Dealing with the Aftermath by Jason & Debi Chalik - HTML preview

MISTAKE # 4 :

Believe or Do What the Insurance

Company Tells You

The insurance company seems nice enough. They’ve been “on your side” for years—or at least as long as you have dutifully paid your premiums. “You’re in good hands,” they tell you. And that gecko with the British accident seems like an old chum.

So, when the adjuster comes to you with paperwork to sign following an accident, it only makes sense to go ahead and sign, right? After all, he’ll either be offering—or have in his hand right then and there—a large settlement check. It could be $10,000, which by Florida law everyone involved in a vehicular accident—and who was carrying Personal Injury Protection (or PIP)—is entitled to.

Wrong. The insurance company may pay for your claim. Chances are that they will underpay based on the real value of the claim. They may deliberately overlook or disallow various medical issues that you’re currently facing or that could arise in the future. They generally may try to close the claim before your current—and future—needs have been secured financially and emotionally.

Do NOT settle with the insurance company. Do not take any settlements offered by an insurance company for your car accident without first speaking with an experienced auto accident lawyer.

Remember, claims adjusters work for the insurance company. It is their job to protect the interests of their employer. Who is protecting your interests?

Here’s how it typically works (and how people make mistakes they later regret): The insurance company offers you a minimal dollar amount in exchange for your signature on a document promising that you will not file a lawsuit. This usually happens rather quickly after the car accident takes place. Insurance companies will often discourage you from hiring an auto accident lawyer, so they can pay less to resolve your claim.

If insurance companies protected the rights of the insured as much as they protected the companies’ bottom lines, you wouldn’t need this book—or an attorney to protect your rights. Unfortunately, that’s not the case. Personal injury  and automobile accident attorneys serve a critical purpose as a counterweight to the force of the insurance industry. Attorneys look out for their clients’ best interests.

The insurance company’s primary motivation is to lessen the value of your case and reduce the potential of any successful claim you may have.

Among the requests an insurance company may make are to:

• REQUEST YOU SPEAK WITH THEM WITHOUT A LAWYER PRESENT. Speaking without legal counsel may cause you to make statements that can hurt your claim or legal standing. The insurance company knows this. The representative may tell you it’s OK to speak honestly without an attorney. Don’t do it. Hire an attorney, and have him or her present at any meeting with the insurance company. Once you have signed on with an attorney, you no longer speak with the insurance company directly. All correspondence goes through the attorney, who should be experienced in dealing with all facets of accident claims and insurance providers.
• SIGN A MEDICAL WAIVER. A medical waiver from the other insurance company could release all your privacy rights, even from up to seven to 10 years ago. If you sign a waiver, and they find an unrelated sports injury from five years ago, the insurance company’s attorneys may argue that the injury you’re claiming from the accident actually stems from that sports injury – and doesn’t deserve coverage or a settlement. Believe us, it does happen.
• RECORD A STATEMENT. The insurance company often will want to obtain a recorded statement from you. Do not agree to be recorded. If you claim no injury at the time of the recording, but days later an injury arises (which is not uncommon), the insurance company or its lawyers will come back to say, “We have a recorded statement from you saying you didn’t have any injuries.” Your injury may be legitimate, but in court your statement will raise doubt before the judge or jury. Protect your rights by avoiding being recorded.

In most instances, everything an insurance company does is a deliberate attempt to lessen or reduce the value of your claim. They are smart and experienced. They do this all the time. Their ultimate goal is to settle your claim quickly—and cheaply. This could be your worst mistake of all. Settling too early can severely limit your settlement amount, as well as reduce any future compensation.

While it’s tempting to want to be done with the whole ordeal, DO NOT sign anything or accept an insurance company check without consulting an experienced personal injury lawyer. You can jeopardize potential compensation you are due, and waive important rights that help to protect your interests.

WHAT INSURANCE DO I REALLY NEED?

Florida has a variety of required and optional insurance policies and coverage for personal motor vehicle usage (business or commercial vehicles require other mandatory coverage, often at a higher level). Often considered “full coverage,” they are just part of the components needed to ensure you are protected in the event of an accident.

According to the Florida Department of Motor Vehicles’ website, the Florida Financial Responsibility Law requires that “any person at fault in a crash resulting in bodily injury and property damage to others must have in effect at the time of the crash full liability insurance coverage. This coverage includes minimum limits of bodily injury liability of $10,000 per person, $20,000 per crash, $10,000 property damage liability per crash, and personal injury protection limits of $10,000 per person per crash.”

