More than a just mandatory requirement in most states, auto insurance can add an extra layer of protection in the event of an accident or if your vehicle is otherwise damaged.
When operating a vehicle, you can take every precaution to drive safely, but you can’t control the actions of other drivers. You never know when another driver’s inattention could involve you in an accident. And it’s possible that you may get distracted and damage your car or even another.
You can protect yourself against accidents and damage from theft, vandalism and natural disaster. Carrying adequate auto insurance coverage requires a minimal cost relative to the possibility of losing major assets should you pay out of pocket for medical bills or property damages.
Auto insurance is available in different types of coverages. Liability insurance is mandatory in Alabama, but other optional coverages can offer even more peace of mind and protect you from the possibility of financial ruin due to an accident.
To better understand what’s available and the protection that best suits you, these are the key terms and coverages to consider for your auto insurance policy.
Liability auto insurance protects you financially by paying for property damage or bodily injuries that you cause to others in an accident. It also covers the injured party’s lost wages and even legal expenses if a lawsuit is filed against you. Alabama laws set minimum coverage liability coverages per person, per accident and for property damages.
- Comprehensive – Just as its name implies, comprehensive auto insurance coverage protects you against damages from all accidents beyond your control other than those that involve collisions. Some examples include theft, vandalism, broken windshield, animal-caused damages and falling objects. In addition, comprehensive coverage covers damages caused by severe weather or natural disaster, including fire, flood, wind storm, tornado and hurricane. Though this coverage isn’t mandatory, it may be required as part of your agreement if your vehicle is leased or is financed.
- Collision – Collision coverage pays for damage to your vehicle if it hits or is hit by another object or vehicle. It also covers an unintentional flipping or rolling of your vehicle. State laws don’t mandate collision coverage, but it will be required for vehicles that are leased or financed.
Uninsured motorist coverage can offer protection after an accident with an uninsured party or those who have policies that aren’t adequate to cover costs incurred. If a hit-and-run driver or an uninsured party causes injury, damage or death to you or to your passengers, uninsured motorist coverage protection will pay for medical expenses up to the limit on your policy.
Auto insurance is a must, not just because it is a requirement in most states, but because it offers peace of mind and financial protection should you be involved in an accident or your car is damaged in an event beyond your control. Consider purchasing enough coverage to protect yourself financially, which may be more than the minimum you are required by your state’s laws.