A hit-and-run can cause serious injuries and costly repairs, especially if the driver is uninsured or underinsured. Uninsured (UM) and underinsured (UIM) motorist coverage can prevent financial ruin. About 20% of Alabama drivers are uninsured, leaving victims feeling abandoned and frustrated. Insurance acts as their safety net. At Cory Watson Attorneys, we’ve helped many accident victims navigate insurance disputes. We understand insurance company tactics and how to protect your rights after a hit-and-run. This guide explains how UM/UIM coverage works, deadlines, and how an experienced attorney can help maximize your claim.
Key Takeaways for Staying Protected
- Uninsured and underinsured motorist (UM/UIM) coverage protects Alabama drivers after a hit-and-run or uninsured crash, providing financial recovery when the at-fault driver cannot be identified or cannot pay.
- Don’t delay reporting the accident or assume your insurer will pay fairly without documentation, as missed deadlines or incomplete claims can lead to denials.
- Act quickly, keep detailed records, and work with an experienced Alabama uninsured motorist lawyer to maximize your UM/UIM claim and hold insurers accountable for fair compensation.
Policy Notice Requirements and Deadlines
After a hit-and-run crash, timing is everything. Most auto insurance policies require that you notify your insurer immediately, often within a few days. A formal police report should also be filed as soon as possible, especially if the other driver fled the scene.
Under Alabama Code §32-7-23, uninsured motorist coverage is mandatory unless rejected in writing. The Alabama Department of Insurance advises that policyholders who fail to provide timely notice may lose eligibility for benefits. Reporting the accident promptly allows insurers to investigate and gather crucial evidence before it is lost or destroyed.
Tip: Keep a written record of every communication with your insurer, including claim numbers, representative names, and the date, time, and duration of calls. This documentation helps protect your rights in the event of a dispute. Many insurers attempt to deny UM claims based on late reporting; however, attorneys can often counter these tactics by demonstrating reasonable cause for any delay or that notice was given in good faith.
If your insurer delays or denies your claim despite proper notice, an uninsured motorist lawyer can help protect your rights. Legal counsel ensures paperwork, reports, and correspondence are handled correctly, minimizing the risk of unfair denials.
Stacking Coverage Across Multiple Vehicles
Many Alabama drivers can boost their compensation through a process called stacking. This allows policyholders to combine UM/UIM coverage from multiple insured vehicles. For instance, if you have three cars, each carrying $25,000 of UM coverage, stacking could increase your total recovery to $75,000.
Alabama law permits stacking across up to three vehicles, unless your policy explicitly prohibits it. The Alabama Supreme Court’s decision in State Farm v. Fox (2019) confirmed that insurers cannot restrict stacking without clear policy language. For victims of severe crashes, this additional coverage can be life-changing, covering hospital bills, lost wages, and rehabilitation costs.
Stacking can also help families with multiple drivers. For example, a spouse or child injured in another family member’s vehicle might still be eligible to combine coverage under the same household policy. Reviewing your insurance declarations page carefully can reveal additional layers of protection that you may not be aware of. A lawyer familiar with UM/UIM policies can identify all applicable coverage and negotiate with insurers to ensure that no benefits are overlooked.
Before accepting an insurer’s offer, have an attorney review your declarations page. They can identify available coverage you might not realize exists and prevent insurers from underpaying your rightful compensation.
Arbitration Versus Litigation for UM Disputes
If your UM claim is denied or undervalued, you may have to resolve the dispute through arbitration or litigation. Arbitration involves presenting your case before an independent arbitrator rather than a judge or jury. It can be faster and more private, but the decision is usually final and difficult to appeal.
Litigation, on the other hand, allows a whole court process with broader discovery and appeal options. In Alabama, arbitration is not mandatory unless both parties consent. This means you can choose to file a lawsuit if you believe arbitration limits your ability to obtain fair compensation.
