Birmingham Auto Insurance Quotes

With the advent of online auto insurance and developments in the rates offered by various companies, the task of getting your vehicle insured has only become a lot easier to deal with. Residents of Birmingham, Alabama need to get their auto insurance based on the official norms of the state.

Minimum Coverage Requirements

Alabama state laws require registered vehicle owners to possess minimum liability coverage of $20,000 per person for bodily injuries inflicted on them during an accident and up to $40,000 per accident as the upper liability coverage limit. The minimum coverage for property damage in an accident is $10,000. The small claims limit in Alabama is $3000. The state law demands strict action to be taken on the drivers that fail to meet these norms set by the government.

Penalty For Negligence Of Insurance Mandates

In the case of regulations in Alabama, driving without the possession of valid liability coverage, called MLI violation, can result in the state agency suspending the registration of the vehicle temporarily. The first time the registration of license plate is suspended by the state agency, violators can get away by paying a fee of $100 along with proof of possession of insurance. A second time violation can cost $200 as reinstatement fee and a 4 month suspension. Subsequent MIL violations can result in a reinstatement fee of up to $500 for each offense. A second offense could also result in a 6 month suspension of the driver’s license or $1000 reinstatement fine.

Tort System And Comparative Fault Assessment

Alabama follows the ‘tort system’ to manage insurance coverage stemming from accidents. By comparative fault assessment, the driver who is found to be at fault for causing the accident must pay the victims for the expenses caused due to the accident. This eliminates the need to purchase Personal Injury Protection coverage.