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If you plan on registering—or merely operating—a vehicle in Alabama, it’s wise to familiarize yourself with the state’s auto insurance system first. Whether you’re new to the state or new to owning a car, you can read about the ins and outs of coverage below. 

3 Facts You Should Know About Auto Insurance in Alabama 

1. The Minimum Requirements Are 25/50/25

In Alabama, motorists must carry at least $25,000 in bodily injury coverage per person, at least $50,000 in bodily injury coverage per accident, and at least $25,000 in property damage per accident. Since it’s a tort state, those who end up causing wrecks are responsible for the damages, which is why such liability insurance is required. The state does not require drivers to carry uninsured or underinsured motorist coverage, but adding some to your policy may be wise. This will provide protection in the event that you’re struck by someone without adequate coverage. 

2. A Variety of Factors Influences Premiums auto insurance

While every carrier has their own formula for determining premiums, they all take into account certain factors. Examples include the policyholder’s age, gender, marital status, hometown, and driving record. Commuting habits, parking availability (or lack thereof), and the vehicle’s make and model will also affect premiums. 

3. Purchasing Both Collision & Comprehensive Coverage Is Advisable 

While liability insurance is required by law, both collision and comprehensive coverage are optional (though some lenders require them). All motorists are encouraged to purchase both for optimal protection. Collision coverage applies when the policyholder is at fault in an accident and covers the necessary repairs to his or her own vehicle. Comprehensive coverage reimburses drivers for damage stemming from non-collision events, like theft, vandalism, flood, and fire. 

 

If you need auto insurance, turn to Russell Insurance Agency in Robertsdale, AL. Since 1998, this agency has been serving clients across Alabama’s Baldwin and Mobile counties and Florida’s Escambia and Santa Rosa counties. A company that values honesty and integrity, they’re committed to helping individuals, families, and businesses secure affordable policies that meet their unique needs. To see what past clients have to say about their services, visit their website or call (251) 947-3607 to request a quote. 

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