How to Stay Legal on the Roads in the State of Alabama

In order to legally drive and operate a motor vehicle in Alabama, you must first meet the state's legal requirements for having liability coverage and being able to provide proof of that insurance when requested by a police officer or state trooper.

Liability insurance is a means of providing financial responsibility in the event your vehicle is involved in an auto accident while you are driving it and you are found to be at fault and liable for repairs to another vehicle property, or injury or death to another person. In order to meet the legal requirements for this state, you must purchase coverage from a licensed provider in the state or if you get a Motor Vehicle Liability Bond for $50,000 or more with the state or get a Certificate of Cash Bond for $50,000 or more. Both of these methods allow for the wealthy to protect themselves and others in the event of an accident without having to pay an insurer.

Minimum Levels

Almost all policies offered by a company comes in a format that lists a number a slash "/" a second number, a slash "/" and a third number such as 25/50/25. These three numbers are designed to tell you at a glance what your coverage limits are at for the three types of coverage that auto liability protection provides: bodily injury liability/maximum bodily injury liability/property damage. In the example of 25/50/25, you would be covered for up to 25,000 worth of expenses for any bodily injury done to another person in an accident, or $50,000 for injuries to multiple people, and $25,000 for damage to property. In Alabama, the minimum levels required are:

  • $25,000 for injury done to any one person in an accident
  • $50,000 for injuries done to more than one person in an accident - this is a maximum amount that will be paid no matter how many others are injured
  • $25,000 for damage to property such as for vehicle repairs

Keep in mind that having a policy that includes the aforementioned required protection doesn't protect you from being sued if you are involved in an accident: for example, if you are found to be at fault in an accident that does $50,000 worth of damage to a car, and you hospitalize the driver which piles up an additional $100,000 in medical bills, your insurance at the minimal limits will only cover $50,000 of that $200,000 expense and there is nothing stopping them from coming after you for that additional money in court. This is why it is recommended that you evaluate your financial situation carefully and if you have assets that you could lose like a home or other wealth, you protect yourself by increasing your levels of protection appropriately.

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