Senate Bill 4 Raises Auto Insurance Requirements in Alabama
Reader’s Question:
I’m from Alabama and am due to renew my car insurance policy. Is it true that car insurance minimum requirements have been raised in this state?
Steve
Birmingham, AL
Alabama Governor Riley signed into law Senate Bill (SB) 4 in May of 2008. This law states that the minimum car insurance requirements of the State of Alabama will be raised from 20/40/10 to 25/50/25. This increase in liability insurance is the first in 25 years in this state. This law mandates that if the insured causes a car accident, then his or her auto insurance company will pay for $25 thousand bodily injury for one person, $50 thousand maximum for bodily injury for all persons in the vehicle, and $25 thousand to pay for destroyed property, including but not limited to public property and the other driver’s car.
A similar bill concerning increase in financial responsibility requirements was vetoed by Governor Riley back in year 2007 for lack in the implementation period. This latest version of minimum limits legislation has for new policies a ninety-day implementation period and for renewal policies a one-hundred-eighty-day period. The State of Alabama believes that this period is enough for all car insurance providers to adjust their operational procedures accordingly and for policyholders to be given timely notice. With the minimum liability raised, uninsured motorist insurance, which is not mandatory in Alabama, was also raised to the same point as the liability insurance. With this increase in minimum liability insurance, policyholders will definitely see an increase in their rates from $20 to $30 annually. For those who want uninsured motorist insurance, expect an increase of around $13 to $15 yearly.
Should You Buy Auto Insurance Online in Alabama
Reader’s Question:
I know that people are doing things online, even purchase auto insurance coverage, but I am just not very comfortable with it. I heard my friends talk about it here in Alabama. Is it really safe to purchase auto insurance online?
Jenny
Birmingham, AL
I had the same reservations, too, when I first considered the idea of purchasing auto insurance online. That was three years ago. And since then, I have changed auto insurance company once and renewed my auto insurance coverage several times through the web site of my auto insurance company. Of course, I feel safe because my auto insurance company has a very good reputation. This reputation of theirs extends to their web site, as well.
You should do the same thing, too. Choose a reputable auto insurance company in Alabama, and check if they offer their services online. Perhaps this would lessen your apprehension. You may also ask around, check online forums, too, about auto insurance sites that are trustworthy. I asked a lot of my friends, too, about auto insurance sites that are safe. Check if any of your friends purchased their auto insurance online, you can try that auto insurance if you don’t feel very confident.
If you decide to purchase auto insurance online, you will discover that it is way much better than doing it any other way. The convenience is priceless. You just go to a web site, ask for a quotation then go to a different web site for another quotation. It’s way faster, too. It beats calling their agent or their local office and asking their representatives.