You MUST have insurance in the state of Florida. Your insurance MUST be in effect at the time of an accident for it to protect you. Too often, people without insurance get into an accident – then try to buy a policy the next day. It doesn’t work this way. If you attempt to lie to the insurance company to get a policy purchased after the fact to cover an accident that’s already occurred, that’s called insurance fraud. It’s a felony that can be punishable by fines and/or jail time.

Under Florida law, “full liability coverage” includes Property Damage—Liability and Personal Injury Protection (PIP). These two types of insurance are the only required insurance coverage for personal motor vehicles in Florida. Property Damage—Liability covers damages to a vehicle and contents caused by the negligence of the insured driver. The limit generally is $10,000.

Under PIP, up to 80% of allowable or bona fide medical expenses are covered, and 60% of lost wages are covered, generally up to $10,000. These are available to the insured vehicle owner and other individuals.

WHAT IS PIP INSURANCE? HOW DOES IT WORK?

All drivers in Florida are required by law to carry at least $10,000 of Personal Injury Protection (PIP).

PIP covers the driver or vehicle owner up to the policy’s specific limits. PIP provides this coverage following an accident regardless of fault—or what in Florida is called “no fault.” Generally, a Florida PIP policy pays 80% of necessary medical expenses, 60% of lost wages, and up to 100% of such services as child care. It also provides death benefits up to $5,000, depending on the policy.

As with any insurance policy, coverage limits can be increased beyond the standard $10,000 or percentage limits depending on individual needs or circumstances.

Who or what is covered with PIP? In the event of an accident, PIP covers a variety of financial needs:

• PIP provides money in case you cannot work and lose your wages or income.
• PIP covers others in—and not in—your vehicle. Children and other residents of your household who do not own a vehicle are covered by your PIP policy. The insurance also protects children injured while riding a bus to school.
• PIP protects licensed drivers who are in an accident while using your vehicle—with your permission.

If someone with his or her own PIP is injured while in your vehicle, that person’s policy provides coverage benefits.

As with any insurance policy, speak with your insurance agent or provider to determine your needs. If you were a Florida driver or passenger injured in an accident in the state, contact your insurance provider immediately to make a PIP claim. When you file your claim, your insurance provider will send (via email or U.S. Mail) a document outlining your rights. This documentation will include your benefits, any exclusions, limitations and deadlines.

At the minimum required coverage levels, Property Damage— Liability and PIP deliver limited protection. Drivers can carry other, optional insurance designed to increase their protection, provide additional coverage in case of their own liability, as well as ensure they are covered in the event the other driver carries little or no insurance. Higher limits on these policies also can help protect the insured’s estate or personal wealth in the event of an accident by providing higher levels of coverage. Other such policies and coverages may include:

BODILY INJURY—LIABILITY. Similar to Property Damage— Liability, Bodily Injury—Liability is carried to provide coverage to compensate for personal injuries caused by the insured party’s negligence. It does not provide for property damage. Coverage limits start at $10,000 and can rise to mil ions of dollars. Coverage levels and limits are the insured’s decision. This type and level of optional coverage provides greater protection in the event of a serious accident.

COMPREHENSIVE/COLLISION. These two optional insurance programs cover losses to or from the vehicle. Comprehensive covers losses that occur to or from the vehicle in the event of a theft.

Collision covers losses that occur to a vehicle in the event of an accident.

MEDICAL PAYMENTS (MED PAY). This policy is like Personal Injury Protection (PIP). Yet, it is designed exclusively to cover medical benefits. It also doesn’t carry the 80% limit found with PIP. Most often, this policy pays the amount not covered by PIP (generally 20%), as well as other costs or charges when the limits of PIP  have been reached. Like other optional coverages or policies, limits can vary.

UM/UIM (UNINSURED MOTORIST/UNDERINSURED MOTORIST).  This is similar to Bodily Injury - Liability. This covers the insured party for damages that stem from the negligence of someone else (as opposed to damages or injury caused by the insured). UM/ UIM take effect in the event the at-fault party or driver does not carry valid Bodily Injury—Liability coverage, or the policy’s limits are insufficient to match personal injuries sustained in an accident. Like Bodily Injury—Liability, coverage limits for this optional policy provision start at $10,000 and rise to levels desired by the policy holder.

THE TAKEAWAY: The insurance company is not your friend. They are out to protect their financial interests. Sign nothing. Say nothing. Do not agree to give a statement—especially one that’s recorded.