QuestionMy 16 year old son was hit head on by a driver who admitted fault. My son was hospitalized for 16 days and 6 surgeries to a broken leg and compartment syndrome with skin graphs and possible surgery in the future. I was recently widowed and self-employed and now taking care of him now that he is home. The at-fault driver has 100,000 for bodily injury and my son's medical bills have already exhausted that amount - what should he expect as a settlement amount?
AnswerHi Laura,
You caught Dr. Settlement on vacation, so I am setting aside my Santa chores for today to access my Internet duties.
I am very sorry to hear of the serious injuries sustained by your son. I hope that he can be restored to good health.
The real issue in this personal injury insurance claim is not the value of the claim, but instead where are you going to find the resources to pay the claim. The value is many times the tortfeasor’s policy limits.
The answer to your question is that your son’s insurance settlement will depend upon four factors:
#1. Are there any more potential tortfeasors?
#2. Does the tortfeasor have any assets to pursue that would not be sheltered by a bankruptcy filing?
#3. If he lives in your house, your son is covered on your own auto insurance policy. How much of the medical bill can be paid by YOUR own auto insurance and your son’s health insurance—and can you get subrogation waived?
#4. What is the policy limit of your own Underinsured Motorist coverage (UIM)?
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But before we get into those topics, it is well for you to review the standards and requirements for making an insurance bodily injury claim settlement in a case involving a minor. These rules will be strictly followed in a large case such as this. I want you to be darn sure that the insurance company for the tortfeasor pays ALL of the court approval process inasmuch as it is for their benefit.
Frequently Asked Insurance Bodily Injury Claim Questions: Minor Settlement Approval http://www.settlementcentral.com/page8017.htm for insurance settlement.
NOTE: nothing therein requires you to hire an attorney to represent your son in achieving the insurance settlement. That is where the attorneys are sometimes needed. But unless you have to bring a lawsuit, or unless an attorney advises that there are other tortfeasors, you should be able to demand full policy limits and get them. You will want to get some idea of how to present a personal injury insurance claim http://www.settlementcentral.com/page0014.htm
But where an attorney could be useful is in consultation work, which is done by the hour, as opposed to representation work, in which the attorney will want a contingency fee for the total amount of the settlement. You will pay by the hour, and the settlement fund will repay you from the court order.
Examples of consultation work in this case would be:
(a) finding other tortfeasors;
(b) making your auto insurance and your son’s health insurance pay the medical bills instead of allowing the tortfeasor to pay them (since that would leave no pain and suffering award for your son); and
(c) fighting subrogation from the insurers who paid the medical costs.
You should fight if your company tries to diminish your son’s UIM Policy limits by the amount it paid out in Personal Injury Protection (PIP) or MedPay. Hence, subrogation is going to be a BIG issue since you will likely be forced to defend against claims made by YOUR OWN COMPANY against your UIM insurance award http://www.settlementcentral.com/page0459.htm Remember, your UIM stands in the shoes of the tortfeasor, and hence your own Personal Injury Protection (PIP) might try to get its money paid back, and thereby reducing the amount of your UIM limit available for pain and
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#1. Are there any more potential tortfeasors?
You will need to consult an attorney for this, but there may be more tortfeasors that you do not know about. What if someone served liquor in excess to the tortfeasor? What if there was a road design flaw? What if some part of the tortfeasor’s car broke as she was trying to stop?
There can be additional tortfeasors in many accidents and it will take an attorney to make that determination.
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#2. Does the tortfeasor have any assets to pursue that would not be sheltered by a bankruptcy filing?
What if the tortfeasor has $200,000 equity in their family home? I would NOT allow any settlement in that case, but instead would insist upon suing the tortfeasor and levying upon the equity in her house.
Unless the tortfeasor was engaged in the commission of a crime (as in a DUI) when she caused the accident, she can discharge your court judgment in bankruptcy. But you then can levy upon her assets that are in excess of those she is allowed to retain. This right includes the right to sell her home.
You get the insurance policy limits paid to diminish the amount of the judgment awarded to your son, and then you go after assets in addition to that.
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#3. If he lives in your house, your son is covered on your own auto insurance policy. How much of the medical bill can be paid by YOUR own auto insurance and your son’s health insurance—and can you get subrogation waived?
If the tortfeasor’s insurance has paid all the bills to date, YOU MUST GET THEM PAID INSTEAD BY BOTH YOUR OWN PIP AND YOUR SON’S HEALTH INSURER. Do NOT take NO for an answer. Insist that they pay and that the tortfeasor’s policy be left clean for all of the $100K to go toward an award to your son for pain and suffering.
Hire an attorney for consultation work if need be to accomplish this. You can be repaid when the claim settles.
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#4. What is the policy limit of your own Underinsured Motorist coverage (UIM)?
Your purchase of a good and sufficient insurance coverage will really come in handy in a serious accident such as this.
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FINAL TOPIC, Courtney: Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra 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 to your son, Laura,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
