How To Buy Alabama Auto Insurance

If you've got a car in Alabama, then you're going to need auto insurance. Here's what you need to know in order to buy Alabama auto insurance.

Step 1

Search for a good deal. Auto insurance in Alabama doesn't need to cost you a fortune. Make sure you look around and compare before you decide on a policy. Here are some links to check out when buying auto insurance in Alabama:

Step 2

You need to meet the minimum car insurance requirements. The state of Alabama requires that every car or driver be insured with some type of liability insurance or have some type of alternative coverage (like a motor vehicle bond, or a cash deposit). Liability coverage must be at least $25,000 for single bodily injury, $50,000 for all injuries and $25,000 for property damage as a result of the accident. If you're going to get a Motor Vehicle Bond, it needs to be filed through the Department of Revenue's Motor Vehicle Division. For a cash deposit, you need to leave a deposit of at least $50,000 with the Alabama State Treasurer. Any of these three options allows you to meet the minimum auto insurance requirements in Alabama.

Step 3

You need to carry proof of insurance. When you buy auto insurance in Alabama, you need to be prepared to show proof of it at any time. That's why you should keep a copy of your insurance, bond or deposit details in your car at all times. In the case of an accident, you will be required to show your proof of insurance to the authorities (or you risk a hefty fine).

Step 4

Every driver must be insured. In Alabama, you need to buy auto insurance for every driver in a household. That means that anyone who is going to get behind the wheel of a vehicle needs to have some kind of liability coverage. And be sure not to let your insurance lapse. If you're caught driving with expired insurance, you are really driving without insurance. And whether it's a speeding ticket or a collision, having no insurance means a fine of up to $500 and immediate suspension of your license.

You should also know that before you buy auto insurance in Alabama, the insurance companies will do a credit check on your personal credit history. If you've defaulted on loans or payments in the past, you may have trouble being approved to buy Alabama auto insurance. Some insurance companies may be willing to allow you to purchase car insurance from them, but you'll be required to pay the entire year's premium up front before you will be given insurance on your automobile. If you've got a great credit score from paying your bills on time, you should be given better auto insurance rates in Alabama.

Step 5

Know what to expect after you buy Alabama auto insurance. It costs an average of about $700 to insure a vehicle in Alabama for a year. Once you purchase an auto insurance policy in the state of Alabama, you are legally insured to drive. Alabama is a Tort state, meaning that if you are in an at-fault accident, you are responsible for paying the medical bills of your victims, along with any other related fees like pain, suffering and lost wages. This can prove to be quite expensive if you've got minimal liability coverage, so buy Alabama auto insurance that won't put you in financial turmoil in the case of an accident.


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