Alabama Car Insurance (AL)

Alabama is one of those southern states that is often overlooked as a coastal area.  However, the state has a thriving beachfront along the Gulf Coast, drawing tens of thousands of visitors per year.  If you are planning a visit to Alabama, it is a good idea to understand the state's requirements for auto insurance.

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Requirements

Alabama requires that every car insurance policy issued in the state cover two types of liability.  The first is for bodily injury. The minimum coverage is $20,000 for an individual and $40,000 for any one incident.  The second liability responsibility is a minimum of $10,000 for property damage.  This insurance applies to accidents where you area at fault and is meant to cover expenses for the other car and driver.

The bodily injury coverage means that your insurance company will pay up to $20,000 in injury-related expenses for any one individual in the other car, and a maximum of $40,000 in medical costs for all passengers in that car.  The property damage coverage is meant to pay for repair costs to the other car, as well as any other property that might be involved, such as fences, buildings, etc.

That is the extent of Alabama's statutory requirements; it is not, however, a limitation on your liability.  The costs of medical care and car repair today mean that in many situations, the mandated minimums will be inadequate.  Many drivers today carry bodily injury liability in the amounts of $100,000/300,000.

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Coverage

There are several optional coverage areas that you should consider in order to round out your car insurance policy.  Insurance for damage to your car is available in the form of collision and comprehensive coverage.  Collision insurance pays for damage to your car caused by an accident that is your fault.  Comprehensive coverage pays for other types of auto damage from occurrences such as storms, fires, theft or break-ins.  Both of these policy components have deductible payments attached to them.  It is best to take the highest deductible that you can manage financially, as higher deductibles mean lower insurance premiums.

A highly recommended insurance coverage is for uninsured and underinsured drivers.  This will cover your costs should you be in an accident with a driver that either has no insurance or whose coverage is insufficient to pay all of your expenses.

Medical payments insurance will cover injury-related costs to you and your passengers.  With some insurers, this portion of the policy will also cover such costs as lost wages due to injury, rehabilitation, etc.  This coverage applies no matter who is at fault in the accident.

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