QuestionI was involved in a head on collision. The other lady was sited for failure to yeild and witnesses were there and saw her made an illegal turn head on into my car. I am still injuried 1 1/2 years later, my spine and nerves have damage. The lady had 25/50/10 limits, and my medical bills are already over $25,000. She does have equity in her house and I was wondering if I could go after her homeowner's insurance to compensate me for the rest of the settlement. Is it better to do this or to go after my UIM coverage?
AnswerHi Westin,
Sorry to hear of your serious spinal and nerve damage. These could be lifelong disabilities. In light of these potentially devastating injuries, I am going to give you at least one hour of my time to provide help. You have EIGHT topics to consider.
1. Be wary of your Statute of Limitations
2. Make a guesstimate of the total value of your claim
3. Compare your UIM with the EQUITY in her house
4. Advantages of UIM
5. Be aware of Policy Limits requirements
6. Consult an attorney at no charge
7. Learn about do it yourself insurance settlements for her policy limits
8. Communicate with the adjuster in writing.
Ready, Westin? OK, here we go:
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#1. Be wary of your Statute of Limitations
Your claim will have no value at all if you were to let the Statute of Limitations expire. Even if you let the claim get too close to the expiration date, you will not be able to get a discount on attorney fees.
Personal injury insurance claim http://www.settlementcentral.com/page0452.htm Statute of Limitations information.
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#2. Make a guesstimate of the total value of your claim
What if your claim were worth $150,000, but your UIM coverage is only $25,000, but the equity in the tortfeasor’s house is $70,000 ABOVE the homestead exemption?
You will have to have some idea of the range of value of your claim in order to make the decision you ask about.
Of course I have no idea what your injuries are, or even if they will be lifelong problems. So I will not even venture a guess, but for working and discussion purposes only, let’s say that the value is $100,000, all inclusive.
When you visit the attorney (see below), she might have a better handle on valuation. Just so you can discuss it with her, here are some factors that usually influence valuation.
Learn about valuation factors in personal injury claims; INSURANCE INJURY CLAIM VALUATION TIPS. What about valuation of your claim? How does one figure out what to ask for?
Valuation is not like going to a drive-in for a fast food meal. It takes time and study of many factors, including liability and medical records. Plus, one would like to meet the claimant to see how she will “sell” to the other side and to the jury. Those online sources that mention a "rule of thumb" is just that: a gross estimate.
SHORT ANSWER: A common theme among those who still think a “rule of thumb” formula will put you in the valuation ballpark is to multiply the medical specials times a number from ONE to FIVE (depending upon factors, some of which I will give you later—or all of which are fully discussed in the members' side of my website, dealing with insurance settlements www.SettlementCentral.Com ). Then that figure is the total value of the personal injury portion of the claim. Of course there is a long list of factors to consider for adding or deducting from the total.
Let's take a look just two factors that put the lie to the general use of this rule of thumb. An obvious one is that if a person with your injuries is left to rely upon the records of a general practitioner to support his claim, it will never have the same value as if one’s records were from an orthopedic surgeon or a neurosurgeon or a neurologist, as you probably have. Oh, yes, I am aware that general practitioners and chiropractors seem to be better for most soft tissue injuries than taking drugs prescribed by a surgeon, but the insurance industry does not know that.
Insurance companies give great weight to opinions of orthopedic surgeons and neurosurgeons. http://www.settlementcentral.com/page0052.htm
A second, not so obvious, but very important factor that shows how inaccurate a “rule of thumb” formula can be is just plain location of the trial. Let's start with geography. Values differ from state to state, and within each state. City values are often different than rural values on claims, especially if the economy is tenuous in small towns. And the differences can be HUGE between these areas, even if only 20 miles apart.
Here is a listing of factors that will affect both the multiplier you will use, as well as the value of the claim inasmuch as they will increase or decrease the product of your multiplication.
1. LIABILITY DISPUTE
This is a big one because it most dramatically affects value. You should NOT ACCEPT any reduction in value for fault. Your fault cannot be used to reduce your award.
2. Trauma suffered
The value of your claim increases with a bigger crash, and decreases with a low damage tripping wherein one catches himself. Why? Just human nature. You had a BIG CRASH.
3. Medical special damages
Cost of medical and related health care expenses; higher costs usually equate to an increase in value (excepting, of course, cases of gross overtreatment). Your damages appear to be serious and possibly lasting.
4. Type of injury
Where does the injury fall within the insurance industry's "hierarchy list" of valuing injuries? Irrespective of which injury may cause more pain, injuries are valued according to seriousness, tendency to be persistent or permanent, and whether or not they need objective proof to be believed (e.g. a broken bone versus soft tissue strain). Yours are VERY SERIOUS.
5. Type of medical care
Where does the medical care fall within the insurance industry's "hierarchy list" of valuing medical care? Orthopedists at the top, chiropractors near the bottom. You probably did well with your specialists.
6. Prognosis- future care—permanency of injury or pain and suffering—does your doctor recommend 6 months of care, or were you done treating 4 months ago? Even if you are done treating, will the doctor predict future problems?
Your claim value gets a boost if your doctor specifies that you will need some future medical treatment, and right now the recommendation for surgery is important.
7. Your medical and claims history, prior accidents, prior injuries or treatment of the same area of the body.
8. Impairment of quality of life.
9. Quality and persistence of pain suffered.
10. Quality and thoroughness of your medical records.
11. Lost wages.
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#3. Compare your UIM with the EQUITY in her house (subject to execution)
Problem here is how do you guess at her equity ABOVE the homestead level?
