Reader’s Question:

Does the insurance company have the right to cancel my policy and take my car if it is totalled in Dothan AL?

Ben

Dothan, AL

If your car is totalled then typically the insurance carrier can decide if the reimbursement payment for the insurance should be for the total loss, instead of paying for repairs. They will take the vehicle then if they make payment for a total loss then . You may have the option not to accept total loss payment, take the money and pay for the repairs yourself.

An insurance provider does not have the right to cancel your auto insurance policy because your vehicle is totalled in Dothan, but there are many reasons a in insurer may cancel an insurance policy. Some of those reasons could be due to accident history or multiple insurance claims. Many state regulations have requirements to protect policyholders from unfair cancellation. If this happens, typically an insurer cannot cancel your insurance policy, but they have the option to non-renew your car insurance policy in Dothan Alabama.

Tags: auto insurance

Reader’s Question:

Does full coverage auto insurance on a new car automatically change to liability only after a couple of years or does the insurance company has to call to make the change after a few years? I live in Hoover, AL.

Stewart

Hoover, AL

If you wish to make any changes to your car insurance policy such as dropping your comprehensive and collision so that you only have the state required liability coverages you would need to tell the insurance company, your insurance provider, of the change. Car insurance coverages do not change automatically after a few years.

An insurance company does not make changes to your auto insurance policy in Hoover, AL without you requesting it. In addition if you are still paying for the new vehicle after a few years it is unlikely that you could lower your insurance coverages from from full coverage to basic insurance liability. Normally your lien holder requires you to have the full coverage (comprehensive and collision coverages) on the car since it their asset until you pay it off.

Tags: auto insurance, cheap auto insurance

Reader’s Question:

I heard that the state Alabama have new auto insurance liability requirements? What is it?

Brandon

Birmingham, AL

Yes you are right. The state of Alabama has increased their minimum limits for car insurance. Recent legislation has been made so that the minimum liability limits for auto insurance in Alabama will go up from 20/40/10 to 25/50/25.

It is expected that those who carried only previous Alabama minimum liability coverages and therefore now must increase their liability limits will see their insurance rates go up a minimal amount, probably up $20 to $30 a year. Car insurance rates for uninsured motorist coverage are expected to go up around $13 for those who also need to up their minimum coverage limit now to at least the same as their bodily injury liability limit amount.

Tags: auto insurance