Insurance

February 14, 2011

What Does It Mean When You Have Liability Insurance Policy Limits of $50,000 / $100,000?

I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $50,000 / $100,000. What does that mean?

It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $50,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on your behalf, up to $100,000 but no more than $50,000 for any one person.

So, if one person was hurt in the wreck, the insurer will pay no more than $50,000 in damages. If two people were hurt, the insurer will pay up to $100,000, but no more than $50,000 per person. If three people were hurt, the insurer will pay up to $100,000, but no more than $50,000 per person. Note that each person who is injured does not automatically get $50,000 – they must demonstrate amount of their damages and can recover up to $50,000 each.

January 10, 2011

Why Do I Need Uninsured Motorist Insurance Coverage?

by The Law Offices of John Day, P.C.

I live in Tennessee and I understand state law requires that everyone who owns a car or truck have liability insurance coverage on the vehicle. Why should I spend money to purchase uninsured motorist insurance coverage if everyone already has liabilty insurance?

Because (a) some people don’t follow the law; (b) some people buy liability insurance coverage but do not purchase an amount that will protect you from losses you sustain in a car or truck wreck; and (c) you may get hit by a hit-and-run driver (and unisured motorist coverage gives you some protection in such cases).

Despite the law that mandates insurance coverage, 20% of the people in Tennessee have no insurance on their vehicle. That means that 1/5th of the people you meet on the highway have virtually no way of meeting their financial obligation to you if they cause an accident and you are hurt. You need uninsured motorist coverage to protect you from that risk.

December 4, 2010

Can I Tell From How Much Insurance Someone Has By Knowing What Type of Car They Have?

by The Law Offices of John Day, P.C.

I was in a car wreck and was hurt bad. The other driver was driving a new car. I have been talking with the insurance company for the other driver. I asked how much insurance was on the car and the insurance adjuster would not tell me. I guess the other driver has lots of insurance because she was driving a new car, right?

Maybe. There is no way to know for sure how much insurance someone has just by looking at the type of car they are driving. It is reasonable to assume that a person who has a new car has enough money to purchase a responsible amount of liability insurance, but some people spend all of their money on their car and buy the minimum insurance they are required to have in Tennessee – $25,000 per person, $50,000 per accident.

Because Tennessee has no formal way of insisting that insurance companies reveal how much insurance coverage they have until after a judgment is obtained, I often look at the type of car, the at-fault driver’s home, the at-fault driver’s job and other factors to make an educated guess about how much insurance is available. Sometimes my guess is right, sometimes my guess is wrong. At the end of the day, however, if my client has a case that is worth more than the offer the insurance company has given and has represented that no more insurance is available, I insist (with my client’s permission) that the insurance company prove that the at-fault driver has no more insurance applicable to the claim. The is accomplished by requiring a copy of the declarations page for the insurance policy and an affidavit from the insured stating that no additional insurance is available.

November 24, 2010

What Does It Mean When You Have Liability Insurance Policy Limits of $100,000 / $300,000

by The Law Offices of John Day, P.C.

I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $100,000 / $300,000. What does that mean?

It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $100,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on your behalf, up to $300,000 but no more than $100,000 for any one person.

So, if one person was hurt in the wreck, the insurer will pay no more than $100,000 in damages. If two people were hurt, the insurer will pay up to $200,000, but no more than $100,000 per person. If three people were hurt, the insurer will pay up to $300,000, but no more than $100,000 per person. Note that each person who is injured does not automatically get $100,000 – they must demonstrate amount of their damages and can recover up to $100,000 each.

November 12, 2010

Can I Require the Insurance Company to Pay Interest on My Personal Injury or Wrongful Death Settlement?

by The Law Offices of John Day, P.C.

I was hurt in a car wreck six months ago. It wasn’t my fault. I have been waiting for over a year for the case to settle. I lost three months of wages and have had to pay some medical bills that were not covered by my health insurance. Can I get the insurance company to pay interest on my settlement? It doesn’t seem fair that they can delay my settlement and not have to pay interest.

Not under Tennessee law. Tennessee law does not permit the recovery of interest in personal injury or wrongful death lawsuits.

The only exception to this rule is if you win a case and a judgment is entered by the court you are permitted to recover interest. Interest accrues at the rate of 10% per year on the amount of the judgment that is unpaid.

