If you are a driver in Alabama, you already know that you need to have mandatory liability insurance and other auto insurance basics. The Fort Payne, AL roads can get pretty dangerous, and if you are not adequately insured, you may end up paying large sums of money for injuries or lawsuits. In order to stay safe, Attain Insurance recommends buying adequate coverage to protect you and other road users in Alabama. Here is what you should know about auto insurance in Fort Payne, AL.
Alabama uses the ‘fault’ system
When it comes to financial responsibilities for vehicle damage and injuries, Alabama uses the ‘fault’ system to make things easier and transparent for drivers. That means if you are at fault in the event of an accident, you are responsible for any damage, loss, or injuries sustained in that accident. Depending on your agreement, third parties can:
- File claims with their insurance provider
- File a claim your insurance provider or
- File personal injury lawsuit
Liability coverage is mandatory
The state of Alabama requires all drivers to carry minimum liability coverage in the following sections:
- Property damage for an accident that you accused
- Bodily injury liability when two or more people are injured in an accident where you were at fault.
- Bodily injury liability when a person is injured in an accident that you caused.
Basic coverage pays for property damage, medical bills, and other costs. Note that when you get injured in an accident that you caused, liability coverage won’t help you. In this case, you may need to carry more coverage to protect yourself and your car.
There are penalties for driving without insurance.
If you are caught violating auto insurance laws, particularly the Alabama mandatory Liability insurance law, you could face penalties amounting to hundreds of dollars. Subsequent violations can lead to a more significant fine and/or license suspension.
For more details about auto insurance, reach us at Attain Insurance today!