Uninsured/Underinsured motorist coverage is insurance coverage that provides a driver and his/her passengers protection if they are involved in a motor vehicle accident with an uninsured driver or a driver that does not have an adequate amount of insurance to coverage the damages. Alabama’s uninsured motorist statute requires automobile insurers to offer uninsured motorist coverage with their liability policies. A recent study by the Insurance Research Council (IRC) has found that there is a strong correlation between the percentage of uninsured motorists and the unemployment rate. Based upon current unemployment rate projections, the IRC forecasts that the percentage of uninsured motorists will likely rise from 13.8 percent in 2007 to 16.1 percent in 2010.
Alabama was found to be one of the states with the highest number of uninsured drivers. According to the IRC, 24 percent of drivers in Alabama were uninsured. This number is surely to increase as the unemployement rate rises in Alabama. Alabama driver’s should check with their liability insurance carrier to determine the amount of uninsured motorist coverage they have. The cost of increasing these limits is very inexpensive and can often mean the difference between making a satisfactory recovery for a persons injuries or little to no recovery when a person is involved in a car accident with an uninsured motorist.