The Motor Vehicle Division (MVD) of Alabama states that no person shall operate, register or maintain registration of, and no owner shall permit another person to operate, register or maintain registration of, a motor vehicle designed to be used on a public highway unless the motor vehicle is covered by a liability insurance policy.

In Alabama the minimum amount of insurance one must provide is $20,000 for injury liability for one person in an accident, $40,000 for all injuries in an accident, and $10,000 for property damage in an accident. This is known as 20/40/10. The policy must be issued by an insurance company qualified to issue motor vehicle liability insurance in Alabama.

Please note that effective September 1, 2008, the minimum amounts will increase to $25,000, $50,000, and $25,000, consecutively (Act 2008-393). So it will then be 25/50/25 of bodily injury and property damage liability that will be due.

The AL Department of Revenue randomly surveys vehicle owners to determine if the owners are maintaining liability insurance. If not, the Department will suspend the vehicle tag registration. The registration reinstatement fee will be $100 for the first suspension, and the owner will be required to provide proof of liability insurance. For subsequent registration reinstatements, the fee will be $200 after the owner has served a four month suspension and upon presentation of proof of liability insurance.

In March 2008 the Alabama House of Representatives voted to increase the fine to $500 for driving without liability insurance and to allow the state to start confirming motorists' insurance status via the Web. Under the proposal, the fine for driving without insurance would increase from:

• $100 to $500 for the first offense.
• $200 to $750 for the second offense within four years.
• $200 to $1,000 for the third offense within four years

This was likely in response to a national study which suggests Alabama's current mandatory auto insurance law has had little effect on the number of uninsured driver on state roads since the Legislature enacted it in 1999.

The Insurance Research Council released the study showing 25 percent of Alabama drivers lacked insurance between 1999 and 2004 and thus was ranked number 2 in the nation for uninsured motorists.

Along with the fines listed above, the Department of Revenue will also suspend the vehicle tag registration of any motor vehicle the driver of which has been convicted of operating the vehicle without liability insurance coverage, displaying false proof of liability insurance coverage or failing or refusing to comply with a request by a law enforcement officer to display evidence of insurance.

To get Alabama auto insurance so that you do not get ticketed for driving without insurance or to show the court in hopes that you can reduce your penalties for being an uninsured motorist, click here for instant car insurance quotes.