If you just moved in the city of Franklin in Alabama, one of your concerns is probably your car insurance policy and registration. The state of Alabama only recognizes a policy that was duly purchased from a reputable and authorized insurance company based within this state. Your local MVD will not issue you a vehicle registration plate unless your coverage is fully mandated by law.
So what is it that you need to know? The most basic requirement is liability coverage that has 25/50/25 limit. In simpler terms, coverage must be a minimum of $25,000 for injury and up to a maximum of $50,000 for multiple injuries or deaths in a single accident, and the $25,000 will cover property damage. The insurance company will provide you with a card that gets validated at least twice a year, so it is also imperative that you bring along with you the latest card. Your insurance company will not automatically reward the other party with these amounts because in Franklin and the rest of Alabama, insurance laws follow a tort system. Alabama is actually one of few states that still follow this old-fashioned way of settling claims. A judge from a claims court will award settlement against the person he deems at fault in an accident. A case may take so much of your time, but that is how things are done. Additionally, you may purchase different types of coverage like personal injury and collision, but that is entirely up to you. These are not required, but may prove to be a wise decision when you meet an accident, especially if you are found guilty of this accident.
In Alabama, the choice is not just having this coverage. You can actually set up a bond that will stand in lieu of an insurance policy. The bond may be set-up by paying the Motor Vehicle Division through a surety company for a Motor Vehicle Bond amounting to $50,000 or this same amount to the State Treasurer for a Cash Bond. The issuing office will provide you with a certificate that can stand in the absence of an insurance card.
The mentioned documents are important when you drive in Franklin and in all of Alabama. This state makes sure that insurance laws are followed and they check by letting authorities randomly check on vehicles in the roads. Make sure that you have a card or a certificate with you at all times when driving your car. Failure to present any documents will merit suspension of your registration and you will have to go through a procedure to reinstate it.
