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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I just moved from California to Alabama, and just yesterday I bought a new car. I am getting car insurance next month, would like to know the minimum liability limits here in Alabama for car insurance.

James, Birmingham AL

Hi James,

With the new car that you purchased, it is good to know that you are going to get a car insurance. In the state laws of Alabama in terms of Auto Insurance there is the so-called 20/40/10, which requires every vehicle must have minimum liability coverage of $20,000 per person, $40,000 for all injuries and $10,000 as property damage liability.

The 20/40/10 is what I have here at Decatur, AL when I purchased my BMW years ago. Before you plunge into signing into an insurance contract, it is best to search for companies that offer cheap premiums and also be sure that the minimum coverage of 20/40/10 is fully satisfied in your insurance policy.

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