Just like auto insurance, the state of Alabama requires you to carry valid liability insurance on your motorcycle.
The Alabama Mandatory Liability Insurance (MLI) law provides that no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy. The law was passed to protect consumers when they are involved in an accident. Liability insurance policies must be issued by insurers licensed to do business in Alabama for no less than: 25/50/25
$25,000 of Bodily Injury Coverage to one person
$50,000 of Bodily Injury Coverage per Incident to 2 or more people
$25,000 of Coverage for Damage or Destruction of Property
Minimum Liability Insurance is required on all self-propelled motor vehicles. Keep in mind, these are only the minimum limits. Increasing these limits can help protect you in the case of a more serious accident or an accident with a vehicle worth more than $25,000.
Liability coverage only pays for damage and injuries that you cause to another vehicle and driver. So, Wiggins recommends you also protect your bike with these coverages:
Full Coverage, as required by lienholders, refers to the inclusion of both Collision and Comprehensive Coverage.
Under Collision coverage, we pay for damages if your vehicle overturns or if it collides with another vehicle or object. Collision coverage involves a “deductible” amount you select when you purchase your policy. This amount, typically $250 or $500, is the amount you are required to pay in the event a claim exceeds the deductible amount.
Example: You are involved in a crash that results in $8,500 worth of repairs to your vehicle. You have a $500 deductible; therefore, you only pay $500, and the company pays $8,000.
Under Comprehensive coverage, the company pays for damage caused by an event other than a car collision, such as fire, theft, vandalism, hail, or flood damage. Comprehensive also covers damages from an animal hit. Like Collision coverage, a deductible applies.
Keep in mind, these coverages may have certain differences and exclusions between carriers so always read through your policy documents to understand your specific coverages.
And because research shows that injuries occur in 80% of reported motorcycle crashes, Wiggins strongly encourages you to obtain these protections:
coverage helps to pay for your injuries as well as bike repair/replacement if you are ever hit by a driver without car insurance, or one without enough insurance.
steps in to help with medical expenses accrued by you or your passengers in an accident.