Similar to other states, Alabama has legislation requiring mandatory auto liability insurance. When you don’t own a vehicle, no car insurance Alabama is a policy that covers you when driving a borrowed car on an occasional basis.
You can purchase non-owner insurance with or without an SR22 endorsement. Usually, people buy non-owner insurance with an SR22 because the state requires it for license reinstatement. In this case, an insurance agent files the SR22 form with the ALEA Driver License Department.
What is No Car Insurance Alabama?
No car insurance (non-owner SR22 insurance) covers you when you drive a borrowed car on an occasional basis. When you have no car insurance Alabama, your policy covers claims that exceed the primary coverage an owner carries on their car.
* NOTE: A borrowed car excludes any vehicles owned by others in your household.
There are differences between auto insurance and non-owner insurance. With non-owner insurance coverage, there are coverage limitations and restrictions on the types of vehicles you can drive.
What to know before driving a borrowed car
Sometimes people have a misunderstanding about no car insurance. You may think it’s legal to drive an uninsured car as long as you have a non-owner insurance policy, but that’s not the case.
Alabama law enforcement will ask for proof of auto liability insurance during any traffic stop and at the scene of an accident. Therefore, before driving any borrowed car, it’s essential to confirm with the vehicle owner that they have current insurance on it. Ideally, the vehicle owner’s current proof of insurance card and vehicle registration papers should be in the glove compartment.
The reason to confirm vehicle insurance coverage is that no car insurance Alabama is secondary insurance. If you’re in an accident, your non-owner insurance pays claims that exceed the vehicle owner’s insurance coverage. However, if the vehicle owner doesn’t insure their car, your non-owner insurance may not pay any excess claims.
Penalties for uninsured driving in Alabama
Even if you have non-owner SR22 insurance, you can still run into trouble if you drive a borrowed car that’s uninsured. Depending on the situation (for instance, if Alabama DUI is involved), the state may assess a fine, have your license suspended, or assign you to time in jail.
If you have an at-fault accident, the other party involved can sue you for damages and personal injury.
How to get No Car Insurance Alabama
Locally or online, you’ll need to work with an Alabama-licensed SR22 insurance provider to write a non-owner insurance policy for you. They will endorse an SR22 certificate to this policy and file it with the state. When the filing is processed, the ALEA Driver License Department will formally notify you that it has reinstated your license.
You’ll need to keep your non-owner SR22 policy in good standing for three to five years, based on the conditions of your suspension. It’s essential to keep no car insurance Alabama payments current while the state requires you to have it. The insurance underwriter will inform the Driver License Department if your policy lapses, resulting in another suspension of your license.
Alabama minimum liability insurance requirements
Alabama state law requires minimum liability coverage of 25/50/25. You should always carry this proof of insurance whenever you drive a borrowed vehicle. The above coverage minimums of 25/50/25 include the following:
- $25,000 bodily injury per person
- $50,000 bodily injury liability per accident
- $25,000 property damage per accident
Of course, nobody wants to get into a car accident. But being financially responsible includes being having insurance in case of a mishap. If you can manage the cost of higher coverage, it will protect you in the long run if you’re at fault in an accident.
Get a no car insurance Alabama policy, with or without an SR22 filing, from UltraCar Insurance. We offer cheap non-owner SR22 insurance Alabama rates, and our agents provide friendly, high-level service.