Definition: Insurance Code 989, also known as an Auto Liability Insurance Policy (ALIP) in some states, is a type of policy that provides protection to drivers from claims related to accidents caused by their own vehicles, such as collision damage to or bodily injury to passengers and property, including insurance. It typically covers certain types of physical harm like medical expenses and lost wages if the accident causes serious injuries. The Insurance Code 989 is a common acronym used for this specific policy that was designed specifically with the aim of reducing costs for auto insurers by requiring vehicles to be insured at a minimum level. This type of insurance generally applies only to certain types of vehicles, such as trucks and buses, and cannot cover commercial or commercial vehicle accidents. The purpose of this code is not to discourage people from using their own cars but rather to ensure that drivers are covered in the event of an accident by providing them with coverage for the damages they incur.
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