If you are from Jackson, Alabama and you travel around the county by driving your own car, you must be sufficiently covered by an insurance policy. This is a required coverage by the state that you simply cannot ignore. The law states that no one shall register nor operate a motor vehicle unless it is covered. Therefore, the first step is purchasing from an insurer even before a car is registered with the MVD.
The minimum amount of liability insurance coverage required is known as 25/50/25 in the state of Alabama. This means that in case of an accident, an insurer will cover a minimum of $25,000 for one person injured and up to $50,000 for multiple injuries or deaths in one accident. The other 25 is $25,000 for damages to property. This coverage must be issued by a duly authorized and licensed insurer in the state of Alabama, therefore out of state policies are not covered even if you are just driving around Jackson. You will be issued an insurance card that contains all information pertaining to your coverage. Note also that insurers issue cards once or twice a year so make sure your card is current and active.
Unlike most states that have changed to a no-fault system, Alabama keeps a tort system up to this day. This means that only the at-fault party and his insurance company will have to cover costs as judged in a claims court. This sounds like a longer period of time to settle unlike the no-fault system where victims are easily paid for damages and losses.
You also have an option to set-up bonds instead. You may set aside $50,000 for Motor Vehicle Bond to be settled with your local MVD or a cash bond paid to the state treasurer. You will be issued certificates in lieu of insurance cards.
You must carry with you in your car a proof of coverage, at all times. This is how the state controls the law: by doing random checks. If you cannot produce your card or certificates, the police will deem that you are not maintaining a proper coverage and you will get your vehicle registration suspended. For the first suspension, you will have to pay $100 for reinstatement and provide proof of liability coverage. It becomes $200 for subsequent suspensions and you will be required to serve a four-month suspension. Other reasons for suspension include being convicted of driving without liability, displaying false proof and refusing to display the required proofs.
To avoid these inconveniences, it is always best to just follow the laws of this state.
