Thursday, March 19, 2009

ALABAMA CAR INSURANCE

All Alabama drivers must be covered by liability insurance (or an acceptable alternative) when operating a vehicle. The state enforces minimum coverage of $25,000 injury liability for one person, $50,000 for all injuries in one accident, and $25,000 property damage in one accident.
If you choose not to carry auto insurance, you must be able to prove that you have either a motor vehicle liability bond or deposit of cash in the amount of $50,000.
Drivers must carry proof of insurance with them while driving. If the Alabama Department of Revenue discovers that a vehicle is not covered under insurance, that vehicle tag registration will be suspended until proof of insurance is supplied and a reinstatement fee of $100 is paid.
For subsequent offenses, the owner must serve a four-month suspension, pay a $200 reinstatement fee, and provide proof of current insurance.
Proof of Insurance
Alabama law accepts a variety of methods for proving insurance. They are:
The permanent or temporary card issued by your insurance company.
Your premium receipt or binder issued by your insurance agent.
The actual policy, or the current declarations page of your policy, for your vehicle.
Proof of purchase of the vehicle within the past 60 days and a valid insurance card from your previous vehicle.
If you are renting a car, the copy of the rental agreement that specifies the insurance coverage.
If you need additional information, please review Alabama's insurance laws.
For More Details visit www.dmv.org/al-alabama/car-insurance.php

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