Alabama Car Insurance Requirements, Laws, and Quotes
In Alabama, you will discover that the state has made mandatory all register cars to carry liability insurance. So, Alabama car insurance is a must, and if caught driving a vehicle without insurance, the penalty will be severe.
Alabama Car Insurance Requirements
Since liability is the minimum Alabama car insurance required, this insurance will cover up to a certain amount the other person and car involved in the accident. It will also cover property damage up to a certain amount. So, if you purchase liability, this is the coverage you will have:
- $25,000 for bodily injury or death per person
- $25,000 for property damage
- $50,000 for bodily injury or death per person
Liability insurance does not cover you or your vehicle. It is best to get additional insurance that will cover damages to your car and any injuries you or your passengers suffer from the accident.
Other Alabama Car Insurance
As previously mentioned, insurance companies offer other insurance to cover everyone involved in a car accident. Some policies will cover uninsured and underinsured drivers. Of course, if you add or increase your Alabama car insurance policy, your payment will increase. However, there are some factors will you get the best cost. These options will be discussed later.
Here are the other alternatives when it comes to your Alabama car insurance:
- Collision insurance
- Comprehensive coverage
- Medical and funeral insurance
- Uninsured or underinsured motorists
Each of these insurances will cover different aspects of an accident.
Collision insurance will help cover the cost of the damage to your vehicle as a result of an accident. With liability insurance, you must pay out of pocket for any repairs as a result of a crash.
Comprehensive insurance will cover damages that are not related to an accident. For example, if your car was damaged by a storm, or burglarized, comprehensive insurance will cover the cost of repairs.
Medical and Funeral Insurance
Medical and funeral insurance will help cover your medical bills; as well as, funeral cost after an accident.
Uninsured or Underinsured Motorist Insurance
Uninsured/Underinsured insurance will cover your cost if the driver of the other vehicle does not have insurance or enough insurance to cover your expenses related to the accident.
Alabama Car Insurance Penalties
If you are caught driving without insurance, the Alabama Department of Public Safety (DPS) will penalize you by implementing a fine and suspend your Alabama driver’s license. The penalty will increase if you are caught with the same violation.
So, if you are caught driving without insurance, you will be:
- 1st offense: $500
- 2nd offense or more: $1,000
- Suspension of your driver’s license
- Car registration suspension
- Four months suspension for 2nd or more violations
To reinstate your registration after a suspension because of driving without insurance, you must pay this fee for reinstatement:
- $200 for the 1st offense
- $1,000 for the 2nd and more offense
You may be required to file an SR22 to have your license reinstated. An SR22 is proof of insurance that will guarantee you have the minimum insurance coverage.
Alabama Car Insurance Plans
Since you are required to have the minimum insurance coverage, liability, insurance companies can still deny you coverage. If you are unable to get insurance, you can obtain coverage through the Alabama Auto Insurance Plan.
Getting a reasonable insurance premium from an insurance company means these factors will determine a favorable outcome towards your rate. If you maintain a clean driving record, you will likely get a more favorable price to your premium. So, here are the factors that will determine your insurance cost:
- Driving record
- Credit history
- Car make, model, and year
- Your deductibles
So, it is best to have insurance than getting caught driving without insurance. The money you will spend to get back your driving privilege is going to be more than paying a portion for coverage on a monthly basis.