Alabama Car Insurance

Alabama Car Insurance:  REQUIREMENTS VS. PREMIUMS

Right now is the best time to live in the state of Alabama!  For your information, Alabama is one of the few states that have great auto insurance premiums compared to the rest of the nation.  For example, in 2009 premiums for residents in Alabama was $1420, compare that to the national average of $1735.

With that being said, it is very important that you shop around for already great premiums that will best suit your insurance needs.  Be sure to take into consideration what the state requires regarding insurance coverage.  For example, the state of Alabama requires that a driver must have a minimum Bodily Injury Limit of $25,000 per injured person up to a total $50,000 per accident and a minimum limit of $25,000 for Property Damage Liability.  This is the basic coverage and it referred to a 25/50/25 coverage.  New limit requirements were effective August 30, 2008.  In Alabama the law requires that all drivers in the household be covered by liability insurance.  Alabama does not require that you have uninsured/under-insured motorist coverage, however it can be very valuable when unfortunate circumstances arise due to someone being under-insured or not insured at all.

Tort State…what does that mean to you?  The state of Alabama requires that the driver who is at fault in an accident must pay for all medical expenses of the victim.  The victim can also file a claim in a court of law against the driver who in responsible for the accident for additional and related claims stemming from the accident including lost wages, pain and suffering.

You need to know that your personal credit history will play a factor when it comes to getting the best premium.  It is used to create an “insurance risk score”.  The score helps to determine what your auto insurance rates are going to be.  Your personal credit history will also determine if you will be able to make monthly premiums payments or if the entire premium will be required upfront.  In order to take advantage of lower insurance rates make every effort to pay your bills on time to improve your score.  Be sure you provide your agent with current up-to-date information.

Sometimes it can be very overwhelming when trying to decide which insurance company is going to be the right for you. Educate yourself regarding the state requirements and shop around for the best premiums that will meet your insurance needs.