Protect Yourself With Alabama’s Insurance Requirements Information

Posted in Uncategorized on November 25, 2016.

States are responsible for setting their own insurance requirements and rules. In Alabama, an at-fault state, every driver must maintain minimum liability insurance. If you own a vehicle registered in the state of Alabama, consider this information about insurance requirements before you drive.

Minimum Insurance Requirements

Anyone who owns or maintains registration of a vehicle in Alabama needs liability insurance. To comply with current laws, minimum liability insurance policies must include at least:

  • $25,000 in coverage for injury and death to one person
  • $50,000 in coverage for two or more people
  • $25,000 in coverage for property damage or destruction

Requirements apply to all self-propelled motor vehicles. They do not cover personal injury or personal property expenses resulting from accidents. As the most basic form of coverage, liability insurance premiums typically run under $120 per month. Factors such as age, driving record, location, and driving frequency affects the price of individual premiums. When you apply for coverage, ask your insurance representative about discounts for good drivers, good students, and multi-car ownership.

Failing to carry the minimum amount of insurance can lead to fines, driver’s license suspensions, and accident lawsuits. Law enforcement officers use an electronic insurance monitoring system to verify insurance coverage. Drivers must present paper or electronic evidence upon an officer’s request.

Optional Car Insurance Coverage

In addition to the minimum liability insurance, many drivers invest in comprehensive and/or optional coverage. Types of coverage available in policies often include:

  • Collision. This type of coverage pays for damages to your own vehicle in the event of an accident, regardless of fault. Collision insurance covers damage from single car accidents and multiple car accidents.
  • Medical/funeral. This coverage pays for your injury or funeral expenses after an accident and the expenses of passengers in your vehicle. You can use auto-medical coverage if you are in your own vehicle, if you drive someone else’s vehicle, or if you suffer a vehicle-related injury as a pedestrian.
  • Comprehensive. If something else happens to your car (i.e., not an accident), this form of coverage takes care of the associated costs. Comprehensive insurance typically covers theft, fire damage, and weather-related damages.
  • Uninsured motorist. Some at-fault drivers fail to carry the legally required minimum insurance and do not have the means to pay damages in a potential lawsuit. Uninsured motorist coverage pays for your injuries and property damage in accidents when an at-fault driver cannot.  

Insurance provides peace of mind and gives drivers the ability to secure the compensation necessary to recover from an accident. Additional coverage is often the only way a driver can recover compensation in single car accidents and in accidents involving uninsured motorists.

Receiving Compensation After Car Accidents in Alabama

You may file a claim under the terms of your own insurance policy, or you can file a claim against an at-fault driver’s policy. You may decide to file a lawsuit against an at-fault party. Alabama operates under a contributory negligence rule. In car accident cases, any driver who contributes to an accident cannot claim damages. For some, insurance claims offer the best strategy for fair compensation.

As a for-profit institution, an insurance company needs to secure a low-claim settlement to boost the bottom line. The initial offer may not cover your medical needs. Whether you’re filing a claim with your own insurance provider or someone else’s insurance provider, understanding the claims process may help you secure fair compensation. Before you accept a settlement offer, discuss your options with a Birmingham car accident attorney. An Alabama personal injury attorney can help you understand the fairness of settlement offers and make informed decisions about filing a legal claim.

Maintaining insurance requirements in Alabama is as easy as paying a monthly premium. Securing fair compensation from an insurance provider or an at-fault party after a car accident isn’t always as straightforward. Protect your right to compensation with adequate car insurance coverage.