Alabama Auto Insurance Laws The bank rate
If you call the Alabama state home and plan to drive there, Alabama auto insurance requirements state that drivers must have current insurance and proof of insurance must be made. on them while driving.
No one ever expects to be the victim of an accident, but that is why they are called accidents. Being ready for one is the best way to protect yourself, your family, and your property. If you don’t have insurance, you can expect legal penalties, not to mention financial risks.
Alabama follows a system of “fault” in terms of financial liability for injuries, damage to vehicles and any other loss resulting from an automobile accident. This means that whoever is found guilty is responsible for compensating anyone who has suffered harm as a result.
To avoid personal bills, financial ruin, and unnecessary stress, every Alabama driver should purchase minimum auto insurance in Alabama. In addition, you should increase these limits as much as you can reasonably afford and add some of the additional coverages as needed.
Auto Insurance Laws in Alabama
Almost all states require some amount of insurance coverage for all motorists and Alabama is no different. While there are a number of auto insurance options in Alabama, the most important thing to know is the mandatory requirements. The minimum liability limits for auto insurance in Alabama are commonly stated as 25/50/25. This abbreviation means:
- Liability limit for bodily injury of $ 25,000 per person
- Maximum of $ 50,000 for all bodily injuries payable for an accident
- Maximum of $ 25,000 for property damage per accident
Liability Insurance in Alabama
Liability insurance coverage is the only auto insurance required in Alabama. This coverage is generally divided into Personal Injury and Property Damage coverage, as noted above. Personal Injury Coverage covers injuries and lost wages caused to another driver or their passengers. Property damage coverage covers damage you cause to the other driver’s vehicle.
Liability coverage never pays for your injuries (or those of your passengers) or for damage to your vehicle. This would require additional coverage.
It is strongly and generally not recommended to take out liability insurance only, as this puts you and your assets at risk. Although Alabama’s liability limits are higher than those in some states, this can still amount to inadequate coverage for the other party and leaves you with no coverage at all. Alabama’s minimum auto insurance requirements can also leave you at risk financially.
Medical bills can add up quickly, especially with multiple passengers. When it comes to property damage, $ 25,000 doesn’t cover the average price of a new vehicle and that doesn’t even factor in if there are multiple cars involved and you’re found guilty.
It is highly recommended that all drivers increase their insurance limits to avoid getting stuck with massive bills or being sued by the other party. According to the Insurance Information Institute (III), 78% of insured drivers take out full coverage in addition to liability insuranceand 74% buy collision insurance.
Is Alabama a Flawless State?
Alabama is not a faultless state. This means that the driver who caused the accident uses his insurance to pay the bills of the other driver in the collision. Police and insurance companies determine fault using any available evidence. The offending driver’s insurance pays to cover the damage of the other driver.
In addition, the “fault” can be shared between the drivers. It is possible, for example, that one driver is responsible for 25% of the accident while the second driver is responsible for 75%.
Alabama is one of five states with contributory negligence laws, which means you can’t sue if you share even 1% of the responsibility for the accident. Only if a driver is 100% responsible or “at fault” can the other party take legal action.
Penalties for driving without insurance in Alabama
Drivers who choose to forfeit insurance while driving are in violation of Alabama insurance laws and may face certain consequences or penalties. For the first offense, the fine is $ 500 and a 45-day suspension of registration with a reinstatement fee of $ 200. For the second offense (or any subsequent offense), the fine is $ 1,000 and a 4-month suspension of registration with a reinstatement fee of $ 400 and up to six months of license suspension.
Depending on the severity of the offense (s), additional penalties may arise, including jail time and being required to carry an SR-22, a document filed with the state proving you have insurance. automobile that meets the minimum guarantees required by law. This is also known as the “certificate of financial responsibility”.
Additional Auto Insurance Coverage Options in Alabama
Alabama can only require liability coverage; however, there are many additional coverage options to extend your coverage and protection.
- Full: This coverage protects your vehicle against events not related to a collision, including, but not limited to, theft, collision with an animal and damage caused by hail.
- Collision: This coverage protects your vehicle in the event of a collision with another vehicle or object.
- no credit check loans / lease repayment: Also known as gap coverage, this is most important for those who finance a vehicle. If the car is totaled, this coverage covers the difference between the actual cash value of your vehicle and the amount you still owe on the loan.
- Medical payments: MedPay helps cover the medical costs incurred by you or those in your vehicle in an accident.
- Rental car reimbursement: If your car cannot be driven, this covers the rental car costs associated with obtaining a rental until your car is repaired. If your car can drive, you probably won’t be able to use this coverage until your car is repaired.
- Roadside assistance: This helps with battery jumps, towing costs, and puncture costs. This coverage can vary by insurance company, so be sure to double-check.
- Motorist’s uninsured bodily injury: Coverage for uninsured motorists is highly recommended as it covers the cost of bodily injury if you are injured by a driver who has no insurance and cannot pay for your damages.
Frequently Asked Questions
What is the best auto insurance company in Alabama?
Shopping is the best way to find an affordable policy that meets your specific needs. Based on our extensive research, these are the best auto insurance companies in Alabama.
What is the cheapest auto insurance in Alabama?
Alabama is not the cheapest or most expensive state for auto insurance. Although it sits somewhere in the middle, chances are you still want to get what you pay for. the average cost of auto insurance in Alabama, it’s $ 435 for minimum coverage and $ 1,672 for full coverage. According to our research, these are the cheapest auto insurance companies in Alabama.
When is a vehicle considered a total loss?
According to Alabama codes, a total loss occurs when the damage to a vehicle is equal to or greater than 75% of the value of the vehicle.
What Factors Affect Your Auto Insurance Rates in Alabama?
Regardless of location, auto insurance companies typically look at factors such as your vehicle model, your driving record, and previous insurance claims. In Alabama, the following may also take into account: age, credit rating, education and occupation, gender, marital status, and zip code.