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Alabama Car Insurance Minimum Levels of Coverage and Average Cost

If you are looking for Alabama car insurance, you need to make sure that you have at least the minimum amount of coverage mandated by the state. Alabama is a tort state, as opposed to a no-fault one. This means when an accident occurs, someone must be determined to be the "at fault" driver. That individual and his or her insurance company are responsible for paying for damages caused as a result of the accident, including the cost of repairing the vehicle and medical expenses incurred by the injured parties.

Minimum Levels of Car Insurance Coverage in Alabama
Under Alabama law, you are required to carry a minimum of $25,000 for individual bodily injury coverage and $50,000 in coverage to pay for the medical expenses of all those injured in the same accident where you are the at-fault driver. You are also required to have at least $25,000 in property damage coverage in place to cover the cost of repairing the other vehicle, fences, street signs, and mail boxes.

Drivers in Alabama are not required to carry comprehensive or collision coverage by the state. They don't need to have Personal Injury Protection to pay for the cost of their medical bills if they are injured in an accident either. However, in a situation where the person has a good health insurance plan in place, they may have sufficient coverage in place to pay these costs.

Coverage for uninsured or underinsured drivers is also not required, but it's probably a good idea to add this type of coverage to your plan. That way, you have protection if you sustain injuries or your vehicle is damaged by a driver who does not have insurance or who doesn't have sufficient insurance to pay for the cost of the damages. Without this protection, you would be faced with making up the difference out of your own pocket.

Average Cost of Car Insurance
The cost of car insurance in Alabama went down in 2007. That year, the average cost of car insurance coverage was $1,816, while the average cost was $1,847 in 2006. The national average in the United States was $1,896 in 2007.

While the average cost of coverage was lower than the national average for Alabama drivers, the rates you are charged for your coverage will be based on your personal situation. Consult the Alabama Department of Insurance website for information on how your rates can vary depending on your credit score, driving record and other factors. To get the best possible rates for your coverage, you need to have a clean driving record. Other factors, such as your age, the type of vehicle you drive, and where you live may have a bearing on the rates that you will be charged.

To avoid paying more than you have to for Alabama car insurance, compare rates from several companies. Consider buying your coverage from the same company that covers your home. You should also ask whether you qualify for any discounts the company offers.

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