Why You Need A Comprehensive Insurance Coverage

Automobile insurance may be the most widely owned type of insurance in the United States

. Nearly every driver has an insurance coverage for times when the driver is operating an automobile, either in his or her own name or on the policy of another person, such as a parent or an employer. State statutes require that a driver either have liability insurance or provide self-insurance adequate to cover potential liability that the driver may incur.

The minimum coverage any driver should have is for liability and property damage. Different company car insurance may offer different insurance coverage. The basic coverage protects the driver in the event that he or she causes harm to the person or property of another. That is, if the driver is at fault in an accident, the insurance coverage at least up to the policy limits will indemnify the driver if he or she is sued by the injured party.

Each state has different requirements for auto insurance coverage and it is quite important to know what your state requires to ensure proper protection. Most states however, require a minimum amount of liability and property damage coverage. For example, California requires a minimum coverage of $15,000 per person and $30,000 per accident in personal liability, and $5,000 per accident in property damage coverage; a person who is involved in an accident and does not have this minimum coverage must post a $35,000 bond or deposit in order to continue operating an automobile on California highways.

Here are Alabama's required coverage amounts and the most common preferred amounts for maximum protection:

Coverage: Bodily Injury Liability

State Requirement: 20,000/40,000

Most Common: 100,000/300,000

Coverage: Property Damage Liability

State Requirement: 10,000

Most Common: 50,000

Coverage: Uninsured Motorist Bodily Injury

State Requirement: Not Required

Most Common: 20,000/40,000

Coverage: Medical Payments

State Requirements: Not Required

Most Common: 2,000

Coverage: Collision

State Requirements: Not Required

Most Common: 500 Deductible

Coverage: Comprehensive

State Requirements: Not Required

Most Common: 0 Deductible

by: Huntsville Insurance

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