As it is with the rest of the United States of America, getting insurance in Hamilton, Alabama is a requirement for as long as you spend time behind the wheel. Car insurance has already been made into a requirement for vehicle registration, license application and renewal. If you were not aware of this, the first thing you should do is to read on and get insured.
Consequences for being pulled over without having any car coverage whatsoever will get you in a heap of trouble. For a few, your license may get suspended or revoked. You may not be able to get your car registered if it has not been registered yet. Fines and penalties may be meted out just for forgetting to put a copy of your coverage policy or contract in your glove compartment.
State insurance laws allow citizens to avail of minimum insurance packages. After all, the purpose of this law is to make sure that all people are insured and that they will be well taken care of in case something bad happens on the road. In Hamilton, the code for a minimum insurance package is 20/40/10.
The 20/40/10 code is quite simple. First, you should get a basic insurance coverage with an indemnity agreement for the amount of at least $20,000 in case you get into an accident. This amount corresponds to only one beneficiary during a single event. It means that if you have already been paid, it is time to get a new policy.
Its second value corresponds to the price of $40,000, which is made to be applicable to claims for all other injuries – including those of other people. This is in the form of a comprehensive insurance coverage although the two are totally different. This part of the code refers strictly to compensation for injuries sustained through a car accident.
The last value refers to $10,000. This will be used to answer for any damage dealt to the property of other people. Of course, amount of indemnity is limited to amount of the property. However, even if its value is considerably higher than the amount covered, an insurer will only pay maximum coverage amount. So, to make sure that all interested parties will be paid, it would be a wise move to go for higher and more expensive packages. See, just because the law says that you lose some of your rights to sue, other people’s right to sue is not diminished. You may still be made to pay the insufficiency.