Affordable Car Insurance Auto Insurance in Alabama - Compare Rates

If you live in the Yellowhammer State and are looking for auto insurance, then this article is the right step towards it. The state of Alabama requires you to purchase the mandatory liability insurance in order to get your vehicle registered.


Bodily Injury Liability:
If you are at-fault in an accident, then this coverage will help you pay for the injuries caused to the victims. It will cover the medical costs of any physical injury and also cover the legal costs.
-$25,000 per injured person and $50,000 per accident

Property Damage Liability:
This coverage pays for the damages to the car and property of the other party in an accident (in which you are at-fault).

It includes
>> Car repair costs including the labor costs
>> Replacement cost of destroyed items that were in the car during the accident
>> Repairs of any stationary object e.g. Mailbox, tree etc.

-It's limit is $25,000 per accident
This basic coverage is often referred to as 25/50/25 coverage.
If you don't want to purchase the liability insurance, then you can go for other options.

Motor Vehicle Liability Bond
The Bond is of minimum $50,000. You will have to pay the amount if any judgment is given against you or any other person driving your vehicle (with your permission). Don't forget to keep the copy of the bond with you while driving.

Deposit of Cash
In this case, you are supposed to deposit $ 50,000 with the State Treasurer and the Cash Bond Certificate is required to be carried as a proof of insurance. It is important to know that the state of Alabama believes in the Tort system. So in case of an accident, someone must be found responsible and his insurer is liable to pay for the damages. But what if the at-fault driver has inadequate or no insurance at all?

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In such a case, an uninsured/underinsured motorists' coverage will be useful. This will provide for the bodily injuries and property damages caused by an uninsured driver or a driver that does not have an adequate amount of insurance to pay for the damages. According to a report by Insurance Research Council (IRC), 24 percent of drivers in Alabama are uninsured. The statistic makes it all the more obvious that you should buy this coverage.

Don't put off buying insurance just by the fact that you will have to cough up money. Few smart steps can ensure that you pay lesser premium.

Start by a virtual search for insurance rather than visiting offices. Ask for quotes from several companies and decide on which company you want to deal with. Keep in mind that premium rates are not the only way to judge. Know what is the financial condition of the company, how well do they respond to claims, the kind of discounts they offer and then take a well informed decision.

You can also lower the rates by opting for higher deductibles. It is the amount that you pay to cover for your damages before your policy kicks in. A higher deductible means that the insurer pays a lesser amount when you claim thus reducing your premium rate.

Also if you are a "safe driver" which means no traffic violation or at-fault accidents (generally for 3 years, although you should confirm it with your insurer), then you are considered a less risky driver. So a further reduction in rates is possible.

Another way of decreasing your insurance premium is to have a good credit history. It ensures the insurance company that you will pay all your future payments on time.

All this will help you in purchasing a policy that's affordable. So don't forget to follow them, it will save your hard earned bucks.

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