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 availed of the uninsured motorist insurance, expect an increase of around $13 to $15 yearly.

Tags: auto insurance, Car Insurance Company, car insurance law, liability insurance

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.

Tags: auto insurance online, auto insurance policy, Car Insurance Company

Reader’s Question:

I bought my darling daughter her first car for her birthday. Can anyone here tell me how I can get the cheapest teen car insurance available here in Alabama?

Greta

Birmingham, AL

Your daughter is surely going to have one heck of a shock when she sees this sweet gift of yours. I do not want to spoil the party, but you will also be shocked when you see the prices of teen car insurance there in Alabama.

Like in all states nationwide, first time drivers are viewed as high-risk drivers, and car insurance companies are only too wary to insure them. You may ask why. It is because teen drivers get into more accidents, and in most of these accidents, the teen drivers are at fault. So, you really cannot blame the car insurance companies because they are just trying to be wise with their money.

However, even if this is the case, it does not spell doomsday for your finances. Because I tell you there are ways to lower what you are going to pay for the car insurance of your darling daughter.

Now, just pay attention and take note of everything that I am going to say next.

First, you should include your daughter in your car insurance policy if you already have an existing one. Having multiple drivers in an existing policy makes you eligible for some discounts.

After doing this, proving to the car insurance companies there in Alabama that your daughter is a responsible motorist and would not likely be in a car accident is the next thing you do. How do you do this? You do this by enrolling her in a basic driving course or a defensive driving course, which are available in some high schools and some private institutions. Just ask around there in your city. Your daughter having good grades in school may also be used as proof.

So, if you are successful in doing all of these, the result will surely be the cheapest car insurance for your teen daughter.

Good luck!

Tags: auto insurance premium, cheap auto insurance, teen, teen insurance

Reader’s Question:

Hi, I’m planning to get my own car and my own car insurance, and I’m wondering how much coverage I should get. I’ve been shopping for insurance policies here at Birmingham, Alabama, and almost all of the agents I’ve talked to told me to get full coverage but my friends told me otherwise. Who should I listen to?

Kristine,

Birmingham, AL

First of all, do your friends have automotive insurance, too? You know, it takes one insured person to know which insurance premium is best for you. But one thing I’m sure of is this: less is not always more. Your friends may think otherwise but when it comes to the road, having more insurance coverage would really be helpful especially if you get into an accident. Although there is no fast rule as to the amount of auto insurance coverage you need to get, most states (including, Birmingham, AL, I think) require a certain level of coverage. But you must be aware that getting the minimum level of coverage entails certain disadvantages too, such as paying the excess amount covered by your insurance policy in case you get into a really serious accident. The worst case scenario would be being liable for thousands of dollars that would have to come out of your own pocket simply because you only got what your state requires. So try not to skimp on your insurance coverage.

You could use the factors I’ve listed below to gauge the kind of coverage you will need:
- Your tendencies to get involved at risks while on the road
- The risk associated with your neighborhood
- The type of vehicle you’re using (this normally pertains to the value of your car)
- Your assets
- The frequency of having a passenger and the personal details about them (you may have to get them covered, too)

Try shopping for more insurance policies there at Birmingham, Alabama before you decide which one to choose so that you won’t regret anything in case the bad thing happens.

Tags: auto insurance, car insurance

Reader’s Question:

What do I have to know about cheapest insurance on a vehicle in Birmingham, Alabama. I do not have any car insurance claims.

Henry

Birmingham, AL

Auto insurance rates depends on many factors whether you will be able to get the cheapest insurance for your vehicle in Birmingham, Alabama. Such factors that you need to consider are the type of engine, if the vehicle is used or new or the category of the car. Usually, older vehicles would have cheaper car insurance on comprehensive coverage. Also, usually it is cheaper to insure family cars with cheap repair cost compared to powerful cars that may be too costly to repair.

One of the rating factor is where the vehicle is garaged. Usually it is cheaper to insure vehicles that are kept in rural areas than in cities.

The best way to get the cheapest car to insure is to research online. You will be able to find websites that list all the cars that are the cheapest to insure and so you can decide which vehicle that will suit your needs.

Tags: auto insurance, cheap auto insurance, cheap cars

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

Reader’s Question:

I currently have restricted driver’s license in Alabama due to a prior DUI but at one point in Birmingham. I was driving outside my restrictions. I crashed my car due to a road hazard and given that my insurance policy is current, I am still anxious that my insurance will not pay for damages even though I was not driving to or from work which is what’s mandated by my restricted license provisions.

