Question: My son lent his car to a friend. White driving, another person ran a red tight and hit my son's car that was being driven by his friend. My son only has liability insurance but no collision or comprehensive insurance. We do not believe his friend has auto insurance. The person that ran the red light was driving a rental car.This rental car driver did have insurance, but her insurance is saying they are only second liable and that the primary liability goes with the car that being the rental company who is self insured.
We believe we are getting the run around. Who would you say is primary liable? Although the rental car company has not denied being primary liable, any progress in settling my son's claim has been very slow, to say the least. Also do you have any suggestions on how to best proceed on this matter. My son has not yet retained an attorney He is currently a college student and trying to keep his costs down to a minimum. My son's car is worth approximately $6,700
Answer: You'll want to get with the rental car company and get a copy of the Rental Contract. If they provide the primary coverage, it will say so on the contract. If someone at an insurance carrier is telling you that their coverage is excess (not primarily liable), you'll want to have them confirm this in writing. Getting companies to put things in writing to you will normally cut to the chase in terms of them getting their investigation moving, developing whatever facts they need, and making a final decision. Hiring an attorney would definitely be a last resort position. His fee would have to come out of whatever they eventually pay you for the vehicle, so I would certainly exhaust all the free avenues first.
Question: My car was rear ended last August. The person that hit me and their insurace carrier agree to being liable. The damage to my car was minimal - about $300 (I had to replace the bumper). I have incurred $3,100 in medical expenses from my chiropractor. These bills will be be paid by the insurance carrier of the woman that hit me. They are willing to settle the claim for $5,000. I feel that I deserve at least $6,500 do to the amount of pain and aggravation this has caused me and the possibility of future back problems. I have not lost any work hours. Would it be worth pursuing this in court to try to get what I feel that I deserve? I know that lawyers normally get about 1/3 of settlement. Their first offer to me was $4,600, I then asked for $8,900 (figuring I could come down from there) then they offered the $5,000 which I mentioned ealier. The ball is in my court and I'm debating if I want a lawyer to help me hit it back over the net.
Answer: The first thing to remember that it's not really just 1/3 of the settlement if you get a lawyer. it's 1/3 if he just writes them a few letters and you settle. If he actually has to file suit (take them to court), he usually gets 40% plus costs. This is important as it actually costs quite a bit of money to go to court. There's the filing fee, records fees, expert fees, travel fees, deposition costs, you name it. And it all comes out of your end of the settlement.
Another thing to consider is that when you are just a person making a claim, everyone is required to be more interested in helping you out, kind of "walking you through" the system, etc. Once you have an attorney, you're fair game. It's not the insurance company vs. just a person, it's them vs. your attorney, and once they go into a defense mode, they will positively play to win. They may go down on the amount of your offer or withdraw it entirely, trying to offset their litigation (lawsuit) expenses.Plus their war chest to fight the case is virtually unlimited once the fight is on.
Something to remember also, if you go to court, nothing is sure anymore. It's mostly you telling your story to twelve strangers. They could like you and give you more, dislike you and give you less, REALLY dislike you and give you nothing (it happens, and more than you would think). It's all a "roll of the dice", as they say. that's why insurance companies try to avoid it, if at all possible.
Where I work, what they are offering you seems like a ton of money, especially considering the amount of your property damage. I sincerely don't think you would ever see anything like $5000 (you're end) once you start down the road of paying an attorney and paying costs.
If you are truly dissatisfied with the amount of their offer, you can always go the Alternative Dispute Resolution route. This would be either a non binding mediation or a binding arbitration with high and low figures that are mutually agreeable to both of you. Mediation would give you the chance to see what an independent jurist, usually a retired judge, thinks of your case and try to come to a mutually agreeable figure between what you think it's worth and what they think it's worth. Arbitration would work sort of the same way, but whatever value the judge says is binding on both of you. Companies will usually put a little more money on the table to get you to arbitration as they know the file is going to close either way, and they've got the judge's opinion as cover if they have to pay a little more than they thought it was worth.