Some UM disputes may also benefit from mediation, a voluntary process in which both sides negotiate with the help of a neutral mediator before proceeding to arbitration or trial. Mediation can save time and costs while maintaining control over the outcome. However, if the insurer remains unreasonable, filing a lawsuit ensures you can present full evidence, such as medical records and expert testimony, before a judge or jury.
A seasoned attorney can guide you through either process, using accident reconstructions, witness testimony, and insurance expert opinions to build a persuasive case. When insurers undervalue claims, litigation often provides the leverage needed to secure fair compensation.
Offsets for Med-Pay and PIP
Medical Payments (Med-Pay) and Personal Injury Protection (PIP) coverage often work alongside UM benefits. However, insurers sometimes apply offsets, or reductions in payment, when Med-Pay or PIP already covers some of your medical expenses. For example, if you receive $10,000 in Med-Pay benefits for a $50,000 hospital bill, the insurer may attempt to deduct that amount from your UM payout.
Offsets must be clearly stated in your insurance policy and comply with the laws of Alabama. The Alabama Department of Insurance provides detailed guidelines for calculating these reductions. A lawyer can ensure offsets are not unfairly applied, helping you keep the full amount you are entitled to under your coverage.
For many victims, these offsets can become a significant point of contention. Insurers may attempt to apply them even when not legally justified. Experienced attorneys understand how to review claim histories and ensure that offsets do not diminish your rightful recovery.
Bad Faith Penalties for Low Offers
Insurance companies have a legal duty to handle valid claims fairly and promptly. When they fail to do so, by delaying payments, undervaluing losses, or refusing to negotiate, they may be liable for bad faith. Under Alabama law, policyholders can recover compensatory and punitive damages if bad-faith behavior is proven.
Examples of bad faith include failing to investigate, ignoring documentation, or offering an unreasonably low settlement. Some insurers use delay tactics, hoping victims will give up or accept less than they deserve. Others make partial payments or repeatedly claim that new documentation is needed, unnecessarily extending the process.
Recent Alabama court rulings have strengthened consumer protections against these practices. When evidence shows an insurer’s conduct was intentional or reckless, juries can award significant damages. At Cory Watson, we have successfully represented clients in bad-faith cases, compelling insurers to pay what they owe. While past outcomes vary by case, these lawsuits have led to improved corporate accountability and fairer treatment of policyholders statewide.
If you suspect that your insurer is acting in bad faith, keep copies of all communications and payment records. Legal counsel can utilize these materials to construct a robust claim that demonstrates patterns of delay or deception.
Quick Answers to Common Concerns
1. Can I file a UM claim after a hit-and-run?
Yes. Alabama allows uninsured motorist claims after a hit-and-run crash, provided the accident is reported and documented promptly.
2. What if the other driver is identified but lacks enough insurance?
You can file an underinsured motorist claim to cover remaining losses beyond the at-fault driver’s policy limits.
3. Can I combine multiple UM policies?
Yes, stacking allows you to combine coverage from up to three insured vehicles unless your policy explicitly forbids it.
4. How long do I have to report the accident?
Each policy is different, but it’s best to report within 24 to 48 hours and always file a police report.
5. What if my insurer refuses to pay?
You may file a lawsuit or request arbitration. An attorney can determine which option best protects your claim.
Next Steps
If you’ve been injured in a hit-and-run or uninsured driver crash, don’t face the insurance company alone. The process is complex, and missing even one deadline could cost you thousands. Legal support ensures your claim is filed correctly, deadlines are met, and insurers act in good faith.
By contacting a skilled uninsured motorist lawyer early, you gain an advocate who understands Alabama’s insurance laws and knows how to push back against unfair treatment. Contact us today to request a free consultation. At Cory Watson, we don’t get paid unless you win. Our team is ready to help you recover the compensation you are entitled to.
About the Firm
Cory Watson Attorneys is a nationally recognized personal injury and insurance litigation firm based in Birmingham, Alabama, with offices in Nashville and Memphis. For over 40 years, our attorneys have fought for victims of negligence, defective products, and insurance misconduct, recovering more than $4 billion for clients across the nation.