Even though your state may not require liability insurance, it is a good thing to have at least $500,000 worth of coverage that encompasses both types of liability: property damage liability and bodily injury liability.

Car insurance protects you financially if you cause an accident, injure someone, or damage property with your vehicle. Your insurance can also cover damage to your own car from accidents or other threats, like extreme weather, theft and vandalism.

There are several types of car insurance coverage including:

  • Liability covers the costs if you cause the accident.
  • Personal Injury Protection (PIP) covers medical and related expenses for you and your passengers.
  • Uninsured/Underinsured Motorist Protection covers you if you are in an accident caused by a driver who either does not have insurance, or does not have enough insurance.
  • Collision covers damage to your own vehicle.
  • Comprehensive covers the type of damage that can happen to your car when it is not being driven.

Let’s just say, you’re riding to the mall with your next door neighbor. You haven’t paid them for gas, or done anything else to benefit the driver. In this case, if there’s an accident, you may not make a claim against the driver – even if you are injured.

In order to make such a claim against a driver, you need to prove that he or she was reckless or careless in some way. Typically, this involves drinking and driving, or excessive speeding. It may not sound fair, but in a few states, Alabama included, it is the law.

It is very important to know that when an insurance agent offers you coverage, they must provide you with uninsured/under-insured coverage, unless you specifically waive it. You must sign a waiver to release your rights for this coverage. The waiver must be in place for every driver on the policy.

If you have legal questions, please consult our Online Legal Directory to find an attorney in your area.


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