Alabama Governor to Sign Bill for Increased Auto Insurance Coverage
The Alabama state legislature approved bill on May 8th that will require that Alabama drivers carry an increased level of car insurance.
The increased minimum levels for mandatory auto liability insurance will be: $25,000 for a death or injury, $50,000 for multiple injuries or deaths, and $25,000 for property damage. These limits were raised from the previous rates of: $20,000 for an injury or death, $40,000 for multiple injuries or deaths, and $10,000 for property damage.
The minimum mandatory auto liability insurance rates have not been changed in 25 years. The new bill is a result of compromises made by both plaintiff lawyers and insurance companies.
The new auto liability insurance limits will take effect in three months for new auto insurance policies and in six months for renewal auto insurance policies.
It is estimated that only 10 percent of Alabama’s population buy the minimum mandatory level of auto insurance. They will be required to pay an additional $20 to $30 per year because of the bill.
Car wreck attorneys are working on cases in which serious injury has resulted from negligent drivers.