Alabama Uninsured Motorist Coverage Explained

Nearly 12% of drivers in the United States are uninsured, posing a risk for all other drivers on the road. In Alabama, about 12% of drivers are uninsured, too. While uninsured motorist coverage isn’t legally required in the Heart of Dixie, it’s a good idea to carry this coverage to avoid the headache of getting into an accident with an uninsured driver.

Let’s check out how uninsured and underinsured motorist coverage works on an Alabama auto insurance policy, what happens to drivers who fail to maintain legally adequate coverage, and other helpful information about uninsured motorists in the Heart of Dixie. 

Uninsured motorist coverage (UM) isn’t required insurance in Alabama for drivers, but insurers must offer it when binding with a new policyholder. Those who choose not to carry UM must reject this coverage in writing with their insurer.

While UM isn’t required by state law, it’s a great coverage type to carry on your policy. UM helps policyholders cover their medical bills and vehicle repairs should they be the victim of an accident caused by an uninsured driver. 

Since Alabama isn’t a no-fault state and is instead a tort state, at least one driver must always be deemed at fault in an accident. Many tort states, including Alabama, require drivers to carry liability coverage. Liability coverage helps cover the medical expenses and vehicle repairs incurred by the victim of an accident caused by the at-fault policyholder. 

State laws in the Heart of Dixie require all drivers to have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident, or 25/50/25 liability coverage. Those who lease or finance their vehicles may be legally required to carry collision and comprehensive coverages on their policies.

Those who fail to maintain adequate coverage may face legal consequences, like hefty fines, license or registration suspension, vehicle impoundment, or even jail time. In addition to legal consequences, if an uninsured driver causes an accident, they’re liable for all expenses incurred by all parties due to the accident. They may also become responsible for legal defense fees if the victim or victims sue for pain and suffering.

Drivers with liability-only policies aren’t covered in the event of an accident caused by an uninsured driver since liability coverage only extends to the victim of an accident caused by the policyholder. Carrying uninsured motorist coverage allows policyholders to have peace of mind on the road, knowing they’ll be covered in the worst-case scenario with an uninsured driver. 

Remember, uninsured motorist coverage in Alabama isn’t required, but all insurers are required to offer it to policyholders. Typically, states consider two factors before mandating required UM coverage: population density and the population of uninsured drivers. 

Alabama doesn’t have a very high population, nor does it have very densely populated cities. About 12% of drivers in the Heart of Dixie are uninsured, which is on par with the national average. Since neither of these metrics is considerably high, the state doesn’t need to mandate UM coverage. 

In Alabama, uninsured motorist coverage (UM) is an optional coverage that drivers can add to their full coverage policies to cover their medical expenses or vehicle repairs should they be the victim of an accident caused by an uninsured driver. While maintaining UM coverage isn’t legally necessary in the Heart of Dixie, it may be necessary for your comfort and safety behind the wheel.

UM coverage is a facet of a full coverage policy that helps the policyholder cover their medical expenses or vehicle repairs if they’re a victim of an accident caused by an uninsured driver. The average cost of a full coverage policy in Alabama is about $1,670 annually, which is on par with the national average. Drivers with a full coverage policy may also have medical payments coverage (MedPay), collision coverage, comprehensive coverage, and a higher liability limit than the law requires. 

While the law only requires drivers to have 25/50/25 liability coverage, many drivers feel safer with a full coverage policy tailored to their needs. Maintaining a policy that at least meets the legal minimum coverage requirement will protect drivers from the consequences associated with breaking the compulsory insurance laws in the Heart of Dixie. Driving without insurance is illegal in the state and may be punishable by fines, license and registration suspension, or even jail time.

Those caught driving without adequate coverage may also have an SR-22 filed on their behalf, making it more difficult and expensive to get a policy in the future. In short, it’s far less costly to at least maintain a policy that meets the legal coverage requirements than face the consequences of forgoing coverage entirely. 

Yes, Alabama has uninsured motorist coverage, as every insurer in the state is required to offer it to policyholders. Policyholders aren’t required to carry this coverage and can reject it in writing when binding or renewing a policy. Drivers are only legally required to have 25/50/25 liability coverage. 

While the cheapest policy in the state may be a liability-only policy, it may not be the best option for some drivers who value coverage over cost. Many of the state’s top insurers offer full coverage policies with low base rates and plenty of opportunities for discounts so drivers can get the coverage they need at a price that won’t break the bank.

If you’re looking for a full coverage policy with UM coverage, the best way to find a policy that suits your needs is to get and compare quotes online. By getting and comparing quotes from several insurers, you can get a policy tailored specifically to your needs at a price suitable for your budget.

Luckily, you’ve come to the right place for quotes. Here at Clovered, we have a free quoting tool you can use to compare policies from a variety of insurers in just minutes. If you prefer to get your quote from an agent, one of our licensed agents would be happy to help you at 833-255-4117 or [email protected].