Toyota of Dothan Reviews Alabama Car Insurance Laws

Aug 11, 2014

Toyota of Dothan wants to ensure that you are familiar with the car insurance laws of Alabama. It is important that if you drive a motor vehicle, you are in compliance with these important guidelines. This is crucial not only to avoid traffic tickets but to protect yourself in the event of an accident.

In 2013, Alabama enacted the Mandatory Liability Insurance Law. This law specifies that drivers must carry auto insurance on all registered vehicles. Liability insurance is required at the minimum rates listed below:

$25,000 for bodily injury of death per person
$50,000 total for bodily injury or death per accident
$25,000 for property damage

These amounts are the minimum required to be compliant with the Alabama law. Additional insurance is also available and may be required by some financial institutions or you may opt to purchase for further protection. These additional coverages include the following types:

Collision. This coverage will help in paying for any damages to your vehicle related to an accident.
Comprehensive. This will help in paying for damages beyond your control that occur from situations such as inclement weather.
Medical and funeral. This coverage helps to cover medical bills or funeral expenses after an accident.
Uninsured Motorist. This protects you after an accident in the event that the other driver is uninsured or underinsured.

Outside of facing long term financial consequences is your are involved in an accident and uninsured, you also face strict legal ramifications for not maintaining the minimum coverage required by law. If you are driving without insurance in Alabama you risk:

A fine of $500 for your first violation; a fine of $1,000 for your second or subsequent violations.
Six month suspension of your driver’s license.
Suspension of your vehicle registration.

If your license becomes suspended as a result of not maintaining appropriate insurance, you may be required to file an SR22 with the state of Alabama. This certificate is a form of proof of insurance that guarantees that you will continually maintain minimum car insurance in compliance with the state law.