Flag_of_Alabama.svg
An official website of the Alabama State government.

The .gov means it's official

Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Services

Services

Business and License

Business and License

Collections

Collections

Entity Registration

Entity Registration

Human Resources

Human Resources

Income Tax

Income Tax

Legal

Legal

Motor Vehicle

Motor Vehicle

Property Tax

Property Tax

Sales and Use

Sales and Use

Tax Incentives

Tax Incentives

Tax Policy

Tax Policy

  • Homepage
  • >
  • How does the state confirm insurance coverage?

How does the state confirm insurance coverage?

The Department of Revenue selects registrations of motor vehicles for which insurance could not be confirmed (verified) using OIVS to determine if the owners are maintaining liability insurance in accordance with the MLI law by the following methods:

The department reviews motor vehicle registrations using a real time verification process directly with the insurance companies on every vehicle registered in the state that is subject to the MLI law.
The department receives notice that the Alabama driver’s license associated with the vehicle registration has been suspended or revoked by the Department of Public Safety.
The department receives notice that there was a ticket issued for failure or refusal to comply with a request by a law enforcement officer for display of evidence of insurance coverage on the vehicle.

ADOR will follow-up on any unconfirmed responses received from the insurer by sending a questionnaire to the registrant in an attempt to obtain updated policy information. (The department also has asked insurers to provide a monthly file of active policies to ensure registration records are updated for confirmation of coverage.) A sample questionnaire document is available from the Motor Vehicle Division website at https://www.revenue.alabama.gov/motor-vehicle/.

The Department of Revenue selects registrations of motor vehicles for which insurance could not be confirmed (verified) using OIVS to determine if the owners are maintaining liability insurance in accordance with the MLI law by the following methods: The department reviews motor vehicle registrations using a real time verification process directly with the insurance companies on every vehicle registered in the state that is subject to the MLI law. The department receives notice that the Alabama driver’s license associated with the vehicle registration has been suspended or revoked by the Department of Public Safety. The department receives notice that there was a ticket issued for failure or refusal to comply with a request by a law enforcement officer for display of evidence of insurance coverage on the vehicle. ADOR will follow-up on any unconfirmed responses received from the insurer by sending a questionnaire to the registrant in an attempt to obtain updated policy information. (The department also has asked insurers to provide a monthly file of active policies to ensure registration records are updated for confirmation of coverage.) A sample questionnaire document is available from the Motor Vehicle Division website at https://www.revenue.alabama.gov/motor-vehicle/.
Related FAQs in General - Liability Insurance, Liability Insurance

The ONE SPOT system will allow returns to be filed with ACH Debit and ACH Credit method payments only. The system will not allow an ACH Debit taxpayer to complete their return filing without completing the necessary information to authorize the ACH Debit payment. The ACH Credit payment is separate from the ONE SPOT system and must be initiated by the taxpayer through their banking institution. Returns successfully submitted for ACH Debit and ACH Credit taxpayers will be exported to the local government.

Upon the completion of the Third Party Designation Form, ALDOR can provide the returns, payments and payment data files to the authorized third party administrator.

When an electronic payment is received by ALDOR in error, the payment will post to the taxpayer’s ALDOR local tax account. ALDOR will not be able to automatically transfer these payments to the non-administered local government due to the possibility the taxpayer’s payment will reject after ALDOR has transferred the payment, causing complicated collection issues. ALDOR will need the taxpayer to advise the Department with what to do with that payment.

The only non-administered local government taxes to be processed through ALDOR will be payments received as the result of legal action, such as final assessment, garnishments, and liens, entered into when the local government was state administered. Payment data for these payments will be available during the first week (5-10 working days) of the month following the tax collection period through the ALDOR website.