Alabama Drivers Must Now Show Proof For Tags

A new law went into effect which will require drivers to provide proof of coverage before renewing the tags on a vehicle.Heather Hester, a local office head teller, mentions how it used to be more of a verbal understanding. Proof was never required. Shannon Smith, another clerk at the probate office, feels this will back their office up significantly.

This new law is one which was designed to reduce the number of uninsured drivers. Alabama is within the top ten states to have the highest percentage of uninsured motorists. Check out the full story.

Uninsured Drivers actually drive the cost of auto insurance up for the rest of us. It’s always been a known fact that uninsured drivers cause rates to increase, but how?

Here’s one example:

Lets say you’re insured and become involved in an auto accident with an uninsured motorist. In this accident the uninsured driver was found to be negligent. Chances are they don’t have the money to pay you for damages to your vehicle. You may need to file a claim with your collision coverage to recover from the loss. In turn your insurer may go after this driver for assets they may own but overall, if the uninsured driver has nothing to offer, it becomes a loss for the insurance company. Therefore insurance companies must raise rates across the board to protect themselves in the event of this type of loss.