You may have heard the terms “no fault” and “fault” applied to car accident insurance law for different states. Like the majority of all states, Alabama is a “fault” state. This is also called a “tort” system of insurance. This system means that in any Mobile AL car accident, the insurance company for the responsible party is liable for the costs. In contrast, in a “no-fault” state, drivers file a claim with their own insurance company, regardless of the circumstances surrounding the accident.
Insurance in Fault States
Each state sets requirements for minimum coverage. In Alabama each driver is required to have minimum liability coverage at:
- $25,000 for one person injured in an accident
- $50,000 for each accident in which more than one person is injured, and
- $25,000 for each accident that causes property damage
Liability coverage is to repair or replace the vehicles involved. Medical coverage is purchased separately and is important to protect you and your passengers from the costs of severe injuries.
While you are not required to prove that you have insurance when you register your vehicle, you must provide proof during any routine traffic stop. The penalties for not having current insurance include fines and suspension of your driver’s license. In addition, your insurance rates are likely to go up if you are caught without it. You can protect yourself from other drivers who are not insured by purchasing optional Uninsured/Underinsured Motorist insurance.
You can’t prevent every accident from happening, but making sure you have enough insurance will go a long way to getting your life back on track if it does happen. If you have been hit by an uninsured motorist in the Mobile area, talk to our experienced car accident lawyers to make sure your rights are protected. Please contact Long & Long today at 251-432-2277.