After an accident, you should ask the other driver for their contact information and their insurance policy. Filing a claim against their insurance will help you get the money you need to cover any accident injuries. But what happens when the other driver doesn’t have insurance? Or, they have insurance, but it isn’t enough to cover your injuries?
According to the Insurance Information Institute, in 2023, roughly 16.8% of Alabama drivers had no auto insurance. Fortunately, Alabama allows drivers to address these situations with uninsured motorist (UM) or underinsured motorist (UIM) coverage. When the other driver’s insurance is unable to cover your medical bills and other accident-related costs, UM and UIM can fill the gap.
This article explains what UM and UIM coverages are and how to get them. It also discusses what they can cover and how an Alabama accident attorney can help.
Uninsured vs. Underinsured Coverage in Alabama
Although people often combine these terms or use them interchangeably, uninsured motorist coverage and underinsured motorist coverage are not exactly the same.
Uninsured Motorist Coverage (UM)
UM coverage applies when the at-fault driver:
- Has no insurance at all OR
- Leaves the scene of the accident and cannot be identified (e.g., a hit-and-run accident).
For example, another driver runs a red light and crashes into your car. Afterward, the driver tells you that they don’t have insurance. This is the situation that UM coverage addresses.
Underinsured Motorist Coverage (UIM)
UIM coverage applies when the other driver has insurance, but their policy limits are too low to cover your accident bills.
This is a common situation. Like all states, Alabama requires all drivers to carry minimum insurance amounts. The current amounts in Alabama are:
- $25,000 for bodily injury to one person;
- $50,000 total for bodily injury per accident; and
- $25,000 for property damage.
These limits are often written as “25/50/25.”
At first, $25,000 may seem like a lot. Unfortunately, when compared to the cost of treatment after a car accident, it isn’t. The National Security Council reports that the average cost of a car accident involving an obvious injury is $45,000. A broken arm or other injuries may require an emergency room visit, an ambulance ride, several diagnostic images (e.g., X-rays, CT scans, or MRIs), or even surgery. These treatments can easily cost more than $25,000. If your injuries cause you to miss work, the total can rise even higher.
Here’s how UIM works: Assume that you’re in an accident and your injuries cost $55,000. The other driver has the minimum required coverage, so their policy limit is $25,000. You can use your UIM policy to cover the $30,000 difference between their policy and your accident costs.
How to Get UM/UIM Coverage in Alabama
Getting UM or UIM coverage is fairly simple. In fact, you may already have it.
Under Alabama law, when a driver buys a new policy, the insurance company must offer them the opportunity to buy UM and UIM coverage. Neither UM nor UIM is mandatory, so drivers can decline them. However, the company needs to get a written refusal. So, if you don’t remember rejecting these coverages, they may already be part of your policy.
How UM and UIM Coverages Work in Alabama
In a typical accident, the injured person files a claim against the other driver’s policy. UM and UIM are different. Both UM and UIM are part of your insurance policy. So, you’ll file a claim against your own insurance coverage.
Most people understand that it’s not a good idea to talk to the other driver’s insurance company. However, in a UM or UIM situation, your insurer will be the one paying the claim. As such, even if you’ve been with them for years, they will do their best to deny your claim. So, you’ll need to be careful about what you say to your insurance company during the UM/UIM process.
What UM /UIM Coverage Can Pay for After an Alabama Car Accident
UM and UIM coverage can address the same types of losses that the other driver’s policy would have paid for after an accident. While each policy has its own fine print, generally, UM or UIM coverage can cover expenses such as:
- Past and future medical bills
- Lost wages
- Reduced earning capacity
- Pain and suffering
One thing that UM and UIM may not cover is property damage. In Alabama, UM/UIM coverage generally focuses on bodily injury. Some policies may include vehicle damage, but in Alabama, your best bet is to look to your policy’s collision coverage.
Get Help with UM or UIM Coverage After an Alabama Accident
When the other driver has no insurance, leaves the scene of the accident, or doesn’t have enough insurance to cover your bills, UM and UIM coverage give you options. But dealing with the details of insurance coverage and personal injury law can be complex. An Alabama personal injury lawyer can help you by talking to insurance companies on your behalf, arguing that your injuries fit within the limits of your UM/UIM policy, and negotiating a fair settlement.
If you’ve been injured and need help navigating insurance issues or any other aspect of the car accident process, contact Collins Law, LLC. Our founding attorney, April H. Collins, has been widely recognized as one of Birmingham’s best personal injury attorneys. To learn more about how our team can help you, call 205-588-1411 or contact our office online to get in touch today.
