When you’re shopping for car insurance, one of the things you’ll need to consider is your state’s minimum liability limits. These limits will tell you how much money you can be held liable for in the event of an accident. Generally speaking, these limits vary from state to state; however, they are typically quite high. In fact, Alabama has a limit of $50,000 for personal injury claims and $100,000 for property damage claims. If you live in Alabama and are considering purchasing car insurance, it’s important to understand your minimum liability limits. By doing so, you can make sure that you’re fully protected in case of an accident.
The Cost of Car Insurance in Alabama
Alabama ranks as one of the most expensive states in which to maintain car insurance. According to The Cost of Car Insurance in Alabama report by Insure.com, the average cost of car insurance in Alabama is $1,521 annually. This is slightly higher than the national average of $1,481, but still lower than a few other high-cost states.
One reason for the high cost of car insurance in Alabama is that there are a number of mandatory required coverages that all drivers must have. These include bodily injury liability, property damage liability, and uninsured motorist coverage. In addition, many drivers opt for additional coverage such as comprehensive and Collision Damage Waiver (CDW) insurance. The total cost of these add-ons can quickly add up and push your annual premiums well over $2,000.
Even with all of these extra costs, though, Alabama drivers still rank among the safest on the road. According to State Farm’s 2017 Auto Insurance Scorecard, Alabamians have an auto insurance rate ranking of 46th out of 50 states. This makes Alabama a very affordable state when it comes to auto insurance premiums…even if you do have to pay for a few optional coverages.”
The Types of Coverage You Need
There are three types of coverage you need in order to drive in Alabama: liability, collision, and comprehensive.
Liability insurance will cover you if you are found at fault in an accident. This type of coverage typically costs around $20 a month.
Collision insurance covers damages to your car that happen as a result of another vehicle crashing into it. This type of coverage costs around $40 a month on average.
Comprehensive insurance covers anything that might go wrong while you’re driving, such as theft or vandalism. This type of coverage costs around $80 a month on average.
How to Save on Car Insurance
If you live in Alabama, you may want to consider saving on car insurance. According to the Insurance Research Council (IRC), the cost of car insurance varies significantly by state. In Alabama, the average cost of car insurance is $1,546 a year.
To find the cheapest car insurance rates in your area, use an online quote tool like Insure.com or State Farm’s My Rate. Remember to factor in all of your coverage needs, including liability, property damage, and comprehensive protection.
If you have a history of driving violations or accidents, your rates may be higher than those who have clean records. You can also save money by getting a policy with discounts for being a good driver and having NO traffic tickets within the past three years.
When you’re shopping for car insurance, it’s important to understand the different types of coverage that are available. Here in Alabama, we have liability and property damage coverages for drivers as well as vehicle insurance for when something bad happens to your car. To find out more about what is offered in Alabama, and to compare rates from different companies, be sure to visit our website or talk with one of our friendly agents.