Alabama Auto Insurance Quotes and
Coverage Guide
Alabama Motor Vehicle Insurance
Questions & Answers
Q: Is auto insurance mandatory?
A: You betcha. No operating,
registering, maintaining the
registration
of a motor vehicle designed to be
used on a public highway – or even
permitting another person to do
those things – is allowed without
being
covered by a liability insurance
policy. So, unless you’re planning
on
only doing donuts in a parking lot,
you better get it.
Q: Is Alabama a "tort" state?
A: Yes. Alabama is considered
a tort state and as a resident, the
buck
stops with you (or hopefully, your
insurance company) for the damage
and
injury you cause in an auto
accident. Not only that, liability
insurance
coverage is THE LAW here in the
Heart of Dixie.
With state-required liability
minimums at only 20/40/10 ($20,000
per
person for injuries you cause to the
other party, up to $40,000 for all,
and $10,000 for damage you cause to
the other party's property), you
don’t have to be a Mensa member to
see why you should get more,
especially if you have any assets
you don’t want to lose in a lawsuit.
Q: What type of insurance is
required to purchase and maintain an
Alabama tag and registration?
A: The registrant must affirm
(sign on the dotted line) that the
vehicle
is covered by at least the state’s
minimum liability requirements of
20/40/10. In Alabama, vehicle
registration and license plate
issuance is
all one process. You can try making
a trade with your first-born child
for plates and registration, but
some of the DMV’s employees might
frown
on that, so instead, just be
grateful you’re not having to stand
in two
lines.
Q: Can I maintain my current
policy issued in my previous state
of
residence?
A: Nope. You’ve got 30 days
to register your vehicle in Alabama,
and
when you register it, you’ve then
got to sign on that dotted line
mentioned above that you have the
state’s minimum liability insurance
requirements. And, of course, the
policy must be issued by an
insurance
company qualified to sell motor
vehicle liability insurance in
Alabama.
No one’s going to hold a gun to your
head, though, to keep you from
continuing to pay on that old
insurance policy from where you used
to
live, but it sure won’t do you any
good in Alabama. And if people find
out, believe me, they will laugh.
Maybe not even behind your back.
Q: What if I fail to keep
insurance on my vehicle that I’ve
registered
in Alabama?
A: This is something you
really don’t want to do, even if it
means a
beans-and-wienie diet or passing on
that trip to the Bahamas this year.
The Department of Revenue
periodically surveys vehicle owners
at random
to check liability insurance
maintenance. Besides Santa knowing
you’ve
been naughty and the resultant
consequences, if you don’t have
insurance, the Department will
suspend your vehicle’s registration.
That'll set you back with a $100
reinstatement fee for the first
suspension, along with a
proof-of-liability insurance
requirement.
If
you’re caught again, the
reinstatement fee goes up to $200,
you’re
suspended four months from driving –
and yes, you still have to prove
you’ve now got the coverage.
The Department of Revenue will also
suspend your vehicle tag
registration if you've been
convicted of driving without
liability
insurance coverage, if you try to
pass off false proof of liability
insurance coverage, or if won't or
can't show a law enforcement officer
evidence of insurance. And Santa
Clause won’t visit you for those
reasons, either.
Q: I am not a resident of
Alabama, but I visit for several
months during
the year. Do I need Alabama
insurance?
A: If your visits are longer
than 29 days, 23 hours, and 59
seconds, you
need Alabama insurance. Otherwise,
drive back and forth as much as you
want to, but if you’re like some
people who forget what
day/week/month
it is, be sure you pack your
calendar and alarm clock.
Q: I own several vehicles but do
not operate some of them. Do I need
insurance for the inoperative ones?
A: Not if they’re not
registered, either. But you better
not be caught
driving them unless you’re willing
to risk the wrath of one of
Alabama’s
Revenue Enforcement Officers. It’s
rumored their ticket-writing
propensity borders on being in the
autonomic reflex category.
Q: How can I own a vehicle and
not need insurance?
A: Don’t register it, don’t
drive it, and just park it in your
driveway
(better yet, your yard). It would
also help if a nice vining plant was
lushly growing through where the
windows were – then you can tell
your
friendly visiting REO it’s not a car
– it’s just a really big planter.
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