The Alabama Senate has voted 33-0 to raise the minimum auto liability insurance requirements for resident motorists. The current law requires motorists to carry $20,000 in coverage for the injury or death of one person, $40,000 for multiple injuries or deaths, and $10,000 in coverage for property damage.
The new bill, which still needs to be passed by the state House of Representatives and signed by the Governor, would require $25,000 in coverage for the injury or death of one person, $50,000 for multiple injuries or deaths, and $25,000 for property damage. The bill would also raise the minimum amounts for uninsured motorist coverage. These raises in coverage minimums seek to address the rising cost of medical care and automobiles, which many felt were not covered adequately under the old bill. Raising the coverage minimums would also result in increased premiums for those buying the minimum amount of both auto liability insurance and uninsured motorist coverage.
The proposed bill, if passed into law, would apply in 90 days to new insurance and 180 days to renewals.