In the United States, there are two basic types of car insurance systems. One is at fault, and one is no fault. The state of Alabama is a fault state.
Understanding what this means and how it may impact your accident claim is beneficial if you drive in the state.
Fault vs. no-fault systems
If you live in a no-fault state, it means your insurance is expected to pay for any medical costs related to your accident, regardless of who is at fault. States that have adopted this system did so to help reduce the number of accident claims going to court.
However, in Alabama and other fault states, it means the person at-fault is also liable for the victim’s medical costs, damages and other related costs. Because of this, additional insurance coverage is required compared to no-fault states.
Insurance requirements for Alabama drivers
Since Alabama is a fault state, it means drivers are required to carry a certain amount of coverage to ensure they can pay for accidents that are their fault. This includes:
- $25,000 for the destruction of or damage to property
- $25,000 for bodily injury or death to a single person
- $50,000 for bodily injury or death to more than one person
This is the coverage for others, not the driver themselves. If you want additional coverage for your medical costs and damages, you must purchase even more insurance.
Protecting yourself while on Alabama roadways
It’s always best to take preventative measures to avoid being involved in an accident; however, knowing your rights and responsibilities is beneficial when one occurs. With this information, you will know what steps to take depending on who is at fault for the collision you are involved in.