Alabama MVD-1 Insurance Certification Form: Filing, Renewal, and Penalties

The Alabama MVD-1 Insurance Certification Form is the document a dealer’s insurance carrier signs to prove the dealership carries blanket liability coverage on every vehicle in inventory, and it must be on file with the Alabama Department of Revenue (ALDOR) before a master dealer license will be issued or renewed.1Alabama Department of Revenue. Alabama MVD-1 – Insurance Certification Form

Who Has to File One

Anyone applying for a master dealer license in Alabama needs the MVD-1. That covers new motor vehicle dealers, used motor vehicle dealers, rebuilders, and wholesalers as those categories are defined in Section 40-12-390 of the Alabama Code.2Alabama Department of Revenue. Motor Vehicle Dealer, Rebuilder, Wholesale, Auction, and Off-Site Sales Licenses No MVD-1, no license — ALDOR will deny the application outright.3Alabama Legislature. Alabama Code 40-12-392 – License – Applications

What the Policy Must Cover

The coverage certified on the form has to be blanket liability insurance — covering every vehicle the dealership owns or holds in inventory, plus any business vehicles driven on public roads. A policy that lists only specific vehicles will not qualify, and the insurer must be licensed to do business in Alabama.1Alabama Department of Revenue. Alabama MVD-1 – Insurance Certification Form

The limits printed on the form itself are:

  • $25,000 for bodily injury or death to one person in any single accident
  • $50,000 for bodily injury or death to two or more people in any single accident
  • $25,000 for property damage in any single accident

A combined single limit of $75,000 per accident also satisfies the requirement.4Alabama Department of Revenue. Dealer Licenses and Dealer License Plates

Who Fills Out What

The MVD-1 is generated through ALDOR’s system during the application rather than from a blank PDF, but gather the information before you start. The form has two halves.

Your Half (Licensee)

You complete the top portion with your business details:

  • Legal business name exactly as it appears on your license application
  • Any DBA name
  • Mailing address and physical address, listed separately if they differ
  • Business telephone number and email address

Your Insurer’s Half

This is where applicants get stuck: you cannot sign the bottom portion yourself. It has to be signed by an authorized representative of the insurance company or its licensed Alabama agent. The insurer provides:1Alabama Department of Revenue. Alabama MVD-1 – Insurance Certification Form

  • Insurance company name and NAIC number
  • Policy number and effective dates spanning the license year
  • Alabama Insurance Producer License number, if a licensed agent is signing rather than the carrier directly
  • Contact name, phone, and email for someone at the carrier who can verify coverage
  • Printed name, position, and signature of the person certifying insurance

ALDOR’s administrative code also lets the insurance company verify coverage electronically in place of a paper MVD-1, so ask your insurer whether they participate in electronic verification before you print anything.5Alabama Administrative Code. Alabama Administrative Code 810-5-12-.05 – Evidence of Blanket Liability Insurance Coverage for Licensed Motor Vehicle Dealers

How to Submit It

The MVD-1 is not filed on its own. It travels with the master dealer license application through the Alabama Partner Registration Portal at mydmv.revenue.alabama.gov. Once you submit the electronic application, ALDOR generates a transmittal sheet listing the documents you need to mail in, and the MVD-1 will appear on that list unless your insurer handled electronic verification. There is no separate fee for the form itself.4Alabama Department of Revenue. Dealer Licenses and Dealer License Plates

Renewal: A Fresh MVD-1 Every Year

Alabama dealer licenses renew on October 1, with a 30-day grace period before a late penalty of 15 percent of the license fee applies. Every renewal needs a current MVD-1 or fresh electronic verification showing coverage is in force for the new license period. Contact your agent well before October 1. If there is a gap between your old policy’s expiration and the new one’s effective date, the certification will fail verification and ALDOR will hold your license until the coverage issue is cleared. Operating without a current license is a Class A misdemeanor.4Alabama Department of Revenue. Dealer Licenses and Dealer License Plates

Penalties for False or Lapsed Coverage

Knowingly certifying insurance that is false, nonexistent, or already lapsed when you file brings three consequences:1Alabama Department of Revenue. Alabama MVD-1 – Insurance Certification Form

  • A $1,000 penalty under Section 40-12-29
  • Revocation of any license already issued, under Section 40-12-396(b)(1)
  • Permanent ineligibility for another dealer license

If coverage was valid at filing but lapses during the license year, ALDOR can assess a separate civil penalty of up to $5,000 and collect it against your surety bond.3Alabama Legislature. Alabama Code 40-12-392 – License – Applications