miércoles, 5 de enero de 2011

Necessary Car Insurance in Alabama

state of AlabamaAutomobiles are restricted from being operated, registered or to keep registration without being covered by an active AL car insurance policy or valid proof of financially responsibility. Similar to just about every state in the nation, a motorist must have the ability to pay and compensate other parties for bodily injury and/or property that they may cause as a result of a traffic accident. The most common method used by residents to comply with such laws set by the state is by purchasing automobile coverage from a licensed insurer that meets Alabama’s minimum  protection requirements.


In accordance with Act 2008-393 all vehicles in the state that are covered by an Alabama automobile insurance policy must contain liability limits of no less than $25,000 for bodily injury to one person, $50,000 for bodily injury per accident and $25,000 for property damage. All policies must be issued by an insurer that is approved and licensed by the state and documentation proving that a vehicle is insured must be carried at all times while the automobile is being operated. Documentation proving that vehicles are covered must contain the name insured, year make and model of the automobile, vehicle identification number (VIN), name of carrier, policy number and the effective and expiration dates of coverage.


Operating an automobile without financial responsibility in place is not only illegal, but can also lead to consequences that can be avoided. Law enforcement officers are allowed, and may request proof of a valid policy during a routine traffic stop or upon arrival on the scene of a traffic accident. If a motorist’s auto insurance is canceled for any reason and the Department of Revenue is notified and made aware of this, the registration of the automobile can be suspended. In addition to the suspension of a vehicle’s registration a fine may be issued as well. In order to have the the car re-registered the fine must be paid and proof of coverage must be submitted.


The fine for a first time suspension is a $100 reinstatement fee and subsequent violations can result in $200 reinstatement fees and a suspended registration of four months. However, complying with the state’s laws can be done quite easily and may be far less of a hassle than having to deal with fines, suspended registrations and court appearances. Shopping around can help residents find the best deal on automobile coverage and avoid such penalties and the chance of being involved in an uninsured accident which can be extremely devastating both monetarily and emotionally. Alabamans may want to refer to the Consumer’s Guide to Auto Insurance provided by the state to help assist in understanding more about vehicle policies.

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