Alabama State Minimum Auto Insurance Requirements (2021)
According to the Mandatory Liability Insurance law, every motorist in Alabama has to carry around liability auto insurance of 25/50/25 in order to drive, register, and as well as maintain the vehicle. It is crucial to remember that each vehicle in Alabama has to ensure compliance and get auto insurance coverage. The objective of the law is to ensure the safety of the public involved in accidents.
In fact, this is where the auto insurance coverage kicks in and offers compensation for medical bills, property damage, and much more. But when it comes to auto insurance, there is more than one option available for drivers to get coverage.
But despite what type of auto insurance coverage you choose, it would be wise to learn about the basic mandated requirements set forth by the state of Alabama in 2021.
Auto Insurance Minimum Requirements in Alabama
An insurance policy that covers the Mandatory Liability Insurance law covers property damage and bodily injury. And when you combine the two elements, it comes down to liability insurance. At its core, liability insurance covers the total damage costs you owe to one or more parties.
So, make sure to get the insurance coverage for the following amount in Alabama:
BI or bodily injury requires more than $25,000 for each person and $50,000 for each accident. In simple terms, bodily injury or BI sets in motion when you’re responsible for the accident that leads to injuries of other people. The good news is that bodily injury covers the costs beyond your existing insurance.
However, there are limits to BI insurance coverage and the burden of responsibility lies on your shoulders to not stretch the financial burden. In 2021, it makes more sense to buy higher bodily injury insurance coverage. However, insurance limits differ from insurer to insurer in the state of Alabama.
When it comes to property damage, you can avail more than $25,000 on each accident. Property damage comes into the picture when a driver causes a car accident that damages another person’s property.
After that, insurance covers the cost of property damages such as collateral damage and car repair. In some cases, an insurer also covers the cost of the municipal building. Although property damage has higher limits in AL, its exact limits depend on your insurer.
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The Cost of Injury Insurance Coverage Limits
The Alabama state requires an exact amount of coverage from drivers. As mentioned earlier, you can refer to these numbers like 25/50/25. Essentially, these numbers car drivers should have:
- Minimum amount of $25,000 of bodily injury
- Maximum limit of $50,000 per accident
- Minimum of $25,000 for property damage
As a driver in Alabama, your focus of attention should revolve around these minimum requirements to get auto insurance coverage. On the other hand, you can improve your auto insurance coverage in Alabama. In fact, many drivers decide to buy the most affordable insurance policy right from the start.
However, things can spiral out of control and lead to confusion when the driver that causes the accident doesn’t have sufficient coverage to cover the cost of one or more victim’s injuries.
Learn about Basics of Auto Insurance Coverage in Alabama
The fact of the matter is that most auto insurance policies throughout the U.S. have the same elements. It means most components in auto insurance involve injuries and damages that occur after an accident. The different types of auto insurance policies can cover bodily injury and property damage.
In BI, drivers in Alabama get compensation to cover the cost of lost wages and medical bills injured victims of an accident. On the other hand, PD covers the cost of replacement or repairs of a vehicle after the accident. It also covers the cost of property damage that had an indirect impact due to the crash.
The key is to remember that bodily injury and as well as property damage auto insurance coverage are compulsory in Alabama. In retrospect, both insurance coverage options address the total damage that an Alabamian driver can cause to someone one or more individuals.
Apart from BI and PD, drivers can also choose from additional insurance coverage options in Alabama. You can opt for collision, comprehensive, uninsured, and underinsured coverage options. But don’t forget that the terms and conditions of these insurance coverage options vary from one insurance company to another.
In most cases, the best course of action for drivers is to seek the guidance and expertise of an attorney. You can expect support after an accident, understand fundamental rights, and establish at-fault parameters. Once you’re in direct contact, make sure to ask all the relevant questions.
You will even get prompt guidance from your attorney about how to move forward with the negotiation process. Reaching out to professional help is the best way to communicate with your insurance company during a tumultuous time.