Alabama Auto Insurance

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Alabama Auto Insurance

Alabama Auto Insurance Requirements

Most motorists in Alabama satisfy the financial responsibility requirement by purchasing Alabama auto insurance. State law requires that motorists only carry Liability insurance, which pays when the insured is determined at fault in an accident. Liability insurance pays the costs associated with damage done to persons or property, funeral expenses, pain and suffering, and legal protection up to the insured’s chosen liability limits.

Alabama Minimum Liability

The minimum liability limits required in Alabama are 25/40/10 or up to $25,000 in bodily injury costs per person, $40,000 per accident when two or more people are involved, and up to $10,000 towards property damage costs per accident. Property damage includes things such as repair or replacement of the other driver’s vehicle, and the repair or replacement of signs, buildings, etc.
The damage caused by a single accident can easily exceed Alabama’s minimum requirements. That’s why many motorists choose to increase these limits. Something else they optionally choose is coverage for their own vehicle since liability does not cover the insured or his/her vehicle.

Alabama Full Coverage

Comprehensive/Collision coverage pays the repair or replacement costs when the insured’s vehicle is damaged in a collision, or damaged for reasons over which the insured has no control such as being struck by an animal, vandalism, theft, and adverse weather. Note that if your vehicle is leased or financed, the financer usually requires this type of insurance protection.

Being Uninsured or Underinsured in Alabama

Uninsured and Underinsured Motorist coverage, also known as UM/UIM are optional bodily injury coverages that protect you, your passengers, and family members. UM goes into effect when the insured is in an accident with an at-fault driver that does not have insurance or when the at-fault party is a hit-and-run driver. UIM may help pay for some of the bodily injury expenses when the at-fault driver has auto insurance, but the chosen limits are not enough to cover all of your bodily injury expenses.

Alabama Department of Insurance

To learn more about the auto insurance limits Alabama requires of its motorists, please contact the Alabama Department of Insurance at 334-269-3550 or visit the Department’s website at http://insurance.state.al.us/.

 

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