November 4, 2010

Car Insurance In Tennessee

by The Law Offices of John Day, P.C.

When I complained about my car insurance rates my agent said that the reason rates were so high was lawsuits. Is that right?

Well, it is true that insurance companies pay claims and, when they don’t pay the claims they should or don’t pay a fair amount lawsuits will be filed. Of course, that is the business they are in.

The facts are that Tennessee consumers and juries are very conservative and our insurance rates reflect that. While no one likes writing a check to an insurance company, Research reveals that Tennessee has the 8th lowest auto insurance rates in the nation.

November 3, 2010

Discovery of the Amount of Liability Insurance in Cases Involving Trucks

by The Law Offices of John Day, P.C.

I was in a wreck with a tractor trailer several weeks ago. The truck driver’s insurance company called me and asked me some questions. I then asked him how much insurance his driver had, but he refused to tell me. He said that in Tennessee I could not find out how much insurance the other driver had, even if I filed a lawsuit. Is that true?

Yes. Tennessee is the only state in the nation that does not require an insurance company to disclose the amount of liability insurance in place for an accident. This is a result of a powerful lobbying effort in the Legislature, led by Tennessee Farmers Mutual Insurance Company.

Sometimes an insurance company will voluntarily disclose the amount of coverage it has. However, in the ordinary situation, the only way you can discover how much insurance the other driver has is to win a lawsuit and start the process to collect the money you are due.

September 19, 2010

What Is Med Pay Coverage?

by The Law Offices of John Day, P.C.

I was hurt in a car wreck and told my insurance company about the wreck. The claims adjuster said that I had $10,000 in medical payments coverage and that if I would send the bills in the insurance company would the bills up to $10,000. Why should my insurance company have to pay for my medical bills when the wreck was not my fault?

Your insurance company will pay because you paid for this insurance coverage. It can be very helpful to you if the wreck was your fault or if the you cannot find the driver who hit you. It can also be helpful to help you pay co-pays and deductibles not covered by your health insurance.

The fact that your insurance company pays some or all of your medical bills does not let the other driver or that driver’s insurance company off-the-hook. You can still seek payment of the bills from your insurance company and, if the other driver is liable for the crash and the bills were reasonable and incurred for necessary medical services in connection with the wreck then you can collect them again from the at-fault driver and that driver’s insurance company. However, your insurance policy probably requires you to re-pay them if you receive payment for your medical bills from the at-fault driver and that driver’s insurance company.

August 9, 2010

The Other Driver Doesn’t Have Enough Insurance!

by The Law Offices of John Day, P.C.

I was in a bad car wreck. I had $50,000 in medical bills and missed eight weeks of work (I make $800 per week as a mechanic). I am probably going to have to have another surgery. My doctor also says I will have arthritis for the rest of my life. I just found out that the person who hit me only has $100,000 of liability insurance. That is not enough for what he did to me. Can I force the person who caused the wreck to pay me out of his pocket?

A person or company is always liable for all of the harm they negligently cause. A person purchases insurance to reduce his or her own risk of coming out of pocket to pay for that harm, but if the harm caused exceeds the amount of insurance purchased he or she is liable for the rest.

The problem, of course, is collecting from a person who causes harm. To make a payment to the injured person over and above the amount of insurance the person who causes harm must have assets, income, or both. Many people have very few assets and insufficient income to make a payment to the person who they hurt. If pressed, these people will often just file bankruptcy and the bankruptcy court will discharge the obligation. (There are some exceptions to this. For example, the bankruptcy court will not discharge the lawsuit-related obligation of a drunk driver or a person who intentionally harms another.)

August 3, 2010

Why Do I Have to Repay My Health Insurance Company Out of My Personal Injury Settlement?

by The Law Offices of John Day, P.C.

I just settled my personal injury case and my lawyer tells me I have to repay my health insurance company for paying my medical bills. I have paid health insurance premiums for 25 years and was never in the hospital one time before my wreck! Why do they have the right to get repaid?

Because the insurance policy you have almost certainly says that they have the right to be repaid. That is part of the bargain you struck with them – even though you never read your policy and no agent or representative of your employer mentioned it to you.

Depending on the type of health insurance you have there are several arguments that can be made to secure a reduction in the amount that must be paid back to the insurer. An experienced personal injury attorney will know this area of the law and will work with you to secure a reduction in possible.