5 Things You May Not Know About Your Auto Insurance

Drivers in Alabama are required by law to purchase automobile insurance with minimum coverage mandated for bodily injury protection and property damage. While this will square you away with state laws, does it provide the protection you need if you are injured in a car accident or cause someone else to be injured?

Veazey Insurance Agency offers superior protection at competitive prices in Mobile, Alabama and surrounding areas. Our agents can guide you through the maze of options to make sure you have the coverage you need.

Here are five things you need to know about auto insurance.

  1. Required minimum coverage won’t be enough to cover your expenses you might incur in a serious accident. Under Alabama’s Mandatory Liability Insurance Law, you are required to have the liability insurance to pay for damages or injuries you may cause to others in an auto accident. The minimum required coverage is $25,000/$50,000/$25,000.

Let’s explore these numbers. The first number is for bodily injury or death per person. The second number is the total paid out or injury or death per accident. The third number is for property damage. The numbers may sound reassuring, but let’s take a closer look.

If you seriously injure someone in a car crash, medical bills can multiply exponentially on a daily basis. Have you ever looked over an itemized bill from a hospital stay? The numbers can be staggering! So that first number will pay for minor injuries, but not more serious conditions, such as brain injuries. That middle number is liability per accident. What if you are at fault for an accident in which five people are seriously injured? That $50,000 seems like chump change now. The third number is meant to cover property damage. Let’s say you total someone’s car. Will $25,000 be enough to replace it? Unless the injured party was driving a 20-year-old economy model, then probably not. Few cars can be purchased for $25,000 these days. What if you total someone’s $140,000 Mercedes? Subtract that $25,000 your liability insurance covers, and then you still end up owing $115,000 out of your own pocket.

  1. Your mandatory liability insurance will not cover damage to your own vehicle or pay for your own personal injuries. You will need to carry some optional coverage for this kind of protection. Here are a few that are available through Veazey Insurance Agency:

Collision: This pays for crash-related damage to your own vehicle.

Comprehensive: Some types of auto damage are beyond your control. For example, during a storm, if a large tree branch crashes through the roof of your car, your comprehensive insurance will cover it.

Underinsured or Uninsured Motorists: If you are injured or your vehicle is seriously damaged by an uninsured motorist, or by someone with inadequate liability, you need this coverage.

Medical and Funeral: This optional policy covers medical and funeral costs if you cause an accident.

  1. Alabama is a “Fault Insurance” state. This means that the driver responsible for an accident bears the brunt of paying for damages to persons and property. This means if you are the cause of a crash, either you’d better have some deep pockets or some really good insurance coverage. But what if the other guy caused the crash? In theory he is responsible to pay, but what if he can’t? Again, this is where optional Uninsured Motorist protection can be of great value.
  2. Not all insurance rates are created equal. When you apply for auto insurance, a number of factors can affect the cost of your coverage. These are driving record, gender, age, credit score, the type of car you drive, and your insurance plan’s deductible. The deductible is the amount you must pay out of pocket in the event of a cover accident. As a rule, the higher your deductible, the lower your premium.

Additionally, there are discounts available to lower the cost of your premiums. The best way to keep your costs low is by safe, defensive driving and observing all traffic laws. Be sure to ask us about these discounts:

Safe Driver Discount: If you have no tickets or accidents on your record, your rates will be lower.

Good Student Discount: Are you an A/B student in college? You may be eligible for a discount.

Multi-Car Discount: Insuring more than one vehicle qualities you for a discount.

Home/Auto Discount: Generous discounts are available when you insure your home and your autos with us.

  1. It’s not always the “big names” that get you the best auto insurance prices. We specialize in both personal and business auto insurance. As Independent Insurance Agents, we can shop around and find you the best coverage at the best rates to meet your needs. Call today or fill out our quote request to find the auto insurance policy that’s right for you. At Veazey Insurance Agency, we’ve got you covered!