As with most of states across America, drivers in Alabama are expected to take out a minimum amount of auto insurance cover before taking their vehicles on the road. Driving without insurance in the Yellowhammer state is deemed to be illegal and drivers can face stiff penalties if they are involved in a road traffic accident without purchasing adequate cover.
The minimum level of auto insurance coverage in Alabama is rated at 25/50/25 and breaks down as follows:
- A minimum of $25,000 worth of cover for bodily injury liability to a single person
- A minimum of $50,000 worth of cover for bodily injury liability per accident
- A minimum of $25,000 worth of cover for property damage
Although there are no legal obligations for drivers in the Yellowhammer State to have protection against uninsured or underinsured motorists, this coverage is highly recommended. Alabama drivers should also give consideration to personal injury protection as this will contribute to the cost of treatment, surgery or medical bills if any injuries are sustained in an ‘at fault’ accident. Collision damage cover and comprehensive insurance are also recommended for drivers with new or nearly-new vehicles.
Because Alabama is less populated than other regions in the United States, premiums are actually lower than the national average. In 2009, motorists in Alabama paid an average price of $1,420 for their auto insurance policies against a national figure of $1,735. The average cost of a policy can be further reduced by purchasing auto insurance online. Price comparison websites are often cheaper than dealing directly with an insurance carrier while many company websites offer additional discounts to a policy if it is purchased on the internet.