Most states require insurance for all registered cars and trucks. Alabama is no exception to the rule. The 2013 Mandatory Liability Insurance Law requires drivers to carry Liability Insurance to cover some of the costs of any property damage or injuries to others your may incur if you are the cause of an auto accident.
Here are the minimum amounts of liability coverage under the law:
- $25,000 for bodily injury or death per person
- $50,000 total for bodily injury or death per accident
- $25,000 for property damage
Having the minimum coverage allows you to operate your vehicle legally, but does it protect you from high out-of-pocket costs in the event of an accident? In many cases the answer is no.
If you seriously injure someone in an accident, what is the likelihood that $25,000 or even $50,000 will cover their medical costs? Medical care is expensive, and bills can add up quickly. Is your coverage enough to limit your exposure to high out-of-pocket expenses?
What about property damage? Suppose you total someone’s car. How many cars can you buy for less than $25,000 these days? What if you destroy a really high-end car, such as a Mercedes or BMW? With minimum coverage you could find yourself owing more than a hundred thousand dollars.
How much liability insurance to you need? There’s no clear-cut answer. It varies by individual and circumstance. Your Independent Insurance Agent at Alliance Insurance Group would be happy to explore and discuss your auto liability options.
Optional Auto Insurance
Mandatory Liability Insurance doesn’t cover damages to your own car or your own personal injuries. Ask us about the following types of auto insurance coverage:
- Collision: This coverage pays for damages to your own car in an accident.
- Comprehensive: Not all damage is caused by collision. Comprehensive Insurance covers vehicle damages caused by unforeseen circumstances, such as hailstorms, lightning strikes, or a tree falling on your parked car.
- Medical and Funeral: This covers expenses that can far exceed the minimum coverage amounts required by law.
- Uninsured Motorists: This covers you in the event an uninsured driver (or someone with inadequate minimum coverage) hits your car.
Although comprehensive and collision insurance are optional under the law, they may be required if your car is financed or leased.
Call Alliance Insurance Group today and let our expert Independent Agents help you determine what limits and types of coverage you need for your car, or fill out our online form to request a quote.
ATTENTION INTERNATIONAL DRIVERS: Are you an international student or here on extended business? As an Independent Insurance Agency, we can write Auto policies for drivers with international licenses. Contact us today to find out more.