A financial liability is a must as per law in every state of the United States when you own an automobile. While some states have made it mandatory to have an auto insurance coverage, there are other states that allow you to opt for any financial certification or bond which is of the value of the minimum amount specified legally in that particular state.
If you opt to go in for the auto insurance coverage, then, there are a few factors that you will need to take into consideration while buying the policy. First of all, the basic aspects of auto insurance are similar across the United States; however, the types of policies and the amount for each liability vary from one state to another. The level of coverage you decide to go in for and the deductible amounts also play a crucial role in determining the premium amount for your auto insurance coverage
Areas of Liability
In the state of Alabama, the liability for auto insurance consists of six distinct categories. The first is bodily injury which covers for the loss of earning and medical expenses of the injured person. The next is personal injury which will cover the cost of treatment for the other people travelling with you who were injured. The liability for property damage covers the costs of repairing the property that was damaged during the accident. The other types of liabilities are the comprehensive, collision, underinsured coverage for the motorist and uninsured motorist coverage. Each of these liabilities covers specific costs of the accident.
The minimum legal requirements in Alabama
According to the law of this state, every driver in Alabama should have a financial liability coverage to drive in the state. The minimum limits for all injuries are $50,000, for damage to property are $25,000 and for injury to an individual are $20,000. These are the basic limits that a person should opt for. However, most of the auto insurance companies in Alabama offer increased coverage at a higher premium rate. For better financial protection, you can also opt for extras like collision liability and uninsured motorist coverage.
Carrying proof of auto insurance
At all points in time, while driving, an individual should carry along with him/her a copy of their auto insurance. The card that is given to you by the company that provides you the coverage should suffice as proof of insurance. Ensure that the card has all the relevant details on it which includes the number of your policy, name and also the dates from which the policy took effect and the expiration date. If you do not have auto insurance, a copy of the liability insurance coverage can serve as proof.
Penalties of non-insurance in Alabama
Random checks are done by the ADR (Alabama Department of Revenue) to ensure that automobile owners have relevant auto insurance coverage. Lack of producing sufficient evidence for auto insurance can result in suspension of registration for a certain period of time and also hefty reinstatement charges.
Help to get auto insurance in Alabama
If you are new to the state and are not sure about how to proceed with getting auto insurance, don’t panic since there is help at hand. You can find out the relevant information from the internet or you can get an insurance agent to explain the details to you.