Alabama takes a stern step in regards to auto insurance

Alabama auto insurance

Alabama auto insuranceNew auto insurance law going active in Alabama

Alabama lawmakers consider uninsured vehicles to be a significant problem for  the state and have begun to take action. State lawmakers have passed a new law concerning auto insurance and those without coverage. Beginning January 1, 2013, uninsured drivers will be facing stricter penalties for lack of auto insurance coverage. The new law introduces several methods of detection that are expected to root out those without adequate auto insurance coverage and may encourage these people to purchase the coverage they need to comply with state law.

Online verification system will root out the uninsured

The new law introduces an online insurance verification system, which is being overseen by the Alabama Revenue Department. This system will check the records held by auto insurance companies and state agencies ever few seconds to verify whether drivers are insured or not. Because the system literally sorts through a massive amount of auto insurance documentation in a matter of seconds, it is expected to help identify drivers that do not have the appropriate coverage.

22% of state population does not have auto insurance coverage

According to the Insurance Research Council, some 900,000 drivers in Alabama do not have auto insurance coverage that complies with the state’s minimum requirements. These drivers represent a significant risk to others as they do not have the coverage necessary to cover the damages associated with an accident and often cannot manage these costs on their own. The Alabama Department of Insurance notes that its top complaints every year come from motorists that have been in accidents with uninsured drivers.

Drivers encouraged to comply with state law

Lawmakers do not expect any significant problems to arise from the implementation of the new auto insurance law or its associated systems and measures. Those without insurance coverage are being encouraged to purchase auto insurance policies that comply with the state’s minimum requirements, even if they have avoided running into problems in the past for several years. The new online insurance verification system that is being put in place is expected to track down those without insurance coverage in a relatively short amount of time.

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