Beginning
January 1, 2013, the state of Alabama will begin using a new Online Insurance
Verification System (OIVS). The new system, created through Act 688 in 2011 and signed into
law by Governor Robert Bentley in 2012, allows authorities and county officials
to instantly confirm a vehicle's coverage status. The online, real-time system
will be used by officials issuing county license plates to verify the coverage
status of a vehicle at the time of registration and by law enforcement
officers.
Car owners will be unable to
register their vehicle unless it is verified through OIVS or they can provide
proof of coverage to the official issuing the license plate. The Alabama
Department of Revenue (ADOR) is testing the program in 10 counties throughout
the state before the statewide launch that is coming up on Jan. 1, 2013.
First-time offenders found lacking coverage face a fine of up to
$500, which ramps up to $1,000 for second and subsequent violations. Repeat
offenders can also have their driver's license and registration suspended for
six months.
