The Alabama House passed a bill Tuesday that will make it harder for Alabama vehicle owners to get around the state law that requires them to have insurance.
The bill, passed by the House 96-0, requires vehicle owners to prove they have insurance when they buy tags for their vehicles. The measure also requires insurance companies to supply information to a database that will allow license clerks and law enforcement officers to determine whether a vehicle is insured.
The sponsor, Rep. Mike Hubbard, R-Auburn, says vehicle owners get around the current law by purchasing insurance to get a proof-of-insurance card, but then cancel their policies.
Under current law, the Alabama Department of Revenue sends out random notices asking vehicle owners to provide proof of insurance. Hubbard said the random notices would no longer be sent out under the bill approved by the House Tuesday.
The bill also increases the fine for not having vehicle insurance from $100 to $500. Hubbard said the $100 fine was less than it costs to buy insurance.
“We wanted to make it high enough that it behooves a person to get insurance,” Hubbard said.
The bill now goes to the Senate for debate.
Hubbard was the sponsor of the 1999 bill that originally required mandatory insurance in Alabama.
Hubbard said he has been looking since then for ways to strengthen the law.
He said despite the mandatory insurance law, there are currently about one million uninsured vehicles in Alabama.
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