In Alabama, all motor vehicles operated on public highways must be covered by minimum liability insurance coverage. Minimum liability insurance is in fact required for all self-propelled motor vehicles being operated, including cars, trucks, vans, SUV’s, RV’s, buses and motorcycles. Trailers are exempt from the insurance requirements.

The Minimum Liability Insurance (MLI) law requires motor vehicle owners to have liability insurance in the following minimum amounts:

• $20,000 for death or bodily injury to one person;
• $40,000 for death or bodily injury to two or more persons; and
• $10,000 for damage or destruction of property of others.

Owners must sign a statement at the time of registration affirming that their motor vehicles are insured as required by Alabama law. Then, insurance questionnaires are sent to randomly selected owners throughout the year. Questionnaire responses are forwarded to insurance companies for verification of coverage.

Alabama Department of Revenue's Motor Vehicle Division has a Mandatory Liability Insurance (MLI) Section. Here it notes that an operator must provide proof of insurance upon request by any law enforcement officer. The insurance card issued to the motor vehicle owner by his/her insurance company is the best proof of liability insurance. To be acceptable, the proof of insurance provided must display a current effective date.

This state agency also states that operators who are stopped by law enforcement for driving violations or equipment checks and cannot provide the requested proof of vehicle liability insurance can be fined up to $500 for the first offense. If convicted a second or subsequent time, the owner or operator may face a fine up to $1,000, or a six month driver’s license suspension, or both.

The license plate registration for a first time offense is suspended until the reinstatement fee and current proof of insurance are provided. To reinstate a suspended registration for a second or subsequent offense, a mandatory four month registration suspension must be served in addition to paying the reinstatement fee and providing current proof of insurance.

For a first time suspension, the license plate registration may be immediately reinstated after payment of a $100 reinstatement fee and submission of current proof of insurance. For a second or subsequent suspension, the license plate registration may be reinstated after a mandatory four month suspension period has elapsed, payment of a $200 reinstatement fee, and submission of current proof of insurance.

For additional information concerning Alabama’s mandatory liability insurance law, contact the Department of Revenue’s MLI Section at (334) 242-3000. For a quote on AL auto insurance, so that you will not be driving as an uninsured motorist, follow this link.