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The bigger the wreck, the bigger the potential insurance gap

On Behalf of | Nov 21, 2022 | Auto Accidents

Every Alabama car crash is different from the next. The exact same crash dynamics can lead to different outcomes based on the vehicles involved. Certain factors like a higher speed and a bigger discrepancy between the size of the two vehicles can mean a far more serious collision.

The average driver in Alabama has never experienced a catastrophic wreck before and doesn’t know what to expect. They know from years of watching television or listening to the radio that insurance can help cover their crash costs.

What they may not realize is that there can be a very sizable insurance gap between the costs they need to cover and what insurance will actually pay. Typically, the worse the crash is, the bigger that gap becomes.

Alabama’s insurance requirements are too low

Lawmakers need to balance making motor vehicle insurance affordable with guaranteeing that there is proper coverage for those affected by a crash. Unfortunately, the current insurance requirements in Alabama are so low that they do very little to help those with serious injuries.

If only one person gets hurt in a crash, the driver at fault could have as little as $25,000 in bodily injury liability coverage. That may not even cover someone’s hospital expenses, let alone their lost wages. In a severe wreck where several people get hurt, the gap could be even larger. Drivers only need to have $50,000 worth of protection for a crash with multiple people hurt, and those claimants will have to share the coverage available.

Even major property damage could go beyond what a policy will pay. The state only requires $25,000 in property damage coverage, which may not be enough to buy a new vehicle or fix a particularly expensive one.

How do you close that insurance gap?

The simplest way to prevent an insurance gap is to carry additional insurance on your policy. Uninsured and underinsured motorist protection will pay for property damage and injury expenses when the other driver’s coverage leaves a sizable gap.

Of course, you may prefer to hold the other driver accountable instead of covering those expenses yourself. A personal injury lawsuit against a negligent driver could be a way to pay your medical bills and repair your vehicle. Looking into all of your options for compensation can reduce how much you end up paying out of pocket following a car crash.