Don’t wait until you have a wreck to learn if you have the right insurance!

We hear it all the time, “I have full coverage!” But do you know what that means?  Unfortunately, many people think they have proper insurance, only to learn when they have a wreck, their coverage is inadequate. 

Almost every week, we meet with people that are injured in a car crash who are shocked to find out that the person who caused the wreck does not have insurance. Yes, Alabama law requires every driver to carry liability insurance, which covers the other party in the event of the wreck. Unfortunately, many of these policies are purchased on a monthly payment plan, and if they are late making the payment, there is no coverage. Other times, we see people who are injured a wreck, but the other driver wasn’t listed on the insurance policy even though they routinely drive that vehicle. In such instances, the insurance coverage could be void.  Some policies have exclusions for people with no drivers license. Other states, such as Florida, have vastly different laws, so many drivers from Florida might not have any coverage at all.  With our proximity to Florida, we frequently meet drivers on the road who may not have any protection should they cause a wreck.

What car insurance does Alabama law require?

Alabama law requires all drivers to carry liability insurance coverage of at least $25,000.00 per person or $50,000.00 per accident for bodily injury protection, and another $25,000.00 in property damage liability. Ala Code §32-7-6. When an uninsured motorist causes a wreck, what can you do?  You can sue them, of course, but if they can’t afford their premiums, do they have anything you can recover?  You can fill out a form SR-31 which is available at www.alea.gov and send in to the state, and this should have the other drivers license suspended, but again, this may not result in money to pay your damages.  You can protect yourself by purchasing uninsured motorist coverage.

Alabama Code §32-7-23 requires that any auto policy delivered in the state must include a minimum of $25,000.00 per person in uninsured motorist coverage unless the named insured on the policy specifically rejects this coverage in writing. In recent years, we have seen more and more policies rejecting this coverage.  Usually, the person rejecting the coverage doesn’t realize what they have done until it is too late.  We frequently hear that the agent just said, “sign here and here” and they do without realizing what they were doing. We strongly recommend that you carry uninsured motorist protection, as this coverage protects you and those in your family or vehicle in the event of an injury from a motor vehicle accident.

Uninsured motorist coverage

Uninsured motorist coverage also is under-insured motorist coverage.  We frequently see situations where a person is hurt badly, and while the other driver has coverage, they don’t have enough to cover the damages.  In this situation, you can recover the excess damages from your own uninsured motorist coverage.  Uninsured motorist coverage “stacks” or multiplies by the number of vehicles. For example, if you owned three vehicles that were insured with $25,000.00 in uninsured motorist coverage, you would have $75,000.00 in benefits available on your policy in addition to the coverage the other party had.

Sometimes, we don’t know who the other driver is. For example, earlier today, we received a call from a gentleman who was sideswiped by a big truck that left the scene and could not be identified. In this case, your uninsured motorist coverage is available to cover damages caused by the unidentified or “phantom” driver.

In summary, we strongly urge everyone in Alabama to carry uninsured motorist protection. Don’t wait until you are injured in a crash to learn that your coverage is inadequate.

Find out more about how auto insurance affects personal injury cases in Alabama.