Ala. Drivers Must Get Liability Insurance Or Face Fines

Sept. 16--MONTGOMERY -- Uninsured Alabama motorists have until the end of the year to obtain liability insurance on their vehicles. If they don't, registration will be more complicated -- and potentially more costly.

It has been illegal to drive in Alabama without minimal auto insurance for more than 10 years, but enforcing the law has been difficult.

Starting Jan. 1, license plate agencies will have access to a real-time network that immediately tells whether insurance is current. If insurance can't be verified, the owner will have a chance to present proof of insurance. If they can't, they won't receive a tag.

It's called the Online Insurance Verification System, and it may seem a little bit "Big Brother." But that's not the goal, Alabama Revenue Commissioner Julie Magee said last week.

"The whole point isn't to crack down on people's privacy," Magee said. "But we think if you are going to drive on our roads and highways, the law says you have to have insurance.

"We owe it to the 80 percent who buy insurance and keep it. ... Our goal is to lower the number of uninsured drivers in the state."

The online system also will allow law enforcement to verify insurance during traffic stops without relying on a driver's proof of insurance card, which Magee said isn't all that reliable. Most cards are issued for six months. Some may only pay for a month, get the card, then cancel the insurance or stop paying for it.

Magee estimates 22 percent of Alabama drivers aren't insured -- the sixth-worst rate in the nation.

State Sen. Arthur Orr, R-Decatur, sponsored the 2011 bill that created the new verification system. He estimates that it will cut in half the number of uninsured drivers in the state. That's good for all drivers.

"It will have a positive impact on everyone's rates," he said.

Here's what will happen if you're caught without liability insurance, which Magee said costs about $150 for six months:

A fine of up to $500 for the first offense and up to $1,000 for each additional violation, and a possible six-month driver's license suspension with a second violation.

Also, vehicle registration can be suspended, resulting in a $200 reinstatement fee for the first offense. Any subsequent offense brings a $400 registration fee and four-month registration suspension.

Limestone County is one of 10 test sites for the new system, which costs the state about $150,000. License Commissioner Greg Tucker said drivers who stay current on their insurance don't have to do anything and "won't feel a thing" under the new system.

For more information, visit www.besuretoinsureal.com.

Mary Sell covers state government for The Daily. She can be reached at [email protected].

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(c)2012 The Decatur Daily (Decatur, Ala.)

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