Question 27

The minimum liability limits for an auto policy in Alabama are 25/50/25.

In Alabama, the minimum liability limits for an auto policy are set at 25/50/25, which means $25,000 for injury or death of one person, $50,000 for injury or death of two or more people, and $25,000 for property damage.

A) 25/50/25

Option A is correct as it accurately reflects the minimum liability requirements for auto insurance in Alabama. This limit ensures that drivers have a basic level of financial protection in the event of an accident, addressing both bodily injury and property damage.

B) 50/100/50

Option B is incorrect because it exceeds the minimum liability limits established by Alabama law. While higher limits can provide additional coverage, they are not required by state regulations.

C) 35/70/35

Option C is incorrect as it does not align with the statutory minimum liability limits in Alabama. The specified limits are lower than what is mandated, which could result in legal penalties for non-compliance.

D) There are no minimum auto liability limits in Alabama

Option D is also incorrect. Alabama does have specific minimum liability limits for auto insurance, and stating that there are none contradicts the legal requirements established by the state.

Conclusion

The correct answer, 25/50/25, is the legally mandated minimum for auto liability insurance in Alabama, ensuring that drivers are adequately covered in case of accidents. All other options either misstate the requirements or suggest that no limits exist, which is not accurate according to Alabama law.