Mandatory Liability Insurance

Alabama law requires most registered motor vehicles to maintain mandatory liability insurance. The Alabama Department of Revenue periodically verifies insurance coverage through the state’s insurance verification system.

If you receive an MLI verification notice, follow the instructions below based on your insurance status on the verification date.

If Your Vehicle Was Insured on the Verification Date

If your vehicle was insured on the insurance verification date, you must provide proof of insurance showing that coverage was in effect on that date.

You may:

• Visit the Lee County Revenue Commission Office and provide proof of insurance; or
• Submit proof of insurance through Be Sure To Insure Alabama.

If you previously provided proof of insurance but your coverage could not be confirmed, contact your insurance company and request a statement on company letterhead confirming that the vehicle was insured on the verification date.

If Your Vehicle Was Not Insured on the Verification Date

If your vehicle was not insured on the verification date, you must:

1. Visit the Lee County Revenue Commission Office.
2. Pay the applicable reinstatement fee:
   • $200 for a first violation
   • $400 for a second or subsequent violation
3. Provide proof of current Alabama insurance.

If Your Vehicle Was Sold, Stored, or Otherwise Unused

If your vehicle was not insured on the verification date because it was sold, stored, or otherwise unused, an exemption may be available if all of the following conditions are met:

• The license plate is surrendered to the local licensing office within 30 calendar days from the date the MLI verification notice was sent to the registrant.
• The exemption has not previously been claimed during the current registration period for the vehicle.
• The vehicle was not involved in an accident during the lapse in insurance coverage.
• The registrant or driver of the vehicle was not issued a citation during the lapse in insurance coverage.

Please visit the Lee County Revenue Commission Office if you have questions about whether your situation qualifies for an exemption.

Warning

An owner or operator convicted of a mandatory liability insurance violation may also be subject to penalties imposed by law enforcement:

• First violation: Up to a $500 fine
• Second or subsequent violation: Up to a $1,000 fine and/or a six-month driver's license suspension

In addition, the vehicle registration may be suspended and the applicable reinstatement fee will be required.

Appeal Rights

If you are dissatisfied with an action or refusal to act by the Alabama Department of Revenue concerning the denial or revocation of a license, permit, or certificate of title, Alabama law provides a right to appeal to the Alabama Tax Tribunal.

Under Section 40-2A-8(a), Code of Alabama 1975, a notice of appeal must be filed within 30 days from the date the notice of the action or refusal to act was mailed to the taxpayer.

An appeal form is available from the Alabama Tax Tribunal and should be submitted according to the instructions provided on the form.

Alabama Tax Tribunal: taxtribunal.alabama.gov

Need Help?

For questions about an MLI notice, proof of insurance, reinstatement, or an exemption, please contact the Lee County Revenue Commission Office.