Rules for Auto Insurance in the State Of Alabama

If any one of you shift to the state of Alabama or and you are new to this state then you must check for their car insurance regulations and what are their requirements. If you are buying a new car then you must be looking for some Alabama auto insurance that would provide you a low cost insurance policy.

In this article you would come to know that as car driver in the state of Alabama then what is expected from you. In Alabama auto insurance is required so you must find out what are the state minimum requirements for your auto insurance and how can you save your money when buying the car insurance.

1.    Minimum Alabama auto insurance requirements – All the drivers must have the minimum liability coverage of $20000 for individual liability, $40000 for accidents, and $10000 for property damage per accident.

2.    Proof of insurance – In Alabama auto insurance proof is also required in your vehicle all the time. Types of proofs acceptable are premium receipt or a recent proof of purchase of vehicle within the past 60 days etc. If you are driving a rental car then a copy of rental agreement showing the rental coverage is required.

If you fail to provide the proof of insurance then the penalty is the suspension of vehicle tag registration and fee of rupee $100. This vehicle tag registration will remain suspended till you present the proof of insurance to the concerned authority and if you are caught again driving within the period of initial suspension then you have to face a mandatory four months suspension and pay the fee of $200.

3.    Alternate forms of coverage – Instead of having Alabama auto insurance you can have a motor vehicle liability bond or deposit of cash. In both the cases the minimum liability is of $50000. This bond is issued on the condition that it will be the payment for the judgement against the holder as a result of injury/damage committed by him. Also this bond is to be made with the company which is licensed to do so and the driver must carry the bond certificate as the proof of insurance. This certificate is issued when the amount is deposited with the state treasurer. If at any time this money is used to satisfy the judgement then you would have 30 days to reinstate your $50000 balance.

Article Tags: Alabama Auto Insurance, Auto Insurance, Alabama Auto

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