Thank you for your advice! It is very much appreciated!
Question (Part 2): I met with a lawyer 2 days ago and he agreed to act as my attorney and write a letter to my insurace company letting them know I have representation. He was goingto get 50% of anything OVER the $5,000 which they have offered me so far. After reading what you wrote below I decided to wait before having him send the letter. I think you may be right about not wanting to put the insurance company on the defensive as you mentioned below.
I had been planning on having the insurance company of the woman that hit me pay all of my medical bills. But my lawyer says I should have my own health insurance covermy medical expenses. That way I will get to retain more of the settlement money. The insurance company of the woman that hit me is under the impression that they are payingmy medical expenses and hence the settlement that they are offering is as high as it is.Is it legitimate (and legal) to switch and have my own health insurace foot the bill.Should I wait to get the settlement check and then bill my health insurance?
Answer: Well, it depends to some degree on what state you're in and what your agreement is with your health insurance carrier.
You can certainly turn the bills into your health carrier or HMO, or even your own auto insurance carrier if you have Personal Injury Protection or Medical Payments Coverage. It is certainly not fraud. You pay a premium for that coverage, and just like any other, you are entitled to collect if you want to. The only caveat is that it is up to these carriers (and whatever your policy with them says) whether or not they want to be paid back for the bills they pay out of your settlement (they probably do). It's called the right of subrogation. Normally, if they want to be paid back, they will put the insurance company for the other party on notice that they will want their interest protected at time of settlement, which means they will demand that they be paid back out of your settlement. So, it could just all just be wash for you, money-wise.
The reason I mentioned the state you live in, is that if you file with your auto insurance carrier to have the bills paid, they may surcharge you (increase your rates) when they learn that you have been involved in an accident. They don't do that in my state, but you ought to check it out with someone in yours to be sure.
I have never seen many lawyers that only take a percentage over what you have already been offered. That's definitely a fairer way than the standard contract most use. He (your attorney) sounds like a pretty straight shooter.
Just wanted to drop you a note and let you know the results of my case - "So, whats my case worth anyway" on your FAQ. I decided not to use a laywer even though I was offered a very reasonable deal by an attorney, I didn't want to put the insurance company on the defensive based on your advice in your e-mail. I was wanted to get $7,000, I eneded up with about $6,200, but the good news is my insurance carrier paid 80% of my medical bills and is not seeking reimbursement from the settlement. So, I eneded with more than I thought I was going to get. All in all it worked out quite well. Thank you for your assistance. It's a great thing that you are doing providing this service, your advice was very helpul.
Question: My father was recently killed by a drunk driver (2X legal limit) while he was pulled over onto the shoulder of a freeway adjusting his U-Haul trailer hitch. My mom was with him, sitting in the passenger side, but was fortunately not physically injured. The other driver has state minimum $25,000 insurance, and my father had $50,000 underinsured motorist but not PIP (he had separate medical insurance). I have read and heard of lawyers taking too much of a settlement, so we want to pursue as much as possible ourselves. The other driver's insurance adjuster has already committed to a full payout ($25,000 plus property damage), but I have several questions:
1. Should we also expect a full payout of the underinsured limit of $50,000? (My father's insurance adjuster won't yet commit).
2. In this situation, is my mother able to collect anything under the "2nd person" part of liability/underinsured? (The other driver's insurance adjuster said no, but I want to validate this).
3. The other driver was drinking all afternoon prior to the wreck. Is liability to the tavern/bar very often successful?
Any info you can provide would be greatly appreciated. Thanks!
Answer: Very sorry to hear about your dad. I don't really think you'll need an attorney with the possible exception of going after the tavern.
1. Your UIM (underinsured motorist) carrier's adjuster is probably waiting for written proof of the primary carrier's limits and will want to do an assets check on the other driver before he commits. You'll need to be sure you have his written permission to settle with the primary carrier to be sure you don't violate any of the provisions of your policy. As you are unrepresented and their insured, just ask your UIM adjuster as many questions as you want.
