What Does Auto Liability Insurance Actually Cover in Alabama?

If you are driving in Alabama, you are required by law to carry auto liability insurance. But what does that actually do for you? More importantly, what does it not do? At Gorowsky Insurance, one of the most common misconceptions we see is this: people think liability insurance protects them. In reality, it primarily protects other people from you.

What Liability Insurance Actually Covers

Auto liability insurance pays for the losses of other people when you are at fault in an accident. It covers two categories of damages:

• Bodily injury liability: Pays for the other party's medical bills, lost wages, pain and suffering, and legal fees if they sue you after an accident you caused
• Property damage liability: Pays to repair or replace the other driver's vehicle or other property you damaged, such as a fence or building

Liability insurance does not pay for your own medical bills, your own vehicle repairs, or any losses to your passengers. It only flows outward to people you injured or property you damaged.

Alabama's Minimum Limits and Why They Are Often Not Enough

Alabama requires every driver to carry at least 25/50/25 coverage: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage. These limits were established years ago and have not kept pace with the actual cost of medical care and vehicle repairs. A serious accident in Mobile or Baldwin County today can easily generate $75,000 or more in medical bills alone. At minimum limits, everything above $25,000 per person comes out of your pocket.

Uninsured and Underinsured Motorist Coverage

Here is a gap many Alabama drivers do not know they have. Liability insurance only pays when you are at fault. If someone else causes an accident and they carry no insurance or minimum limits, their liability coverage may not come close to covering your losses. Uninsured motorist and underinsured motorist coverage steps in to fill that gap using your own policy. Given that Alabama has one of the higher rates of uninsured drivers in the country, this coverage is especially important for Baldwin and Mobile County drivers.

What Protects You Personally

The coverages that actually protect you and your vehicle are collision, comprehensive, and medical payments coverage. These are separate from liability and are not required by Alabama law, but they are what cover your car repairs, your medical bills, and your losses regardless of who caused the accident. Glen Gorowsky reviews each client's full coverage picture to make sure there are no gaps that would leave them personally exposed after an accident.