Car Insurance For Alabama requires that all drivers have motor vehicle liability insurance, a liability bond or cash deposit. Minimum injury liability car insurance for Alabama for one person is $25,000 and $50,000 for all injuries in a single accident and then another $25,000 for property damage in one accident.

All drivers are required by Alabama state law to carry their proof of their Alabama auto insurance whenever they are driving. If the driver is caught driving without proof of car insurance, the Alabama Department of Revenue will more than likely suspend the tag registration until proper insurance or its alternative is provided. The owner of the vehicle must also pay $100 as a reinstatement fee. If the driver is caught driving without proof of insurance again, their Alabama driving privileges will be suspended for four months, forced to provide proof of insurance and pay $200 for a reinstatement fee.

There are different methods of proving your insurance under the Alabama law. The first is the permanent card issued by the auto insurance company or a temporary card if the permanent card has not been issued yet. The second is the binder or premium receipt issued by the car insurance agent. The third is the policy of the car itself or the declarations page of the policy. For rented cars, acceptable proof to show car insurance for Alabama would simply be the copy of the rental agreement. Here it must specify the insurance for rental cars.

An acceptable alternative for car insurance for Alabama would be the motor vehicle liability bond which is $50,000. The bond is conditioned as payment for expenses arising from injury, death or damage for which you or the driver of the car is responsible for. The deposit of cash in the State of Alabama is required to not be less than $50,000. Similar with the motor vehicle liability bond, it is for any injury, death or damage in result to an accident.