In April 2024, the Russ Richardson Agency brought you a blog titled "A Brief Definition of Primary Auto Insurance Types," which explained the types of auto coverage available in Alabama. Today, we’ll expand on that topic to explore the range of coverage and how to increase coverage of a specific type, so you have the auto insurance you need while traversing Birmingham, AL, and the surrounding communities.
Alabama Auto Liability Maximums
Most drivers in the state of Alabama know they need an auto policy of at least $25,000 of bodily injury liability per person and $50,000 per accident, plus $25,000 of property damage liability. You’re not stuck with minimum coverage, though! You can opt for the maximum amount of coverage or anywhere in between. Bodily injury liability per person and property damage liability carry a coverage maximum of $100,000, while you can have up to $300,000 in bodily injury coverage per accident.
Protecting Your Vehicle
When you add collision and comprehensive coverage, you pick a deductible and a coverage limit. For lower premiums, choose a higher deductible. If you want to pay very little out of pocket if your vehicle gets damaged or stolen, choose a lower deductible and a higher premium.
Collision and comprehensive coverages don’t use the same type of cap as liability insurance. However, they both use the vehicle’s value to make repairs or provide funds for a replacement vehicle if it gets totaled. When buying coverage, choose actual cash value (ACV) or replacement cost value (RCV) to determine the cap.
- Actual cash value: uses depreciation and wear and tear to obtain the value of your vehicle.
- Replacement cost value: uses the cost of replacing your vehicle with a new one or repairing it to its new state.
Some insurance companies offer stated value coverage, typically for unique vehicles, such as imported supercars. To obtain this coverage, you provide documentation of the vehicle’s value and specifically request stated value coverage.
Contact Russ Richardson Agency Today
Call or email Russ Richardson Agency today for an auto insurance review. Don’t pull out of your Birmingham, AL, driveway without the coverage you need.
