Losing a loved one in a car accident is devastating. In Alabama, wrongful death claims allow surviving family members to seek damages from those responsible. Insurance companies play a major role in these claims, but their goal is to minimize payouts. Understanding how they handle wrongful death claims can help you prepare for the process.
The role of insurance in wrongful death claims
After a fatal car accident, the at-fault driver’s insurance company is usually responsible for covering damages. Alabama follows a fault-based system, meaning the insurer of the driver who caused the crash must compensate the victim’s family. However, insurers often try to reduce their liability by disputing fault, minimizing damages, or offering quick settlements that do not reflect the full extent of the loss.
Challenges with Alabama’s wrongful death laws
Alabama’s wrongful death laws are unique. Unlike many states, which allow compensation for medical bills, lost income, and pain and suffering, Alabama limits damages to punitive damages only. This means the focus is on punishing the at-fault party rather than compensating the family for financial losses. Because of this, insurance companies often argue that their policy limits do not cover punitive damages, making the claims process more difficult.
Tactics insurance companies use to limit payouts
Insurance adjusters may try to shift blame to the deceased to avoid paying damages. Alabama follows a contributory negligence rule, which means if the deceased is found even slightly at fault, the family cannot recover damages.
Insurers may also delay processing claims, hoping families will accept lower settlements due to financial strain. Understanding these tactics can help prevent unfair claim denials. If an insurance company denies or undervalues a claim, families may need to take legal action to ensure accountability.
Understanding your rights in an insurance claim
Knowing Alabama law and how insurers operate can help families pursue fair compensation for wrongful death caused by a car accident.