There are two major parts of your car insurance policy that Alabama drivers need to understand: the liability coverage and the uninsured motorist coverage.

Liability coverage is required for all drivers under Alabama law. Liability insurance protects your assets if you cause a wreck and hurt someone. If you have liability coverage, the insurance company will hire an attorney to defend you in a lawsuit as well as pay the person for the accident up to the limits of the coverage you purchased.

Uninsured motorist coverage protects you from other people. With uninsured motorist, if a driver with no insurance or little insurance hits you and you are hurt, then your insurance company will pay up to the limits of the coverage you bought. Uninsured motorist coverage also will protect you if you are a victim of a hit and run and the other driver is never caught. Normally, you do have to pay extra for this, so don’t feel bad that your insurance company is giving you money. You along with many other people are paying for this protection.