Alabama auto insurance
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How can Alabama auto insurance keep you safe?
Alabama is home to more than 5 million people. According to the Office of Highway Policy Information, 3.8 million of those people are licensed drivers. Every day, Alabama drivers must be careful to avoid becoming an accident statistic. Luckily, 89% of the state’s roads are in good condition, but the state may still be uniquely perilous to drivers — especially young ones. Drivers of all ages should protect themselves and their vehicle by investing in Alabama auto insurance.
How common are car accidents?
On average, there is an auto accident in Alabama every three minutes and 55 seconds. This harrowing statistic reveals just how often collisions happen. Of course, nobody expects to get into a car accident anywhere, but you may face even greater risk if you happen to be driving on one of the most dangerous Alabama highways. There are a variety of unique risks you may encounter on Alabama roads, including unsafe curves, low visibility and the potential presence of drunk drivers.
If you are driving without adequate auto insurance in Alabama, you are exponentially more vulnerable to the consequences of a collision. This is especially true given the costs of auto accident fatalities in Alabama — $1.53 billion in a single year. You can shield yourself from these expenses by using the tools from VIU by HUB to compare coverage from different insurers.
What are the Alabama auto insurance requirements?
The aforementioned cost associated with auto accident deaths is just one portion of the financial burden that collisions impose on Alabamian drivers. Even if you boast a spotless driving record, the state of Alabama mandates that you minimize your personal liability by purchasing an Alabama auto insurance policy.
According to Alabama state law, drivers must have liability insurance before they get behind the wheel. Liability Coverage pays for the expenses that will emerge if you are at fault for a collision. In this scenario, you would be liable for the cost of the other party's medical care and auto repairs, but liability insurance shields you from being held personally responsible. Alabama drivers must maintain the following coverage minimums:
• $25,000 for death or injury to a single person.
• $50,000 for death or injury to two or more people.
• $25,000 for Property Damage Liability.
Failure to comply with this law may result in a fine of $500 for the first offense as well as a $200 fee to reinstate the vehicle’s registration. The second offense may incur a $1,000 fine, a six-month driver’s license suspension and a $400 fee to reinstate the vehicle’s registration.
What do Alabamians pay for auto insurance on average?
Estimates vary when it comes to the average cost of car insurance, but most sources agree that you can expect to pay less than the national average in Alabama. Drivers typically pay about $1,850 per year for full coverage, and state minimum coverage only costs about $440 per year. This is considerably less than the national average rate of $2,025, ranking the state about in the middle in terms of the most and least expensive places to get coverage.
What factors affect the cost of Alabama auto insurance?
Many people mistakenly assume that their driving record is the only factor impacting their car insurance rates. As it turns out, there are a variety of distinct factors that come into play when an insurer is determining how much your auto insurance policy will cost in Alabama:
• Credit score.
• History of accidents.
• Any prior claims.
• The age you received your license.
• Educational background.
• Marital status.
Insurers will assess these criteria in an effort to determine the overall risk that you pose as a driver. The greater your risk, the higher your insurance premium will likely be.
What additional Alabama auto coverage should I get?
If you’re worried about the price of auto insurance in Alabama, you might consider forgoing a car — but unfortunately, the state ranks worst in the nation for its public transit options. Luckily, VIU by HUB offers the options you need to find the best rate and avoid waiting for the bus. We can help you get additional auto coverages as well.
Although the state of Alabama does not require Comprehensive Coverage for drivers, most auto lenders do. This means that if your vehicle is financed, you will probably need to invest in Comprehensive Coverage. The term Comprehensive refers to coverage for damage that occurs due to things other than a collision, like inclement weather, vandalism or fire.
Collision Coverage is an extra layer of protection that insures your vehicle against damage sustained in a collision with another vehicle or object — regardless of who is at fault. This is a valuable complement to liability insurance because it covers the cost of auto repairs or replacement in case you cause a collision. Most auto lenders also require that you carry this type of coverage.
Uninsured or Underinsured Motorist
Unfortunately, Alabama is the sixth worst state in the United States for the number of uninsured motorists. The Alabama Department of Revenue indicates that as many as 22% of all drivers lack insurance. For this reason, it’s imperative to protect yourself by investing in Uninsured or Underinsured Motorist coverage (UIM).
While state law does not require you to purchase UIM coverage, the law requires that every insurance company offer it to their auto insurance clients. This coverage pays for expenses when you are hit by an at-fault driver who either didn’t carry insurance (uninsured) or didn’t carry enough insurance to address all the medical bills or car repair costs (underinsured).
Medical Payments coverage is another wise investment that can shield you from unnecessary liability and expenses. This feature covers the cost of medical bills you may incur in the wake of an accident. It is advantageous because it includes coverage even if you happen to be at fault for the collision. Coverage also typically extends to your passengers.
This information is intended for general informational purposes only and is not intended to constitute legal advice.