Getting involved in a car accident anywhere isn’t easy. But Alabama’s car accident laws are some of the most strict in the country. Thankfully, nearly all drivers in Alabama are required to carry car insurance. This can help to cover you in the event of a car accident.
But this doesn’t do much to explain how car insurance works or what happens with the insurance company after you file a claim. For these answers and more about Alabama car insurance laws, continue reading.
Alabama Car Insurance Requirements
In order to operate a vehicle in Alabama, you must be sure the vehicle is insured. Alabama requires drivers to carry the following amounts and types of car insurance coverage:
- $25,000 bodily injury liability coverage per person
- $50,000 bodily injury liability coverage per accident
- $25,000 property damage liability coverage per accident
Motorists aren’t needed to carry uninsured or underinsured motorist bodily injury liability coverage or property damage liability coverage. But doing so could help to cover you in the event you’re involved in an accident with an under or uninsured motorist.
You might also want to consider adding some other types of insurance coverage. Some of these might include comprehensive, collision, gap insurance, and rental car coverage, to name a few. Since Alabama is a fault state for car accidents and insurance, making sure to carry high amounts of coverage can only protect you should you be accused of being at fault for the accident.
What Happens After a Car Accident in Alabama
After you have been involved in a car accident in Alabama, you’ll need to change insurance information with the other involved motorist. As previously mentioned, Alabama is a fault state. This means when a car accident happens, the victim files a claim with the at-fault party’s auto insurer.
If you purchased personal injury protection coverage (PIP) on your auto insurance policy, then you may be able to file a claim with your own insurer. However, doing so could dramatically increase your insurance premiums. It may only be in your best interest to go this route if the liable party is uninsured.
Once you file a claim with the insurance company, they will probably ask you to make a statement. Now, you should guide them to your lawyer. Speaking with the insurance company could have a detrimental impact on your injury settlement. This is because the insurer will be looking for chances to reduce the amount they have to pay you.
Paying out on your settlement is going to cost them money. So the less they have to pay you, the better for them. Your lawyer can handle negotiations with the insurer on your behalf to protect you from being taken advantage of.
Car Insurer Obligations to Claimants
Your legal counselor will be able to negotiate with the insurance company for you. But these negotiations can only go so far. Insurance companies aren’t obligated to pay out the full amount of your damages. They are obligated to pay the highest amount of their policyholder’s policy.
Let’s say you suffered $200,000 worth of medical expenses due to your car accident injuries. But the liable party only has the state-required amount of 25/50/25. This means the insurance company will only have to pay a maximum of $50,000 for your accident.
The rest you will need to seek through a civil claim against the culpable party. Or, you have the option of filing a claim with your own insurer— but this will only be beneficial if you carry substantial PIP coverage.
