What Happens If the Person at Fault in an Accident Has No Insurance in Alabama?

Alabama follows an "at-fault" or "tort" system for car accidents. As a result, the at-fault driver (i.e., the driver who caused the accident) is legally liable for damages. If the at-fault driver carries liability insurance, their insurance company covers the damages up to the policy limits. If drivers lack insurance, they typically pay for damages from their assets or income. However, obtaining compensation can be challenging if the at-fault driver has no insurance, limited assets, or no income. Thus, Alabama Code § 32-7-23 stipulates that insurers must offer uninsured motorist (UM) coverage alongside every liability insurance to motorists. This coverage helps pay for medical expenses, lost wages, and property damage when a driver is involved in an accident with an uninsured driver or a hit-and-run incident. Driving without insurance constitutes one of several Alabama traffic violations and infractions, and may result in penalties such as fines, license suspension, and vehicle registration revocation.

Is It Illegal To Drive Without Insurance In Alabama?

Yes. Alabama Code § 32-7A-4 prohibits motorists from operating, registering, or maintaining registration of a vehicle on public highways without liability insurance. To this effect, drivers must keep proof of insurance in the vehicle and present it to a law enforcement officer upon request during a traffic stop or investigation (per Ala. Code § 32-7A-6). Drivers who fail to carry valid liability insurance violate the law (Ala. Code § 32-7A-16), and the penalties include:

• Fines up $500 and $1,000
• Imprisonment from up to 3 months to 6 months
• Driver's license suspension
• Vehicle registration suspension (from 45 days to 6 months)
• Vehicle impoundment
• SR-22 filing requirement before and after reinstatement of driving privileges

What Is the Minimum Insurance Requirement in Alabama?

Under Alabama Code § 32-7-6(c), the minimum required liability insurance includes:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident

Alabama Code § 32-7-23 requires insurers to offer uninsured/underinsured motorist (UM/UIM) coverage with every auto liability policy. Drivers may reject this coverage in writing. Medical payments coverage is optional; as a result, drivers can include or exclude it at their discretion.

What To Do After A Car Accident With an Uninsured Driver in Alabama

After a collision with an uninsured motorist in Alabama, the injured party should:

1. Ensure safety and notify law enforcement: As outlined in Ala. Code § 32-10-1, stop, assist, and exchange information after any accident. In cases involving injury or death, call 911 immediately for a law enforcement investigation.
2. Document evidence: Take photos of vehicle damage, injuries, surroundings, and license plates. Collect driver information and that of any witnesses.
3. File a crash report: Submit Form SR-13 to the Department of Public Safety within 30 days of the accident, especially if it involves injury, death, or over $250 in property damage, regardless of fault (per Alabama Code § 32-7-5). Furthermore, file Form SR-31 (Accident Claim Form) with the Alabama Law Enforcement Agency if damages exceed $500 and the other driver lacks insurance.
4. File a UM claim: If insured, report the accident to the insurer and file a UM claim to recover damages like medical bills and repair costs.
5. File a lawsuit: State law holds uninsured drivers personally liable. Consequently, sue the at-fault uninsured driver for damages. However, note that recovery of damages will be difficult (if not impossible) when the driver lacks assets.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

Although the other driver is at fault, the victim can still be penalized for driving without auto liability insurance. The victim, despite not having insurance, can file a claim against the at-fault driver's insurer or assets for damages. However, due to Alabama's strict contributory negligence rule, the victim will not recover damages if they are even 1% at fault. While liability insurance, especially UM/UIM coverage, is not required for recovery, without it, victims depend solely on the at-fault driver's policy limits or financial ability for actual recovery.

Can I Sue an Uninsured Driver in Alabama?

Yes. Under Alabama tort law, injured parties can sue uninsured at-fault drivers for damages. They can file claims of up to $6,000 in small claims court (a division of the district court) per Ala. Code § 12-12-31; claims between $6,000 and $20,000 in a district or circuit court; and claims over $20,000 in a circuit court. After obtaining a judgment, injured parties can pursue recovery through wage garnishment or execution sales of the defendant's property (Ala. Code § 6-6-370 to § 6-6-484).

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Alabama?

Yes. UM/UIM coverage covers the injured party when the at-fault driver has no insurance or carries insufficient policy limits and compensates for bodily injuries and property damage caused by the uninsured motorist. In Alabama, unless rejected in writing, every motorist is expected to carry UM/UIM coverage (Alabama Code § 32-7-23). MedPay and collision coverage can also help pay for medical expenses and vehicle repairs. When included in a liability insurance policy, uninsured Motorist Property Damage (UMPD) can also help cover property damages up to the chosen limit.

What Is Uninsured Motorist Coverage in Alabama?

Uninsured Motorist (UM) coverage is a mandatory add-on to every automobile liability insurance policy in Alabama. State law (Ala. Code § 32-7-23(a)) mandates insurers to offer it alongside liability insurance. However, the law also grants the insured the right to reject it in writing. The UM coverage is activated when the at-fault driver is uninsured, underinsured, or unidentified in a hit-and-run (Ala. Code § 32-7-23(b)). It covers damages up to the insured's policy limits, which typically mirror the state's minimum liability limits: $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage.

