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Author and Speaker Kerry Wilson says, "Don't get caught uninsured ALABAMA! Come
see me. I can insure you for as little as $98 down, and $28 per month. Click HERE for details."
Click HERE for the latest
details on Mandatory Insurance, after January 1, 2001.
MANDATORY AUTOMOBILE LIABILITY LAW EFFECTIVE JUNE 1, 2000
HB134, the revised mandatory automobile liability bill passed
the Senate on April 18th. The bill passed the House on February 10th by an
impressive majority and the Senate on April 18th by a vote of 28-0.
HB134 was signed into law on May 15, 2000.
The New Law is effective June 1, 2000. HB134 removes the requirement
to provide 30 day notice of cancellation to the Department of Public Safety and has a
number of new provisions as follows:
Proof of insurance will be required when requested by an officer of the law in the form
of an identification card, certificate of insurance, policy, binder, a valid rental
agreement specifying insurance coverage, or a cash deposit with the State Treasurer in an
amount not less than $50,000. Proof is required regardless of whether you are the
owner/operator or just the operator. Required limits of liability are 20/40/10 or
50CSL.
A random sample of 10% of all motor vehicle registrations will be drawn for insurance
verification. Those placed in "heavy rotation" for verification will
include but are not limited to:
1. Those whose motor vehicle registrations have been suspended for non-compliance.
2. Those convicted of driving a non-owned vehicle without proof of insurance.
3. Those whose driving privileges have been suspended or revoked during the preceding
four years.
4. Those within the past four years who have received a disposition of supervision by
the courts for non-compliance of the mandatory liability law.
5. Anyone involved in an accident without proper proof of liability coverage in force.
The random sample will identify individuals who are in violation of the law by direct
admission by the individual or through the insurance carrier listed as providing the
liability insurance. In either case, the motor vehicle registration for the guilty
party will be suspended 45 days after the date of the mailing unless the owner can furnish
proof of liability insurance which was effective on the verification date.
First time violators of the new law will have their motor vehicle registration
suspended, pay a $100 reinstatement fee and must submit proof of liability insurance.
The insurance will have to remain in effect for a period of one year and their
names will be furnished to the DPS for inclusion in the random sample of motor vehicle
registrations.
Second time violators of the new law will be charged with a class B misdemeanor.
Their motor vehicle registration suspended for four months, pay a $200 reinstatement fee
and submit proof of insurance. The insurance will have to remain in effect for a
period of three years and their names will be furnished to the DPS for inclusion in the
random sample of motor vehicle registrations.
A list of violators will also be made available no later than the 10th of each month to
all vehicle registration officials authorized to issue license plates and those listed
violators will be required to show proof of insurance to register or transfer registration
for an automobile.
All vehicle owners registering for license plates will be required to affirm that they
are in compliance with the liability insurance requirement. You will be able to
register your tag by mail but must sign the affirmation that you are carrying liability
insurance on your tag renewal notice. Those renewing by electronic means may
continue to do so but must also affirm they are in compliance with the law by means
determined by the DPS and probate offices using an electronic renewal process.
If it is determined that proof of insurance submitted is false, the department will
suspend the owner's vehicle registration for a period of six months. After the six
month suspension, payment of a $200 reinstatement fee and submission of proof of
insurance, the registration will be reinstated. Upon reinstatement, proof of
insurance will be required by the Department of Public Safety for three years.
Law enforcement officials cannot stop a vehicle for the sole purpose of verifying the
existence of an insurance policy but will request verification of insurance if you are
stopped for any other reason.
Other penalties include the charge of a class C felony for those who alter, forge, or
counterfeit an insurance card, makes, sells, or otherwise makes available an invalid or
counterfeit insurance card, or other evidence of insurance. A felony conviction
carries a $500-$5,000 fine and/or imprisonment for not less than one year and a day or not
more than 10 years.
A class C Misdemeanor is charged for those operating a vehicle without liability
insurance, fails or refuses to present proof of insurance when requested to do so by a law
enforcement official, operates a vehicle under suspension for failure to carry insurance,
displays evidence of insurance when none actually is in effect, or registers or attempts
to register an uninsured vehicle. A misdemeanor conviction carries a fine of $500
for the first conviction and $1,000 for subsequent convictions and a suspension of the
person's drivers license for up to six months or both.
The law applies to both personal and commercial vehicles and contains new language
requiring motor vehicle dealers, motor vehicle rebuilders, motor vehicle reconditioners
and motor vehicle wholesalers to maintain blanket motor vehicle liability on all vehicles
operated on Alabama highways, including those in their inventory. Evidence of
liability will be required to renew their business license. Failure to provide
evidence of liability insurance will result in denial of their application for their
business license.
The new law becomes effective June 1, 2000 with regards to penalties for
non-compliance and January 1, 2001 with regard to the various administrative
requirements imposed on the state agencies who will administer the law, (i.e. probate
offices). Individuals stopped by law enforcement officials for traffic violations
and/or accidents will be required to show proof of liability insurance effective June 1,
2000, or suffer the penalties provided for by law.
Latest Update on Mandatory Insurance
After January 1, 2001, drivers will be required to verify they have
insurance and show their drivers license in order to register their vehicle. The State of
Alabama will also begin auditing about 1,500 drivers per week for proof of insurance.
The driver will be required to sign the registration receipt
indicating that the vehicle is properly insured. Drivers will not be required to show
proof of insurance. The signature (under penalty of law) is all that is required.
Eighty thousand drivers per year will be audited for proof of
insurance. Drivers will be required to complete a one-page questionnaire that will
identify the vehicle selected for verification. The questionnaire will ask for the name,
address and phone number of the Insurance Company (not the agent), the policy number and
the effective date and expiration date of the insurance policy. Failure to return the form
to the Department of Revenue within 30 days will result in the suspension of the vehicle's
registration. The owner must provide proof of insurance and pay a $100 fee for
reinstatement. The owner will be surveyed again after one year and subsequent violations
carry a four-month suspension and a $200 reinstatement fee. Proof of insurance will
then be required to be maintained for three years.
Drivers whose license has been suspended after January 1, 2001, will
automatically have their names added to the audit pool.
Law enforcement officers will issue citations to drivers stopped or
involved in accidents who do not have proof of insurance.
For immediate automobile insurance coverage (Alabama only), come see:
Kerry Wilson Insurance, 108 S. 5th Street, Gadsden, AL
35901.
800-57- KERRY, OR 256-546-2811
DON'T GET CAUGHT UNINSURED, ALABAMA!
CALL NOW! FOR AN QUOTE, & IMMEDIATE COVERAGE OR CLICK
HERE FOR AN INSTANT PRICE INDICATION.
CALL 256-546-2811, OR 1-800-57-KERRY or 888-218-6711
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