Alabama's Auto Insurance Law: Unconstitutional?

Alabama's mandatory auto insurance law requires drivers to carry a minimum level of insurance. This includes bodily injury liability and property damage coverage. Driving without insurance in Alabama can result in fines, suspension of one's driver's license, and even jail time. The law is designed to ensure that drivers can financially cover any damages or injuries they may cause in an accident. While it is mandatory, some drivers may choose to forgo insurance and face the legal consequences, while others may seek to understand the implications of Alabama's insurance laws on potential lawsuits following an accident.

Alabama's mandatory liability insurance law

• $25,000 for bodily injury to, or the death of, one person injured or killed in an accident
• $50,000 for bodily injuries to, or the deaths of, two or more people injured or killed in an accident
• $25,000 for property damage in an accident

Drivers in Alabama must also carry proof of insurance and present it to law enforcement officials when requested. Driving without the minimum required insurance in Alabama can result in fines, suspension of one's driver's license, and even jail time.

While liability insurance is the only legally required coverage in Alabama, drivers can also opt for additional coverage, such as comprehensive, collision, medical payments, and uninsured motorist coverage, to protect themselves further in the event of an accident.

Alabama is an "at-fault" insurance state, which means that only the insurance of the driver who is at fault for the accident is obligated to cover the damages. This makes it especially important for drivers to have adequate insurance coverage to protect themselves financially in the event of a crash.

Minimum liability insurance requirements

Alabama's mandatory liability law requires drivers to carry a minimum amount of auto insurance. The minimum liability insurance requirements in Alabama are:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident

This is often referred to as 25/50/25 coverage. Bodily injury liability coverage pays for injuries and lost wages of other drivers or passengers in accidents you cause, while property damage liability coverage pays for damages to the other driver's vehicle. It is important to note that liability insurance does not cover your own injuries or vehicle damage.

While Alabama only requires liability coverage, there are several other types of optional coverage that can provide additional protection. These include comprehensive coverage, collision coverage, medical payments coverage, and uninsured motorist bodily injury coverage.

It is important to carry more than the state-mandated minimums, as they may not provide enough protection in the event of a serious accident. Additionally, drivers who choose to drive without insurance in Alabama are violating the law and can face penalties such as fines, license suspension, and even jail time.

Evidence of insurance

Alabama's Mandatory Liability Insurance Law requires drivers to carry proof of insurance when driving, which must be shown to law enforcement officials when requested. This proof can be in paper or electronic form. The most common evidence of current insurance is the insurance card, but electronic proof is also acceptable. To be acceptable, the proof of insurance must display the current effective date, insurer’s NAIC number, vehicle identification number (VIN), and policy number.

The Alabama Mandatory Liability Insurance (MLI) law states that no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy. The law was passed to protect consumers when they are involved in an accident. Liability insurance policies must be issued by insurers licensed to do business in Alabama for no less than:

• $25,000 for death or bodily injury to one person
• $50,000 for death or bodily injury to two or more persons
• $25,000 for damage or destruction of property

The MLI law is enforced through verification of insurance by law enforcement during traffic stops or crashes, by county license plate issuing officials prior to vehicle registration or renewal, and by the Department of Revenue, which may send requests for insurance information to vehicle owners with suspended registrations, Mandatory Liability Insurance violations, or suspended or revoked driving privileges.

Vehicle operators who fail to provide evidence of insurance upon request to a law enforcement officer may be fined up to $500 for the first violation and up to $1,000 for the second or subsequent violation, in addition to a possible six-month driver's license suspension.

Exceptions to Alabama insurance requirements

Alabama's Mandatory Liability Insurance (MLI) Law mandates that every Alabama motorist must carry liability auto insurance to drive legally. However, there are some exceptions to this rule.

• Trailers: All trailers, including recreational trailers like those used for camping and boat storage, as well as large trailers connected to commercial trucks, are exempt from auto insurance requirements in Alabama.
• Government-owned vehicles: Vehicles owned and operated by the Alabama government or the United States government are not required to meet Alabama's minimum insurance standards.
• Vehicles regulated by the Federal Motor Carrier Safety Administration (FMCSA): Vehicles regulated by the FMCSA are exempt as long as their owner/operator has filed evidence of financial responsibility with at least the same level of coverage as Alabama's requirements.
• Out-of-state vehicles: Vehicles insured in another state or jurisdiction are not required to meet Alabama's insurance minimums. This applies to out-of-state drivers passing through Alabama.
• Self-insured vehicles: In Alabama, self-insurance is an option for individuals with more than 25 vehicles registered in their name and who are financially capable of providing coverage similar to an insurance company.
• Bonded vehicles: Instead of insurance, a vehicle owner can leave a sum of money, known as a bond, with the state treasurer to pay for any damages that would typically be covered by insurance.

Penalties for not having auto insurance in Alabama

Alabama state law requires drivers to carry a minimum level of auto insurance, and drivers must also carry proof of insurance while driving. Owners of a registered vehicle that allow their insurance to lapse may receive a first-time offender fine of up to $500. Repeat offenders can face increased fines of up to $1,000 for a no-insurance ticket in Alabama.

Alabama utilizes an online insurance verification system (OIVSA) to confirm insurance coverage. If the DMV cannot verify coverage, a verification notice is sent to the registrant that can be completed online or in person. This means you can get a ticket for no insurance in Alabama without even being pulled over.

In addition to fines, those caught driving without insurance may also have their driver's license and vehicle registration suspended for 180 days or more and may have to serve three to six months in jail. To reinstate your license, you may have to pay a $200 fee for the first offense and a $400 fee for subsequent offenses. It is also possible to receive a license suspension and be required to obtain an SR-22 certificate, which serves as proof of financial responsibility. If you are required to obtain an SR-22, you will likely also have to pay a higher Alabama car insurance premium as you might be classified as a high-risk driver.

If you are in an accident while driving without insurance in Alabama, you will still face the consequences of driving without insurance even if you are not at fault. Additionally, if you cause the accident, you will be liable for property damage and medical expenses for anyone else involved.

Frequently asked questions