Am I required to carry proof of liability insurance coverage in my vehicle?

Yes. In accordance with Section 32-7A-6, Code of Alabama 1975, the evidence shall be sufficient to demonstrate that the vehicle is currently covered by a liability insurance policy.  The evidence of insurance shall be displayed upon request made by any law enforcement officer wearing a uniform or displaying a badge or other sign of authority. Any person who fails or refuses to comply with such request is in violation of Section 32-7A-16, Code of Alabama 1975. Any person who displays evidence of insurance, knowing there is no valid liability insurance in effect on the motor vehicle as required under Section 32-7A-4, Code of Alabama 1975, or knowing the evidence of insurance is illegally altered, counterfeit, or otherwise invalid, is in violation of Section 32-7A-16, Code of Alabama 1975.

The best proof of liability insurance is the insurance card issued by the insurance company. The insurance cards are issued by companies qualified to issue motor vehicle liability insurance in Alabama, and contain the vehicle year model, vehicle make, vehicle identification number, name of the insured, the name of the insurance company, the insurance company NAIC number, the policy number, and the effective and expiration dates of the policy. Insurance companies often issued cards two or more times a year. Motorists must be sure that the insurance card carried within the vehicle is current.

Other acceptable documents to prove insurance include:

• A temporary insurance card issued by the insurer.
• A premium receipt or insurance binder issued by the motorist's insurance agent.
• The current declarations page of a liability insurance policy.
• The actual liability insurance policy issued for the vehicle.
• A certificate of liability insurance policy issued by either the insurer or an authorized agent.
• Proof of purchase of a motor vehicle with the previous 60 days and a valid insurance card issued for the motor vehicle replaced by such purchase. The proof of purchase is to be a copy of the bill of sale if the vehicle is a pre-1975 year model, or the owner's permit (yellow) copy of the application for certificate of title for a 1975 and subsequent year model vehicle.
• A copy of the rental agreement when renting a motor vehicle which specifies the insurance coverage

Is this questionnaire or Notice of Suspension legitimate?

You can view sample questionnaire and Notice of Suspension documents on the Motor Vehicle Division website by clicking here.

Why did I receive a Notice of Suspension?

In accordance with the MLI law, Section 32-7A-9, Code of Alabama 1975, you received a Notice of Suspension for one of the following reasons:

1. The Department did not receive a timely response to a questionnaire that was sent to verify the MLI coverage on the vehicle.
2. The insurer you identified in your response to the questionnaire has failed to confirm or has denied coverage on your vehicle for the insurance verification date as requested.
3. The Department received notification that a ticket was issued for failure or refusal to comply with a request by a law enforcement officer for display of evidence of insurance coverage on the vehicle.

I paid my ticket for not having insurance. Why am I now receiving this notice requiring me to pay a reinstatement fee?

The vehicle registration reinstatement fee provided for in the MLI law is a separate fee than the ticket fines related to tickets issued by law enforcement and assessed by the Administrative Office of Courts (AOC) or the local court system. In accordance with Section 32-7A-9, Code of Alabama 1975, the Department will suspend the vehicle registration of any motor vehicle determined to be in violation of Section 32-7A-4, Code of Alabama 1975. In the case of a first violation, the Department shall terminate the suspension upon payment of a reinstatement fee of $100 and the submission of proof of current insurance coverage on the vehicle. In the case of the second or subsequent violation, the Department shall terminate the suspension four (4) months after the effective date of the suspension upon payment of a reinstatement fee of $200 and submission of proof of current insurance coverage on the vehicle.

Are there any alternatives to motor vehicle liability insurance requirements for motor vehicles?

Yes. In lieu of liability insurance the vehicle may be covered by a: 1) Motor Vehicle Liability Bond; or 2) Deposit of Cash. These forms are available on the Motor Vehicle website by clicking here.

1. The Motor Vehicle Liability Bond shall be in the amount of not less than $50,000. The bond shall be conditioned on the payment of the amount of any judgment rendered against the principal in the bond or any person responsible for the operation of the principal’s motor vehicle with his or her express or implied consent, arising from injury, death, or damage sustained through the use, operation, maintenance, or control of the motor vehicle within the State of Alabama. The Motor Vehicle Liability Bond shall be filed with the Department of Revenue, Motor Vehicle Division.  A copy of the Liability Bond must be carried within the vehicle in order to prove coverage.  Refer to Department of Revenue Rule 810-5-8-01 for further information.
2. The Deposit of Cash with the State Treasurer shall be a sum of not less than $50,000. Application is made to the Department of Revenue, Motor Vehicle Division, using the Application for Cash Bond Certificate, which is available from the Motor Vehicle Division website as referenced above. The Department issues a Cash Bond Certificate which is to be carried within the vehicle in order to prove coverage. Refer to Department of Revenue Rule 810-5-8-02 for further information.

Can the Department of Revenue tell me if a vehicle is insured?

No. The Department of Revenue does not maintain a database of  insurance policy information.

How does the Department of Revenue administer the liability insurance law?

The Department of Revenue selects registrations of motor vehicles to determine if the owners are maintaining liability insurance in accordance with the MLI law by the following methods:

1. The Department may select random samples of motor vehicle registrations subject to the law for the purpose of verifying if the motor vehicles are insured.
2. The Department receives notice from the Administrative Office of Courts that a ticket was issued for an MLI violation.
3. The Department receives notice that the Alabama Driver’s license associated with the vehicle registration has been suspended or revoked by the Department of Public Safety.
4. The motor vehicle registration on the vehicle has been suspended during the preceding four (4) years.

If it is determined that the vehicle was not insured in accordance with the MLI law, the Department will suspend the vehicle tag registration. The registration reinstatement fee will be $100 for the first suspension, and the owner will be required to provide proof of liability insurance. For subsequent registration reinstatements, the fee will be $200 after the owner has served a four month suspension and upon presentation of proof of liability insurance.

If the vehicle registration was suspended and it is later determined that the vehicle was insured in accordance with the law, the registration will be reinstated and the reinstatement fee will not be due.

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