Buying car insurance in Alabama is not exactly black and white. BuyCarInsurance.com is here to help! We have compiled this guide that lists everything you need to know so that you can easily get the car insurance policy that fits your personal needs - at the lowest rate.
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Minimum Requirements in Alabama for Car Insurance
In Alabama, you are required by law to carry bodily injury liability and property damage liability to be in compliance. This car insurance coverage will cover the opposing party in the event of an accident. The minimum limits required are 25/50/25. This is what the limits and coverage look like broken down:
|Bodily Injury Liability||$25,000 per person/up to $50,000 for the accident|
|Property Damage Liability||Up to $25,000 in property damage|
It is important to understand these minimum requirements do not cover bodily injury or property damage to you or your vehicle.
Do I Need More Than the Minimum Coverage?
We always advise purchasing as much car insurance as you can afford for the most protection. However, in Alabama, if you are in an accident with just the minimum required car insurance your property and bodily damages will not be covered by your insurance company regardless of fault. It is smart to add additional coverages to your policy so you can rest easy knowing you will be covered in a number of different situations.
Additional Coverages Available
There are many different car insurance coverages available to choose from. Most insurance companies will let you pick and choose what coverages you want to add without necessarily carrying full coverage. Here is a list of some additional coverages available:
Collision Coverage- Collision insurance will cover repairs to your vehicle in an accident you are at fault for.
Comprehensive Coverage- Comprehensive insurance covers you for other situations than a car accident; if you hit an animal, vandalism, fire, hail, flooding, or of your car is stolen.
Uninsured/Underinsured Motorists- Optional coverage that protects you if you are involved in an accident with a driver who has no insurance or too little insurance to cover the accident.
Medical Coverage- Optional coverage that will pay for medical bills when health insurance exceeds coverage amounts and covers medical expenses for you and your passengers. Do you walk or bike? This policy offers additional coverage if you are struck by a car in those instances.
Gap Insurance- Optional coverage that will pay if you don’t own your car outright and have an accident. Gap insurance will pay the difference between the cash value of your car and the current balance on your loan or lease. This policy is best for newer non-owned cars.
Alabama Teen Drivers
Adding a teen driver to your policy is definitely going to up your premiums. Teen drivers, typically, are considered high-risk drivers. This is because they don’t have much experience. How you add your teen driver to your policy can affect your rates, for instance, if they have their own car they are considered a primary driver. This rate is more than if they are sharing a car with someone else and not the primary driver of their own car. Starting at the age of 15 in Alabama a teen driver needs to be added to your policy and get their own.
Multiple Drivers in Alabama
Having more than one driver in your house means you need to disclose this information to your car insurance company. You want to be in good standing with your car insurance company and disclosing all drivers is a great start. You do have the option to exclude drivers, but your insurance company will not cover the excluded driver if the drive your vehicle.
Penalties for Driving Without Car Insurance
In Alabama, there are some steep penalties for not having the minimum car insurance requirements in place. Here is a look at the risk you are taking if not insured
First offense: You will pay a fine up to $500 fine, your registration will be suspended and a $200 reinstatement fee will be assessed.
Second and subsequent offenses: You will pay up to a $1,000 fine. Your registration will be suspended and a $400 reinstatement fee will be assessed. Your registration will be suspended for mandatory of four months as well.
Car Insurance Savings in Alabama
Car insurance discounts are based on state laws and car insurance companies. Obviously, you will need to meet the qualifications to reap the savings. We suggest asking your car insurance company for a list of all the discounts offered. This will help you make an educated decision about the discounts you qualify for. Here are some common discounts:
Good Driver- Maintain a good driving record free of accidents, tickets, and any moving violations.
Multiple Policy- Most insurance companies will offer a discount for having multiple policies such as car insurance, renters insurance, homeowners insurance, or motorcycle insurance.
Good Student- If you are a student enrolled in high school or college curriculum and maintaining a B average most companies offer a discount.
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