Second or subsequent violations – up to $1,000 fine and or a six-month driver license suspension.
In addition to the above penalties, if a vehicle is registered or operated without liability insurance, the vehicle registration will be suspended and the vehicle owner will be subjected to the following penalties:
- First violation – $200 reinstatement fee.
- Second Violation or subsequent violations- $400 reinstatement fee and a mandatory four-month registration suspension.
If you are involved in an accident without insurance
Motorists will face a 90 day driver’s license suspension if they fail to pay the civil penalty within 45 days or fail to request a hearing with ALEA’s Driver’s License Division.
How does this affect insurance rates for Alabama insurance consumers?
Drivers who are driving without insurance cause rates to go up; the more uninsured motorists on Alabama roads, the higher the rates. By following the law and obtaining liability insurance you are helping stabilize insurance rates.
Liability Insurance Coverage Requirements
To fulfill Alabama car insurance laws, you must have liability insurance to help pay for any damages or injuries you may cause to others in a car accident.
Your liability coverage must include the following minimums:
$25,000 for bodily injury or death per person.
$50,000 total for bodily injury or death per accident.
$25,000 for property damage.
What happens in a collision with an underinsured driver?
When you purchase your liability insurance, your policy should include uninsured motorist (UM) coverage, too. The minimum is the same as your liability – $25,000 – but it’s there to help you when the other driver doesn’t have enough coverage. It also helps protect you when you are hurt, or your car is wrecked, in a hit-and-run.
Your insurance company will tell you that you can waive this insurance: do not do this. The amount of money you save by waiving UM insurance is not nearly equal to the costs you’ll pay if you get seriously hurt in a collision.
If you have questions about Alabama’s mandatory liability insurance law, or you get hurt and the insurance company isn’t playing fair, Mezrano Law Firm can help. To schedule your free consultation with an experienced Alabama car accident lawyer, call us at 205-206-6300 or use our contact form to schedule an appointment. We have offices in Birmingham, Tuscaloosa, Mobile, Montgomery, Florence, and Gadsden.