2. There is a liability principle that may be applicable in your state which is know as "Bystander" status for your mother. Even though she has suffered no physical injuries, if you feel that she has suffered some kind of mental injury or mental anguish at seeing what happened to your father, it is certainly something that can be recovered for. There is another principle at work, also, called "The Zone of Danger". If she saw what was happening and it was a near enough thing that, again, she suffered some sort of mental injury from it, she may be legally entitled to recover for it. Ask your UIM carrier's adjuster if these are valid claims in your state.
3. What you're talking about here is called the "Dram Shop" rule. If the tavern was aware that this person was impaired and they continued to serve him, they certainly have a problem. It's probably not a case where you can just ask their insurance carrier for a settlement, though. These type of cases often have to be tried to a verdict and the pay outs can be quite large.As such, the consequences can be severe to the business. There would be a lot of information to be developed regarding the number of drinks served, who was a witness to what, how the other driver looked and acted, and, most importantly, how he came to be driving a car away from the place. Depending on how the tavern's insurance carrier reacts when you ask them for this information, you should get some indication of how to proceed. This would be a good opportunity for some ADR (alternative dispute resolution) such as mediation or arbitration before you decide if you need an attorney or not. Here, also, you'll need to be sure that Dram Shop is a valid recovery concept in your state.
Finally, this would be a good case to keep well documented in writing as to demands, offers, the permission to settle mentioned above, and anything else that seems strange or complicated to you. Just ask them to confirm by letter whatever they are willing to offer. You might also be thinking in terms of a Structured Settlement which can take the proceeds of the settlement and turn it into a lifetime income for your mother. It accrues interest tax free which can make a big difference over the long run.
Good luck, let me know how it turns out.
Thank you very much for your thorough response!
My parent's insurance paid the full uninsured motorist claim on behalf of my father. The drunk's insurance paid their one-person max also, plus a little against the "2nd" $25K. But since my mother was not physically injured, plus the drunk's children were injured, that's all the other insurance would pay (the combined limit on the drunk's insurance was reached).
Thanks again!
Question: On November 21 my cousin (a mature 55-year old adult) was driving my car to DFW airport to pick me up on when I returned from a business trip to Hong Kong. As he drove down LBJ expressway in Dallas (IH35) he was hit in the rear by a lady. The woman was hit in the rear by a truck which left the scene of the accident and, according to her, "knocked into my car." There was a witness.I got her name and phone number and was called by her insurace company, XXXXXX Insurance Group. The claims adjuster was rude and his ask me "you're not really going to try and file a claim are you." When I said yes he called my cousin and tried to get him to acknowledge that the woman was "knocked into" my car. When my cousin said he could not say that the interview was terminated. He phoned me the next day and said they were not going to allow my claim and I should file with my insurance under "uninsured motorist" which would have an adjustment of just $250. He was rude and arrogant and implied I was trying to steal money from his company.
It turns out my sister bought a new car and was insured by XXXXXX. Her car was parked in a lot and was hit while she was shopping. The driver drove off. When she tried to claim under ininsured motorist XXXXXX disallowed her claim and said she had to file under collision which cost her an additional $250.
Two questions. Do I have any recourse and what can I do to let people know what kind of company XXXXXX is. They have already lost one customer, my sister, and I would like to get the word out on them.
Answer: As far as your rear end accident, you probably don't have much recourse. If the driver of the car that hit you has rear end damage and says that she was pushed into you, her carrier has a duty to believe her and you would have to go under uninsured motorist.
Re: the parking lot incident, each company has it's own rules about using Uninsured Motorist Coverage. A common one is that if you don't promptly report the incident to the police, they won't cover it under UM. The best thing to do would be to simply call and ask what you need to do to have the claim honored under UM. As she is their insured, they have a duty to explain things to her. It may be as simple as having her go down to the police station and file an incident report (Blue Form).
