Alabama Auto Insurance Tort Laws, Annual Premium Rates and Penalties

Alabama auto insurance has mandatory minimum requirements and operates on the tort system, which means there will be a party held responsible for accidents that lead to injury or damage. Car insurance is intended to help protect your financial assets in the event of an accident, regardless of who is at fault. What insurance cannot do is protect you against any possible legal ramifications of the event.

The minimum Alabama auto insurance coverage requirements in for bodily injury are $25,000 per person per accident and $50,000 total per accident. $25,000 is also the minimum for property damage. This is the only auto insurance you are required to carry. Uninsured motorist coverage is optional, and in Alabama it also covers underinsured motorists. If you choose to purchase this option, then you must carry a policy with a minimum of $25,000 per person or $50,000 per accident. Medical, collision, and comprehensive are also not required, but can be purchased additionally.

The average annual cost of Alabama auto insurance premiums for 2009 is $1,515, which is 4%t higher than it was in 2008. Comparatively, the national average is $1,807. Insurance rates are not set in stone, and therefore it is possible to obtain a lower premium for the same coverage by shopping around. You need to consider how much coverage, beyond the minimum, is beneficial to you based on your own finances. Insurance is there to help offset medical costs and property restoration in the event of an accident, and oftentimes these costs can deplete a savings account and sometimes more.

What insurance is not able to financially assist with are the legal expenses associated with traffic fines and related court costs. If you are found to be responsible for an accident, there may or may not be associated legal consequences. Even though insurance does not affect tickets, if you receive a ticket for a traffic violation, it is very likely that your insurance will go up in premiums. Therefore, the best thing to do is to avoid getting a ticket altogether. Consider all of these possibilities when deciding on the best Alabama auto insurance coverage for you.

Alabama is an absolute limit state, which means that it is illegal to exceed the speed limit even if it appears safe to do so. Also, Alabama law does not define any particular speed as reckless, so anybody that is driving carelessly with disregard to the safety of people or property, or driving at a speed that can endanger people or property, will be considered reckless. A first offense of reckless driving can cost $25 to $500 and/or a prison stay of five to ninety days. A second offense results in an increase in fines, prison sentences, and also the driver may have his license suspended for up to six months.

Learning the state traffic laws and obeying them will not only help you drive more safely, it can also help keep your Alabama auto insurance rates down. Furthermore, you may be able to qualify for safe driving discounts. By driving smart, you save on fines and insurance, and you help save lives.

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Alabama auto insurance coverage rose 4% from 2008 up to $1515 per year on average - about $300 less than the national average.

Medical, collision, comprehensive and uninsured motorist are all optional types of Alabama auto insurance.

Stiff penalties exist for speeding and other reckless driving citations - and they also adversely affect your Alabama auto insurance premium rates.

Check additional valuable information of your State Insurance department organization.
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