What I am going to do is give you a easy to understand translation of some of the terms used by the Automobile Insurance industry.
Bodily Injury Liability
This is not the vehicle’s body they are talking about. It is the human bodies injuried because of your carelessness and this coverage covers the medical costs. The insurance company’s obligation is limited to what you purchased. The minimum in Alabama is $25,000 per person and $50,000 per accident. The rest is of the medical costs will come out your pocket. You will find some short handed references to the liability insuance portion of your coverate written like this 25/50, 50/100 etc.
Property Damage Liability
This is like bodily injuray liability except it covers the damage to property. It is the same as bodily insurance covereage and limited by the policy you purchased. The limit minimum for property damage in Alabama is $25,000. Any shortages in cost of property damages over the insurance limits will come out of your own pocket. Replacing a new vehicle can easily cost more than the minimum and the cost of having beter coverage is surprisingly inexpensive. It is better to be prepared. Review your current coverage and see if your coverage is more than adequate.
This is where your insurance company pays for the damage done to your vehicle. Deductibles are commonly found here.
Medical Payments Coverage
Your auto insurance company will pay for a reasonable medical expenses of anyone in your vehicle who is injuried because of the accident. On this part of the insurance coverage, it doesn’t matter who is at fault. You and most members of your household do not even have to be i the car for the coverage to apply either. Please chack with yourpolicy for the details on this. For example, let’s say that you were struck by a car while walking in the parking lot. The company’s obigation is still limited to the amount of coverage that you purchased. Medical payments coverage in Alabma can be as low as $500 because coverage of this kind is not mandatory.
Not many states still have uninsured motorists but Alabama has driver’s on its roads that have no coverage. You insurance has got you covered. If a driver of another cehicle injuries you and/or you8r car’s occipants and theyhave no incurance tocover your claims for the injuries, this part of your insurance policy covers you. As I have stated before, your coverage will only be to the coverage limits. Like the personal injury protection, the uninsured purchase, this also is not limited to just the automobile occupants.