As all drivers in Alabama should know, Alabama requires minimum liability coverage on their automobiles. In Alabama, the minimum is $25,000/$50,000. But what does this mean?

The first number is the bodily injury liability for one person injured in an accident. The second number is the bodily injury liability maximum for all injuries in one accident. Basically, the policy is telling what coverage is available for a person injured in the accident and what total coverage is available for any one accident.

So, if you have the minimum liability in Alabama, which is $25,000/$50,000 coverage, each injured person would be covered up to $25,000, but the total coverage available for the accident is only $50,000. If 5 people are hurt in the accident, the most any one person would be paid is $25, 000, but all 5 people would have to share the total of $50,000. In this situation, if any one person’s damages exceed $25,000, or if the entire claim of everyone that was in the accident exceeds $50,000, you would be personally responsible for what the policy did not pay.

This puts a lot of people at risk in Alabama as most people in Alabama purchase the minimum required by the law. The Insurance Information Institute has recommended that you carry at least $100,000 of bodily injury protection per person and $300,000 per accident written as $100,000/$300,000.

While most people just think about the premiums that they have to pay, when faced with a lawsuit and being sued, their entire livelihood is put at risk. Hospitals and doctors are not cheap, and depending on the damages in the car accident, that minimum amount can easily be used up.

If you still have questions about the coverages that your policy has, feel free to give us a call and we will be happy to look it over for you.