Alabama Auto Insurance is required to register a car in Ala. There are 3,753,550 licensed drivers in Alabama as per 2008 statistics. Every one of those licensed drivers who own a vehicle must sign a statement that they carry liability auto insurance in order to register a car. We will explore the many aspects of Alabama Auto Insurance.
Alabama Auto Insurance Requirements
The Alabama Auto Insurance liability’s minimum requirements on each vehicle are 25/50/25. That means you need minimum coverage of:
$25,000 per person for bodily injuries caused by you
$50,000 per accident for bodily injuries
$25,000 per accident for damage to the other person’s property
In order to protect yourself from not having enough auto insurance you should consider buying a policy with higher limits.
Proof of insurance must be carried in your vehicle at all times. Your auto insurance company will provide you with a card stating the beginning and end date of your coverage, the company’s name and a policy number along with a phone number to call in case of an accident. Your car’s make and model, color, and license number are also on the ID card. You will receive a new card every time your policy is renewed.
If you are pulled over by an officer in the State of Alabama and do not have your current auto insurance ID card in the vehicle it is considered a traffic violation. You will pay a fine of $500 and it may go on your driving record.
Alabama Auto Insurance Laws
The Alabama Auto Insurance requirements discussed above are written into law. If the owner of a vehicle does not comply with any auto insurance law s/he faces fines, possible loss of a driver’s license, and possible financial ruin.
There are alternatives to buying Alabama Auto Insurance. The owner of a vehicle may purchase a liability bond or make a deposit of cash. The owner may file a liability bond of not less than $50,000 with the Department of Revenue Motor Vehicle Division. A minimum cash deposit of $50,000 is placed with the Alabama State Treasurer.
If you are driving a rental car in Alabama and your personal auto insurance or credit card does not cover the rental car then the rental car company has insured the car in your possession. You must carry the rental agreement in the car while driving.
The State of Alabama does not require Uninsured/Underinsured motorist cover.
All drivers living in the household must be covered by Alabama Auto Insurance.
Alabama is a Tort state meaning the person who causes the accident must pay the victim’s medical bills. In addition, the victim can file a court claim against the driver responsible for the accident for additional costs such as lost wages and/or pain and suffering.
Alabama Auto Insurance Coverage
The insurance commissioner of the Alabama decides the minimum mandatory Alabama Auto Insurance coverage for the state. Vehicle owners are required to carry the minimum amount of liability coverage. The minimum liability coverage for residents of Alabama is 25/50/25 as explained under Alabama Auto Insurance Requirements.
Liability coverage pays for injuries or death of the person or persons involved in the accident if you caused the accident. Damages to the other driver’s property are paid for by your liability policy if you are at fault.
Personal injury protection (PIP), although not mandatory by the State of Alabama, is extra protection you should consider. If you are in an auto accident PIP will cover your medical expenses, all relatives who live with you, anyone you have given permission to drive your vehicle, you and your family members if injured while riding in someone else’s vehicle or if you or a family member is a pedestrian hit by a vehicle. You should consider PIP coverage even if you have a good health insurance policy.
Comprehensive coverage repairs or replaces your vehicle if it sustains damages in an accident. Coverage includes theft, or damages sustained in a flood or storm.
There are thousands of vehicle owners on the roads with no Alabama Auto Insurance liability coverage. Uninsured or under-insured motorist coverage pays for your expenses in case of an accident with one of these drivers. This coverage will also pay your expenses if you are involved in a hit and run accident. Get a free quote online at one of the many auto insurance sites.
Cheap Alabama Auto Insurance Quotes
Most vehicle owners will do anything they can do to pay less auto insurance premiums without sacrificing coverage. There are several things a car owner can do to lower Alabama Car Insurance premiums:
• Pay car insurance premiums on time every month. Have your premiums taken from a bank account for automatic payments.
• Park your car in a garage or driveway.
• Install a security system.
• Reduce the miles you drive to 500 miles per month if possible.
• Use public transportation whenever possible.
You can easily find cheap AL auto insurance quotes online.
Alabama Auto Insurance Ratings
When investigating Alabama Auto Insurance ratings you will want to know two things: 1) the ratings of the auto insurance companies before deciding on which company you want and 2) how companies will rate you as a possible client.
The auto insurance industry is saturated with agencies competing for your business. It becomes almost impossible to know which one to choose. The lowest rates do not necessarily make a company the best.
Check ratings of auto insurance agencies online before deciding.
There are 7 factors by which an Alabama Auto Insurance company rates clients. These factors help determine what rate you will pay for auto insurance.
• Driving record – Traffic violations and accidents will increase your cost.
• Driving area – Urban area residents pay more for auto insurance than rural area residents.
• Gender and age – Males tend to have more accidents than females. Young men pay more for auto insurance than any other group.
• Marital status – Statistically, married policyholders have fewer claims than singles.
• Prior insurance coverage – A new agency will want information from your former agency such as payment history and the number of claims you filed.
• Vehicle use – The number of miles you drive will affect the cost of your premiums.
• Make and model – Some vehicles command higher premiums because of repair and replacement costs. Some are even more likely to be stolen.
Alabama Auto Insurance Rates
In 2011, Alabama residents are paying an average of $1,331 in premiums. That is $109 less than the national average of $1,440. Many people never compare rates between Alabama Auto Insurance agencies because they believe that the insurance companies and the state fix auto insurance rates. You can pay lower than the average for your auto insurance by getting a free quote to compare rates between companies.
Average rates fluctuate from year to year. The year 2011 Alabama Auto Insurance rates rose 7% higher than 2010 while 2010 was 13% lower. Make sure you practice due diligence and go online to find the best rates possible.
Alabama Auto Insurance Companies
There are approximately 120 Alabama Auto Insurance companies operating in Alabama. Some of the companies are in operation nationally while others cover only Alabama or a region. You will find that auto insurance rates are dramatically different because each company has standard ratings that are required by law but are very different where flexibility is allowed.
Going online to get free quotes has become the consumer’s friend as an excellent tool of investigation into policies, practices and ratings of Alabama Auto Insurance companies.