A Guide to Auto Insurance in Alabama (AL)

If you drive a car that you own or lease and you live in Alabama, you're going to need to have at least liability insurance. In some cases, having other types of Alabama Auto insurance, such as collision or comprehensive insurance, may also apply. And in all cases you need to carefully consider your options for auto cover, because the financial impacts of any kind of auto accident can be severe.

First, let's take a look at some of the basic requirements for auto insurance cover in Alabama.


Liability minimums for Alabama Auto Insurance

When you carry auto insurance, you must have liability insurance at a minimum. That is, you have to have at least enough insurance to cover $25,000 in personal injury for one person or a $50,000 per accident maximum with multiple victims. In addition, you must have $25,000 coverage for property damage.

This is the basic cover that will allow you to drive a car legally in Alabama, but you can of course get more comprehensive Alabama Auto Insurance cover if you so choose.

Alternatives to Lliability Insurance in Alabama

Alternatively, if you wish, you can have a bond on deposit of at least $50,000 to cover injuries and property damage from a car accident that you've caused. This alternative is costlier than Alabama auto insurance, but it's meant to in effect "force" drivers to carry some type of insurance, so that they don't drive uninsured. If you drive and you're not covered by the $50,000 bond or by insurance, you may be facing bankruptcy or similar circumstances. Therefore, it's always advisable that you carry Alabama auto insurance so that this isn't a problem..


What type of insurance do you need?

At minimum, you need to have liability insurance in the amounts listed above. If you've got a car that's less than 10 years old and/or you are leasing a car or making payments on that car, you may also want to carry collision and/or comprehensive insurance. (If you are leasing a car or haven't yet paid off the car you own, you may be required to carry this insurance as a matter of course by the leasing company or dealership.)

Let's detail exactly what your options are with Collision Insurance and Comprehemsive Alabama Auto Insurance.


Alabama Collision insurance

While liability insurance covers you for property or personal damage for the OTHER parties in accidents where you're deemed at fault, collision insurance covers you for damage to your own car.

That is, if you're in an accident, and you're deemed at fault, collision insurance will cover you for the damage to your car, so that you will still get your car fixed, even if it is your fault.

Usually, this is based upon the current market value of the car, and you're required to pay a deductible before replacement. You'll get either repair or "current replacement value" when you replace your car with this type of coverage.

This can provide extra peace of mind, though obviously that does come at a cost of higher premiums.


Comprehensive Alabama Auto Insurance

Covers damage to your car that happens but that is not a result of an accident. For example, if your car is damaged in a hailstorm. This is known as an "act of God" and comprehensive insurance will pay to repair the damage that the hailstorm causes. Again, you may have a deductible to pay, at which time the insurance company covers the balance.

Again, for both comprehensive and collision insurance, you may be required to carry these types of Alabama auto insurance if you don't yet own your car outright, or if you lease. If you do own your car outright (in that you're not making payments on it) and it's more than 10 years old, it's usually a better value to carry just liability insurance and dispense with the collision and comprehensive coverage.

Though being able to claim under a comprehensive insurance policy is a more likely scenario then claiming after an accident, as in practice, it is more common for your car to be vandalised or hit by a falling branch then it is to be caught up in a car accident. Nevertheless, this type of cover can add significantly to the cost, so whether or not its worth getting is a question of weighing up the cost of your car against the cost of the imporved auto insurance.


Finding the Best Alabama Auto Insurance

To find the best Alabama auto insurance at the best rates, do some comparisons of Alabama Auto Insurance Quotes online for the types of insurance you want and get quotes from several different companies. This will ensure that you pay as little as possible for the coverage you get.



 

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