Webmaster's note: You'll note the XXXXXX over the name of the insurance company in this letter. As I would like to keep this page up (and my assets intact), I am going to keep specific insurance carriers out of the equation.
Question: I just found your address while conducting a search for auto accident claim help. I recently bought a 1991 Mazda RZ7 with 68,000 miles on it only to have a woman who wasn't paying attention make a left hand turn into the side of it the first day I drove it! I had spent 3 months shopping for an RX7 with a very clean, straight body, and settled on this one because it was perfect. I'm an automotive design engineer, and I am very knowledgable on unibody construction. Anyway, the woman's insurance company was XXXXX XXXXXXX, and they estimated the damage at less than half the lowest estimate that I found. They simply want the body shop to cut the whole side off the car, and splice one cut out of a junkyard in it's place. My body shop will not do such substandard, unsafe work, but the insurance company stands by thier estimate. It took 4 weeks just to get the estimate from the insurance company, and I've lost all of my remaining patience!
I'm sorry for the long story, but here comes my barrage of questions. First of all, where is the best place to find info on dealing with insurance companies? What are my rights in this case? (oh, I'm in GA) How do I get the insurance company to fix my car to my satisfaction? That's all I want! I would appreciate any help you can provide!
Answer: If you have collision coverage on your vehicle, simply turn the whole thing over to your insurance company, let them fix it, pay your deductible, and let them worry about getting the money back from the other company. You'll have a lot more leverage with your own company getting the work done the way you want it than you will with an adverse carrier.
Like Kind and Quality Parts, yes, from the junkyard ; -) are pretty much the norm in repairing used vehicles. No matter how pristine your car, it is still a used car. It is really the body shop that determines how good the repairs will be on your vehicle. Whether the part is a brand new OEM (we lapse into personal opinion and peer opinion here, not looking to take on a parts manufacturer) or a reasonably straight part off a salvage vehicle, it is the prep by the body shop that will determine whether it fits, the paint matches, and the rust protection will hold up. If you want new parts, even with your own insurance company, you will probably have to pay the difference. At least, that is the new law in my state.
You also have a claim for the loss of use of your vehicle while the other company was letting it sit, and for a reasonable amount of repair time. You should certainly hold their feet to the fire on that, too.
Don't be afraid to ask your State Board of Insurance or your State Consumer Protection Agency or Attorney General for help. All companies take written complaints to these agencies very seriously, especially when it comes to something as indefensible as a delay in seeing your vehicle.
1. If an auto accident interferes with a planned vacation in the future, is one compensated for all the vacation time or would it only be for the day that it interferes with?
Answer: You can be compensated for anything if you can prove how it damaged you. If you can't take your vacation and you lose it, or it costs you something extra to reschedule, they owe you whatever those costs are.
2. If an auto accident causes one to miss a scheduled job interview for a promotion the same day of the accident, can one be compensated for this loss on that day, even if the interview was rescheduled for another time?
Answer: As for the interview, if you were just able to reschedule, then no harm, no foul. They don't owe you anything.
Question: I'm copying my insurance on thios e-mail in an attempt to expedite my claim. I feel I am being "ripped off" by my insurance company (or at least their adjustor) and I'm not about to give up without fighting for my rights. I own a 1988 Honda Accord that was recently sideswiped in an accident. The car was dented in the rear quarter panel right behind the driver's door, scuffed and scratched along the door, and dented in the front fender. The driver of the other vehicle was at fault and his insurance company paid out the claim. I have a written estimate to get the car repaired for $1250.00. The other insurance company settled the claim for $1850.00. I elected to repair the car myself and spent considerable time rubbing out the scratches in the door and "popping" out the dent in the front fender. We recently moved to Georgia and I was waiting until we moved into our new home to finish work on the car. The damage was purely cosmetic. This past week I was involved in another accident and I was at fault. The car is now a total loss. MY insurance company has made a ridiculous offer to settle the claim. They have offered me $3400 for the car, less the $1850 paid by the other insurance in the previous accident, less my $500 deductible. The balance owed on the car is around $2700 meaning I will still owe $1100 after the claim is settled! For starters, the $3400 is at least $2000 less than the value of the car based on XXXXX XXXX Book Value. Moreover, I cannot believe they have the right to deduct the full value of the prior claim. I had already done much of the work myself and the damage was superficial at best (I've offered photographs to support my claim). I'm asking for $5500 (the value of the car) and am willing to concede that $750 damage remained on the car (that's allowing me $500 for the work I did based on my $1250 estimate of damages). Apply the $500 deductible and pay off the $2700 to the bank leaves me with about $1500. As you can see, we are about $2600 apart. I truly believe that any other insurance would bend over backwards to settle this claim. My insurance is paying for this claim and they are being totally unreasonable about settling it. Do I have to settle? How do I go about getting a fair settlement against my own company?
