Are you new to the State of Alabama? If so one of the most important aspects of moving to any new state is to determine what their car insurance regulations and requirements are. Are you maybe just looking for some Alabama car insurance basics in hopes of finding a low cost policy? The following information will provide you with basic information regarding what is expected of you as a licensed driver in the State of Alabama. Car insurance is required in AL so read on to find out what the State minimums are and then see if maybe you can put these basics to work in saving you some money.

Minimum Insurance Requirements

All drivers within the state of Alabama must have liability coverage when operating a vehicle within the state. The minimum amount of acceptable coverage is $20,000 for individual liability, $40,000 per accident, and $10,000 for property damage per accident.

Proof of Insurance

If you are driving within the state of Alabama you must have proof of insurance in your vehicle at all times. Types of proof that are acceptable are as follows: a permanent or temporary card from your insurance carrier; a premium receipt or binder; the declarations page of your current policy or the actual policy itself; or a recent proof of purchase of the vehicle, within the past 60 days, along with an up to date insurance card from your prior vehicle. Acceptable proofs of purchase are bills of sale if the vehicle was made before 1975; and if made after 1975 then your copy of the application for title. If you are driving a rental car then you must have a copy of the rental agreement showing the insurance coverage.

The penalty for failure to have your proof of insurance is suspension of your vehicle tag registration and a reinstatement fee of $100. Your tag registration will remain suspended until you present proof of insurance to the proper authority. After the initial suspension, if you are caught again driving without proper proof of insurance you will then face a mandatory four month suspension of your vehicle tag registration and have to pay a reinstatement fine of $200 upon providing proof of up to date insurance.

Alternate Forms of Coverage

Instead of carrying liability insurance you can get a motor vehicle liability bond or deposit of cash. In either case the minimum amount is $50,000. The bond is issued on the condition that it will be payment for any judgment against the holder with or without his consent as a result of any injury or damage committed by him. The bond must be executed by a surety company that is licensed to issue bonds and you as the driver must keep your Motor Vehicle Liability Bond Certificate on you as you would proof of insurance.

A cash deposit certificate is issued when you deposit the required $50,000 with the State Treasurer. You would also carry this certificate as you would any proof of insurance. If at any time this money is used to satisfy a judgment you would have 30 calendar days to reinstate your $50,000 balance with the State Treasurer.

Alabama Car Insurance Quotes

Be certain to compare Alabama car insurance quotes from at least 5 different companies before you purchase.

Arizona auto insurance minimum coverage requirements are set by state lawmakers. Drivers in AZ must carry at least the minimum level of auto insurance coverage, or face severe consequences. One of the requirements to register your vehicle with the Arizona State Department of Motor Vehicles is that you produce proof of insurance.

Property Damage

In Arizona, drivers must have at least $10,000 in coverage to pay to repair property damaged in an accident. Property can refer to a damaged sign post, garage, building, shed, mail box, or the other vehicle involved in the accident.

Bodily Injury Liability

Bodily injury liability insurance pays for the medical bills for people in the other vehicle involved in an accident where you are considered to be at fault. You must buy at least $15,000 in coverage for a single person injured in an accident and $30,000 in coverage for all people injured in the same accident.

Penalties For Not Having Arizona Auto Insurance

If you are stopped by the police in Arizona, you will be asked to produce proof of insurance. Failure to do so may mean that your license will be suspended and your vehicle registration revoked. In order to get your vehicle registration reinstated, you will need to pay a fee, which may be quite expensive. You will also need to have your insurance company provide you with an SR22 form to confirm that you have the minimum level of coverage in place.

Compare Arizona Car Insurance Coverage Options

Why don’t you get a quote for Arizona auto insurance minimum coverage requirements right now? If you are a new driver or maybe you haven’t compared rates in more than 6 months then now is the time to see how much you may be able to save.