Let’s take a second to consider what the tortfeasor will do is she is faced with a judgment of $150,000. First, her policy limits will be paid, next she will file bankruptcy to discharge your judgment. In bankruptcy, she gets those assets that are exempt from execution (that means sheriff’s sale or seizure).
Usually those exempt assets include thousands of dollars of cash and personal property, PLUS the state homestead value. These days that exemption might be around $40,000.
Hence, you would not get one dollar unless her house had value in excess of $40,000.
I seriously doubt that someone with minimal policy limits has equity much in excess of the state homestead exemption. But you can check on her assets thru an Internet company for a fee (just Google the term).
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#4. Advantages of UIM
Hopefully you have insured yourself for a lot more than the minimum of coverage against the negligence of others. If not, please do so now. The smartest way to buy auto insurance http://www.settlementcentral.com/page8006.htm auto insurance explained http://www.settlementcentral.com/page8008.htm UIM explained as necessary.
The advantages of using your UIM are usually easy of proof. Yes, it is true that you still have to prove liability and all else that you would versus the tortfeasor (your UIM stands in the shoes of the tortfeasor—with all her defenses and subject to all of your attacks). BUT it has always seemed easier to deal with one’s own company in resolving these matters.
Usually UIM can be resolved with arbitration (although a growing number of companies are reserving the right to a jury trial). Proof of medicals is a lot easier in arbitration because they all are admitted with the testimony of one doctor, whereas at a jury trial one would usually call more doctors—at greater expense to the plaintiff.
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#5. Be aware of Policy Limits requirements
DO NOT SETTLE the tortfeasor’s claim until you know how to do it so that you protect your own company’s subrogation rights and your UIM CLAIM. Members learn at www.SettlementCentral.Com policy limit settlements http://www.settlementcentral.com/page0451.htm insurance claim techniques.
For example, there are definite rules regarding notices that you MUST give before you can settle the tortfeasor’s claim.
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#6. Consult an attorney at no charge
Attorneys are always advertising initial consultations at no charge. Go see one of them and get her ideas on valuation of your claim and the issue of pursuing the tortfeasor versus your UIM.
DO NOT SIGN UP WITH AN ATTORNEY UNLESS SHE EXEMPTS THE TORTFEASOR’S POLICY LIMITS FROM HER FEES.
A blind dog with a note in its mouth could achieve settlement of those low limits in a case of your serious injuries. Hence, make sure that you are not paying anything to her for that work.
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#7. Learn about do it yourself insurance settlements: DO IT YOURSELF INSURANCE CLAIM SETTLEMENTS
OK, Westin, Let’s Look at self-help methods of resolving your claim. This is risky, so we do not recommend that anyone with such a serious injury claim. But as to those low tortfeasor limits, it is OK to learn how to settle your own personal injury insurance claim AND DO IT!
Learn how to submit and settle your own personal injury insurance claims—DO IT YOURSELF SETTLEMENTS. Here is a series of pages that you can review. Take what makes sense to you and don't worry about the rest. Just get a flavor of how the system works without spending a ton of time right now.
Overview Tort Law Personal Injury Legal Claims http://www.settlementcentral.com/page3000.htm
Managing Medical Care After Auto Accident: http://www.settlementcentral.com/page0203.htm
Medical Care Documentation-the Key to Successful Personal Injury Insurance Claim Settlements http://www.settlementcentral.com/page0217.htm
Keys to a MAXIMUM INSURANCE INJURY CLAIM SETTLEMENT http://www.settlementcentral.com/page0089.htm
Use a Confidential Personal Injury Diary for TOP DOLLAR Insurance Claim Settlements http://www.settlementcentral.com/page0208.htm
Outline of questions to be expected from insurance claims adjuster http://www.settlementcentral.com/page0190.htm
Detailed listing of questions to be expected from insurance claims adjuster http://www.settlementcentral.com/page0207.htm
By the way, did you know that getting an early settlement is a favorite trick of the insurance adjusters? Please see my website wherein we show Insurance Claim Adjuster Secret Tactics http://www.settlementcentral.com/page0092.htm
Responding to Settlement Offer From Insurance Claims Adjuster http://www.settlementcentral.com/page0244.htm
Do It Yourself Advantages, or do these claims need an attorney? As for an ATTORNEY, this does not seem to be a case that involves any legal issues in dispute nor any large or complex damages. Why should you pay someone one-third to do what you can do yourself? Do-It-Yourself Personal Injury Claims; Eliminate Personal Injury Attorneys' Fees; Save Thousands of Dollars Settling Your Own Insurance Claim http://www.settlementcentral.com/page3011.htm
Without having to join my website, I have given a lot of free information on handling insurance claims without having to join as a member. Read the module at "5 Easy Steps to Do-it-Yourself Insurance Claim Settlement" http://www.settlementcentral.com/page0102.htm
This stuff is not rocket science, but it will take some effort on your part to read and cut and paste letter examples and to communicate. But hundreds of people are doing it each day, and they are getting good results.
What if you get only two-thirds the way to your settlement goal? Well, you can get as big a settlement as you can and then turn it over to an attorney and save a lot of fees. Thus, you could go it alone just to get an insurance settlement offer, and then take that insurance settlement offer to a personal injury attorney, thus exempting the amount of the offer from her fees. Do It Yourself Personal Injury Settlement Offer Reduces Personal Injury Attorney Fees http://www.settlementcentral.com/page0109.htm
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#8. COMMUNICATE IN WRITING AND "DEMAND" NOT "ASK"
FINAL TOPIC, Westin: Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm insurance settlements increase with written responses.
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,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
