Liability Insurance 101 in Alabama

—What You Need to Know from the Latest Law Changes

Alabama has an alarming uninsured motorist rate hovering at about 22 percent. That makes the state the sixth worst in the nation. Under the Alabama Mandatory Liability Insurance Law, no person in the state is allowed to operate, register or even maintain a motor vehicle without liability insurance coverage. This law was passed to protect individuals in the event they are involved in an accident. It is important, as a driver in the state, that you understand what this liability insurance requirement entails to ensure you do not face fines for failing to comply.

Facts About Liability Insurance

A few facts to keep in mind when shopping for insurance or registering a new vehicle:

  • Policies Through Licensed Businesses – You cannot obtain liability insurance through any carrier. Instead, the law requires that you obtain coverage through insurers that are specifically licensed to do business in Alabama.
  • Minimum Liability Requirements – You are required to carry minimum insurance in the amounts of $25,000 for death or bodily injury to a single person; $50,000 for death or bodily injury to two or more persons; and $25,000 for property damage or the destruction of property.
  • Exempt Vehicles – Some vehicle types are exempt under the law, including trailers, government-owned vehicles and vehicles that are covered under a commercial automobile insurance policy.

License plate issuing officials will verify liability coverage via the State of Alabama Online Insurance Verification System. This allows department of motor vehicle employees to verify if liability insurance policies are attached to that vehicle. If the insurance cannot be verified, the owner is required to provide proof of insurance to that official. An insurance card is acceptable, but it must display:

  • Effective date
  • Insurer’s NAIC number
  • Vehicle identification number (VIN)
  • Policy number

Also, a valid driver’s license for the state must be presented at the time.

Do You Have the Right Liability Insurance Coverage?

Verify that you are adequately covered not only for liability insurance, but comprehensive and collision as well. The team of insurance professionals at The Nowell Agency can review your existing policies and look for gaps in your coverage as well as savings potential.

To get started or to learn more about liability insurance requirements in the state of Alabama, contact a representative at our local office by calling 877-813-9568. You can also request a quote for auto insurance online.