| There is often a great deal of difference | | | | coverage if you are in an accident with a |
| between the minimum amount of insurance that | | | | driver who does not have any insurance or who |
| the state of Alabama requires of a driver in | | | | has insufficient insurance to pay for all of |
| order to operate a motorized vehicle on the | | | | the medical bills and/or property damage |
| roadways in Alabama, and the full coverage | | | | caused by the accident. Collision Insurance |
| insurance that most lenders require when they | | | | pays for repairs to or replacement of your |
| finance the purchase of a vehicle. At the | | | | vehicle if you are in an accident with |
| very minimum you are required to purchase | | | | another vehicle or if you strike a stationary |
| what is known as a 20/40/10 liability | | | | object such as a lamppost or a freeway |
| insurance policy in order to legally drive in | | | | guardrail. Comprehensive Insurance protects |
| Alabama. What this means is you must have | | | | your vehicle from accidents caused by natural |
| insurance that pays a minimum of $20,000 per | | | | acts such as falling tree branches, hail, |
| person in medical expenses, with a cap of | | | | etc. You should talk to your agent about |
| $40,000 in medical pay-outs per accident, | | | | windshield insurance, which is separate on |
| plus your insurance must pay at least $10,000 | | | | many policies. Comprehensive coverage also |
| to repair or replace any property you have | | | | protects you against acts of vandalism as |
| damaged in an accident. Liability insurance | | | | well as repairing or replacing your vehicle |
| does not repair or replace your vehicle and | | | | if you should strike a deer or other animal. |
| the minimum amounts that the state requires | | | | Your collision and comprehensive insurance |
| you to purchase may or may not be enough to | | | | should cover no more than the Kelly Blue Book |
| pay for the damages of any particular | | | | value of your vehicle or the amount of the |
| accident you might be involved in. If your | | | | loan that your vehicle is securing. In no |
| insurance is not sufficient to pay for all | | | | event should your comprehensive or collision |
| the medical claims against you, or if your | | | | policy be for more than the Kelly Blue Book |
| insurance is not enough to repair the | | | | value of your vehicle. Once you or your |
| property that you have damaged in an | | | | lender have determined the amount of |
| accident, then you may be required to pay the | | | | liability insurance you need as well as the |
| remaining balance out of your own funds. If | | | | amount of collision, comprehensive and |
| you do not have sufficient funds to pay for a | | | | uninsured motorist coverage you need, then it |
| judgment then you conceivably could lose your | | | | is time for you to get online and find at |
| home or other assets that you have managed to | | | | least 3 different websites where you can |
| acquire. And since liability insurance does | | | | compare the prices of automobile insurance |
| not cover your vehicle in any way, if you | | | | policies from different companies |
| finance your vehicle then your lender will | | | | head-to-head. Enter the exact same figures |
| require that you take out additional | | | | onto the form on at least 3 different |
| insurance in any event. Your lender will | | | | comparison websites and then simply choose |
| require that in addition to liability | | | | the best rate you find. That's really all |
| coverage you also have collision and | | | | there is to it. Compare the same policy on 3 |
| comprehensive coverage, both in the amount of | | | | different sites and take the best price you |
| the loan that has been made to you for the | | | | find. So now you not only know what to look |
| purchase of your vehicle, plus you may also | | | | for in a full coverage automobile insurance |
| be required to purchase Uninsured Motorist | | | | quote in Alabama, but you also know how to |
| (UM) insurance. Uninsured Motorist coverage | | | | compare policy prices online and come up with |
| protects your vehicle and may pay for medical | | | | the best possible price for your insurance. |