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The Basics of Auto Insurance in Alabama


As a resident of Arlington City in Alabama, you are not excused from buying auto insurance when you decide to drive on its roads. It is a basic requirement to have car coverage to be able to at least register the vehicle with the MVD. Not only is an insurance coverage required, it will also avoid future lawsuits that may lead to bankruptcy and change your life abruptly. No one plans of getting into an accident and incur expensive costs so getting covered is an investment that only becomes useful in unavoidable circumstances.

In Arlington, as is across the state of Alabama, the minimum limit is known as 25/50/25. In layman’s terms, minimum is $25,000 for bodily injury or death up to $50,000 for all bodily injuries/deaths in one accident and $25,000 for property damage. Alabama is one of the few states that choose to keep a tort system. This means that the person at fault and his insurer will have to pay for costs and reimburse the other party. In cases of claim suits, the judge has the final say on whoever must shoulder costs after facts are heard. You can buy higher limits for added protection, but that is totally up to you. The state only requires that you are sufficiently covered.

You always have freewill to choose how you want to be covered. The abovementioned can be obtained from a reliable and authorized Alabama insurance company. If you want to go another way, you can hold certificates of Motor Vehicle Liability Bond for $50,000 minimum or Cash Bond & Satisfaction of Judgments for another $50,000. These bonds establish your financial responsibility and capability.

The Motor Vehicle Liability Bond is filed with the Revenue Department’s MVD and must be executed in your behalf by a qualified and registered surety company. Cash Bond on the other hand is deposited with the State Treasurer. In case of an accident and settlement as judged, you must add a deposit to complete the specified amount. Important certificates must always be inside your car and available when an officer asks for it. Violation of this provision will mean that you are not sufficiently covered in an accident; therefore you are answerable to laws governing insurance in the state of Alabama.

Proof of insurance, or lack thereof, can get you into serious trouble if caught. Officers usually conduct random checks and you do not want to be found without an insurance card or bond certificates. Penalties include having to pay fines and losing your registration all together.