Is your car inoperable or stored? If so, remember Alabama is a mandatory liability insurance (MLI) state. If you have a motor vehicle registration plate–commonly known as a “car tag”– on your vehicle, you MUST have insurance.
If your vehicle is stored or inoperable but you still have your tag affixed to it, plan ahead and voluntarily surrender your registration BEFORE a lapse in insurance coverage. Surrendering your tag before your insurance lapses will prevent the assignment of tag reinstatement fees when the Alabama Department of Revenue (ADOR) suspends your tag for lapsed insurance. Reinstatement fees start at $200 per vehicle.
Beginning January 1, 2020, drivers may claim an exemption for a stored or inoperable vehicle only once when insurance lapses prior to voluntarily surrending their tags. Note: this exemption is only applicable within 30 days of the MLI verification notice from ADOR.
For more information regarding the updated mandatory liability insurance laws, visit besuretoinsureal.com or talk with your Revenue Commissioner and staff. 2020_INOPERABLE