Frequently Asked Questions (FAQs):

• Should I give a recorded statement?
• What happens if the other party in the auto accident does not have insurance?
• What do I do in a case of hit-and-run?
• What happens if the insurance company denies my claim?
• Why do some cases settle, and some go to court?
• What does a lawyer really do for me?
• What is PIP (Personal Injury Protection)?
• What am I entitled to recover from the person who caused my injury?
• Should I use my health insurance to go to the doctor after an accident?
• How does the claims process work?
• I have a good case, why wouldn't it settle?
• What happens if my case goes to trial?

Should I give a recorded statement?

No. Insurance companies have highly trained adjusters whose job it to try to avoid paying claims if at all possible. One of the things most people do not realize is that if a victim of an accident has contributed to the accident even in a small way, they can be completely denied any payment.

So insurance companies, under the guise of investigation, try to trick people into saying they stopped suddenly for traffic lights, were speeding, or had just changed lanes. They are particularly good at confusing people who are not that familiar with the road by confusing what lane they were in or road they were on.

Attorneys are aware of the pitfalls that recorded statements have and rarely allow the other side to have them. While your own insurance company is entitled to a recorded statement, you are allowed to have a lawyer present when it is given. The other side is not entitled to a recorded statement and generally will not be allowed one.

Many times the wrongdoer's insurance company will threaten to deny the claim if they do not get a recorded statement. That is an empty threat, because the mere fact that they ask for a recorded statement means they are going to deny the claim and they are just trying to make their case against you stronger.

What happens if the other party in the auto accident does not have insurance?

This is not the end of the case. In fact, uninsured drivers are so common that you automatically have insurance against unidentified and uninsured drivers in your own policy. It is mandatory and required. Most people are not even aware that they have uninsured motorist coverage on their automobile insurance policy.

The fact that you have insurance, though, does not mean your insurance company will pay the claim easily. Proving that the wrongdoer does not have insurance is much more complicated than it may seem, and I have seen many attorneys lose uninsured motorist cases because they do not know what needs to be done to demonstrate that a person lacks insurance.

What do I do in a case of hit-and-run?

If you are the victim in a hit-and-run accident, this does not mean you do not have a claim. Hit and run coverage is mandatory; thus, despite the fact that you may not be aware of this provision, your automobile policy almost certainly covers you for this situation.

What happens if the insurance company denies my claim?

Insurance companies deny claims for any reason they can think of, most of which have very little to do with whether they actually owe the claim.

Remember, it costs an insurance company nothing to deny a claim, and they make money by keeping and investing the money that they owe you. Therefore they have strong incentive to not pay what is owed.

Once a claim is denied, you have little choice but to either abandon the claim, or to hire an attorney to force them to pay through litigation. Unfortunately, my experience has been that those who wait until the insurance carrier denies the claim typically have unwittingly hurt their case by making damaging statements, by failing to get necessary medical care (I often hear, "I was waiting for the insurance company to approve my treatment!"), or even by letting the statute of limitations expire.

Why do some cases settle, and some go to court?

Settling cases is much more difficult than it used to be because there is no generally accepted way to value claims anymore. Many insurance companies take the position that any medical treatment aside from the hospital visit is unnecessary and that most treating physicians and chiropractors are committing fraud.

Cases settle when the insurance company is willing to offer an amount you are willing to accept. Typically, the better presented the case to an insurance company, the more likely that the carrier will make a better offer. Even then, many times it is in the insurance carrier's best interest to "lowball" the case and hold onto their money as long as possible.

It goes without saying that if the insurance company thinks you are desperate to settle or aggravated with how long the process has taken that they will low ball the offer to see if they can get out of the case for much less than it is truly worth.

What does a lawyer really do for me?

The best work that a lawyer can do is at the beginning and the end of the case. By performing an adequate investigation into the facts of the accident and securing evidence for later use - such as witness statements, photographs of the vehicles, and the like - your attorney is preparing to make sure that your case will be properly presented to a judge or jury in trial.

It is my philosophy that all cases should be prepared as if they will go to trial. That way we are presenting the strongest case possible to the insurance company.

Also, the attorney usually can force the insurance carrier to make a decision to pay the claim in a more timely manner. Nothing is more frustrating to people then to be in limbo, not knowing whether to the insurance company will pay for the car, or if they have to use their own insurance.

What is PIP (Personal Insurance Protection)?

