The state can suspend a driver’s license or an owner’s vehicle registration until the proper forms are submitted and fees paid when an uninsured vehicle is involved in a collision or when a driver is pulled over and fails to provide proof of insurance. The Code of Alabama has two different chapters governing mandatory car insurance and the penalties for not having coverage. They are Ala. Code §32-7-1 et seq. Motor Vehicle Safety-Responsibility Act and Ala. Code §32-7A-l et seq. Mandatory Automobile Liability Insurance.
§32-7-5 of the Motor Vehicle Safety-Responsibility Act requires that any driver involved in a wreck in Alabama, where any person is injured or killed or where more than $250.00 in property damage is sustained, must file a written report with the Department of Public Safety within 30 days of the date of the wreck stating, among other things, that the driver has the required minimum insurance coverage. This is the SR-13 form given to drivers after collisions. The drivers must submit the form whether or not the wreck is their fault.
Under §32-7-6, if one or more of the drivers in a motor vehicle wreck is reported as being uninsured, that driver has 20 days after the submission of an accident report to provide proof that the driver either (1) actually has insurance, (2) has been released from liability, (3) has been finally adjudicated as being not liable, or (4) has agreed to pay installments for any injuries or damages for which the driver is liable. If 60 days passes from the submission of an accident report and an uninsured driver has not provided any of the above information, the Department of Transportation has the power to suspend both the license of the driver and the vehicle registration of any vehicle owned by the uninsured vehicle’s owner.