Underinsured Motorist Claims

If a person is hurt by the driver of a car who is negligent one of the questions a lawyer will ask is whether the driver was insured.  Illinois law provides that every vehicle must be insured.  Unfortunately, Illinois law requires coverage which provides a minimum limit of $20,000.  In today's world, a short hospital stay  can quickly cost more than that small policy limit.

Underinsured motorist coverage protects a person from the driver who carries some, but not enough insurance coverage to compensate for the injury suffered.  The process starts with the at fault driver's coverage.  If the injured person's insurance provides more coverage than the at fault driver, an underinsured motorist claim may be available.  For example, the at fault driver carries insurance with a $20,000 limit and the injured person has a policy which provides $100,000 in coverage.  If the injured person was hurt to such an extent that the claim had a value approaching $100,000, the injured person could seek payment of the $20,000 from one policy and an additional $80,000 payment from his own insurer pursuant to the underinsured motorist coverage.  

The amount of the available underinsured motorist coverage depends on the amount purchased before an incident takes place.  We recommend liability and uninsured/underinsured motorist coverage of at least $250,000.  The cost of the increased insurance is low but the protection it affords is significant.  

Underinsured motorist claims often involve the assistance of a lawyer who specializes in the handling of injury and accident claims.  For example, it is critical that the consent of the underinsured motorist carrier be secured before the liability policy limit is accepted or the claim may be forfeited.  Discuss these issues with a personal injury attorney before proceeding.  

How much is a personal injury claim worth?

Clients often want to know the value of their claim and that is certainly understandable.  It is however very difficult early on to forecast.   There are many factors which influence the value of a personal injury claim including:

1. Liability- is it clear that the person or company you claim caused the injury was at fault?  If the case involves a driver running a red light or a rear end collision that question is often easily answered.  If the case involves a defective product or medical malpractice that is a much more difficult question.  Experts must be hired to review medical records and other materials and fault in those types of cases is often hotly contested.  Many claims arising from traffic accidents or premises liability (slip and fall accidents on someone else's property) are also defended aggressively when there is any hint that the person injured (the plaintiff) may also have made a mistake.

2. Injury- is the injury minor or life changing?  Even if the fault of the other party is clear the value of the claim is limited if the injury is small or goes away quickly.  High value personal injury claims are driven by catastrophic injury and loss.  A case which involves a visit or two to the doctor and shortly thereafter the plaintiff feels fine has limited value.  The personal injury case involving a medical condition requiring surgery and permanent loss or limitations is a different story.  If the medical care is substantial and invasive (surgery, injections), the injury will always cause some pain or limitation and/or the injury is life changing then the value of the claim may be very high.  The extent of the injury largely determines case value.

3. Insurance coverage- does the at fault person or company have insurance and if so how much?  Even if liability is obvious and the injury is catastrophic there is no guarantee of a financial recovery if no insurance proceeds are available.  Policies of insurance are contracts which provide a limit on the amount an insurance company has to pay for an injury.  The statutory minimum for car insurance in Illinois is $20,000.  Many companies specialize in selling policies of this size.  If a person insured by a policy with a $20,000 policy limit misses a stop sign and strikes a child breaking their arm and leg or even killing them, the insurance payment from the driver's policy is limited to $20,000.  A lawsuit can seek money from the driver personally although most people who carry small insurance policies on their cars don't have the money to pay for the injury they caused.  Whether the defendant has insurance coverage, how much coverage is available and whether the person injured has insurance coverage which may apply should be investigated by a personal injury lawyer.  

What to do with medical bills

Many people involved in an accident immediately begin to incur medical expenses.  The charges can quickly add up.  An ambulance bill is routinely hundreds of dollars and thousands of dollars for an ER visit which doesn't lead to admission to the hospital is common.  So what to do with the bills as they pile up?

1. Health Insurance.  The first and best option initially is giving the provider your health insurance information if you are insured.  Allow your health insurer to do its job and pay these bills even if another person caused the injury.  This will save you the phone calls from the billing department, the outstanding balances that lead to collection agencies and the headache of uncertainty.  There is a also a big advantage to having these bills paid when the time comes to resolve your case.

2. Medical Payments Coverage (Auto policy)- if the injury occurred in a car accident, the auto policy on the car you were in likely provides medical payments coverage.  This may provide benefits as low as $1,000 or as high as $100,000 or beyond.  The coverage is only limited by the amount purchased.  This coverage must sometimes be exhausted (fully paid) before a health insurer is obligated to pay on its policy.  

3. Medical Payments Coverage (Homeowner's policy)- if the injury occurred at someone's home or commercial property medical payments coverage is also likely included in the insurance policy.  This can be particularly helpful when the injury heals and the only real concern is the short term medical bills.

4. Ask for time- many medical care providers are willing to wait for payment if they know that the injury was caused by someone else and that person was insured by liability coverage.  Although the payment is not immediate, the hospital or doctor may receive a larger percentage of their bill than if they submitted it to a PPO or HMO.  

5. Pay it yourself- if the bills are small and you have the money to do so, you can pay the bills out of your own pocket and seek reimbursement from the at fault person's liability insurer.  Not many people have the money to pay these bills up front, especially if they are hurt and their work may be interrupted.   It and is worthwhile to first investigate all other options before tapping into your savings.

Discussing your options with a personal injury lawyer early in the process can save you the headache of unpaid bills down the road.

"Do I need a lawyer?"

Whether you need a lawyer after an accident depends on a variety of factors.  The most important factor is the nature and extent of the injury suffered. If the injury requires care in an emergency room with the likely need for follow up treatment consulting a lawyer to discuss the claim is recommended.  If the injury requires surgery or other more invasive medical care such as injections or advanced diagnostic testing such as CT scanning or MRI, involving a lawyer may be important.  If the symptoms are expected to last well into the future and may be permanent the involvement of a lawyer is certainly advised.  If the negligence of the other party is contested or the case involves a defective product, medical negligence or a construction accident, a lawyer's involvement is almost always a good idea.

If the accident resulted in only damage to property or the injuries suffered require little or no medical care you probably don't need a lawyer.  The property damage claim can be handled through your own insurer if the loss involves a car accident and your insurance included collision coverage.  

Most personal injury attorneys offer a free consultation. If you don't know whether you need a lawyer or don't know whether involving a lawyer makes sense for you take the first step and talk to a qualified lawyer about your problem.  You don't have to hire the lawyer and the information you receive is bound to help.