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.
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.
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:
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.
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.