Alabama modifies car insurance law

The Alabama Department of Revenue has revealed a new law that gives more leniency to automobile owners for not having proof of insurance with them.

Before this modification, if a driver received a second Mandatory Liability Insurance (MLI) violation under a 4-year period, then he would be required to pay a fee and provide proof of insurance, and the registration would be suspended for four months.

To make it more clear, the first violation required a $200 reinstatement fee and proof of insurance. If the registrant carries out a second violation under four years, then they must pay a $400 reinstatement fee, provide proof of insurance, and their registration would be suspended for four months. 

Given the recent modification, the four-month suspension is no longer in effect.

The removal of the suspension duration is part of the Alabama Department of Revenue’s efforts to “reduce punitive penalties for compliant taxpayers,” according to the department’s news release.

The modification of the law went into effect on January 1, 2020.

Other modifications include a decrease of the “look-back” period for second and subsequent breaches to three years and a new MLI verification notice in letter format that has replaced the earlier postcard questionnaire.