Auto Insurance - Laws You Should Know Of

Auto Insurance - Laws You Should Know Of

Due to Alabama being referred popularly as the "crossroads of the South," it is plain obvious that motorists and vehicles pretty much rule the I20 and the I65. This has stepped up efforts from both state legislators and major insurers to enforce strict auto and insurance laws. If you are a resident of Alabama, you must have adequate insurance to cover the legal costs arising out of an accident. Thorough knowledge of Alabama auto insurance laws can help you travel wisely and free of legal hassles.

Auto insurance laws in Alabama require minimum liability coverage for every motorist. Simply put, you must be covered in the amount of $25,000 towards injuries to one person, $50,000 towards injuries to several victims and $25,000 in case of damage to property, irrespective of state or private. Liability requirements in Alabama are the same as its neighbors Georgia and Mississippi.

For minimum liability coverage, Alabama drivers can use vehicle liability bonds and cash ($50,000) as substitutes for insurance. Needless to mention, it is a highly costly alternative to insurance.

For drivers who do not possess insurance or a vehicle liability bond, the repercussions can be dire, both logistically and financially. The state of Alabama conducts random audits of registered drivers to determine if any motorist is conforming to the laws of the land. If a driver cannot produce adequate proof of insurance, the authorities will suspend his/her registration until he/she purchases an auto insurance policy. To make matters worse, he/she is also subjected to a fine of $100. A repeat offense entails a $200 fine, a suspension of four months and his/her registration is seized, until insurance is purchased.

Knowing the auto insurance laws of the land is extremely important. It's also equally important is to find a carrier that will offer you the best policy at a reasonable rate which follows the state guidelines. Compare various quotes today and make an informed decision.

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