Alabama does not require you to buy uninsured motorist coverage – but perhaps it should.
Alabama, along with its neighbors Mississippi, Tennessee and Florida, ranks among the states with the most uninsured motorists, according to the Insurance Research Council. If you don't have good health insurance and are hit by an uninsured driver, you are stuck paying your own medical bills.
With so many uninsured drivers all around you, we recommend you consider uninsured motorist bodily injury coverage. Alabama law requires that your insurance company offers you the coverage and that you reject it in writing if you don't want it.
To drive legally in Alabama, motorists need to carry $25,000 of bodily injury liability per person (up to $50,000 per accident) and property damage liability of $25,000.
If you don't buy insurance and get caught, you can be fined up to $500, have your registration suspended and pay up to $200 to reinstate it. The penalties get worse if you are caught again.
Alabama also ranks among Weather.com's top 10 states for tornados, and its coast is hit once every 7.5 years by a hurricane and once about every 1.5 by a tropical storm. If you want your vehicle covered for damage from hurricanes and tornadoes, such as winds blowing an object onto your car, hail damage or flooding, then you will want to carry comprehensive coverage on your vehicle.
Total loss: Alabama law says that damage greater than 75 percent of a car's value means it can be considered a total loss. At that point, the insurer can total out the vehicle and instead of repairing it pay you its fair market value.
Grace period: The Alabama Department of Insurance notes that to cancel your Alabama auto insurance policy a company must give you a 10-day notice for nonpayment of premium and 20-day notice for cancellation for any other reason.