Motor Vehicle Collision - More than You Ever wanted To Know About Insurance

If you have ever been in a motor vehicle collision you know that sorting through the various insurance coverages and understanding which insurer is responsible for what bills can be confusing. The coverage on your vehicle and that of the other vehicle involved in the wreck is broken down into as many as five different components and there may be a different adjuster assigned by the insurance company for each of these components coverages.

The available components of a motor vehicle policy are as follows:

Liability - if it is determined that you are at fault this pays the injured party for their medical bills, lost wages and pain and suffering, and damage to their property caused by you.

Collision - this component of your policy will reimburse you for any property damage to your vehicle from the motor vehicle collision less whatever deductible the policy contains.

Personal Injury Protection - Also known as PIP or med pay, this provides medical and hospital benefits, income disability, and accidental death benefits regardless of fault to you, your family living in your household and any passengers in your vehicle. This coverage is valuable because even if the other party is clearly at fault it may be some time before their insurer begins to pay for the bills you incur. This coverage will begin to pay very quickly.

Uninsured Motorist Coverage - (UM) This coverage is much as it sounds. If the other party is at fault in the wreck but they do not have the required liability insurance to reimburse you for your injuries, this coverage will do so.

Underinsured Motorist Coverage - (UIM) Again this coverage mirrors its name. If the other party is at fault and your injuries exceed the amount of their liability insurance this coverage from your policy then kicks in to pick up the slack.

I have given you simple definitions of the basic types of coverage under motor vehicle insurance policy. There are myriad of interactions between these policies, the policies the other driver has in effect and your health insurance policy. For example although your PIP policy may pay some or all of your bills immediately, it may seek repayment (known as subrogation) from the liability insurance of the other party if they are at fault. The same goes for your health insurer.

If you are a passenger in a friend’s vehicle and are injured in a wreck you may be covered under their PIP, but you may also be covered under your own - who pays? I will explain some of these interactions in future posts.

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What is my case worth?

We are taught from a young age not to talk about money–it’s impolite. Unfortunately, money is usually the only remedy for accident and malpractice victims. The only way to "right" a wrong, so to speak. Therefore, it is important to get past this faux pas and have an honest discussion with your attorney about the value of your case.

Many people have misconceptions about what their case is worth. Often, this is because they heard "so-and-so" got a million dollar settlement and believe their case is similar, and that they too will receive a million dollars. Others have been told they can take the value of their total medical bills, multiply it by a number, and get the total settlement amount. These theories are simply not true. Predicting the precise value of a case is difficult, is fact specific, and turns on several factors.

One of the most important factors is the severity of the injury and how well the medical records document the injury. Adjusters rely on the medical records to describe the injury and diagnosis. Adjusters then input diagnosis codes into a computer software program that assigns a value to the injury. Permanent injuries are valued higher than others. Objective injuries (broken bones, scars) are valued higher than injuries that cannot be seen (pain, torn ligaments). The physical injury itself is just one of the many factors.

The medical history of the victim is also important. For example, if a person injures their neck in a wreck but had prior serious neck problems, this will affect the value of the case. Adjusters also consider the frequency and duration of treatment for the injury.

Pain and suffering is also part of the claim and will affect the value. Pain and suffering is just that–the physical pain of the injury, its effects, and the disruption it has caused in a person’s life. Putting a dollar amount on pain and suffering is hard to do because it cannot be seen. However, it is important to articulate how the injury impacted the victim because pain and suffering is an important aspect of the case.

If liability is not clear, the value of a case will decrease. For example, if the defendant driver was not clearly negligent, liability may not be so strong. Other considerations are whether there are witnesses, and if so, if they are credible and have a strong recollection of the event. Where the incident occurred is also important, as this will determine where suit must be filed. Some counties are much more favorable to plaintiffs, and a potential verdict would be higher in these counties than others. If a case would be filed in a plaintiff-friendly county, it may be worth more than a similar case filed elsewhere.

These are just some of the many factors that effect the value of a case. No two cases are the same, therefore it is not practical to compare one case to another. This makes it especially important to talk to your attorney about the strengths and weaknesses of your case because these will determine its value.

Recently, the following question was sent to me by e-mail: "Can I sue my husband while we’re still married?

Some folks aren’t as concerned about the attorney-client privilege as others. For those who expect, demand and receive the strictest possible protection of confidences, there’s our traditional web page, www.ggreen.com. For those who prefer an open forum dialogue that the whole world can see and upon which others might comment, we’ve conceived "Dear Attorney Green". So, don’t be shy! Two heads are better than one. The only dumb question is the one not asked. Fire away! And all that.  Gary Green