How Does Car Insurance Work?

If you are a driver in Alabama, then you are required by law to carry auto insurance on your vehicle before driving. Auto insurance is designed to protect you in the event of an accident. But once you’ve been involved in a car accident, how does the entire car insurance claims process work? 

Understanding this could make all the difference in how you feel about moving forward with your car accident claim. Continue reading to learn more about how car insurance works in Alabama, what you can expect from the insurance company after filing your claim and how a Birmingham car accident lawyer can help. 

Car Insurance Laws in Alabama

Alabama law requires all drivers to carry a minimum amount of coverage on their vehicles prior to driving. These minimum amounts and types of coverage required include:

• $25,000 per accident in property damage liability coverage 
• $25,000 per person/$50,000 per accident in bodily injury liability coverage

Drivers are also encouraged to carry $25,000 per person/$50,000 per accident in uninsured or underinsured motorist bodily injury liability coverage, but it can be rejected in writing when purchasing an auto insurance policy.

After you’ve been involved in a car accident, you will need to file a claim with the liable party’s insurer since Alabama is a fault state for car accidents. Unfortunately, filing the claim is just the beginning of the insurance claims process, and you may be surprised at what you should expect. 

What to Expect from the Insurance Company

After you file your claim with the insurance company, you may be expecting them to compensate you for certain losses, such as your medical expenses and the costs of repairing or replacing your vehicle. The insurance company of the liable party may be obligated to pay you an injury settlement up to the maximum limits of the insured’s auto policy. 

This means if the liable party had the minimum coverage of 25/50/25, then the insurer has the potential to pay out up to $75,000 on the claim. However, the insurance company will likely be looking for any opportunities they might have at reducing the amount they will need to settle for.

Statement manipulation and low-ball settlement offers are only a few of the tactics insurers have been known to use. Your lawyer can help combat these attempts by handling the negotiation process on your behalf, so there are zero opportunities for the insurer to take advantage of you in your greatest time of need. 

Any losses exceeding the policy limits and those not covered under the auto insurance policy will need to be sought after through a civil claim against the at-fault party. 

Get Help from an Alabama Car Accident Lawyer

If you want to do everything in your power to avoid being taken advantage of by the insurance company, you need a skilled Birmingham car accident lawyer at Henry Dailey Law Firm to advocate for your right to maximum compensation.

We can be reached by phone at 205-995-2412 or through the quick contact form below when you are ready to schedule your free claim review.