Uninsured Motorists
Even if your state requires all drivers to carry auto insurance, the driver who injured you or your passenger may not have had insurance. Or you may have been hurt in a hit-and-run accident, making it impossible to identify the driver at all.
This is when uninsured motorist coverage will step in to protect your interests. Many states require auto insurance companies to offer uninsured motorist coverage. If your insurance company offers uninsured motorist coverage, and you chose to include it in your policy, then your insurance company will act as if it were the at-fault driver’s insurance company in compensating you.
If you are involved in an accident with an uninsured but negligent individual, we would make a claim for you under your own uninsured motorist coverage. Your own insurance carrier would then have to pay any judgment which may be rendered, up to the limits of the policy which you purchased.
Underinsured Motorists
If the person who caused the accident has liability insurance, but the policy limit of his or her liability insurance is less than the uninsured motorist coverage of your policy, we can make an additional claim under your own policy for what is called underinsured motorist benefits, in the event that your damages exceed the limits of the other party’s liability coverage.
When the at-fault driver is underinsured, this means that the driver has purchased an auto insurance policy that does not provide enough coverage to compensate you for your damages. If you have underinsured motorist coverage as part of your insurance policy, you may be able to collect, from your own insurance company, the amount of your damages that exceeds the at-fault driver’s insurance coverage. The premium cost for underinsurance is not as costly as the primary coverage, and the amount of underinsurance protection should be at least the same amount that you have in your primary policy. For example, if you have a $100,000 policy protecting others from your negligence, you should at least have $100,000 in underinsurance coverage to protect yourself.
Collecting Insurance Benefits Under an Uninsured or Underinsured Motorist Policy
To recover benefits under an uninsured or underinsured motorist policy, the injured party typically will need to show that the other motorist was at fault. The injured party will also need to prove that his or her bodily injuries were significant. To collect benefits under an underinsured motorist policy, the injured party must have received the entire amount of insurance coverage available from the at-fault driver’s insurance company before the injured party can make a claim against his or her own insurance company under the underinsurance coverage provision.
Stacking Insurance Coverage
In some states and under some insurance policies, an injured party may “stack” various policies to reach a satisfactory level of compensation. By stacking coverage from more than one auto insurance policy — or coverage for more than one car on a single policy — the injured party increases monetary recovery. Stackable coverage is not allowed in every state; in some cases, the insured must choose to have stackable coverage upon purchasing the policy.
When a driver has been in an accident, no-fault auto insurance allows the driver to collect from his or her insurance company no matter who was at fault. Not every state has a no-fault insurance structure, but those that do have very specific laws governing when, how much and for how long the injured party may collect.
How No-Fault Insurance Works
No-fault insurance is a system in which auto insurance pays benefits to the insured driver in case of an accident. The insurance compensates the insured driver for monetary losses, no matter who was at fault. This is contrary to systems in which the at-fault driver’s insurance company must pay the bulk of the compensation after an investigation and determination of fault by the insurance companies or the courts.
The system is designed to streamline the process of payments to injured people and to lower the burden on the courts. Under the no-fault insurance system, it can be more difficult to sue an at-fault driver for damages; the insured typically must have been quite seriously injured in order to take such legal action. On the other hand, monetary recovery for the insured is more certain under no-fault insurance because the compensation is immediately available through the insurance policy of the injured party. No-fault insurance policies often have a cap on the compensation they will pay.
The no-fault insurance system prevents injured parties from receiving a windfall due to the accident, but it also ensures compensation no matter who caused the accident. In a no-fault state, the other driver will also receive compensation from his or her insurance company if that driver sustained certain economic losses. The specifics of no-fault insurance laws vary widely by state.
Personal Injury Protection (PIP)
If you have a no-fault insurance policy, it is probably called a personal injury protection (PIP) package. PIP insurance pays for the medical expenses of the insured driver and the passengers who were injured in an auto accident. PIP insurance typically covers things like medical bills, wage loss and funeral expenses, but not pain and suffering or vehicle damage. This varies by state and particular insurance policy. The PIP packages have limits on what they will pay.
