Auto Insurance Claims: Policy Limit Settlement, personal injury demand letter, insurance company claims


Question
Hi and thanks for taking my question.  Ten months ago I was injured in an auto accident in which my shoulder was dislocated.  I was not wearing a seat belt.  I ended up requiring arthroscopic surgery and months of physical therapy.  The at-fault insurance company claims adjuster settled my property claim for my vehicle very quickly and to my satisfaction.  I recently submitted a personal injury demand letter seeking compensation for my medical bills ($26,000), permanent surgical scars, pain and suffering and potential for future wage loss.  I have missed minimal work because of the nature of my job but my injury may affect my potential for promotion within my agency.  The adjuster has offered me a settlement for the policy limit ($100,000) of his insured.  My initial demand was double that amount.  He made his offer over the phone and I requested that he send it to me in writing.  He also commented that he was worried about my future wage loss potential and that I should consider seeking a UIM claim with my own auto insurance.  My own auto insurance BI limits are $100,000 as well.  Since I am in a non-stacking state am I correct to assume that I cannot open a UIM claim with my own insurance company?  Also, I've read to never accept the first offer from an adjuster since it's a starting point for negotiations.  Does that hold true even with a policy limit offer?  Will I have to file suit in order to get settlement in excess of the policy limit or can I counter offer? Do I risk them retracting the initial policy limit offer?  I'm fairly happy with the policy limit offer but don't want to leave a lot on the table.  Lastly, do I need to notify my insurance company before I accept any offers from the at-fault insurance company?  I did use the max of $5,000 of med pay from my own policy and my health insurance has paid on some bills as well.  Wow, there's lots of questions in there!  Thanks for all you do and for your website!

Answer
Hi James,

Congratulations on earning a large policy limits settlement.   Your questions will cover most—BUT NOT ALL—of the issues.  

#1. Search for additional tortfeasors.
First off, let's start with the issue you did not address: can any attorney give an opinion that there could be another tortfeasor?  For example, a consultation with an attorney (at no charge, per their ads) could end up with her giving you an opinion that she could also pursue another tortfeasor, such as an adjacent property owner who let vegetation grow to block the view, or a city that had a bad roadway design or repair that contributed to the accident.  Worth a try, since it costs nothing.

#2. Use Internet resource.
I take it you have seen the best Internet auto accident settlement site http://www.settlementcentral.com/page0451.htm policy limits directory of free information.  Some of your questions are answered there.

#3. "He made his offer over the phone and I requested that he send it to me in writing."
ANSWER: Make sure that he sends you two things in writing: INCLUDE BOTH POLICY LIMITS AND ASSETS.  That is right: since you may not have any UIM coverage, make him give you his insured's assets IN WRITING, and stating that this is and that this is UNDER OATH, or make as a CERTIFIED STATEMENT, under penalty of perjury of the laws of the state in which you live.  What if he has only $100K in policy limits, but assets of $700K??  You then would hire an attorney to sue him in court.

#4. "My own auto insurance BI limits are $100,000 as well.  Since I am in a non-stacking state am I correct to assume that I cannot open a UIM claim with my own insurance company?"
ANSWER: NO, DO NOT TAKE THAT AS FACT.  It depends upon both your state laws and your policy.  Hence, DO NOT take the word of your own insurer, but instead contact your state insurance commissioner for the final word: http://www.settlementcentral.com/links.php

#5. "Also, I've read to never accept the first offer from an adjuster since it's a starting point for negotiations.  Does that hold true even with a policy limit offer?  Will I have to file suit in order to get settlement in excess of the policy limit or can I counter offer?"
ANSWER: NO, THERE WILL BE NO FURTHER MONEY FROM THE INSURER.  IF YOU DO NOT ACCEPT THE LIMITS, THEN YOU HAVE TO SUE TO GO AFTER THE ASSETS OF THE TORTFEASOR.  

#6. "Do I risk them retracting the initial policy limit offer?  I'm fairly happy with the policy limit offer but don't want to leave a lot on the table."
ANSWER: THEY WILL HAVE NO FURTHER OFFER ABOVE THEIR LIMITS.  Yes, once you get into litigation, they can offer their limits and the tortfeasoer can agree to toss in some of her assets.  But the insurer will not add more.  Plus, they will not withdraw their offer should you demand more.  But in a litigation scenario, they CAN withdraw their offer, if the facts warrant doing so.

#7. "Lastly, do I need to notify my insurance company before I accept any offers from the at-fault insurance company?   I did use the max of $5,000 of med pay from my own policy and my health insurance has paid on some bills as well.
ANSWER: YES, IF YOU HAVE ANY COMPANY WITH A SUBROGATION CLAIM http://www.settlementcentral.com/page0459.htm THEN you must give them notice and an opportunithy to buy out the settlement by paying you the limits, and then going after the tortfeasor on their own.  Please see the policy limits insurance claims http://www.settlementcentral.com/page0451.htm  free information page.


Good luck on this, James.  I trust that my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com