Personal Injury Protection (PIP) is a first party benefit most people have on their auto insurance policies that provides for payment of at least $2,500 in medical costs and lost wages (at 85%).

This benefit must be applied for within 12 months of the accident, and pays dollar-for-dollar for costs incurred for medical expenses, medication, lost wages and other incidental expenses such as transportation.

The fact that you collect under PIP has no bearing on your rights against the person who caused you your injury.

What am I entitled to recover from the person who caused my injury?

Should I use my health insurance to go to the doctor after an accident?

YES. Many attorneys will say otherwise, but the reality is that every possible resource should be used to make sure that this process is the least painful possible. Unpaid medical bills can damage your credit, even if you are represented. If you have health insurance and give that information to the doctor, then your health insurance company should pay the bill, and then will contact us to get their money back.

There is no downside to having your medical bills paid by your health carrier. You are no longer personally responsible for them, as they have been paid. The bills are paid according to contract, and sometimes that means you save a lot of money because the health insurance only gets back a percentage of what they paid out.

If it is such a no-brainer, why do most lawyers and doctors act as if you shouldn't use health insurance? Simple: the doctors s are hoping to be paid in full, primarily by collecting the PIP, and with health insurance they may be paid much less.

The lawyers who suggest you do not use your own health insurance, on the other hand, are simply are being lazy. It is easier to not have to deal with a health insurance company. It makes more work for them: now they are put in the position of coordinating benefits - such as needing to prove to health insurance firms that PIP has been exhausted. It can be a hassle. A hassle yes, but it so worth it to you, the client.

How does the claims process work?

At the beginning of the claim, a number of things should be happening simultaneously:

• Investigation of fault should be occurring promptly. That includes obtaining a copy of the police report, interviewing witnesses, and taking photographs of the vehicle and injuries. As that is going on ,the insurance companies need to be advised of the accident so that they can do their investigation and decide who is going to pay.
• The property damage needs to be settled quickly. This means that the appraisers need to see the car and that payment should be made as soon as practicable.
• The PIP needs to be applied for.
• At the same time, the injured party need to be receiving proper care

As a matter of course, even with the most competent attorneys and professional adjusters, it always takes longer than it should. Typically, if fault is determined, the vehicle is repaired, and treatment is underway by the end of the first month after the accident, the claim is progressing normally.

I have a good case, why wouldn't it settle?

Settlements occur when both sides agree it is in their interest to offer a certain amount of money and to accept that amount of money. Cases can settle quickly, within weeks of the injured person being discharged from medical treatment, or take months of prolonged negotiations. Many factors influence whether a case settle; most have little to do with its actual merits. Sometimes insurance companies are laying over losses because they have had to pay for big disaster (like Hurricane Katrina) and their "reserves" (money they have earmarked to pay for losses that year) are depleted. Most often, it is simply the insurance company using time to weaken the injured person's resolve to get them to accept less than is fair. Occasionally, the insurance company has legitimate questions that can only be answered with the discovery process. This includes answering questions under oath.

In those cases where we can't settle, a lawsuit is filed. Even though a lawsuit is filed, this does not mean that the case will never settle (most, in practice, will settle). However, the likelihood of settlement depends directly on how good the attorney is at handling cases in litigation. Insurance companies know who can and does try cases, and respects those that regularly do take cases to trial.

Trials, although they do not occur in every case, are the reason that insurance companies make offers. It is the threat that the case will be successfully tried that forces them to consider any payment.

What happens if my case goes to trial?

Trial is the ultimate end of any claim that cannot be settled. While settlement is the preferred outcome of most cases (because of the risks involved in trial), sometimes it is not possible.

The reality is that the insurance companies are forcing more cases then ever into litigation and even to trial. The reasons for this are solely financial. Insurance companies make money by holding onto money they owe in claims. Most cases that require trial take well over one year for a simple case, and more along the lines of three to four years for larger and more complicated cases. Simply put, insurance companies have found there is little downside risk to dragging cases out, because many people get frustrated and accept lower offers.

Trial is a very daunting experience. Having an attorney who tries cases all the time next to you greatly increases your chance of doing well in court. First, the attorney knows what the issues are and how to combat the expected defenses. Second, the attorney meets with you and prepares you to testify. Third, experience allows you to expect and respond to the unexpected. As I regularly try over fifty cases a year, and have tried as many as 80 cases in a year, I know from experience the likelihood of something unexpected coming up in trial. Dealing with the unexpected in a calm, calculating manner often makes the difference between a good result and a bad one.

 

Go to top