What If I Don't Have Uninsured Motorist Coverage in Alabama?

Drivers without uninsured motorist (UM) coverage should consider these alternatives:

• File a civil claim against the at-fault driver for medical bills, lost wages, and property damage.
• Submit a certified copy of the judgment to the Alabama Department of Public Safety if the at-fault driver fails to pay damages within 60 days of the judgment, and no appeal is filed. The department will suspend the driver's driving privileges and vehicle registration until the judgment is settled and proof of financial responsibility (SR-22) is filed (Ala. Code § 32-7-14).
• Apply to the Alabama Crime Victims Compensation Commission if the accident involved criminally injurious conduct, such as DUI or hit-and-run. Can receive compensation for medical bills, lost income, and funeral costs if eligible (Alabama Code §15-23-1 et seq.).

How Do I Get Compensation from an Uninsured Driver in Alabama?

Compensation or recovery of damages from an uninsured at-fault driver is possible but relies on the driver's assets or financial capacity. The surest path to recovery for the injured party is often through their uninsured/underinsured motorist (UM/UIM) coverage. Notwithstanding, an injured party can get compensation from an uninsured at-fault driver in Alabama through civil litigation.

Litigation begins when the injured party files a complaint in the district or circuit court where the accident occurred or where the defendant lives, stating the facts of the case and claiming damages. Once the complaint is filed, the court clerk issues a summons, which must be served on the defendant. Under Alabama Rule of Civil Procedure 4(a), the summons notifies the defendant of the lawsuit and their obligation to respond within 30 days. If they fail to respond, the plaintiff can seek a default judgment under Alabama Code § 6-6-565, which allows the court to award compensation without a defense.

However, if the defendant responds, the case proceeds to discovery, during which both sides exchange evidence through interrogatories, document requests, and depositions. After that, the court issues a scheduling order and sets deadlines. Either party may file summary judgment motions under Rule 56 seeking resolution based on uncontested facts. If the court denies those motions, a pretrial conference follows before the case proceeds before a judge or jury. If the plaintiff wins, the court may enforce the judgment through wage garnishment and liens.

How Much Can You Recover From an Uninsured At-Fault Driver in Alabama?

While injured parties or victims can recover damages from uninsured at-fault drivers in the state, the actual recovery amount often depends on the at-fault driver's assets or financial capacity. If the driver has no assets, is bankrupt, or is broke, recovery may be impossible, delayed, or difficult.

Alabama District Courts and Circuit Courts handle civil claim actions against uninsured at-fault drivers in the state. The district courts handle claims up to $20,000, with small claims capped at $6,000, and the circuit courts handle claims over $20,000 with no limit. Judgments accrue annual interest at 7.5% per Ala. Code § 8-8-10.

How To Find Out If the At-Fault Driver Has Insurance in Alabama

A motorist can determine if the at-fault driver has insurance through:

• Directly asking the driver.
• The official crash report: When law enforcement responds to an accident, they record insurance details in the crash report. The crash report is open to the involved parties or their legal representatives under Ala. Code § 32-10-7, and they can purchase a copy from the Alabama Law Enforcement Agency for $15.
• Alabama's Online Insurance Verification System: The OIVS is restricted to law enforcement, courts, and state agencies. Hence, involved parties can request verification of the at-fault driver's insurance status through the Department of Revenue.
• Litigation: If coverage is unclear and the case goes to court, Alabama Rule of Civil Procedure 26(b)(3) allows the injured party to discover insurance agreements that may cover a judgment.

Are Accidents Public Record in Alabama?

Court filings from accident-related civil actions, such as complaints, motions, and judgments, are public records under the Alabama Public Records Act (Ala. Code §§ 36-12-40 et seq.), unless sealed. However, accident reports are confidential under Ala. Code § 32-10-11. Per § 32-10-7, only parties involved in the accident, insurers, legal representatives, and other specified parties are allowed access.

Can You Go to Jail for Causing an Accident Without Insurance in Alabama?

By itself, an at-fault collision does not result in jail time in Alabama. However, driving without liability insurance violates the Alabama Mandatory Automobile Liability Insurance Law (§32-7A-1 to §32-7A-27) and, as outlined in Ala. Code § 32-7A-16 constitutes a Class C misdemeanor, punishable by fines and possible incarceration, among other penalties. Additionally, submitting fake or altered proof of insurance violates Alabama's forgery statutes (§ 13A-9-1 to § 13A-9-150) and, if charged as a felony, may lead to fines up to $15,000 and imprisonment for up to 10 years.

Can You Settle With an Uninsured Driver Out of Court in Alabama?

Yes. Alabama law allows injured parties to settle out of court with at-fault uninsured motorists. As long as the settlement agreement is written down with valid consideration and mutual assent, it is legally binding. When the parties settle through mediation and the settlement is written and signed by all parties, it becomes enforceable under Ala. Code § 6-6-20.

Can I Get Compensation If I Was Partially at Fault?

No. Alabama doesn't follow pure or modified comparative negligence. Instead, it employs strict contributory negligence, where a motorist cannot recover damages if they share even 1% of the fault.