Alabama Car Insurance
For drivers in Alabama, car insurance is something you must have in place. In Alabama, if a person doesn't have insurance on their car, they must be able to show that they have $50,000 in cash on hand to pay accidental damages, or have bought a motor vehicle liability bond. The cost of monthly auto insurance premiums in Alabama is a better solution for most drivers, since not everyone has access to this kind of cash.
Alabama Minimum Liability Coverage Required
Drivers in Alabama must have liability insurance in place on their vehicle. Liability insurance coverage pays for damages (injuries or repair/replacement of personal property) caused to someone else if you are responsible for an accident. Under state law, you are required to carry the following levels of coverage:
- $25,000 for one person's injuries in an accident
- $50,000 for all injuries stemming from a single accident, no matter how many people were injured
- $25,000 for accidental damage to property
You may see these numbers expressed in the following way: 25/50/25. The first number is the cap for a single individual's injures and the middle one is the policy limit for all injuries sustained in an accident. The third number refers to property damage. In this case, "property" refers to such items as a mailbox, fence post, traffic sign, shed, or garage.
Keep in mind that the minimum levels of coverage may not be sufficient for every driver's needs. You are always able to buy more coverage than what the law sets out and in most cases, it is a good idea to do so. In a situation where damages caused in an accident are $100,000, and you only have $50,000 in coverage, you will be responsible for paying the amount above your policy limit personally.
Buying a larger insurance policy may cost a bit more in premiums, but you will be less likely to have to consider selling your assets to pay for a claim made against you if you were involved in accident. If you are not sure how much insurance to buy, your insurance company or an independent insurance agent can go over your financial situation and recommend a level of coverage that makes sense for your situation.
Proof of Insurance
Not only does an Alabama driver need to have car insurance in place, but he or she also needs to be able to provide proof of insurance when requested to do so if stopped by a police officer. The following documents will be accepted for the purpose:
- Card issued by the insurance company (temporary or permanent)
- Receipt for premiums paid or binder issued by the insurer
- The insurance policy itself
- Proof of purchase (must have been within the previous 60 days) and an insurance card from your previous vehicle
If you are driving a rental car and are asked to provide proof of insurance, you can show the rental agreement. It will specify the amount of insurance coverage on the vehicle.
Penalties for Failing to Provide Proof of Coverage
If you aren't able to provide proof of insurance, the vehicle tag registration will be suspended until satisfactory proof has been provided. In addition, you will need to pay a reinstatement fee of $100. For a second (or subsequent offense), your vehicle's tag registration will be suspended for four months and the reinstatement fee goes up to $200.
Buying Alabama Auto Insurance
You know you need to get auto insurance, but where can you get the coverage you need at an affordable rate? An independent insurance agent is not limited to selling only one company's products and can help you find a company that has the best combination of good coverage levels and reasonable rates.
Another choice is to compare rates online. With a few clicks of your mouse, you can compare policy provisions and rates, from anywhere you can get access to the Internet. You can get the information you need whenever it's convenient for you. Either way, a little bit of homework now can arm you with information, and save you money and aggravation in the long run.
Why don't you get started right now by clicking on the free Alabama car insurance quote tool at the top of this page? You can compare offerings from a number of companies and find the right policy for your needs. Get started today!