Owning and operating a car also means insuring that same car, as the state mandates, but many people may only view insurance as something that is there just in case an accident occurs, without truly comprehending what kind of protection it offers and for whom it is designed. Don’t wait until after a loss has occurred to find out what you may not know about Alabama auto insurance.
Who Does Insurance Protect?
This depends on what part of the insurance you are referencing. One mandatory aspect of your Alabama auto insurance is Liability coverage, which is designed for the protection of others for injuries and damages that occur as a direct result of your negligence. For example, if you run a red light in your car and hit another car that results in injury to the other driver, that coverage is for the protection of the other car and driver for existing damages/costs.
If you have Collision/Comprehensive coverage on your Alabama auto policy, that coverage is designed for the protection of your vehicle regardless of fault. Collision coverage would pay for the repairs/replacement, subject to any deductible, for the damages to your car in the above accident, but if you accidentally hit a deer or your car is stolen or vandalized, Comprehensive coverage would apply, less any applicable deductible. This coverage may or may not be mandatory, depending on whether you outright own the vehicle. Matters of this nature can be discussed with your local Alabama independent insurance agent.
Med Pay is another available coverage afforded under a typical Alabama auto insurance policy and is designed for the protection of the driver and anyone who is a passenger in your car who is injured as a result of a covered loss, regardless of fault, but only up to the specified limits on the policy.
Loaning the Car Means Loaning the Insurance
Your friend asks to borrow your car for the day while hers is in the shop and while driving your car, rear ends another car. The police officer cites your friend as being negligent due to distracted driving, so whose insurance will pay for the damages to the other car and any injuries to the other driver?
The answer to that is YOUR insurance will pay. Insurance typically follows the car and because you gave your friend permission to drive your car, you basically not only loaned your car, but also the insurance that goes with your car. However, if someone operates your vehicle without your permission, coverage may be denied. Situations regarding permissive use can get tricky and any situation that arises relative to this should be discussed with your local Alabama independent insurance agent.
Your Rates Are Relative to Your Record
Your insurance carrier can and does research your driving record and uses that as a basis for your insurance rate. The insurance company can access your driving history through reports such as MVR (Motor Vehicle Report) and CLUE (Comprehensive Loss Underwriting Exchange), which exhibit your driving history and any tickets you have received in the last five years. The worse your driving record is, the higher your auto insurance rate will be.
Contact Your Alabama Independent Insurance Agent Today
Burkett & Associates Insurance Agency understands that auto insurance can be complex; however it doesn’t have to be with our assistance. Our expert staff is here to answer any questions you may have regarding your specific auto insurance policy or the coverage it provides. Call us TODAY at 256-704-7400 for all your Alabama insurance needs.