Ex parte Safeway: Alabama Supreme Court Clarifies UM/UIM Settlements After a Car Crash

At Ryan & Rouse, we know how complicated it can be to get the compensation you deserve after a car wreck—especially when you're dealing with underinsured motorist (UIM) coverage. A recent Alabama Supreme Court case, Ex parte Safeway Insurance Company of Alabama , sheds light on a common issue in personal injury cases: what happens when you settle with the at-fault driver— but your damages go beyond their policy limits?

Here’s what you need to know.

Case Overview: Ex parte Safeway Insurance , No. SC-2023-0512 (Jan. 19, 2024)

In this case, the plaintiff was injured in a car accident and settled with the at-fault driver for their policy limits. But because her medical bills and other damages were far higher, she also filed a claim with her own insurer, Safeway, under her UIM coverage.

Safeway argued that since she already settled with the tortfeasor, it could reduce what it owed by crediting the amount of that settlement.

The trial court disagreed—and Safeway took it to the Alabama Supreme Court.

What the Supreme Court Held

The Court sided with Safeway.

It ruled that when an insured settles with an underinsured motorist, the UIM insurer is entitled to offset its liability by the amount already paid by the at-fault driver’s insurance.

That means:

• UIM insurers don’t have to pay the full damages amount on top of the settlement.

• Instead, they pay the difference between what you received and what you're still owed— up to your UIM policy limit.

Why This Matters for Injury Victims

This decision is critical for anyone pursuing stacked insurance coverage after a crash in Alabama.

If your damages exceed the at-fault driver’s policy, you can still recover more—but you must carefully structure your UIM claim. Otherwise, you risk losing out on money you’re entitled to.

And remember: settling with the at-fault driver without notifying your UIM carrier can cause issues, or even forfeit your UIM rights altogether.

How Ryan & Rouse Can Help

At Ryan & Rouse, we’re experienced in navigating the insurance minefield. From making sure your UIM carrier gets proper notice, to ensuring your claim is properly preserved and fully paid, we’ve got your back.

We routinely help North Alabama clients with:

✅ UIM and MedPay claims
✅ Coordinating multi-policy coverage
✅ Negotiating policy offsets
✅ Getting full value from insurers who try to underpay

Injured in a Crash? Let Us Handle the Insurance Company.

Don’t leave money on the table after a car wreck. Let Ryan & Rouse make sure you get every dollar you deserve —from the at-fault driver and your own insurance.

📞 Call today for a free consultation with North Alabama’s trusted personal injury firm.

256-801-1000

Or contact us through our website: https://www.alabamalaw.com/contact