Who Pays for Vehicle Damage After an Alabama Car Accident?

If your vehicle was damaged in an auto accident, you might be anxious to get it repaired and back on the road. You likely depend on your vehicle to get to work, doctor’s visits, and other locations as part of your weekly routine. Not having access to your vehicle can limit your life. 

After a car accident, you likely have many questions, including “Who pays for my vehicle damage?” An experienced car accident lawyer with Siniard Law, LLC can explain your right to have your damages paid for, including your car accident repairs. Contact us for a free, no-obligation consultation. 

Determining Fault in Alabama Car Accidents 

Alabama is not a no-fault state in which your own insurance pays for your damages regardless of fault. Instead, like most states, it is an at-fault state for car insurance. This means that the at-fault party is responsible for paying for the damage they caused in the accident. As such, determining who is at fault for a car wreck is essential to having your vehicle damages paid.

How Is Fault Determined in an Alabama Car Crash? 

The insurance company investigates the circumstances to determine which party is at fault. Personal injury lawyers representing accident victims also complete investigations. These investigations may consist of:

• Reviewing accident reports
• Taking or reviewing photos of the damage to vehicles and the accident scene
• Interviewing witnesses
• Observing physical evidence and damage to vehicles 
• Reviewing statements from the drivers

In some situations, fault may not be immediately clear. A personal injury attorney may hire an accident reconstruction expert to use available evidence to recreate the events that led to the auto crash.

The Role of Insurance in Car Accident Cases 

Insurance companies pay for most vehicle repairs following a car accident. In Alabama, the minimum amount of liability insurance is:

• $25,000 bodily injury liability insurance per person 
• $50,000 bodily injury liability insurance for all injured persons in an accident
• $25,000 property damage liability insurance

Liability insurance pays for the damages someone else causes you because of their negligence. After you are involved in an auto accident, you report it to the at-fault driver’s insurance company. The insurance company is responsible for investigating the accident and paying for your damages if it determines its driver is at fault for the accident and their liability insurance applies under the circumstances.

Keep in mind that insurance companies are for-profit businesses. They are not interested in giving you the maximum compensation you may be entitled to. They may encourage you to take the vehicle to a preferred auto body shop with which it does business. They may try to use inferior parts to repair the vehicle. 

The Alabama Department of Insurance says that insurance companies can repair damaged vehicles with non-factory parts only if the repairs restore the vehicle to its value before the accident. They must be of like kind and quality as the parts being replaced, but they do not have to be original equipment manufacturer parts.

An experienced car accident lawyer can review your case and demand the financial compensation you deserve.

Will I Be Reimbursed for Car Repairs?

You do not have to pay for car repairs caused by someone else’s negligence. Their insurance company should pay for the repairs. However, if you don’t want to deal with a third-party claim with the at-fault driver’s car insurance company, you can file a claim with your own insurance under your collision insurance policy. In this scenario, your own insurance company pays for the damages. Then, it may pursue subrogation against the at-fault party to recover their losses. 

What If My Vehicle Is Totaled?

In some cases, a vehicle is damaged beyond repair or when repairs would exceed the value of the vehicle. Insurance companies in these situations pay the actual cash value of the car. The insurance company may prepare a vehicle evaluation report to determine this amount. You can compare this report to other available sources, such as the blue book value and the cost of similar vehicles for sale in your area, to determine if its offer is fair. 

If you financed your car, the amount the insurance company offers may not be sufficient to pay the remaining balance on the car loan. You will be responsible for paying the difference between the amount the insurance company pays and what you still owe on the vehicle unless you have gap insurance to cover this amount.

What Is a Total Loss Claim?

When your vehicle is inspected, the insurance company will consider whether the vehicle is a total loss. A total loss in Alabama occurs when the vehicle repair costs are 75% or more than the vehicle’s value. If your vehicle is declared a total loss, the insurance company writes a check for the value of the vehicle, which is based on purchasing a similar vehicle to the one you owned, considering the year, make, and model. 

What If the At-Fault Driver Is Uninsured?

