Auto Insurance Claims: Regarding medical coverage in an auto accident in California, lump sum settlement, aaa insurance

Question
I was a passenger in my daughters car when we were involved in a rear in collision involving 5 cars 1 week ago.  We were the front car and stopped at a red light.  The woman who caused the collision has AAA insurance. I am going to the doctor today as I have neck/right shoulder/arm pain and a headache that has been persistent for the past week. I have returned AAA's phone call and have been told that if I seek medical treatment I will have to pay for it myself as I am a third party in the accident. She claimed they would then reimburse me for reasonable medical care after I am released from care,  She also stated that if I did nothing the injury would resolve in 4-5 months. She preceded to inform me that AAA has 2 years to reach a settlement the medical bills and only after that time would I be able to contact a lawyer if I did not agree with their reimbursement. She proceeded to inform me that I could use my health insurance to pay for the doctor ,or my auto/homeowners insurance. Being a nurse I actually waited to see if the injury would resolve, but it actually is worse now.  I think the information given to me is fishy and would like to have your opinion.  I should mention that my daughter was also injured and she was told the same thing.  

Answer
Hi Karen,

The information is only partially correct. In California, the statute of limitations is 2 years. This means that that is the longest period of time in which you could file a law suite if the insurance company does not reach a reasonable settlement with you before that time limit runs out.  You can hire an attorney at any time if you feel that you need one.

They were correct as to the way the bills will be paid. Actually the insurance company will not pay any of your medical bills as they are incurred. They will do a one time lump sum settlement when you have finished treatment. If you do not hire an attorney to handle this for you, you will need to prepare a chronology of all of your doctor visits and all other treatment. List out all of the bills. You will then need to prepare a formal demand for payment letter wherein you will outline all of your injuries, the doctors diagnosis, treatments, costs and prognosis for the future. You would also list any lost work and any other expenses you incurred as a result of the collision. The you would make a demand for an amount of money to completely settle the claim that would include all of the above as well as any pain & suffering amount.

You can utilize a website that is offered for free by the Better Business Bureau Video Series at www.collisionwizard.com . At this website you can register for free. It will provide you with a track to run on as well as claim calculators, sample claim letters, etc.

I hope this helps
Richard Hixenbaugh