Automobile insurance laws in Texas require the owner of a vehicle to have a certain amount of liability insurance on the vehicle. Liability insurance provides compensation to another person in the event that you cause an accident and are found to be liable to that person for damages. The minimum amount of coverage required by law is $20,000.00, but you can purchase higher amounts of liability insurance in order to protect your personal assets against the risk of higher damages being awarded against you in the event you cause another serious injuries.
When represents a person who is injured in an accident, one of the first things we do is investigate all possible insurance coverage that is applicable. There are two categories of auto insurance – first party coverage and third party coverage. First party coverage covers you and your property (such as medical expenses, damage to your vehicle and the insurance company’s duty to defend you in the event that you are sued as the result of your operation of a vehicle, etc.). Third party coverage is for your responsibility to pay for injury caused to other people (and vice versa), whether in your vehicle, or another vehicle involved in the accident. The coverage (and its exclusions) is set forth in your insurance policy. In exchange for the payment of a premium, the insurance company promises to provide compensation in the event of certain occurrences.
Liability Insurance
Liability insurance is required by law. Liability insurance settles and defends any claim or pays any judgment rendered against the insured in an automobile negligence claim. If you are injured by the negligence of another person, we will make a claim under the bodily injury liability coverage of the negligent defendant’s insurance policy. Liability coverage is not health insurance, and it is not designed to pay for your medical bills as they are incurred. It is designed for a one time settlement or payment for all of your damages. Liability insurance minimums required by law in Texas are:
Twenty thousand dollars for bodily injury or death of one person in any one accident.
Forty thousand dollars for bodily injury or death of two or more persons in one accident, not exceed the per-person limits above.
Fifteen thousand dollars for injury to or harm to property of others in one accident.
Medical Payments (Med-Pay) Coverage
When purchasing automobile insurance for yourself, you may seek to include several additional type of coverage other than liability insurance. One of these types of coverage is called medical payments coverage, which is not required by Texas law.
Medical payments coverage is a form of health coverage called by various terms, including “med-pay”, “personal injury protection (PIP)”, or on occasion “economic loss protection benefits”. This coverage is available to the insured driver (the individual who holds the policy which includes med-pay coverage) and any passengers in the insured’s vehicle for injuries sustained, regardless of the fault of the driver. It is important to note that the insurance policy of the negligent party does not pay med- pay or PIP benefits to an injured plaintiff. These benefits are limited to the driver or passengers in the insured vehicle, regardless of fault. The plaintiff looks to his own insurance policy or the policy on the vehicle in which he was a passenger for med- pay or PIP benefits.
The amount of med-pay benefits which may be paid to any individual is determined by reference to the policy limit for this particular type of coverage, as stated in the insurance policy declarations sheet for the person who purchased the coverage.
At the Law Office of Constantine G. Anagnostis, we look forward to helping you. Contact us for a free consultation to discuss the specific details about your accident and injury claim. You will pay no attorney’s fees unless you receive money for your claim.
Collision coverage is a type of voluntary coverage you can purchase which provides for the repair or replacement of your own vehicle after an accident, regardless of whether or not you are at fault. This is different than property liability insurance coverage discussed above. An innocent victim of an accident may present a claim for the property damage under his or her own collision coverage or under the negligent defendant’s property damage liability insurance coverage. Your own collision coverage normally includes a deductible, whereas property damage liability insurance coverage does not. In an automobile accident case, after a claim has been paid under collision coverage, the insurance carrier who paid the claim may proceed against the property damage liability insurance carrier for the negligent defendant to recover the amount paid out. This process is called subrogation, and does not affect your recovery
Normally, the insurance company has the option to either repair or replace your vehicle, depending on whether it costs less to replace your vehicle than to repair it. If this is the case, the insurance company will declare your vehicle a “total loss,” and take action to replace your vehicle. If your car is declared a “total loss,” the insurance company buys your car for its market value (see below), which can be difficult to determine. If you wish to keep the wrecked car, you may purchase it back from the insurance company for its salvage value. The insurance adjuster can deduct the salvage value from the settlement and you can keep the car.
Often the situation is reversed, and the insurance company chooses to repair a vehicle rather than replace it. In this case, if you are concerned about the safety of the repaired vehicle, you should contact our office to discuss your options.
How is the market value of my car determined?