All drivers in Alabama are required to maintain at least the minimum amounts of liability insurance. Violating this law is a class C misdemeanor, punishable by up to three months in jail and a fine of up to $500. Still, the Insurance Institute for Highway Safety estimates that approximately 14.2% of drivers operate their vehicles without insurance. 

If you are involved in an accident where the other driver is uninsured, you can turn to your uninsured motorist coverage (UM) to pay for your damages. All Alabama auto insurance policies must include uninsured motorist coverage unless you rejected this insurance in writing. 

An experienced car accident attorney can review all applicable insurance policies to determine the full amount of coverage available for your claim. There may be other options for pursuing compensation, such as filing a claim against another driver who contributed to the accident or the at-fault driver’s employer if they were working at the time of the accident. 

What If the Damage to My Car Exceeds Auto Insurance Coverage?

In some cases, the at-fault driver has insurance, but they don’t have enough insurance to cover your losses, such as the full cost of your vehicle repairs, medical expenses, or lost wages. You may have underinsured motorist coverage (UIM) that can help make up the difference. You could also have other insurance you could turn to, such as collision insurance. 

If the other driver is responsible for your accident injuries, an experienced attorney could review your claim and advise you if it is worth filing a personal injury lawsuit against the at-fault driver to pursue the full extent of your damages.

Alabama’s Contributory Negligence Rule

Alabama’s contributory negligence rule is one of the most onerous rules for personal injury victims. Under this rule, car accident victims cannot recover any financial compensation if they are found to have contributed to the accident to any extent. This means that even if the victim is only 1% at fault for the accident, they can be barred from recovering any compensation. Because of the harshness of this rule, it is paramount that car accident victims do not admit fault for an accident and that they work with an experienced personal injury attorney who will protect them from insurance companies who will try to blame them for the accident to avoid paying what they owe on their legal claim.

Complications with Rental Cars

In some cases, the at-fault driver’s insurance company pays for you to have a rental car while your vehicle is repaired. The insurance company may work out rates with a rental car agency that are better than the rates you would pay if you directly worked with it. 

You could also have rental reimbursement with your own car insurance. In this case, you can go through your own insurance carrier to secure a rental car. This insurance pays a certain amount of money each day for you to have a rental car while your vehicle is being repaired, subject to a maximum limit. Some policies also pay for the interim when you replace your vehicle in the event of a total loss, but you may have limited time. Your insurance company may later pursue compensation for the amounts it spent on your behalf through the at-fault driver’s insurance company. 

When you rent a car, the car rental company may offer you various types of insurance, such as:

• Collision damage waiver insurance, which holds you harmless in case the rental car is damaged or stolen while under your control
• Supplemental liability insurance, which covers damages to other people’s property caused by your negligence that exceeds the amount of available liability insurance 
• Personal accident insurance, which covers medical, ambulance, and death benefits for you and your passengers
• Personal effects coverage, which covers the theft of your personal belongings in the rental car, up to a maximum limit

You should check with your insurance provider to see if you are covered in case of an accident involving a rental car. You may also have other insurance through credit card programs or other memberships. 

How Does My Deductible Apply?

You are required to pay your deductible before the insurance company will pay the remainder of the repair costs. For example, if the costs to repair your vehicle are $2,500, and you have a $1,000 deductible, you will be responsible for paying $1,000 to the repair shop. Then, the insurance company will be responsible for paying the remaining $1,500. If your vehicle is a total loss, the amount of your deductible is deducted from your check. 

Therefore, if your vehicle was worth $10,000, and you had a $1,000 deductible, your check would be $9,000. It’s possible that your insurance company can pursue subrogation against the insurance company to recover your deductible and other losses.

Contact Our Accident Lawyers for a Free Initial Consultation

Figuring out who pays for vehicle damage after an Alabama car accident is just the beginning of the complications arising out of an insurance claim. You may also be worried about paying for your medical bills and making up your lost income. An experienced car accident lawyer with Siniard Law, LLC can review your options during a free legal consultation. Contact us today to get started with your personal injury claim.