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Alabama Accident Law

Alabama accident law differs from the accident laws of other states. Let us start with how an individual collects compensation in Alabama. A party has yet to prove that another is liable for the accident before he can collect damages due to him.

This is a rather difficult thing to do. And worse, if a court of law finds you to be even 1% liable, you will be barred from receiving any compensation at all.

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A car accident does not only have physical effects but legal effects as well. Be informed with all the aspects of the state accident law.


Auto insurance coverage is mandatory in Alabama. So in the event of a vehicular accident, you will have to contact the insurance providers involved. Most insurance companies issue the same insurance policies in all the different states. Being involved in an accident in Alabama as opposed to being in an accident in another state will make no difference to your insurance provider or to the insurance provider of the other driver.

This makes it simple for the insurance companies. It is important to note that insurance companies will always attempt to prolong the settlement process. If you are offered a settlement that is already sufficient to cover for all your damages, it is best that you take it immediately.

When involved in an auto collision with a drunk driver, the Alabama accident law allows you to collect damages not only from the drunk driver but also from the establishment (examples are bars, restaurants or those that sell or serve alcohol) that sold the driver the liquor. Alabama has laws that regulate the selling and distribution of liquor. These laws are called the Dram Shop laws.

A “Dram Shop” is a legal term that pertains to a bar, a tavern or any other establishment that serves and sells alcoholic beverages. Dram Shop laws prohibit establishments from selling and/or distributing liquor to those individuals who appear to be drunk. So if a customer who appears to be intoxicated orders an alcoholic beverage, the store has a legal obligation to decline to serve the said customer.


If the establishment decides to violate this law by serving the customer and the customer gets into a vehicular accident wherein he is found to be liable, the store can be sued for damages by the injured party. In summary, the injured party of a “drunk driving” accident has a potential claim against the driver and the establishment.

Alabama accident law also allows the spouse, the parents and the children to collect compensation for losses if they get injured, if they had their property damaged or if they have lost their means of support from a vehicular accident with a drunk driver.

They can collect for losses not only from the drunk driver but also from the establishment that sold or distributed liquor to the driver even when the driver already appeared to be intoxicated. A lawsuit can also be filed against an establishment if the said store sold or distributed alcoholic beverages to minors.

Alabama insurance claim regulations

Alabama Accident Law
Jurisdiction Pure Contributory Negligence
Liability Insurance required? Yes
Personal injury liability maximum for one person injured in an accident. $20,000
Bodily injury liability maximum for all injuries in one accident. $40,000
Property damage liability maximum for one accident. $10,000
PIP required? No
No-fault state? No
Uninsured motorist coverage required? No
Bodily Injury Statue Of limitations 2 years
Property Damage Statute of Limitation 2 years
Small Claims Court Maximum Limit $3,000

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