Alabama Drivers Face Hefty Fines for Lapsed Car Insurance
Drivers in Alabama could be hit with significant penalties if their vehicle insurance lapses, even by as little as one day. The current law, enacted in 2011, is designed to ensure that all vehicles on the road are covered by liability insurance.
Under Alabama law, all drivers are required to carry liability insurance. A lapse in coverage, no matter how brief, can result in a $200 fine. Prior to recent changes, a second offense within four years carried a $400 fine and a four-month vehicle registration suspension.
“The discussion that entailed at that point in time is when the fines are less than what the cost of the insurance is, people just forgot the insurance and just pay the fines,” said Michael Gamble, Deputy Commissioner of Revenue for the Alabama Department of Revenue.
Changes to the law this year, however, shortened the look-back period for a second offense. Drivers are now subject to the $200 fine and a review of the current year plus the two preceding registration years. Additionally, drivers declaring their vehicle inoperable are now required to surrender their license plates to the county’s DMV office.
While some drivers find the fines excessive, others argue that the penalties are necessary to encourage drivers to maintain continuous insurance coverage. Deputy Commissioner Gamble explained the law’s purpose is “to ensure that there if someone is liable of ran accident that they’ve got sufficient coverage to hopefully make the other person whole.”
