Auto insurance laws in the entire state of Alabama require all car owners to have their vehicles insured before they take it to the streets. If you are an Alabama resident planning to get your car insured, it is necessary to learn more about the minimum requirements of your state’s auto insurance laws. You have to understand what these requirements cover and whether it would serve to your advantages to stick to the minimum or go for a little more coverage.
Alabama residents are required to have at least a basic liability insurance policy. This policy is known as a 25/50/25 policy. It means a minimum of $25,000 for injury liability per person per accident, $50,000 for all injuries per accident, and $25,000 for property damage per accident. These are just the minimum required amounts and car owners can always choose higher levels of coverage.
However, keep in mind that this minimum does not cover bodily injury or damages to your car in case you are hit by an uninsured driver. If you are concerned with having lower auto insurance rates, you can do the following simple, but effective steps.
1. Choose a less-expensive car. If you currently own an SUV, a sports car, or a luxury car, you might need to let that one go and opt for a less-expensive alternative.
2. Go for higher deductibles. One of the most effective ways to substantially lower auto insurance rates is to simply request your company to increase deductibles. However, before requesting for higher deductibles, make sure you have enough money to pay for it in case of a claim.
3. Always keep an eye on your car’s mileage. Auto insurance companies in Alabama are particular with your frequency of driving. You can qualify for low mileage discounts if you drive less than 500 miles per month. The less the time you drive, the lower the chances you have of getting into an accident. This means you can get lower premiums if you maintain a low mileage.
4. Maintain a clean driving record. The driving record greatly affects how much you pay for auto insurance. A clean driving record means you are a prudent driver with lower risk of accident. The lower risk you have, the lower insurance rates will be.
5. Ask around for different discounts. Car insurers in Alabama have different discounts that you could be qualified for. Some companies offer discounts to cars with anti-theft devices and certain safety features, while others give senior citizens and student driver discounts.
Lowering Alabama auto insurance premiums should not be difficult, just as long as you know effective ways to do it.