Wednesday, February 17, 2016

What is Important about Car Insurance in Alabama Today

When looking for auto insurance policy, you may look only at the cost. There are many differences, however, from one policy to another and even what is required from one state to the next. Before getting car insurance quotes in Alabama, you need to understand what is required to ensure you are adequately protected.

Mandatory Liability Insurance Law

The state of Alabama imposed a law in 2013 that requires all drivers to carry liability insurance if they are residents in the state and have registered automobiles.
The law refers to liability insurance only and provides the minimum requirements.
  • $25,000 per person for injury
  • $50,000 per accident for personal injury
  • $25,000 for damage to property
These amounts cover you if you are at fault in an accident. However, you may want to consider increasing the coverage over the minimum amount to protect you and your assets.
The amount for personal injury includes all medical expenses if someone is injured. This may include hospitalization and any surgeries or treatments in addition to any long-term care while the person recovers.

Other Coverage

Also don't fail to consider coverage for uninsured motorists when checking around for auto insurance estimates in Alabama. It will protect you if you are involved in a collision with a driver who doesn't have insurance or enough coverage.
What about collision and comprehensive coverage that pays for damage to your automobile? If you are financing your car, the lender will probably require coverage to protect their investment. And this is what you can learn from

Violations for Lack of Coverage

Since it is the law in Alabama to have liability coverage, you can be penalized if you don't carry this insurance. If you are stopped by a police officer and don't have insurance, you will receive a fine of $500 for your first violation. Your second and any other violations will result in a $1000 fine.
You may also have your driver's license suspended for six months and your car registration suspended for four months. If you have your vehicle suspended, you will have to pay fees to have the registration reinstated. Fees are $200 for the first time and $400 for all other offenses.
Because all drivers in Alabama are required to carry car insurance, they can obtain coverage through the Alabama Auto Insurance Plan if they can't find a provider who will cover them. If you have been labeled a high-risk driver due to previous claims or moving violations, this may be your only option to have the coverage required by law.
Alabama requires you to carry auto insurance to protect you and everyone else on the road. Don't drive without it and find the best rates possible when shopping for car insurance quotes.