car cheapest insurance

This cheap insurance is called a basic liability policy. Every state has one and every state sets the minimum payouts that such insurance must make. In Alabama the cheapest insurance policy you can legally buy is called a 20/40/10 liability policy.

What this means is that the policy will pay a maximum of $20,000 to pay the medical bills of any one individual person who is hurt in an accident with your vehicle. The insurance will pay a maximum of $40,000 to pay the medical bills of everyone in the other vehicle who is hurt. Plus the insurance will pay a maximum of $10,000 in property damage - usually the repair of the other person's car.

If you are familiar with medical costs or with the high cost of car repairs you will understand why this cheap insurance is considered a high risk type of insurance. It doesn't take a very big accident for someone to need considerably more than $20,000 to pay their medical bills, and it doesn't take much of an accident to cause far more than $10,000 in damage to someone's vehicle.