My dad bought me a car yesterday. I would like to know the auto insurance rules in Alabama before I purchase a policy.

Beth

Mobile, AL

Owning a car is equated to a financial obligation because you are required to carry proof of financial responsibility. This rule can be burdensome because every month, a large chunk of your money will be taken away by the auto insurance company. Auto insurance however is not really an expense but a good deal of investment for you.

The minimum required auto insurance in Alabama are:

• Bodily Injury Liability: $25,000/$50,000
• Property Damage Liability: $25,000

It is highly recommended that the insured purchase auto insurance in Alabama, or in any other states, more than the minimum.

Auto insurance in Alabama suggests additional coverage other than liability insurance. Collision and comprehensive coverage, for example, pays the cost of the damage in your own vehicle. If the cause of the damage was due to an animal that you hit when it immediately crossed the road, collision and comprehensive will still cover the cost of vehicle repair. This is because the incident is beyond the control of the driver.

Uninsured/underinsured policy are additional coverage but these are not required by the states.

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