Alabama requires drivers to carry liability insurance. Plenty don’t. And many who do carry only the minimum, which can be used up by a single trip to the emergency room and a few weeks of missed work. That’s where uninsured and underinsured motorist coverage comes in. It’s coverage you buy on your own policy to protect yourself from other people’s lack of coverage, and in a lot of Birmingham crash cases it ends up being the main pot of money.
What the minimum actually covers
Alabama’s required liability limits are $25,000 per injured or killed person, $50,000 for injuries to everyone in one crash and $25,000 for property damage. The Alabama Department of Revenue runs the state’s insurance verification program. If you’re hurt badly enough to need surgery, $25,000 won’t go far. If the at-fault driver has no insurance at all, there may be nothing to collect from them.
UM and UIM, in plain terms
- Uninsured motorist (UM) coverage pays you, up to your policy limit, when the driver who caused the crash has no liability policy. It often applies to hit-and-run crashes too, depending on the policy terms.
- Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance, but not enough to cover your losses. In Alabama, the two are usually sold together as one coverage.
Alabama law at Ala. Code § 32-7-23 requires insurers to offer this coverage with auto policies. You can reject it, but the rejection has to be in writing. If you’re not sure whether you have it, look at your declarations page or ask your agent. Many people are surprised to find they turned it down years ago to save a few dollars a month.
You still have to show the other driver was at fault
UM and UIM claims are made against your own insurance company, but they aren’t automatic. You have to show that the uninsured or underinsured driver was legally responsible for the crash and how much your damages are. That means the same issues that come up in any Alabama crash case, including the state’s contributory negligence rule, can come up in a UM claim. Your own insurer can argue you were partly at fault.
It feels odd to have your own insurance company take the other side. It’s normal in these claims, and it’s worth being as careful in what you tell your own adjuster as you would be with the other driver’s.
Hit-and-run crashes
Birmingham has its share of hit-and-run wrecks, especially at night on roads like Bessemer Road, Center Point Parkway and the interstates. If the other driver drove off, report the crash to police right away and make sure it’s documented. Policies often require prompt reporting for hit-and-run UM claims, and a delay can give the insurer a reason to push back. Look for witnesses and cameras quickly, and write down anything you remember about the car, even a partial plate or a color.
How UIM works with a settlement
Here’s a situation that comes up often. The at-fault driver’s insurer offers its full $25,000 limit. Your injuries are worth more than that. You want to accept the $25,000 and then pursue your UIM coverage for the rest. In Alabama, you usually need to notify your own UIM carrier before you settle with the at-fault driver, because settling without notice can affect your UIM rights. Insurers have a short window to respond and may choose to pay you the settlement amount themselves to keep their right to go after the at-fault driver. The Alabama Supreme Court set out this process in Lowe v. Nationwide Insurance Co. (1988). The mechanics are technical. Get advice before you sign any release with the at-fault driver.
UIM and government vehicles
Claims against Alabama cities and counties are capped at $100,000 per person under Ala. Code § 11-93-2. If you’re hurt by a city vehicle and your damages exceed the cap, UIM coverage may help fill the gap.
Rideshare and work vehicles
If you were hurt in an Uber or Lyft, Alabama requires $1,000,000 in liability coverage while a driver is on a prearranged ride under Ala. Code § 32-7C-2. Our rideshare guide covers the phases. If you were driving for work, workers’ compensation may apply along with your auto coverage, and the two interact in ways worth asking about.
Deadlines for UM claims
UM and UIM claims can have different time limits than a lawsuit against the at-fault driver, and policies often have their own notice requirements. Don’t assume you have two years for everything. Read your policy and give your insurer prompt notice of the crash.
Checking your coverage before you need it
If you’re reading this before a crash, pull out your policy. Look for UM and UIM limits, medical payments coverage, and whether you’ve signed any rejections. Raising UM limits is often one of the cheaper ways to protect your household from a bad wreck caused by someone else.
Help with a UM claim
What the statute treats as uninsured, and how stacking is capped
Ala. Code § 32-7-23 spells out four situations that count as an uninsured motor vehicle, not only the driver with no policy at all. It also includes a vehicle whose bodily injury limits are below the minimum in Section 32-7-6, a vehicle whose insurer becomes insolvent after the policy is issued, and a vehicle whose available liability limits are less than the damages you are legally entitled to recover. That last category is the underinsured driver. The same section limits recovery under any one contract to the primary coverage plus coverage on additional vehicles, but not more than two additional coverages in that contract. A written rejection of the coverage also carries forward to a renewal with the same insurer unless the named insured later asks for the coverage in writing.
Because you’re making a claim against your own insurer, and because the Alabama process has specific notice steps, many people bring in a lawyer for UM and UIM claims. Most injury lawyers handle them on contingency. You can browse Birmingham-area injury attorneys. This guide is general information about Alabama insurance law, not legal advice for your policy or your crash.