How does the state confirm insurance coverage?

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insurance coverage: ALDOR utilizes the Online Insurance Verification System (OIVS) to ascertain if vehicle owners are adhering to the mandatory liability insurance (MLI) law. This is achieved using the following techniques:

  • ALDOR conducts real-time verification of motor vehicle registrations directly with insurance companies for all vehicles registered in the state subject to the MLI law.
  • ALDOR receives notification if the Alabama driver’s license associated with a vehicle registration is suspended or revoked by the Department of Public Safety.ALDOR is informed of any tickets issued for failure or refusal to comply with a law enforcement officer’s request to display evidence of insurance coverage on the vehicle.
  • ALDOR follows up on unconfirmed responses from insurers by sending a questionnaire to the registrant to obtain updated policy information. Additionally, ALDOR has requested insurers to provide a monthly file of active policies to ensure registration records are updated for confirmation of coverage.

Related FAQs in General – Liability Insurance

Doesn’t the insurance company provide you with my policy information?

Registrants must furnish licensing officials with insurance details (policy number, NAIC #, policy type) at the time of vehicle registration, along with any updates thereafter. This information is utilized by the Department of Revenue (DOR) to validate vehicle insurance through the Online Insurance Verification System (OIVS).

How does the state verify liability insurance coverage?

The online insurance verification system (OIVS) relies on web services to promptly verify policy details with insurance providers. It’s a tool accessible to ALDOR, licensing authorities, and law enforcement agencies. Should OIVS fail to confirm a policy, the individual must provide proof of insurance. ALDOR will persist in verifying submitted policy details and will reach out to the registrant if any unconfirmed responses are received from the insurer, issuing a verification notice.

I have had insurance with my insurance company for many years, why would the insurer not confirm coverage on my vehicle?

Providing inaccurate Vehicle Identification Number (VIN), insurance policy number, or National Association of Insurance Commissioners (NAIC) number to local licensing officials can lead to the insurer being unable to verify insurance coverage for your vehicle. To identify any potential VIN discrepancies, compare the VIN on your insurance card and registration receipt. If you find any discrepancies, contact your insurer to correct the information. Similarly, if you suspect that the VIN on your registration receipt is incorrect, consult your local licensing official for clarification.

I received a request for insurance verification on one of my vehicles. Should I expect to receive a request for insurance verification for all my vehicles?

Not always. ALDOR regularly checks the insurance status of all registered vehicles. If insurance coverage cannot be confirmed for a vehicle, ALDOR will send a MLI verification notice to the address listed on the vehicle registration. Additionally, if an email address is available, ALDOR may email the registrant, requesting proof of insurance for the vehicle.

When are proof of insurance and payment of fees required?

Reinstatement fees are applicable only if the vehicle was uninsured on the date of insurance verification, or if the vehicle did not qualify for an exemption (e.g., sold, stored, inoperable, etc.).

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