One of the best ways to save on Alabama car insurance is to seek out liability only, which is what is required by law. Liability insurance protects only the person you hit, and not yourself. However, there are a few things you should consider before buying only liability insurance.
The minimum auto insurance required by Alabama law is $20,000 to $25,000 for a sinÂgle injury or death, $40,000 to $50,000 for multiÂple injuries or deaths and $10,000 to $25,000 for propÂerty damage.
So if you seek out car insurance like this, you will be able to get a low cost policy from many Alabama companies, providing you do not have a driving record riddled with accidents caused by you. But you need to keep one thing in mind about this.
If you cause more damage than your liability insurance will cover, you are technically liable for the rest. In other words, the person may sue you. And if you have something they can get, such as an asset like a house, expensive car, or large bank account.
If you have something valuable, the person you crash into may try to take it if you dont have enough liability insurance. And they may win.
So in this case, you would be well-advised to buy considerably higher liability coverage, such as 100/300/50, which will then increase the cost of your policy but may avoid losing everything in the long run, depending.
If you buy liability only, you will then be looking at some of the cheapest car insurance rates you can get. The other kinds of major insurance in Alabama are comprehensive and collision, which you may want to consider in addition to liability if you have an expensive car.
Comprehensive covers everything but a crash, such as theft, and collision covers crashes, no matter who’s at fault. If you have an old clunker, don’t bother, but if you have a newer car that still has considerable value, consider tacking these two onto your insurance plan as well. Of course it goes to say that over time, as your car decreases in value, you may want to consider dropping both of them.
Since liability is the only insurance required in Alabama, you can get low cost rates if you decide to only go with that, taking careful consideration of whether you should buy more or not depending on whether you have large assets, and also whether you should purchase collision and comprehensive as well.
www.cheapcaliforniaautoinsurance.org