Michael

Birmingham, AL

The insurance company’s provisions and/or exclusions will determine if this is covered under your policy. Exclusions on a Personal Auto Policy can be different for every carries and state, so you better review your policy:

Some typical exclusion follows:
-committing a high misdemeanor or felony, or seeking to avoid lawful apprehension or arrest by a police officer; or
-acting with specific intent to cause injury or damage to himself or others;
-operating or “occupying” an “auto” without the permission of the owner of the “auto” or name insured under the policy insuring that “auto”.
-War (declared or undeclared);
-Civil war;
-Insurrection;
-Rebellion or revolution;
-Any act or condition incident to any of the above resulting from radioactive, toxic, explosive, or other hazardous properties of nuclear material.
-and other specified on each policy…

Based on the typical exclusions listed, it seems like you will have coverage afforded unless there are other exclusions listed on your policy.

Tags: sr22, SR22 filing

Reader’s Question:

My car insurance premium was raised once by an auto car insurer in Birmingham, Alabama because of a bad credit. In my opinion though, I do not think it is relevant to do that. I do not even think that can be lawful in Birmingham, AL.

Gary

Birmingham AL

Different people will have different views on this debate on car insurance premium with relevance to credit standing.

The pro people say that basing car insurance rates on credit allows car insurance companies in Birmingham, Alabama AL to more accurately predict risk, making rates lower for everyone. The anti people say that bad credit does not make someone a bad driver in Alabama. Even if many people with bad credit are bad drivers, it doesn’t mean that good drivers with credit problems should be punished as well.

However, what’s interesting to know is that most people agree that car insurers should notify car insurance policyholders should car insurance rates increase due to a bad credit. After all, the Fair Credit Reporting Act (FCRA) clearly stipulates that that people have the legal right to be notified when they are declined for credit, employment, or insurance, on the basis of their credit history. However, the same Act is unclear on whether or not car insurance companies have to notify you if your bad credit results in higher rates. This now leaves legislature issues which we need to watch out for.

Since laws always come a long way to get perfect for everyone, the least you can do is to watch your credit so that you will keep your car insurance rates at level for now.

Tags: auto insurance, car insurance

Reader’s Question:

I’ve been looking around to get an cheap high risk car insurance. What are the minimum requirements for liability car insurance in Alabama?

Aaron

Birmingham, AL

In Alabama, car insurance represents a significant drain on many drivers’ monthly resources and almost all drivers would like to find a cheap high risk car insurance.

A basic liability policy is the smallest and cheapest insurance policy that an Alabama driver can purchase and still drive 100% legally. A basic liability policy may be what you are looking for if cost is your only concern.

In Alabama, the legal minimum amount of liability insurance you must purchase is called a 20/40/10 liability policy. This means that your insurance would pay out a maximum of $20,000 to any one individual for medical expenses which result from an accident with your vehicle. It would pay a maximum of $40,000 in medical expenses for everyone involved in an accident with your vehicle regardless of how many people are hurt or what the extent of their injuries are. Finally, the insurance would pay a maximum of $10,000 in property damage for any accident. Generally, property damage means repairing the other person’s vehicle, but property damage can include other property as well.

There are two things that can make this insurance risky. First is that this insurance pays nothing for your medical bills and nothing on the medical bills of anyone in your vehicle at the time of an accident. This insurance also pays nothing toward the repair of your vehicle.

Second, and more importantly, the maximum payout of a basic liability policy isn’t necessarily enough to cover the actual medical expenses or property damage which could easily result from an accident. You could be held personally responsible for paying the remainder out of your own purse or pocket if the insurance fails to pay all of the medical or property damage expenses of the other party. Conceivably, this could result in you losing your life savings or even being forced to sell your home in order to make payments.

It is possible to purchase liability insurance with higher payouts, and of course, at a higher monthly premium. Regardless of whether you choose to purchase a full coverage policy or a basic liability policy or something in between, your best option for finding the cheapest high risk car insurance is to buy your policy online. Online insurance companies have a very little overhead and they would pass that savings on to you. You have to compare prices at the largest number of insurance companies possible if you want to find the rock-bottom price for your car insurance. Make sure that you make your price comparisons on more than one website, rather than relying on just a single site.

Reader’s Question:

My father bought me a refurbished car. How do auto insurance policies protect me?

John

Birmingham, AL

Hi, John.

It’s always for the safety of your self and your car. Refurbished car is great for those who are on a skimpy budget and looking for ways to save money. However, the older you vehicle gets, the more expensive it will be to insure the vehicle with most auto insurance companies. I know of some people who drive cars without insurance. That is also against most state laws and they can be subject to heavy fines and penalties for driving their cars without auto insurance coverage if they are caught.

Just to remind you John, there are reasons why a vehicle needs to have the auto insurance. It is not just a way of protecting you and the vehicle for an accident.

There are also many ways by which your auto insurance can protect you. Your car can also be insured against theft, fire, accident damage and third party use.

As my best advice, I suggest you purchase an auto insurance policy for adequate protection in Birmingham AL. You can shop around anytime for free auto insurance quotes online! You may start by typing in your zip code on the space provided for in this page.