Uninsured motorist laws in the state of Alabama require all car insurance companies to provide “uninsured” (UM) and “underinsured” (UIM) coverage on every car insurance policy they sell in Alabama, even if the customer does not ask for this particular type of coverage. The only way an insurance company cannot provide UM/UIM coverage in Alabama is if the insured signs a written waiver stating that he/she does not want this type of coverage.
What is UM/UIM coverage?
UM/UIM coverage is insurance coverage that gives a driver and his/her passengers protection if they are in a motor vehicle accident with an uninsured driver or underinsured driver who does not have enough insurance to fully compensate for the medical and property costs of the injured party or parties.
How Does UM/UIM Coverage Work to Protect You?
Uninsured motorist coverage will protect your car from any drivers who do not have collision coverage on their insurance policies. Most uninsured motorist coverage policies will not apply to hit-and-run accidents, as it’s too tempting to file hit-and-run claims under one’s uninsured motorist coverage because UM coverage is usually cheaper than collision coverage.
Underinsured motorist coverage will pay for the damages that exceed the offender’s insurance limits up to the limit of your UIM coverage. The offender’s insurance will pay up to its limit, then your UIM coverage takes over up until to your limit, if applicable. This means that your UIM limit amount is the total amount of damage that is covered by both insurance policies, not the additional amount that is added on to the offender’s insurance policy.
UM and UIM coverage applies to you and to passengers in your car, as well as to others listed on your policy when they are in other cars.
The Stacking of UM/UIM Coverage
Alabama allows you to “stack” your insurance coverage so you can have more monetary coverage in the event of an accident. For instance, if you have $25,000 of UM/UIM coverage on 3 cars, if 1 of those cars is in an accident, you’d have $25,000 x 3 = $75,000 worth of UM/UIM coverage for that accident, not just $25,000.
It’s important to note that only a maximum of 3 cars can be stacked on 1 insurance policy, though you can have an unlimited number of insurance policies. Therefore, if you have 4 or more cars in your family, you should only have a maximum of 3 cars on 1 insurance policy and 1 or more cars on another insurance policy or policies so that you’ll receive the benefit of stacking all of the vehicles.
Attaining Legal Help
Alabama’s uninsured motorist laws can make pursuing financial compensation from an uninsured or underinsured driver tricky. An experienced Alabama attorney can aid you in knowing how the state’s uninsured motorist laws apply to your particular case so you can gain the maximum amount of compensation you’re entitled to.
