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
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
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 $6,500 worth of repairs to your vehicle. You have a $500 deductible; therefore, you only pay $500, and the company pays $6,000.
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.
Uninsured/Underinsured Motorist coverage pays for damages that you are legally entitled to recover for your bodily injury. In general, this coverage provides what you would have received from the other person’s insurance company had that person been insured. This coverage may also protect you if the person who caused the damage does not have enough insurance.
Medical Payments coverage applies no matter who is at fault and covers the cost of reasonable and necessary medical care provided to you as the result of a car accident up to your chosen limits. The coverage is often limited to a specified time period following the accident and the amount of coverage you chose when you purchased the policy.
Roadside Assistance: Roadside assistance either covers or reimburses (up to your limits) expenses such as towing, battery jumps, and tire change. The companies that offer this coverage may differ in the types of coverage provided and your limits.
Rental Car Reimbursement: If your car is unable to be driven, this coverage helps cover costs associated with getting a rental until your vehicle is fixed.
Loan/Lease Payoff (Gap Coverage): This can be very helpful for those financing a vehicle that has been totaled, as it covers the difference between your vehicle’s actual cash value and the amount you still owe on the loan.
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$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
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