Minimum required coverage

While in an accident if the insured had been partially or fully at fault then this liability coverage (20/40/10) helps to pay for the people who had suffered bodily injuries through that event. In Alabama the minimum liability limits are $20,000 for one person injured and $40,000 for all those who got injured. The third coverage ($10,000) that is the property damage coverage will pay for the property damage to others. The serious injuries would certainly be more than the state minimum liability limits (e.g. 20/40/10). Hence it's always better to buy a higher limit of bodily injury liability insurance coverage rather than buying a fixed one from the state in order to safeguard the assets.

For some cases the state minimum limit may not be adequate to pay for damage to an expensive vehicle or for other property damages. It is therefore better to buy a higher coverage for avoiding the asset diminution.