You are entitled to recover the “fair market value” or the “actual cash value” of your vehicle immediately before the accident. One common source used to estimate fair market value is the Kelley Blue Book. Other sources of information are the local newspaper or the Auto Trader, which may list the for-sale price of cars of the same make, model, and year as yours. Occasionally, an expert vehicle appraiser is used to help prove the value of your vehicle.
What if I am “upside down” on the loan for my car?
If you owe more money on the loan for the car than the fair market value of the car, you are “upside down” on the loan. Unfortunately, if your vehicle is a total loss, the insurance company is not required to pay more money to you simply because you are “upside down” with your car loan. They are only obligated to pay the “fair market value” of your car.
Can I choose my own repair shop?
Yes. You always have the right to decide who will repair your vehicle, however the cost of the repair is not always determined by the estimate given by the repair facility of your choosing.
What kind of parts will be used in the repair?
You have the right to demand that only original manufacturer parts be used in the repair.
What if my car already had some damage before the accident?
If your vehicle had damage to it prior to the accident, it can be difficult to determine exactly what portion of the damage was caused by the accident itself. For example, if your car has a mechanical problem, the insurance company may claim that it existed prior to the accident if some evidence indicates that there was substantial wear and tear. Therefore, it is important that you prove the connection between the auto accident and the damage you are claiming. Ordinarily, mechanics and collision repair personnel can help to prove the age of body damage or the cause of a mechanical failure. They can assist to convince the insurance company that the auto accident caused the damage you are claiming.
Will I have to pay the towing and storage costs?
In most cases, unless there is a dispute as to who was at fault in the accident, the insurance company for the driver who caused the accident will pay the reasonable towing and storage costs (if necessary) of your car. After evaluating the vehicle, if the insurance company declares the car a total loss, they will have the car moved to a wrecking yard or a free storage area. If you refuse to allow the insurance company to move your car, however, you will have to pay the storage costs from the day of your refusal forward, or you can pay to have it towed to your home.
What about license and registration fees that I had to pay to drive the car?
In order to drive your vehicle, you had to pay a tag fee and registration fees. You are entitled to be reimbursed for the prorated amount of these costs that are unused. The insurance company should also reimburse you for tag transfer fees and, in some cases, a prorated amount of sales tax on the actual cash value of the car at the time of the accident.
What if I need a rental car? Do I have to pay for it while my car is being repaired?
If you caused the accident, or if there is a dispute over who is to blame, then you must either pay for the rental car yourself or seek coverage under your own insurance policy if rental coverage is available. Many insurance contracts do not provide for rental coverage for their own customers, so you need to contact your insurance agent to determine what coverage exists. If the other driver is at fault, then we will demand that the insurance company for the person who caused the accident provide you with a rental car for the time needed to repair your vehicle. Sometimes, you must pay the rental car bill first, with reimbursement coming from the insurance company later.
What kind of rental car am I entitled to?
The insurance company has to pay for the reasonably incurred rental cost of a substitute vehicle. Often, there are disputes as to what qualifies as a “substitute” vehicle. Essentially, it should be a vehicle of similar quality, within the confines of what is available for rent.
Should I purchase any extra insurance on the rental car provided to me?
Your own insurance policy should cover you while driving the rental car, but you should call your insurance agent to be sure that you are covered. The other driver’s insurance company is not required to pay for additional insurance if you choose to purchase it from the car rental company.
Never give an oral statement to the other side’s insurance company. If you are contacted, decline to talk. Insurance companies’ claims adjusters are professional negotiators, with extensive experience in maneuvering you into giving incriminating information.
Claims adjusters are well trained by insurance company lawyers to ask questions in a manner designed to hurt you, and help them. Do not speak with them. Simply say thank you for calling but I am not prepared to discuss this matter with you at this time.
Contact
At the Law Offices of Constantine G. Anagnostis, our focus in on people and their problems. Whether it is a case involving personal injury, products liability, wrongful death, or business disputes, at the Law Offices of Constantine G. Anagnostis, we provide the knowledge and emotional support necessary to best ensure our clients a favorable outcome and peace of mind. Mr. Anagnostis provides the utmost personal dedication to each and ever case, and truly cares about his clients. At the Law Office of Constantine G. Anagnostis, we look forward to helping you. If you would like any additional information, please do not hesitate to contact us.