What is Birmingham Auto Insurance?

In Birmingham, Alabama auto insurance protects you against financial disaster if your motor vehicle is involved in an accident, is destroyed or stolen. Auto insurance is a binding agreement between you as an individual and the company insuring your car. Car insurance works with you agreeing to pay a monthly or yearly premium to have your car insured and the insurance company then agrees to reimburse your losses as defined in your policy.

Auto insurance usually provides 3 types of coverage to the individual who purchased the policy. They are liability, property and medical coverage. With Birmingham auto insurance the three coverages.
If your car is lost, stolen or damaged then the Insurance company will pay for your loss.

• Liability coverage pays for your legal responsibility to others for bodily injury or property damage.

• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Birmingham auto insurance has six different coverage options associated with their insurance policies. Each coverage offers something different, which gives the consumer the choice of purchasing the best policy for their need.

Many times insurance policies last between 6 months and one year. You have the option of paying monthly or one time for the year. With the rise of the internet, many people are now able to pay their Birmingham motor insurance premiums over the internet or by mail.

Birmingham Car Insurance Basics

Your Birmingham auto policy at times, depending on the insurer, may include six different kinds of coverage’s, as mentioned earlier. Each coverage is priced and offers different insurance options. This enables the customer to have a choice to the coverage that best suite his driving needs.

1. Bodily Injury Liability

This kind of auto insurance coverage will apply to situations where you, a designated driver or a policyholder cause injuries to another driver. This will also cover people covered under the insurance policy if you are driving in another vehicle other than your own.

With bodily injury liability it has been stated that at times you get more than the Alabama state limit. This is due to the fact that if you meet in an accident and is sued because of injury due to negligence, then you wont have to worry about your other assets being touched, as you will be covered with this coverage.

E.g.: Say you are driving in Birmingham, Alabama and you have an accident with another car. If you are at fault, the bodily injury liability insurance will cover the medical costs of the person if they are injured in an accident.

2. Medical Payments or Personal Injury Protection (PIP)

Medical payments or personal injury protection coverage differs from bodily injury liability, in the way that instead of the driver being covered, drivers and passengers of the policy holders car are also covered. This coverage under Birmingham motor vehicle insurance is one of the best. In the event that something happens, PIP can cover many scenarios that can occur in the event of an accident.  PIP can cover medical bills, possible lost wages due to the injured person unable to work and possibly even funeral costs.

E.g.: A group of friends are driving out for a night out on the town. You meet in accident and everyone in the car is injured. Due to the injuries some people are out of work for a few months. PIP would cover the medical expenses of all those injured in the accident, and it will possibly cover the wages of the people who were injured and unable to work.

3. Property Damage Liability

This coverage pays for damage you, the policy holder or someone who you gave permission to drive your car, may cause to someone else's vehicle. The insurance company under the terms of the policy will pay for the damage sustained to the other person’s car. This coverage also covers damage that you may incur to objects with your car such as lamp posts, buildings and many more.

E.g.: Say you are driving your car and you accidentally hit another person’s car. Property damage liability will cover the cost to repair the other persons car.

4. Collision

Collision coverage in Birmingham car insurance will pay for the cost, repair or replacement of the policy holders car due to a collision with another car, object or because it flipped over. No matter who is at fault the car is covered. Collision coverage usually requires the policy holder to pay a deductible when a claim is made.
In this  form of coverage a deductible has  to be made. A deductible is an out of pocket expense that the policy holder had to pay to the insurance company, before they are reimbursed. The higher you set your deductible the lower the cost of your insurance policy. If you are at fault then the insurance company will pay for the cost to repair your car, minus the deductible. If you are not at fault, you will be reimbursed the deductible if the insurance company successfully gets the money from the other party’s insurance company.

E.g.: you are driving and someone crashes into you. Then the insurance company will then pay for the damage to your vehicle.
E.g. (Deductible): Say you are driving and you crash into another car. With collision coverage you set your deductible at $800. If the cost to repair the car is $1500 then you will pay out of pocket $800. The insurance company will then pay the $700.

5. Comprehensive

Comprehensive coverage covers allows the insurance company to repair or replace the policy holders vehicle. Damage caused by theft, fire, flood, falling objects and acts of God. Comprehensive coverage also will reimburse the policy holder if his windshield is cracked or broken. Comprehensive insurance requires the policy holder to pay a deductible and the higher the deductible, the lower your Birmingham auto insurance premium.
E.g.: Your car is parked and a tree branch falls and destroys your car. Under comprehensive coverage the insurance company will reimburse your for the damage to your car, minus the deductible.           

6. Uninsured and Underinsured Motorist Coverage

This coverage under Birmingham auto insurance will usually reimburse you, the policy holder or someone who you give permission to drive your car is hit by someone who is hit by a car that has no insurance or is underinsured. No insurance usually comes into play when the other driver has no insurance, or if you are hit by a hit and run driver. Underinsured coverage is applied when the driver who is at fault has insufficient insurance to cover the damage to your car.
E.g.: If you are driving in your motor vehicle and you are then hit by another vehicle that has no insurance, or they commit a hit and run. In this case the insurance company will pay the