Alabamians are starting to feel the impact of a new law that increases penalties for drivers who do not have required liability insurance while also making it easier for regulators to track coverage.

Gov. Robert Bentley signed the Senate bill into law earlier this month, immediately increasing fines for vehicle owners who do not have liability insurance. The bill also paves the way for instant record checks by 2013.

County offices responsible for vehicle tags said they're already seeing the initial impact of the law sponsored by Sen. Arthur Orr, R-Decatur.

“We did have one party in here the other day who got a ticket for not having liability insurance,” Lauderdale County License Commission Chief Clerk Peggy Briley said. “He'd had an accident or something where they checked for his insurance. He didn't have any.

“Now the fine is double what is was last month. He was not happy.”

In Morgan County, Deputy License Commissioner Helen Hill remembered a case just a few days ago when a woman in a routine traffic stop did not have proof of liability insurance in the car.

“She had the insurance but didn't have the insurance card with her,” Hill said. “She had to bring in the copy of her insurance information for validation and didn't have to pay a fine.”

Orr said statistics from the Insurance Institute show 25 to 28 percent of Alabama vehicle owners do not have liability insurance coverage.

Because of the high percentage of uninsured motorists, Orr said vehicle liability insurance costs consumers in Alabama more than in states with stiffer penalties for being uninsured.

Alabama began requiring drivers to have vehicle liability insurance coverage in 2000, but does not require owners to show proof of insurance when they buy vehicle tags. Motorists sign a statement saying they have the coverage when they purchase vehicle tags, but they do not have to show proof.

The new law means that in 2013, state and county officials will have instant access to an Internet database with up-to-date information about motorists' insurance coverage. They will be able to check the coverage for themselves.

“Money is tight, and owners in a financial crunch sometimes find it tempting to let coverage lapse,” Alabama Revenue Department Motor Vehicle Division Director Brenda Coone said. “It used to be cheaper to let insurance lapse and pay a fine and get reinstated than to pay for coverage. Now it is not.”

Coone said an advisory council that includes staff from the Department of Revenue, the state Insurance Department, Public Safety Department and vehicle insurers will set up operating regulations for the database.

The Insurance Industry Committee on Motor Vehicle Administrators, operated by insurers, will run the Internet database, something Coone said has worked in other states.

Orr introduced the bill that state revenue and insurance departments wanted for four years before it passed. Opposition came from lawmakers concerned that stiffer fines would be hard for poorer Alabamians to pay.

Coon said other states that have already passed stricter monitoring of liability insurance coverage saw the cost for uninsured motorist coverage drop.

M.J. Ellington can be reached at mjellington@TimesDaily.com.