Answer: Wow!! First of all, forget the book. The only thing that matters is what your car, dents and all, was worth one second before the second accident. It's good that you have photos. Show those to some car dealers, along with details about the mileage and condition and ask what they could have sold it for. That is where your negotiations will have to start.
Since this is your insurance company you are dealing with, you might have an Appraisal provision in your policy. This gives you the option to each get an expert (at your own expense) to evaluate your vehicle, these two experts then hire a third, and the decision of any two of the experts is binding on all. There may be other similar alternative dispute resolution provisions in your state that will help get things resolved.
Question: I was in an accident in which I was rear-ended. The other guy's insurance paid for the repairs to my vehicle already. The damage was about $1500.00. I suffered injury which resulted in medical bills of just over $5000.00. I didn't want to hire a lawyer so I discussed this with the company of the guy at fault. I ask them what a claim like this was normally worth and they would't say, they just asked me what it would take to settle the claim. I told them I didn't know and they said when I come to a figure to call them back. So I went online & come across another site stating that if all fault is upon the other driver that a claim would normally be worth 5 times the amount of medical bills, plus loss wages. I was ordered off work by the neurologist for a total of 22 weeks. I own a profitable business, but I personally couldn't work for 22 weeks. The other site said that there is a standard formula insurance co. use in settling a claim, & that according to that standard formula my claim should be worth 5 times medical bills. I would like your opinion before I respond asking for a certain amount. About how-much would my claim be worth? Is there a standard formula insurance co. use? Thank you very much.
Answer: If the other site says that 5 times medical plus lost wages is some kind of formula, it must be talking about handling claims on some planet other than earth . . .
You will need to make an opening offer to the insurance company. Just consider what you've been through, your medical condition now, and anything that you will have to deal with in the future as a result of that condition, put a dollar amount on it, and just tell the company that's what you want. You will naturally have to have all the documentation to back this up. It can't be guesswork, or just your feeling, you will need information from your doctor in addition to your bills and probably some tax or accounting information to back up your lost wage claim. If it is within their value range, they should just write you a cheque.
If they say it's too much, then it's all a negotiation from there. Be sure to answer any questions they have, offer to see another doctor if they will pay for it, and don't be afraid to ask for mediation if the negotiations break down. You might feel better if you can talk to the mediator about your condition and what you feel you deserve. the mediator can then talk to the insurance company in their language and perhaps help bring you together to a settlement.
Your special damages are what you are actually out of pocket, i.e. medical and wages. Your general damages are a sum on top of that to pay for pain, suffering, and inconvenience, both now and in the future.
A settlement is all about how bad the impact was, what kind of injuries you sustained, whether or not you will have any kind of future pain or problems as a result of them, and most importantly, how well documented are all of the above.
If you were hurt and you're just fine now, an amount equal to your medical for general damages might be right. If you are going to have permanent pain as a result of the accident, five times your medical could be way too low. There is no formula to arrive a figure. If you ask ten different people what your claim is worth, you'll get ten different answers.
The only correct figure for what your claim is worth is the amount that it will take for you to sign the release form, and to be prepared to go to court if you won't sign. The only person that knows that figure is you.
