SB312 Alabama 2023 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2023

Title

Relating to the Mandatory Liability Insurance Act; to amend Sections 32-7A-5 and 32-7A-16, Code of Alabama 1975, to further provide for the exceptions to the act for inoperable or stored motor vehicles; to prohibit the continued operation of a motor vehicle in violation of the registration and insurance requirements.

Summary

The bill clarifies exemptions for inoperable or stored vehicles and strengthens enforcement against operating uninsured or unregistered vehicles after stops or crashes in Alabama.

What This Bill Does

Clarifies that inoperable or stored vehicles are exempt from needing liability insurance, but the owner must still maintain insurance if under a security agreement after surrendering registration. If a vehicle involved in a stop or crash is not properly insured or registered, it cannot continue to operate on public roads, with enforcement steps including moving to safety for a first violation, towing for a second, and impounding for a third or subsequent violation within two years. Allows online verification of insurance, gives towing services a lien for related fees, and sets release rules with an effective date of January 1, 2024.

Who It Affects

• Vehicle owners or registrants in Alabama, especially those with inoperable or stored vehicles and those who could face penalties for operating uninsured or unregistered vehicles after a stop or crash.
• Law enforcement officers, towing/impound services, insurers, banks/lenders, and vehicle dealers who administer, enforce, or fund insured vehicles under security agreements and handle proofs of insurance, fees, and impoundments.

Key Provisions

• Amends Sections 32-7A-5 and 32-7A-16 to clarify exemptions for inoperable or stored vehicles and to outline penalties and enforcement for uninsured/unregistered operation.
• Adds that inoperable or stored vehicles are exempt from the liability insurance requirement, but not from duties under a security agreement if registration has been surrendered.
• Specifies tiered enforcement for uninsured operations after a stop or accident: first violation move to safety, second violation tow to a location chosen by the owner, third or subsequent impoundment, with release only after meeting requirements and paying fees.
• Allows online verification of insurance and authorizes towing services to have a lien for towing/impound/storage fees.
• Effective date: January 1, 2024.
• Retains and clarifies existing exemptions for other vehicles (e.g., government-owned vehicles, certain federally regulated vehicles, dealer/inventory vehicles with blanket or commercial insurance, etc.).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.