You understand the importance of having automobile insurance. It protects your assets and covers damages if you’re in an accident with another vehicle.
But what happens if the other driver was at fault and they don’t have insurance? Are you responsible for all of your expenses?
Uninsured motorist coverage
Alabama requires all motorists to carry at least the minimum amount of liability insurance coverage:
- $25,000 per person for bodily injury or death
- $50,000 per accident (if there are multiple people) for bodily injury or death
- $25,000 for property damage
However, approximately 14% of the drivers on Alabama’s roads take the risk of driving while uninsured.
Fortunately, Alabama requires all insurance companies to offer uninsured motorist coverage as part of their auto insurance policies. These are designed to protect you if you are in an accident where the other driver was at fault, but either doesn’t have insurance or doesn’t have enough coverage. Even though the insurance coverage must be offered, you are not mandated to accept it.
But in a situation described above, it could be a financial lifesaver. Depending on the accident’s severity, you can incur excessive medical bills and car repairs. You may be without income if you need an extended time off from work. Expenses can quickly add up, depleting your savings and putting you under great economic strain.
If you are in an accident with an insured driver, your first step is getting to a safe area and calling the police. A police report is documented evidence if you need to pursue legal action. You must collect as much information as possible from the other driver, photos of the accident, damage and witness statements. You will also need to inform your insurance company
Do not accept any settlement offers from the other driver. You likely don’t know the extent of your injuries or damage to your vehicle. Discuss your situation with someone who can help you review your options and determine the best way to be compensated