To legally drive in Alabama, you need to have minimum auto insurance coverage. While this coverage will satisfy the legal requirements, you may be surprised to learn that it really is not that much coverage. Knowing what the minimum insurance policy covers can help you to decide if you would like or need to get additional coverage.
The Alabama Department of Insurance states that the minimum requirement for insurance is $25,000 for bodily injury liability per person and $50,000 per accident. Also, you must have at least $25,000 for property damage coverage.
Bodily injury liability covers injuries to other people in other vehicles. If you cause an accident, then your insurance will pay $25,000 per person up to a total of $50,000. When you think about the cost of medical care and the possibility of severe injuries in an accident, these amounts are very likely to not cover all the medical expenses.
Property damage liability covers damage you do to another’s property. This will include their vehicle or other property, such as damage to a lawn or a guardrail. The $25,000 pay out for this might be enough, but in accidents involving multiple vehicles, it will not likely come close to covering the costs, especially if an insurance company declares a vehicle a total loss.
The takeaway here is that the minimum coverage is just that. It is a bare minimum that you can get but not likely enough to really offer you full protection in an accident. You might be better off increasing your coverage amounts if you want better protection.