Most U.S. states require drivers to carry auto accident insurance. In Alabama, there are laws regarding not only how much insurance the driver must carry, but what types of claims he can make and the circumstances under which he can make them. Drivers who get into accidents while on the job should be especially careful, as workers' compensation benefits in Alabama can cancel out auto insurance benefits.
Types of Claims
Alabama law views property damage claims and bodily injury claims separately. An insurance company may provide benefits for a property damage claim and not for a bodily injury claim or vice versa. The insurance company cannot base its decision regarding one type of claim on the outcome of another type of claim. For example, it cannot decide to provide only a small benefit for property damage because it provided a large bodily injury benefit and doesn't want to spend more than a pre-determined amount on benefits.
Release of Liability
Property damage claims and bodily injury claims are considered liability claims in Alabama. The person making the claim must sign a release of liability to settle the claim --- if she disagrees with her insurance company's determination, she can refuse to sign the release and further pursue the claim. Since property damage and bodily injury claims are separate claims, a driver can settle one claim by signing a release but still leave the other one open. Signing a release waives the claimant's right to take legal action regarding the claim.
Mandatory Liability Limits
Alabama law requires all motorists to carry a particular amount of liability insurance on their vehicles. As of May 2011, motorists in Alabama must carry at least $25,000 worth of liability insurance for bodily injury or death to one person in an accident. Motorists must also carry at least $50,000 worth of insurance for bodily injury or death to all persons involved in an accident and $25,000 worth of insurance for property damage.
Uninsured Motorists
As of 2011, Alabama law states that an uninsured motorist is only liable to an insured motorist if the uninsured motorist is at fault for the accident. In addition, the insured motorist must not accept workers' compensation funds if the accident occurred in the course of doing his job, as it would be double dipping to receive workers' compensation funds and auto insurance benefits for the same accident.
Tags: bodily injury, property damage, bodily injury claims, injury claims, insurance company, workers compensation
