Mandatory Alabama Liability Ins For Drivers

As of 2001, mandatory Alabama liability ins became a requirement for all vehicles being operated on the road. Driving uninsured does not protect drivers against damages and lawsuits should they be involved in an auto accident. For those who prefer not to pay for insurance, there are alternative methods that drivers can choose that will protect them from costly lawsuits.

Responsible drivers adhere to insurance requirements because although they may be great drivers, sometimes auto accidents cannot be avoided. When vehicles are damaged or people are injured, insurance will cover the costs up to a certain dollar amount. Legal expenses and vehicle damages that exceed the policy must be paid by the policyholder.

The law mandates a minimum of twenty five thousand dollars each for bodily injuries and property damages and fifty thousand per incident. All drivers must carry proof of coverage and be able to provide evidence should it be requested by law enforcement for any reason. Insurance cards, policy declarations, or premium payment receipts are all acceptable forms of proof.

Residents can choose to file a motor vehicle bond with the Department of Revenue instead of purchasing insurance. The bond will be used for any judgements with regard to accidents that result in injury, death, and property damage. Drivers also have the option to deposit cash with the state treasurer that will be used when liable for expenses relating to a car accident.

People who cannot show that they have current coverage will have their licenses suspended. It is important to know that the state sends out questionnaires randomly to check on compliance with the law. Drivers will have to pay fines and fees to get their licenses reinstated.

The mandatory Alabama liability ins laws saves individuals from having major financial trouble in vehicle crashes. While the state does require a minimum, coverage can be increased. Higher limits provide more protection.