You are bound by Alabama state laws on auto insurance if you are a resident of Riverside and any other Alabama city. You simply cannot just buy a car and drive on the streets without an insurance policy. In fact, your local Motor Vehicle Division (MVD) will not register your car if you do not have the proper documents to back you up. Basically, third party liability coverage is required. It is important to understand that there are minimum limits that this state prescribes.
Liability coverage must have 25/50/25 limits. This means that an insurer must cover $25,000 for injury/death up to $50,000 for more than one injury/death in a single accident. The other $25,000 is to cover property damage. This limit may be higher than some states (i.e. New York is 25/50/10; Illinois is 20/40/15; California is 15/30/5) but this Alabama limit sounds reasonable enough. While other states would require additional coverage other than liability, Alabama residents, including those in Riverside can purchase additional coverage voluntarily. You are not required, at all, to add personal injury, collision, comprehensive or uninsured/underinsured motorist to your policy. These are types of coverage that you may get for added security if there are extra funds for it. Facing reality, more coverage means your financial health is guarded from losses in the future in case someone sues you.
This information becomes handy when you realize that Alabama is one of the few states that still follow a tort system. It means that a judge from a claims court can rule who was at fault in an accident. The party at fault and his insurer will have to reimburse the costs caused by a collision. The fact that cases have to go through this procedure makes settlement a long process. You will never know how much money will be needed for immediate bills so having the right and sufficient coverage will still assure your future.
There is another option if you want to go another way. The state of Alabama recognizes bond certificates in lieu of an insurance policy. It is possible to buy a Motor Vehicle Bond from the MVD or a cash bond from the State Treasurer amounting to at least $50,000. When you meet an accident and considered to be at fault, your bond will be reduced the amount needed and you must fill-in that amount again to make it whole. A bond certificate will be issued and this document can stand for the insurance card. Either the certificate or card must always be with you in case you get checked randomly.
