Mandatory liability insurance — Alabama Permit Test

Alabama's Mandatory Liability Insurance Law says no one may operate, register or keep the registration of a motor vehicle used on public roads unless it is covered by a liability insurance policy.

Insurance makes sure someone hurt in a crash can be paid for their injuries and damage.

The Alabama Mandatory Liability Insurance Law provides that no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy.

Liability insurance must cover at least $25,000 for death or bodily injury to one person.

Medical bills after a crash run high, and the minimum is set so one victim is covered.

$25,000 for death or bodily injury to one person;

Liability insurance must cover at least $50,000 for death or bodily injury to two or more persons.

When several people are hurt, the coverage has to stretch to all of them.

$50,000 for death or bodily injury to two or more persons; and

Liability insurance must cover at least $25,000 for damage to or destruction of property.

Property coverage pays for the other car, or the fence or building you hit.

$25,000 for damage or destruction of property.

An owner or operator convicted of a mandatory liability insurance violation may be fined up to $500 for the first violation, and up to $1,000 for a second or later, and/or a six-month license suspension.

The penalty is meant to cost more than the insurance would have.

An owner or operator convicted of a mandatory liability insurance violation may be fined up to $500 for the first violation and up to $1,000 for the second or subsequent violation and/or a six month driver’s license suspension.

Under Alabama law, when must a vehicle be covered by liability insurance?

Whenever it is driven or registered for the road. Insurance makes sure someone hurt in a crash can be paid for their injuries and damage. Alabama Driver Manual, p.68: “The Alabama Mandatory Liability Insurance Law provides that no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy.”