Motorcycle Insurance Minimum Requirements in Alabama

Two-Wheeled Vehicles Defined

The state requires residents to properly insure or establish financial responsibility for any street-legal two-wheeled vehicle. If you’re unsure about your two-wheeled vehicle, you can call the Mandatory Liability insurance Unit at (334) 242-3000. Someone will help you determine whether your vehicle requires registration and insurance.

• Motorcycle―Alabama defines a motorcycle as any motor vehicle with a seat or saddle and no more than three wheels (excluding tractors).

• Motor-driven cycle―Motor-driven cycles include motorcycles, motor scooters, and every bike with an attached motor:

• With motors that produce no more than five brake horsepower and don’t exceed 150 cc engine displacement.

• That weigh less than 200 pounds.

Alabama Insurance Requirements for Motorcycles

You must purchase liability coverage or obtain a Motor Vehicle Liability Bond or Certificate of Cash Bond to legally operate your motorcycle or street-legal moped or scooter on state roads. If you choose to purchase liability coverage, you policy must include:

• $25,000 injury liability for one person

• $50,000 for all injuries in one accident

• $25,000 property damage in one accident

Insurance carriers offer a variety of coverage types to fully protect you and your two-wheeled vehicle. Make sure you do your research before only purchasing the minimum requirements.

How Coverage Affects Helmet Requirements

Regardless of how much insurance you have for your motorcycle or motor-driven cycle, the state requires you to always wear a helmet―whether you’re operating the cycle or just along for the ride.

Proof of insurance and Financial Responsibility

You don’t want anyone to catch you without proof of insurance or financial responsibility; the penalties are stiff (see below). Fortunately, there are several ways you can provide proof. If you:

• Purchased traditional insurance from a carrier, you can show your valid insurance card or a copy of your:

• Insurance policy

• Declarations page

• Premium receipt

• Binder

• Certificate of liability policy

• Just purchased a new car, for 60 days you can show a copy of the insurance information that applied to your replaced vehicle.

• Are renting a vehicle, you can show a copy of the rental agreement.

• Posted cash or a bond, you can show a copy of your:

• Motor Vehicle Liability Bond

• Certificate of Cash Bond

Penalties for Failure to Maintain Financial Responsibility

If law enforcement or the MVD catches you with no proof of insurance or financial responsibility, you face registration suspension. The steps you’ll have to take to reinstate your registration depend on how many times you’ve failed to show proof of insurance. If it’s your:

• First offense, you’ll have to establish and provide proof of financial responsibility and pay a $100 reinstatement fee.

• Second offense, you’ll have to tough out four months of registration suspension, establish and provide proof of financial responsibility, and pay a $200 reinstatement fee.

The Mandatory Liability Insurance Unit will provide you with answers to any questions you might have about adequate coverage, penalties, and reinstating your registration. Please call (334) 242-3000.