Understanding How Car Accident Compensation Works In Alabama

No. Alabama has what’s known as an at-fault car insurance system. This is very important because this system determines who’s legally responsible for financially compensating anyone injured in a motor vehicle accident caused by someone else.

Because Alabama has a fault-based insurance system, the at-fault driver’s insurance company is generally responsible for paying injury victims the money they deserve for all their accident-related related expenses.

Alabama is also a contributory negligence state. That means if you are even partially at fault for the accident, you can’t recover compensation at all. In many other states, you can still claim a reduced percentage of compensation for your injuries, but in Alabama, with very few exceptions, it’s all or nothing. That’s one of the reasons it’s so important to have an experienced attorney.

What type of car insurance is required in Alabama?

Alabama requires all drivers licensed in the state to have a minimum amount of car insurance. The minimum car insurance requirements in Alabama include:

• $25,000 per accident for property damage 
• $25,000 per person for bodily injury
• $50,000 per accident for bodily injury

This might seem like a lot of money. But in many cases, serious car accident claims add up to a lot more money. That’s why it’s important for anyone injured in a motor vehicle accident in Alabama to talk to a lawyer to learn more about their legal options right away.

What optional car insurance is available in Alabama?

Along with the standard minimum car insurance required in Alabama, drivers can choose to get additional car insurance coverage, including:

• Collision coverage, which pays for vehicle repair after an accident, regardless of fault. Collision is optional under Alabama law but it’s usually required by the lienholder if your vehicle is financed.
• Comprehensive insurance coverage, which covers non-collision vehicle damage such as fire, vandalism, theft, or natural disasters. Again, this is usually required for financed vehicles.
• Medical payment insurance (MedPay), which helps pay for medical bills due to injuries sustained by the policyholder, other named drivers, and passengers in a car accident, regardless of fault.
• Uninsured motorist insurance coverage, which stands in for the other driver’s insurance if you are hit by an uninsured driver. Uninsured motorist coverage may also apply to hit-and-run accidents where the at-fault driver is never found.
• Underinsured motorist insurance, which covers accident expenses in the event of an accident caused by an underinsured driver – that is, a driver who has some insurance but not enough to cover all your damages.
• Roadside assistance insurance, which pays for roadside expenses sustained immediately after an accident, such as towing costs, flat tire repairs and car battery replacement costs.

Soon after an Alabama car accident, the at-fault driver’s insurance company may make a settlement offer to pay for your accident-related expenses. You might be tempted to accept such a payment. But it’s important to understand how settlement offers work.

A settlement offer is a one-time payment to resolve your case once and for all. If you agree to accept a settlement offer, that’s it. Your case is settled. You cannot ask for more money in the future, even if your accident expenses increase dramatically. That’s why it’s important to carefully consider any settlement offer – and review it with your attorney – before agreeing to accept it.

How much is my Alabama car accident claim worth?

There’s no simple answer to this question. Depending on the circumstances, similar accidents might be worth very different amounts – whether it’s thousands of dollars to significantly more. That’s why it’s important to talk with an experienced lawyer who can help you better understand how much money your accident claim could be worth.

Who decides how much my car accident is worth in Alabama?

Insurance companies for everyone involved – you, the other driver and anyone else injured in the accident – often have the most to say about how much money you and everyone else should receive for the accident. But they don’t have to be the only ones involved in these important conversations. You should be involved as well. And one of the best ways to do that is by having an experienced attorney on your side who’s at the negotiating table and part of these debates.

Again, there’s no simple answer to this question because it depends on the circumstances of the accident and the effects on your life. But any calculations used to determine the value of your accident claim should take into account all past, present and future anticipated costs related to your accident. If you sustained a serious injury that requires long-term medical care in the future, your car accident settlement should take into account such future anticipated medical expenses.

What can I be compensated for?

As explained above, you should be financially compensated for all accident-related expenses due to your Alabama car accident. What you might not realize is just how many expenses this might include:

• Medical care to treat your accident-related injury.
• Ongoing medical care for long-term health issues due to the accident.
• Repairing or buying a new vehicle, especially if your car is deemed a total loss.
• Replacement income if you cannot work while you’re recovering from your car accident injury.
• Lost future income if you cannot return to work or need to work in a reduced capacity due to a permanent disability.

Can I ask for more money for my car crash claim?

The short answer? Yes. You have the right to request more money for your accident, especially if the at-fault driver’s insurance company made a lowball settlement offer. If you did not agree to accept their offer, you have every right to ask for more money. But doing so successfully can be difficult. That’s why many Alabama injury victims hire a lawyer to help them negotiate a better car accident settlement offer.

Yes. And often, this is the best way to get the money you rightfully deserve for your accident-related expense. This is especially true if the at-fault driver’s insurance company makes a lowball settlement offer, refuses to negotiate or denies your injury claim.

But it’s important to understand the urgency of your legal matter. In Alabama, you only have two years to file a car accident lawsuit. This deadline is known as the statute of limitations and can be found in the state’s laws, Alabama Code §6-2-38. Two years might seem like a long time. But the longer you wait, the harder it often becomes to find the evidence you need to build a strong legal case.

Can I get money for pain and suffering for a car accident in Alabama?

Yes. However, it’s important to understand that car accident compensation in Alabama is classified two different ways – economic damages and non-economic damages. Economic damages are financial costs that have a specific dollar amount. For example, the cost of repairing your car or how much money you lost due to not being able to work after your accident are economic damages. Non-economic damages don’t refer to a specific financial loss. Rather, they’re something that doesn’t have a specific price tag. And the most common example of non-economic damages is money for pain and suffering due to a car accident.

In addition, it’s important to understand that Alabama does not place a cap on non-economic damages. That means that there’s no limit to how much money car accident injury victims receive for pain and suffering in Alabama. There’s also no specific formula. It depends on what your attorney can advocate for in negotiations and, if necessary, at trial.

What options are available if the other driver doesn’t have car insurance?

Depending on the circumstances of your accident and what type of car insurance you have, there may be several available options. In particular, if you have uninsured and underinsured motorist protection (UM/UIM), you should be able to file an accident claim with your own insurance provider.

However, don’t be surprised if your insurance company makes it difficult for you to get the money you rightfully deserve if you file a UM/UIM claim. That’s why it’s important to fully understand your legal rights and talk to an attorney as soon as possible after your Alabama car accident.

Many car accident claims and lawsuits in Alabama turn out to be complicated legal cases. This is because there’s often a lot of money at stake. Insurance companies know this and they will often do everything they can to pay injury victims as little as possible or nothing at all. This is why it’s critical that injury victims have an experienced Alabama car accident attorney on their side, working with them every step of the way.

When you have a lawyer who understands how Alabama’s legal system works, you can make sure that your injury claim or lawsuit receives the attention it rightfully deserves. Your lawyer can thoroughly investigate your accident, gather evidence in support of your claim and estimate how much money you should receive based on the facts.

You only have one opportunity to obtain the money you deserve for a lifetime’s worth of accident expenses. Having an attorney on your side can make sure you give your legal case the best chance for success.