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About Alabama Car Insurance Laws

Introduction

From every part of the world, car insurance laws apply with various terms. Car insurance laws vary from one state to the other. Alabama car insurance laws so are different from those in other states. This is in terms of coverage types and penalties among other factors.

 

History

Vehicle insurance has over the years dominated in every region universally. Alabama car insurance laws are applied mostly because of the high intersection of interstate roadways. These roadways are heavily used by travelers all across the State of Alabama. These roadways are also used by many Southern residents. No matter where a person lives, Alabama car insurance laws require all people to carry their auto insurance.

Features

The very first thing to know about Alabama car insurance laws regards the liability coverage. The same case with other states, Alabama laws on car insurance has the minimum liability levels. These are set at $25,000 bodily injury for a single person in an accident, $50,000 to coverage for all injuries in an accident and $25,000 for entire property damage.

Every driver in Alabama must obtain liability insurance coverage. There are also acceptable alternatives to the liability insurance. The other acceptable Alabama car liability insurance alternatives include deposit of cash that should not be less than $50,000. The other alternative is the liability bond for motor vehicle. This bond should be filed with the States Revenue Motor vehicle Division department.

The proof of insurance is a vital requirement with Alabama car insurance laws. The proof of insurance should be provided when an accident occurs. This proof is also necessary during registration of ones vehicle. Drivers are so advice to carry the proof of insurance all the time. This is in order to be on the safer side and escape penalties.

The state of Alabama follows the Tort system of vehicle insurance. Deviating from the No Fault system, the tort system implies that a person must be at fault for any accident. Just like other states with the tort system, Alabama car insurance laws require the driver at fault to cater for all damages in an accident. If this driver does not have proof of insurance, then they pay for all damages from their own money. This means that a driver can become bankrupt at any time.

Being a tort state, the laws on Alabama car insurance do not require drivers to purchase the uninsured/underinsured motorist coverage. This remains the decision of Alabama drivers to purchase their own. Alabama car insurance also policies the rental cars. Rental cars are also covered by credit cards. For this case, drivers should always check if their insurance and credit card coverage rental cars. In case they don't, then one should purchase the coverage from the car rental company.

The penalties for not providing proof of Alabama car insurance are a bit stiff. The penalties are determined by the number of offenses one has committed. For the first offence, the suspension of motorists registration is one of the penalties. This is additionally to some registration fee of $100. For the second offense, the registration fee is increased to $200. The driver also risks registration suspension of four months or freezing the registration till they acquire Alabama car insurance policy.

By SAMUEL MUHIA, published at 03/20/2012
   Rating: 4/5 (11 votes)
About Alabama Car Insurance Laws. 4 of 5 based on 11 votes.

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