QuestionI believe I am going to be up against policy limits from an auto accident in which the other party's insurance company accepts total liability. Here are my questions:
1. Is there anything unethical about contacting the other driver and assuring him that we will not sue him for damages above his policy limits if he will disclose what those limits are? Could this tactic cause a problem with a claim on my own underinsured motorists coverage?
2. What steps do I need to take when the time comes to settle with the other insurance company to protect my UIM claim with my own company?
3. Is it possible that the other company can incur costs beyond paying out policy limits? In other words, what incentive does the other company have to ever agree to pay policy limits outside of a judgment? Is it following protocol to demand policy limits without knowing them specifically or letting the adjuster know that policy limits have been discovered?
4. What might I expect when making a claim for pain and suffering against my own underinsured motorists coverage if the other driver's policy limits are low? My UIM limit is $100,000. I don't expect that they are just going to hand that amount over to me because that's what I believe my case is worth (and have been advised that it is worth) due to the severity of my injuries.
Thank you in advance for your comments. I hope I wasn't greedy in asking too many questions. I don't want to take too much of your time. I tried to find answers in previous questions but could not. I was impressed by your patience, professionalism and sound advice, though.
AnswerHi Jerry,
A UM claim can be a very tricky claim to settle. It is possible to jeopardize one part with the other. The best way that I can think to handle it is to send you entire demand package to both for the total amount of your demand. In other words, send you demand for ex: $100,000 to the at fault insurance company and send the same demand to your UM company. If you demand $100,000.00 and the at-fault only has $50,000 they will likely disclose this to you at that time. You Should not make any agreement or sign any release to the at fault insurance company until you have negotiated and settled the balance of the claim with your UM carrier. If you do sign a release for a lesser amount of money to the at fault carrier, you will then not be able to make a UM claim with your company. Remember, your UM coverage is acting as additional coverage for the at-fault person.
I hope this helps
Richard Hixnebaugh
