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What Should I Know About Uninsured Motorist/Underinsured Motorist Coverage?

June 22, 2020

All Alabama drivers should carry uninsured motorist/underinsured motorist (UM/UIM) insurance. This type of coverage protects you in the event that you are injured in a car wreck caused by someone who either has no insurance at all or insufficient coverage to pay for all of your damages. It is important to have sufficient UM/UIM insurance because without it, you may be stuck with paying for the costs of your accident, even though it was not your fault.

What is the Law on Auto Liability Insurance?

Nearly all states, including Alabama, require drivers to purchase auto liability insurance in order to drive. Such insurance will pay for an injured party’s medical expenses, lost wages, vehicle damage, and other expenses if the policyholder causes an accident. However, not all drivers comply with state law; approximately 13 percent of drivers in the U.S. are uninsured, according to the Insurance Information Institute (III).

Does it Matter Who is Responsible for the Accident?

In Alabama, there are minimum liability limits for bodily injury and property damage. The minimum liability limits include $50,000 in coverage for two or more injured persons, $25,000 for one injured individual, and $25,000 in coverage for property damage.

Alabama follows a fault auto insurance system, which means that the person who is at fault for the accident is responsible for paying the injured party’s losses. Typically, the at-fault party’s insurance company will cover the losses up to the policy’s limits. Therefore, if you cause a car accident, your liability insurance protects the other party; it will cover expenses associated with the other party’s injuries and property damage up to the allowable limit.

If the other driver is at fault, then his or her insurance should cover those losses. However, when the other driver does not have insurance or not enough insurance, your UM/UIM coverage would help cover the rest of the costs. For this reason, it is important to have UM/UIM coverage.

What is the Minimum UM/UIM Coverage in Alabama?

The statutory minimum for UM/UIM coverage in Alabama is $25,000, which often does not cover all the expenses arising from the accident. If you suffer serious injuries that require you to take time off of work or stay in a hospital, your bills can quickly add up.

If the driver who caused the accident does not have insurance or has inadequate insurance to cover all your expenses and you do not have enough UM/UIM coverage, you could be left paying for the remainder. Ensure that you have enough UM/UIM coverage. If you are uncertain, ask your insurance company. It is advisable to carry $200,000 in UM/UIM coverage or the maximum that your insurance carrier will allow you to purchase.

How Can a Lawyer Help?

After a car accident, it is beneficial to contact an experienced lawyer immediately. Lawyers have the expertise to properly handle insurance companies. Additionally, a lawyer will help you determine who is at fault for the accident and will help you obtain the compensation that is owed to you.

Huntsville Car Accident Lawyers at Hodges Trial Lawyers, P.C. Represent Clients Injured by Uninsured/Underinsured Motorists

If you were injured in an accident that was caused by an uninsured or underinsured motorist, contact one of our Huntsville car accident lawyers at Hodges Trial Lawyers, P.C. We will fight to ensure that your rights are protected and that you receive the maximum compensation to which you are entitled. For a free consultation, contact us online or call us at 256-539-3110. Located in Huntsville and Athens, Alabama, our skilled attorneys serve clients throughout North Alabama, including Madison County, Limestone County, Marshall County, Jackson County, Morgan County, and Lauderdale County.

A Message to Our Clients About Coronavirus COVID-19:
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A Message to Our Clients About Coronavirus COVID-19

At Hodges Trial Lawyers, P.C. we view the safety and well-being of our clients, staff and business partners as our highest priority.

The situation regarding the COVID-19 virus is continually changing, and we are following all recommended guidelines to stay healthy.

Currently, our law firm is remaining open and working to serve your legal needs. We are, however, limiting in person meetings to comply with social distancing recommendations.

We are happy to arrange for phone or video consultations should you have any concerns about keeping your scheduled appointments with us. We are also able to exchange documents via secure drives or email. We will continue to diligently represent our clients, even if we have to do so remotely.

Should you have any concerns, please contact us online or call/text us at 256-539-3110.

Thank you and stay safe.