| In the state of Alabama you are required, by law, to have a minimum amount of Alabama auto insurance. This law is made to protect both drivers in the event of an accident. If you did not have insurance and were involved in an accident that was your fault, you would be responsible for all the medical expenses and damages that you caused. This cost could end up being tens of thousands of dollars, most of which most people will not be able to pay. The mandatory amount of auto insurance is known as liability insurance and it covers injuries and damages to other, third party drivers, when you are found at fault for an auto accident. It can be divided into two subsections
- Bodily Injury Liability Insurance
The minimum amount of bodily injury insurance is $20,000 for one person, and $40,000 for all injuries in the accident. This does not cover injuries that you incur. For those injuries to be covered, you must have a form of medical coverage in your policy.
- Property Damage Liabiltiy Insurance
This minimum amount of liability coverage, covers damages that you cause to third party property, most often their vehicle. This does not cover damages to your vehicle, and for those damages to be covered,
collision and comprehensive coverage
is required. The property damage minimum is $10,000.
As you can see, these minimums are fairly low. The recommended Alabama auto insurance coverage is that you raise these minimums in order to have a higher level of protection, as any injuries or damages over these minimums will be your responsibility to pay! Raising these amounts will also raise your yearly premiums. To determine how much your premium will cost, find some affordable
Alabama car insurance quotes.
These quotes will compare all companies in Alabama and find which companies offer the lowest rates!
If you do not wish to purchase Alabama auto insurance you can post a $50,000 bond with the state. This bond will take the place of you car insurance and will be used to cover any damages that you cause while driving your car. More information on posting a bond can be found at the |
