No one plans for an accident to happen; this is always true. Who would ever want to get caught in an ugly mess of injuries, damages and lawsuits, right? Even in Detroit, Alabama, you will need a basic auto insurance coverage to be able to freely drive in this state. You actually cannot register your vehicle with the MVD if your insurance is not sufficient as per laws governing Alabama.
The State of Alabama preserved the tort system in determining who should pay for the incurred costs. Other states have already changed to no-fault where victims are automatically compensated by an insurer. In this tort system, a judge proclaims the party at fault and lets him and his insurance company covers expenses. This may sound longer to settle, but the state of Alabama chose to stick to this older system.
A basic third party liability coverage that is deemed enough in Detroit, Alabama and across the state is 25/50/25. This limit is $25,000 up to $50,000 for single or multiple injuries or deaths in one accident and $25,000 for property damage. Coverage for uninsured/underinsured motorist and other types such as collision, personal injury and comprehensive are not required, but recommended for added protection. The same is true for getting coverage for higher limits – you may buy more if that will make you feel more secured. It is also interesting to note that an alternative to this basic coverage are bonds that amount to $50,000 ($50,000 deposited to MVD for motor vehicle bond or $50,000 to the state treasurer as a cash bond). These bonds are obviously harder for the pockets, but at least you know you have another option.
Proof that you are legally covered is the insurance card (bond certificates in case of the bond option). This must always be with you in your car since authorities would conduct random checks once in a while. You do not want to be found without any proof if you do not want your registration and license revoked.
The importance of an insurance coverage in Detroit is that your financial health is never compromised when there is a claim against you. You will have a fund to withdraw from to cover expenses, damages and even lost income of another party. You will not have someone suing you for more money if your insurance can sufficiently pay for those unexpected expenses. Again, a car insurance policy will save you from having sleepless nights and unfair monetary losses when you figure in an accident.