Important Things to Remember When Buying Auto Insurance in Alabama

One of the necessary things to do after purchasing a vehicle is to purchase auto insurance, as per requirement of the state of Alabama. Insurance policies come in all prices ranges and the cheapest policy available contains the minimum amount required by the state. These include the $20,000 liability limit for personal injuries on any other individual other than the policyholder, $40,000 liability limit for total injuries of other parties involved in the accident, and the $10,000 liability for property damages on other person’s vehicle or other properties that had damages caused by the accident. This form of insurance policy is basic and provides coverage only for other parties involved and does not pay for any injury or damages made on the policyholder and other persons in his vehicle. Often times, the minimum requirement set by the state of Alabama is not enough to pay for actual medical cost and damages associated with the accident. This is one of the main reasons why most auto insurance policyholders often opt to purchase policies with higher coverage. However, it also goes without saying that higher coverage also entails higher monthly premiums. The trick of getting value for money is to purchase auto insurance policy that will answer insurance needs comprehensively yet not cause the policyholder unnecessary financial burden.

One thing to remember is that Alabama has a tort system when it comes to auto insurance. This means that claims cannot be made unless a policyholder is determined to be at-fault. Other states may practice otherwise but in Alabama, it is not a good thing for a policyholder to be found at-fault at an accident. If the policyholder has insufficient liability coverage, he or she would need to pay for the damages through other means. There could also be a slight delay in making claims, as the party at-fault would still be determined.

Most policyholders purchase additional coverage that may not been required by the state but could make big difference when an accident does happens. One type of coverage commonly added to an auto insurance policy is Personal Injury Protection, which pays for injuries sustained by the policyholder and other passengers he or she may have. The Uninsured/Underinsured Motorist coverage is also useful in the event of an accident with someone who does not have auto insurance or does not have enough coverage to pay for medical costs and damages. And even if the state of Alabama does not have high crime rate, automobile theft and vandalism is still a possibility. This is why it is also recommended for automobile drivers and owners to purchase comprehensive insurance coverage which helps defray costs associated with theft and vandalism. Another coverage that is considered useful during accidents is the collision coverage. Because settling claims with the at-fault driver may take some time, collision coverage allows the policyholder to pay for associated medical costs and damages immediately and the insurance company usually makes arrangements to recover losses with the at-fault party.

There are also some instances when a policyholder is required to purchase the supplementary coverage mentioned above, such as when the vehicle is purchased through bank loan and the bank requires comprehensive and collision coverage to be included in the auto policy in order to lower the liabilities and risks involved. And if the policyholder got involved in an accident and the automobile sustained total damages, claims may be made for the actual value of the vehicle at the time of accident and normally does not cover the amount loaned. In this case, the borrower has to find other ways to pay back the loan.

We help our Alabama customers in Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, AL and other cities in the Yellowhammer State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Alabama insurance agent and broker network, you can easily compare rates from multiple insurers.

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