Are you thinking of moving to Alabama? If so, one of the most important things you should know when moving to Alabama is the state’s auto insurance requirements and regulations. Maybe you just need some basic auto coverage in hopes of finding an affordable deal. This article will provide useful information on what is required from licensed drivers in the state of Alabama.
Keep in mind that all car owners in Alabama are required to have auto insurance. Having automobile coverage protects you from unforeseen events and unwanted expenses in case of an accident. Having an auto policy is also a legal requirement for all Alabama car owners.
Compulsory Insurance Coverage
The basic auto insurance coverage in Alabama provides compulsory coverage that includes both bodily injury and property damage liabilities. The minimum is $25,000 for physical injury liability per person per accident, $50,000 for all physical injuries per accident, and $25,000 for property damage coverage per accident. This is commonly known in Alabama as the 25/50/25 policy. Of course, these are just minimum limits and it is highly recommended to have higher coverage in case of any type of accident.
Why do you need to have auto insurance in Alabama?
Having an auto insurance policy provides protection from accidents and related expenses, but basically, you need to have your car insured to comply to the state’s insurance laws. Failure to show proof of minimum liability insurance is considered illegal in Alabama.
What is your auto insurance proof?
Automobile policy providers will give you an insurance card with all the vital information like your name, your car’s make and model number, year of purchase, vehicle identification number, the name of your insurer, policy number and your policy’s expiry date. There are other acceptable types of proof like insurance receipt or binder, actual liability policy, temporary insurance card, and a copy of rental agreement if you are driving a rented car.
You are required to carry proof that you have auto insurance in your car at all times when driving within the state. If you do not have proof of auto insurance when questioned by law enforcement officers, you can be charged with improper conduct and can face fines of up to $500. Repeated offense can have your driver’s license revoked.
What determines auto insurance rates?
Auto coverage providers determine rates according to your overall driving habits. Car premium rates are greatly affected by vital factors such as your gender, age, income, type of vehicle and the place you drive and park your vehicle. You can get different quotes from different Alabama auto insurance providers and choose the most suitable coverage for your car.
