It is required for all drivers and vehicle owners in the state of Alabama to own the right liability insurance policy. Liability insurance must provide a minimum of 25 thousand dollars ($25,000) for one person injury liability, 50 thousand ($50,000) to take care of all involved in the accident and 25 thousand ($25,000) for the damage of property in an accident. Remember that all these are minimum required by the State, it is always recommended to include as much as your budget allows.

In case you don’t have Liability insurance, state of Alabama permits a motor vehicle liability bond or cash deposit. This deposit needs to be done with the State Treasurer and be no less than 50 thousand dollars ($50,000).
Proof of liability insurance coverage is required to be carried inside the vehicles, moving or parked as it may be requested upon being pulled over by a law enforcement officer. Also Department of Revenue can do random requests to show proof of car insurance ownership. To comply with this requirement the vehicle owner can show an Insurance ID Card, which will be provided by your insurance company at the moment you acquire the service, or proof from the State Treasurer showing you have the right bond or deposit.

Although not required it is highly recommended to include other coverage in your auto insurance policy, such as collision, comprehensive, uninsured/underinsured motorist. Collision coverage will help pay for damages caused to your vehicle, since liability policy only pays for the damage the insurer can cause on others properties and/or inflicted injuries.
Having comprehensive coverage can help pay for damage caused by a non collision related accident, such as an encounter with wildlife, weather related incidents and/or vandalism. This coverage comes in handy in states that have severe weather events such as tornados, hurricanes, wildfires, etc. It also provides coverage to pay for damage if you live in areas where wildlife may be found on the roads. In general, all vehicles are exposed to outside damages and it is always recommended to think ahead on such events.

If you are involved in an accident were the other driver’s liability coverage isn’t enough to pay for you or isn’t insured at all, underinsured/uninsured coverage will help take care of expenses. In case, the driver responsible for the vehicle doesn’t possess the right amount of coverage or in the worst case scenario, lacks completely of any auto insurance, your underinsured/uninsured coverage will help pay for the costs. This type of coverage is very useful when you are involved in a hit and run situation.

Owning the right auto insurance policy should always be considered as an investment instead of thinking of it as an expense.
In addition to all these types of coverage, there are specific plans to include teenagers into your auto insurance policy. This may vary from state or insurer, but in any case it is also recommended to include coverage for those underage drivers in your home.