Accident Auto Insurance: Alabama

All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.

Types of auto insurance coverage:

Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.

Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.

Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.

Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).

Alabama Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $20,000 for one person's injuries in an accident; $40,000 for all persons' injuries in an accident; $10,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Alabama. An alternative to the required liability auto insurance is a motor vehicle liability bond for $50,000 or a deposit of cash to the State Treasurer in the amount of $50,000.

Alabama's Acceptable Proofs of Auto Insurance
A current insurance card issued by the insurance company.
A temporary insurance card issued by the insurance company.
The premium receipt or binder issued by your insurance company.
The actual policy, or the current declarations page of your policy, for your vehicle.
Proof of purchase of the vehicle within the past 60 days and a valid insurance card from your previous vehicle.
For a rental car: the copy of the rental agreement that specifies the insurance coverage.
Alabama Law Auto Insurance Penalties
Vehicle owners in Alabama are ranomly surveyed by the Department of Revenue to make sure drivers are insured. If you are not insured, your vehicle tag registration is suspended until proof of insurance is shown and a $100 reinstatement fee is paid for the first suspension. Subsequent suspensions will require proof of insurance and a $200 fee after a four month suspension.