UM and UIM is insurance coverage that is on a person's individual car insurance coverage or the coverage of a relative they reside with. This coverage can be used in cases where a person is involved in a car or truck accident and the at-fault driver either has no insurance or not enough insurance to fully compensate the injured party.
How do I obtain UM & UIM in Alabama?
Alabama's Uninsured Motorist Statute requires car insurance companies in Alabama to provide UM & UIM coverage on every policy of car insurance they sell in Alabama regardless of whether the insured ask for said coverage. The only way an insurance company in Alabama cannot provide UM & UIM coverage is to have the insured sign a written wavier stating they do not want this coverage.
How much UM & UIM Coverage should I obtain?
While car insurance coverage can be expensive, the cost of increasing a driver's UM/UIM limits is very inexpensive. For example, for $250,000 worth of UM coverage an average driver in Alabama could expect this level of coverage to cost about $75 every 6 months. Since UM & UIM coverage is very affordable it is very important for drivers to increase the level or amount of UM & UIM coverage they have due to the fact that many drivers on the highway either have no automobile insurance or the minimum limits. Under Alabama Law the minimum coverage is $25,000.00 and often times this isn't enough.
Stacking of UM & UIM Coveage under Alabama Law
One unique aspect of Alabama UM & UIM law is that it allows you to stack or add vehicle's coverage amounts together. For example, assume Husband and Wife has 3 cars one for each of them and one for their daughter. Further assume they have minimum UM/UIM coverage of $25,000.00. If one of them is seriously hurt in a car accident with an uninsured driver they would have not only the $25,000.00 worth of coverage for the vehicle they were in, however, they would also be able to add or stack the coverage of the other vehicles to give that person $75,000.00 worth of coverage.
Pitfall of Stacking
While Alabama UM law does allow the stacking of insurance coverage it only allows a person to stack 3 cars on one insurance policy; however, you can stack an unlimited number of insurance policies. Thus, if you have 4 or more vehicles it is important to have them divided up on different policies of insurance so that no more than 3 vehicles are any one policy so you can get the benefit of stacking all the vehicles.