Reviewing Your Alabama Auto Liability Insurance Limits

Category: Blog

Reviewing Your Alabama Auto Liability Insurance Limits

By Art Glasgow, Peck-Glasgow Insurance

January 18, 2013


As we have rolled through the first of the year made resolutions and possibly already abandoned them, now is the time to look at your own financial responsibility.  In the coming days I will be discussing some things to consider and act upon to better protect yourself and your family’s assets.


Today I would like to discuss Alabama Auto Liability Insurance Limits.  Remember that driving in Alabama is a privilege, not a right.  In addition to having a driver’s license one must also have proper liability insurance limits.  The state required minimum is $25,000 per person/$50,000 per accident for Bodily Injury and $25,000 Property Damage.  The state now has an online verification system that accurately provides up to date information on the status of an individual insurance policy.  The fines are stiff, so it pays to keep your policy in force.


With that said, the purpose of liability insurance is to protect your assets.  Insurance agents do not know what your assets are composed of and what your net worth is, so it is imperative that you be able to  discuss this information and decide on the limit of liability needed to protect your family or business assets. 


In today’s world of high medical inflation and wage growth an injury can be very costly.  Medical expenses, time off-work, and property damage can add up in a hurry.  Just look at the vehicles around you on the highway.  Many are worth $35,000 and up.  If you caused a total loss of a high valued auto, where would your existing liability limits leave you?


Most agents recommend minimum limits of $100,000/$300,000 for Bodily Injury and $100,000 for Property Damage and increasing as needed for proper protection.  In addition to higher liability insurance limits, you may need to add an Alabama Personal Liability Umbrella Policy to protect you from excess losses above your primary liability limits.  Limits start and $1,000,000 and increase.  Rates are not excessively expensive, so this is a good idea to review your options.


Most importantly, it is easy to review your policy limits.  Call a Peck-Glasgow Insurance agent for a review.  It is quick, easy and best of all you may save money while being better protected.

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