Alabama Car Insurance Quotes

No person shall 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.

The insurance must provide a minimum of:

• $25,000 for bodily injury or death to one person.
• $50,000 total per accident for bodily injury or death.
• $25,000 for damage to property.(Act 2008-393).

The policy must be issued by an insurance company qualified to issue motor vehicle liability insurance in Alabama.

In lieu of liability insurance the vehicle may be covered by a motor vehicle liability bond or deposit of cash. The motor vehicle liability bond shall be in the amount of not less than fifty thousand dollars ($50,000). 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 Department of Revenue randomly surveys vehicle owners to determine if the owners are maintaining liability insurance. If not, the Department will suspend the vehicle tag registration. The registration reinstatement fee will be $100 for the first suspension, and the owner will be required to provide proof of liability insurance. For subsequent registration reinstatements, the fee will be $200 after the owner has served a four month suspension and upon presentation of proof of liability insurance.

The Department of Revenue will also suspend the vehicle tag registration of any motor vehicle the driver of which has been convicted of operating the vehicle without liability insurance coverage, displaying false proof of liability insurance coverage or failing or refusing to comply with a request by a law enforcement officer to display evidence of insurance.