What is The Minimum Required Car Insurance In Alabama

Reader’s Question:

Do I really need to purchase auto insurance in Alabama? Is this a requirement of the state?

Janice

Huntsville, AL

Auto insurance can really hurt our pocket especially knowing that a chunk of our monthly budget is taken away. However, there are states that require proof of financial obligation when driving a car and the states of Alabama is one of these. Nonetheless, the benefit of auto insurance can be so great.

Auto insurance in Alabama requires a minimum liability policy. If you are the at-fault driver that caused the accident, you will pay the medical expenses and the cost of damage in car of the victim. Although the rules in auto insurance in Alabama set a minimum amount, it is highly suggested that the insured carry an amount more than this.

The minimum amount set for the medical expenses of one victim is $20,000. If there are multiple occupants in the car that the at-fault driver hit, the combined medical expense that the auto insurance company will pay is $40,000. If the insured has liability insurance with a minimum amount, the auto insurance company will only pay the first $40,000 of the combined medical bill of the multiple passengers. The minimum amount for property damage is $10,000 and this includes the cost of repairing the damage on the victim’s vehicle. The insured will pay the additional bill that exceeds the coverage in his/her auto insurance policy.

Like in any other states, auto insurance in Alabama offers additional coverage. One of these is the collision and comprehensive insurance, which pays the vehicle repair of the at-fault driver. The insured can also benefit from this especially when the cause of the traffic accident is not within his control like hitting an animal crossing the road.

Since Alabama is a not a no-fault state, PIP or personal injury protection is not required. Uninsured /underinsured motorist insurance is also not required but is still highly suggested because this coverage pays the medical and property expenses especially in cases when the insured is a victim of hit and run.