Alabama law requires all motor vehicles operated on public roads to be covered by at least $25,000 in liability insurance. But, while having this coverage is in compliance with the law, is it adequate for the foreseeable circumstances of an Alabama auto accident? The answer is, usually not. It is common in the practice of personal injury and auto accident law for clients and others to mention that they have "full coverage" insurance.
However, in our experience, so-called "full coverage" is often not adequate coverage for purposes of covering the common injuries and damage that occur in Alabama auto collisions.
With any auto insurance policy, there are certain categories of coverage:
* Liability;
* Property damage;
* Medical payments;
* Underinsured / uninsured coverage(UM); and
* Rental car or loss of use.
Too often, we see at-fault drivers who have the minimal coverage under each category, mistakenly believing they have "full coverage" insurance for injured victims who have substantial medical bills and lost wages. A simple trip to the emergency room, and conservative follow-up treatment
, can result in as much as $15,000 in medical bills, exclusive of lost wages, mental anguish, etc. In these situations, $25,000 in liability insurance is simply not enough.
It is also wise to have substantial uninsured/underinsured coverage in those instance where you are involved in an accident with a driver who either has no insurance or low limits. Alabama law requires auto insurance companies to offer at least $25,000 in uninsured coverage with every policy, but unlike mandatory liability coverage, allows the insured to reject it if they choose to do so.
Our view is that you simply cannot have too much coverage. While each individual's budget varies, we recommend that Alabama auto-owners have at least $100,000 in liability and $100,000 in uninsured coverage.
