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Insurance News

Mandatory Automobile Liability Insurance:

     Alabama's new mandatory automobile insurance law took affect on June 1, 2000.  We want you to be prepared. 

     What does the law require?  The law requires you to have a minimum amount of liability insurance on your car. 

        *  $20,000 per person, limited to
        *  $40,000 per accident.
        *  $10,000 property damage liability.

        (We recommend much higher limits than these.)

     You should keep proof of insurance in your vehicle at all times in the form of liability identification cards issued by your insurance company or agent, or a copy of your insurance policy. 

     You may be required to show this proof if you are stopped for a traffic violation, involved in an accident, or pass through a roadblock.  The State will also be mailing surveys to a random number of automobile owners, requesting that they submit proof of insurance through the mail. 

     Fines for the first violation of the new law are $500 with a $100 tag reinstatement fee.  Violators will be required to purchase SR-22 insurance.  Fines for second violations are $1000 with a $200 tag reinstatement fee.  Repeat offenders will be subject to a suspension of the driver's license.  

     The Alabama law was modeled after a similar Illinois law that reduced uninsured automobiles in that state from about 25% to near 5%.