Learn the steps of the insurance claim process for Alabama car accidents, from notification to settlement.

According to the Alabama Department of Transportation, more than 360 traffic accidents are reported each day, with more than 100 people injured and at least two people killed.

Since Alabama is a “fault” state, the at-fault driver is financially responsible for any injuries caused by the accident. Car accident claims are almost always paid by the at-fault driver’s auto insurance company. You can expect an insured driver in Alabama to have at least $25,000 in bodily injury liability coverage per person and $50,000 per accident.

Under Alabama law, adults have a two-year deadline, called a statute of limitations, to settle an injury claim against the at-fault driver. If you don’t file a personal injury lawsuit before the deadline, you forfeit your right to injury compensation.

1. Notification and Filing an Insurance Claim

The claims process starts by notifying the other driver’s insurance company of your intent to seek compensation. You or your attorney should put the company on notice as soon as possible after the accident. You don’t have to be fully recovered from your injuries or ready to negotiate.

The company will assign an adjuster to handle the personal injury claim and respond with a claim number. Reference that number in all future communications with the insurance company.

If you are represented by a personal injury attorney, all communications will go through your attorney – the insurance adjuster is not allowed to contact you directly.

2. Settling the Property Damage Claim

The at-fault driver is liable for the cost of your car repairs or the current value of your vehicle if it’s a total loss. The other driver’s insurance company should also pay the cost of a rental car while your vehicle is in the repair shop.

Most auto insurance companies assign separate claim numbers and adjusters to personal injury and vehicle damage claims. Property damage claims are typically resolved much faster than injury claims.

Read carefully before signing off on a property damage settlement. If you are handling your own claim, consider having a car accident lawyer review the document to be sure you aren’t unwittingly releasing your right to injury compensation.

Alabama car crash victims with collision coverage may choose to have their own insurance company cover vehicle repairs. Their company will then demand reimbursement (including any deductible you paid) from the other driver’s insurer.

3. Giving a Recorded Statement

Shortly after filing your injury claim, you may get a call from the adjuster asking if they can take your recorded statement. The adjuster may seem friendly, and suggest that a recorded statement is required before they can process your claim. Don’t be fooled.

You have no legal obligation to give a recorded verbal statement to the other driver’s insurance company. You can tell your side of the story with a written statement, or better yet, under the guidance of a personal injury lawyer.

Never give a recorded statement if you are rushed, tired, in pain, or have not taken the time to prepare yourself to answer questions.

Adjusters are trained to ask leading questions to trick you into saying something that will damage your claim. This tactic is particularly dangerous in Alabama because it’s a pure contributory negligence state. If the adjuster can get you to say anything that suggests even a tiny amount of fault for the accident, they will use that as an excuse to deny your injury claim.

4. Responding to Early Offers

Don’t be surprised to get a fast settlement offer early in the claims process. It’s never in your best interest to accept a quick settlement if you have not yet fully recovered from your injuries. It’s appropriate to politely decline a low injury settlement offer.

The adjuster would like nothing better than to get you to accept a lowball offer and sign a release. Once you sign a settlement agreement, you’re done. The adjuster gets a gold star from the company, and you have given up your right to further compensation for your damages.

Unless you are absolutely sure of your claim’s value, don’t get bullied into taking an offer that is probably far less than your claim is worth. If the adjuster suggests that you won’t get a better offer, tell them you will have to get legal advice from an experienced attorney before discussing the matter further.

5. Entering Settlement Negotiations

After you finish medical treatment, it’s time to get ready to discuss settlement with the insurance company.

Gather your evidence of the other driver’s fault, like the police report or witness statements. Evidence of your damages comes from medical records, bills, receipts, and proof of lost wages.

Collect all your medical bills and records and receipts for out-of-pocket medical expenses. Ask your employer for a wage loss verification letter, including vacation or sick days you had to use while recovering from the crash.

Bills, receipts, and wage loss statements represent economic damages and are easy to measure. Non-economic damages, like pain and suffering, are more difficult to quantify.

Calculate the settlement value of your claim by adding together all your economic damages, then adding one or two times that amount to account for your non-economic damages. The total of your economic and non-economic damages is a fair estimate of your claim value.

Send a demand letter to the insurance adjuster with enclosed evidence of fault and damages.

6. Finalizing the Injury Settlement

Insurance companies rarely pay out an initial settlement demand. Arriving at a final amount will take some back-and-forth negotiating. Typically, uncomplicated claims can be settled in less than a month with a few rounds of counteroffers.

The first rounds of car accident negotiations will focus on your economic damages. The claims adjuster may question the need for some of your diagnostic tests, medical treatments, or the amount of time you were off work. Stay calm and focused, while pointing out the doctor’s notes and other evidence that justifies those costs.

Once you’ve agreed on the economic damages, you’ll need to negotiate compensation for your pain and suffering. This is the hard part. Most adjusters undervalue how a car accident impacts the victim’s activities of daily living.

With patience and perseverance, you should reach a compromised settlement. Both sides will have to give up some ground to settle the claim.

Promptly confirm the settlement amount and terms in an email or a letter. Carefully review the settlement agreement and release before signing. Be sure the amounts and terms are exactly as agreed. It’s on you to make sure you understand what you’re signing, so have an attorney look it over if there’s anything you aren’t sure about.

You should get your settlement check within a few weeks of returning the signed agreement.

7. Handling Stalled Negotiations

Sometimes negotiations fail, even with professional negotiators. The vast majority of injury cases settle out of court, but you may need an experienced car accident attorney to get the insurance company to agree to a fair settlement.

Watch out for Alabama’s two-year statute of limitations. The insurance company has no obligation to warn you that the deadline is about to run out. Don’t wait to contact an attorney if the adjuster is deliberately stalling or otherwise acting in bad faith.

Sometimes all it takes is hiring a lawyer to get the adjuster to come up from a low offer. For serious injuries, wrongful death, or complicated auto accident cases, a personal injury lawsuit is often filed to protect the interest of the victim and their loved ones.

Most injury law firms offer a free consultation and case evaluation to victims of motor vehicle accidents. Car accident lawyers usually agree to work on a contingency fee basis, meaning they don’t get paid unless they settle your claim or win your case in court.