Car Insurance in Alabama: Everything You Need to Know

If you own a car in Alabama, you probably know that car insurance is mandatory in the state. But do you know what type of coverage is required, how much it costs, or how to find the best deals? In this article, we’ll answer all your questions about car insurance in Alabama, so you can make an informed decision when choosing a policy.

Car Insurance Requirements in Alabama

In Alabama, drivers are required to have liability insurance to cover injuries and damages they may cause in an accident. The minimum coverage limits are:

Coverage	Minimum Limit
Bodily Injury Liability	$25,000 per person/$50,000 per accident
Property Damage Liability	$25,000 per accident

While these are the minimum requirements, it’s always a good idea to have more coverage than the minimum, especially if you have valuable assets to protect.

What is Bodily Injury Liability?

Bodily Injury Liability coverage pays for injuries to other people if you cause an accident. It can cover medical expenses, lost wages, and pain and suffering. The minimum limit in Alabama is $25,000 per person and $50,000 per accident, but you can choose to have higher limits.

What is Property Damage Liability?

Property Damage Liability coverage pays for damages to other people’s property if you cause an accident. It can cover repairs to the other driver’s car, as well as damages to buildings, fences, and other structures. The minimum limit in Alabama is $25,000 per accident, but you can choose to have higher limits.

Other Types of Car Insurance Coverage

While liability insurance is the only type of coverage required in Alabama, there are many other types of coverage you can purchase to protect yourself and your car.

Collision Coverage

Collision coverage pays for damages to your car if you collide with another vehicle or object, regardless of who is at fault. It can also cover damages if you hit a pothole or other road hazard. Collision coverage is not required by law, but it’s a good idea to have if you have a newer or more expensive car.

Comprehensive Coverage

Comprehensive coverage pays for damages to your car that are not caused by a collision, such as theft, vandalism, or weather-related damage. It can also cover damages caused by hitting an animal. Comprehensive coverage is not required by law, but it’s a good idea to have if you want to protect your car from non-collision damages.

Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured Motorist (UM/UIM) coverage pays for damages if you are in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages. It can also cover damages if you are in a hit-and-run accident. UM/UIM coverage is not required by law, but it’s a good idea to have if you want to protect yourself from drivers who are underinsured or uninsured.

How Much Does Car Insurance Cost in Alabama?

The cost of car insurance in Alabama depends on many factors, including your age, driving record, type of car, and location. According to the National Association of Insurance Commissioners (NAIC), the average cost of car insurance in Alabama in 2018 was $736 per year for a minimum coverage policy and $1,395 for a full coverage policy. However, your actual cost may vary based on your individual circumstances.

How to Find the Best Car Insurance Deals in Alabama

If you want to save money on car insurance in Alabama, there are several things you can do:

Comparison Shop

Get quotes from several different insurance companies to compare prices and coverage options. You can use online comparison tools or work with an independent agent to find the best deals.

Bundle Your Policies

If you have other insurance policies, such as home or renters insurance, you may be able to save money by bundling them with your car insurance. Many insurance companies offer discounts for multiple policies.

Drive Safely

Your driving record is one of the biggest factors that insurance companies use to determine your rates. If you have a clean driving record, you may qualify for lower rates.

FAQs

What happens if I don’t have car insurance in Alabama?

If you are caught driving without insurance in Alabama, you can face fines, license suspension, and even jail time. You may also be held liable for any damages or injuries you cause in an accident.

Do I need to carry proof of insurance in my car?

Yes, you are required to carry proof of insurance in your car at all times in Alabama. You can show your proof of insurance on your smartphone or tablet or carry a paper copy in your glove box.

Can I get car insurance if I have a DUI or multiple accidents on my record?

Yes, you can still get car insurance if you have a DUI or accidents on your record, but you may have to pay higher rates. Some insurance companies may also refuse to insure you if you have a particularly bad driving record.

Can I cancel my car insurance policy at any time?

Most insurance companies allow you to cancel your policy at any time, but you may be charged a fee for early cancellation. Be sure to check your policy for details.

Is it worth it to pay for full coverage car insurance?

Full coverage car insurance can provide more comprehensive protection for your car, but it’s also more expensive. Whether it’s worth it depends on your individual circumstances, such as the value of your car and your budget.

How can I lower my car insurance rates?

There are several ways to lower your car insurance rates in Alabama, such as:

• Choose a higher deductible
• Drive a car with a high safety rating
• Take a defensive driving course
• Ask about discounts for good grades, low mileage, or safety features

Conclusion

Car insurance is an important part of owning a car in Alabama. By understanding the requirements, types of coverage, and how to find the best deals, you can protect yourself and your car while saving money. Hopefully, this article has answered your questions about car insurance in Alabama and helped you make an informed decision about your policy.