Drivers operating a motor vehicle in Alabama must have liability coverage. Motorists must be sure to carry their current insurance card while driving the motor vehicle. Qualified insurance cards contain the car’s year, make, model and identification number. It should also include the name of the insured individual, name of the insuring company, the policy number and the effective and expiration date of the policy. If an insurance card is temporarily unavailable, motorists may also provide a temporary insurance card issued by the insuring company, a receipt issued by the insurance company or a recent declarations page of a liability policy. If a driver is not carrying auto insurance, he or she will be required to pay a $100 reinstatement fee for the first offense. After the first offense, drivers will suffer a 4 month vehicle registration suspension and a $200 reinstatement fee.

Minimum Coverage Conditions
Drivers in Alabama must carry a minimum of a liability policy in order to operate a vehicle legally. Liability provides protection from claims that hold the driver responsible for injury or property damage to another party. Liability coverage in Alabama is $25,000 per person for bodily injury, $50,000 per accident for bodily injury and $25,000 per accident for property damage.

Bodily Injury Coverage for Liability Policies
The bodily injury policy is used to cover costs for the other injured individual. These costs may include hospital bills, a loss in income and funeral wages. With a $25,000/$50,000 liability policy, each injured individual can receive no more than $25,000 for expenses. If more than one person is injured, the group will be provided with $50,000 without exceeding $25,000 per person. This will be reflected as a $25,000/$50,000 bodily injury quote on the policy.

Increases in Bodily Injury Coverage
Alabama drivers can increase the amount of bodily injury coverage on their insurance policy. Some motorists may choose a higher sum which will pay out monies up to the specified amount. Under this type of specified policy, each injured individual is not restricted to a predetermined sum. More than one injured party can recover money for his or her acquired medical costs.

Property Damage Coverage for Liability Policies
Alabama requires $25,000 in property damage coverage on liability policies. This plan is used for the repair of a vehicle or its replacement as a result of the actions of the liability insured negligent driver. The policy does not cover repairs to the motor vehicle of the party responsible for the collision. The victim or victims can receive up to $25,000 to any number of parties.

Increases in Property Damage Coverage
Motorists in Alabama can also purchase higher limits for property damage coverage. A driver may choose this option as a means to cover expenses based on relative repair prices in their community. High traffic neighborhoods increase the chances of a collision and may result in additional property damage.

Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage is not required in the state of Alabama. This policy is selected by drivers who want extra protection from other motorists who may be uninsured or underinsured. Under this plan, the insured victim will receive coverage for medical and property damage expenses in the event that money can not be drawn from the uninsured/underinsured negligent driver. This will also protect drivers who experience damage to their vehicles from other vehicles when they are not present. Individuals can choose to have either bodily injury coverage, property damage coverage or both.

Additional Considerations
Alabama allows a motor vehicle liability bond to be purchased for no less than $50,000 to replace liability insurance coverage. The selected amount will be used to cover expenses accrued from injury, death or damage to the victim or the victim’s property. This cash bond payment must be made to the State Treasurer. A Cash Bond Certificate will be issued to the paying party and must be kept within each authorized vehicle. In the event that the individual has withdrawn the entire cash deposit from the State Treasurer, they must obtain a minimum of liability coverage for the registered motor vehicle. If a portion or all the $50,000 is used to cover collision expenses for another individual, the driver will have thirty calendar days to make a cash deposit to bring the bond sum back up to a minimum of $50,000.