All of the major types of car insurance are available in Alabama, except for personal injury protection. The types of car insurance required in Alabama include liability insurance. Most other coverage types are optional.
Covers the cost of repairs to mechanical parts of your car, like the engine and transmission
Other types of auto-related insurance you can get in Alabama include rental reimbursement coverage, classic car insurance, non-owner insurance, and umbrella insurance. These coverages apply to specific situations or needs and are generally available across the country.
Full coverage insurance in Alabama is usually defined as a policy that provides more than the state’s minimum liability coverage, which is $25,000 in bodily injury coverage per person, up to $50,000 per accident, and $25,000 in property damage coverage. Full coverage in Alabama also includes optional collision and comprehensive insurance… read full answer. As a result, full coverage insurance costs an average of $2,029 per year in Alabama, while a state minimum policy costs $577 per year.
If you can’t afford to repair or replace your car after an accident, collision and comprehensive are important coverage types—even if they’re not required. Collision insurance covers repair or replacement costs if you are in an accident, drive into an object, or flip your car. Comprehensive insurance covers repair or replacement costs if your car is damaged by falling objects, natural disasters, floods, fires, theft, vandalism, or animals. Full coverage insurance costs an average of $2,029 per year in Alabama, while a state minimum policy costs $577 per year. Lenders usually require collision and comprehensive in addition to the insurance you must have under Alabama law when you finance a car.
Most people should also choose higher liability coverage limits than what is required by Alabama law. If you cause an accident and your liability limits don’t cover the whole bill, you are still personally responsible for the rest. In the end, “full coverage” means having the right amount of coverage to protect your assets in a worst-case scenario.
Alabama is an at-fault state, which means that the at-fault driver is responsible for paying for everyone injured in the accident. There are no restrictions on the right to sue after an accident in at-fault states, even if the insured buys personal injury protection (PIP).
On average, state minimum coverage costs $558 per year in Alabama, but there are many factors that can affect how much you pay for a policy. Any coverage above and beyond what is required by Alabama law is optional, but it’s usually worth the money to get some additional protection. The biggest reason is that state minimum coverage doesn’t protect your personal vehicle. For insurance to pay for damage to your car, you’ll need full coverage.
In Alabama, full coverage refers to a policy that includes collision and comprehensive, plus higher coverage limits than what is required by state law. Full coverage car insurance costs about $1,379 per year in Alabama. There may be cases when you don’t need full coverage insurance, but Alabama drivers should buy as much coverage as they can afford as a general rule.
Most policies offer coverage for six months to one year at a time and can be paid in a variety of ways, including monthly payments. The best car insurance companies in Alabama balance affordability with quality coverage and strong customer service. You can easily get a quote from top companies like State Farm, Geico, Nationwide, Erie Insurance, Alfa Insurance, and Farm Bureau Insurance online or over the phone, or use WalletHub’s comparison tools to find the best car insurance policy for your needs.
Drivers in Alabama need $25,000 of bodily injury liability insurance per person (up to $50,000 per accident) and $25,000 of property damage liability insurance. Collision, comprehensive and gap insurance may also be required by a lender or lessor if your vehicle is financed.
In addition, an optional but recommended type of coverage in Alabama is … read full answeruninsured/underinsured motorist insurance. It replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits.
Here’s How Much Car Insurance Drivers Need in Alabama:
Minimum Coverage Limit
Bodily Injury Liability Coverage (per person)
Bodily Injury Liability Coverage (per accident)
Property Damage Liability
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Alabama law. Lenders or lessors usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle is worth if it has been stolen or totaled.
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