In 2005, the average auto insurance premium was $678 for drivers in Alabama, which was a 1% increase from the previous year. Now three and a half years later, the average cost of car insurance has shot up by 163% making the average cost $1,784!
With Alabama’s auto insurance rates on the rise it is important that you compare car insurance quotes from different companies.
What is the Mandatory Coverage In Alabama?
The Alabama government calls for all drivers to have the minimum amount of liability insurance. The minimum is as follows;
Bodily Injury Liability — Minimum required by law is $25,000 per person and $50,000 per accident.
Property Damage Liability — Minimum required by law is $25,000 per accident.
Also it should be pointed out that unlike most states that follow the “no fault” system, Alabama follows a tort system. This basically means that when you are deemed at fault for causing an accident, you and your insurance company are held responsible for all the damages.
Problems with Alabama Car Insurance Companies?
If you have any unresolved issues with any insurance provider that you cannot work out, the Alabama Department of Insurance advises that you fill out the complaint form located here.
Alternatively you can write to:
Alabama Dept. of Insurance
P O Box 303351
Montgomery, AL 36130-3351