In Birmingham, Alabama and across the whole state, tort system is still followed when it comes to auto insurance claims settlements. Alabama is actually one of the few states that still follow this system. Others have already migrated to the no-fault policy. Tort determines who caused the accident, and then that party with his insurer will have to cover all costs incurred in the accident, whether for physical injuries and death or property damage. With this in mind, if you are a resident of Birmingham, make sure that you are sufficiently covered as required by state laws. Otherwise, you might end up shelling out more money and risk having your auto registration and driver’s license revoked.
Minimum coverage requirement in Alabama is $25,000 for injury/death and up to $50,000 for multiple injuries/deaths in one accident and $25,000 for property damage. You can also set up bond in lieu of a regular insurance policy. There is the Motor Vehicle Liability Bond or Cash Bond that must be deposited to the MVD and State Treasurer, respectively. Both of which must be $50,000 each. The insurance card or bond certificates must always be inside your car for those times that the police would do a random check on vehicles to prove your coverage.
Buying insurance or paying for the bond is never a cheap purchase. In one way or another, you are putting out money for something that you are not sure you will need. However, consider it an investment for your future and secure your financial standing when an accident happens.
There are ways to save on your Birmingham coverage like studying statistics that may affect your rate. For instance, the average time a Birmingham resident spends on the road driving is about 23 minutes. It has been generally known that mileage affects the rates so if you can adjust the amount of time you spend driving and use public transportation at certain times, you might get discounts. Also, in 2007, there were almost 2300 cases of car theft in this city and in the neighboring areas. Avoid getting victimized by car theft by making sure you park your vehicle properly or in a garage and install anti-theft devices. When driving, keep within the speed limits because records show that people got into accidents for driving at 60mph. By keeping your speed, you avoid collisions and apprehensions which will significantly lower your rate.
These are just some ways to save on car insurance in Alabama. There are a lot of other factors – such as age, driving history and credit score – that can lower your premium. Talk to your agent today and discuss your options.