Archive for May, 2011

Underinsured Motorists Automobile Insurance Coverage in Indiana Explained By Indiana Accident Attorney

Tuesday, May 31st, 2011

When I am interviewing a prospective client for the first time regarding a car crash, I always ask them what type of automobile insurance they had on their own car or truck.  The usual response is “I had full coverage.” When I then ask what “full coverage” insurance they had, most people don’t know.  This is because the topic had never come up until they were involved in a crash.

One type of coverage that is usually part of a “full coverage” auto insurance policy is called Underinsured Motorists Insurance.  As compared to Uninsured Motorists coverage that only applies when the person who caused the crash had no liability insurance, Underinsured Motorists coverage comes into play when the at fault driver did have liability insurance, but not enough insurance to fully compensate the injured person.  For example, if a person’s injury claim is worth $100,000 and the at fault driver only had $50,000 in liability insurance, the injured person’s Underinsured Motorists insurance would pay an additional $50,000 to the injured person so that they are fully compensated.

Like Uninsured Motorists coverage, Indiana law requires that Underinsured Motorist coverage be offered in every automobile policy.  If the policyholder doesn’t want this coverage, it must be declined in writing.  Otherwise, it is automatically included.  Indiana law also requires that the minimum amount of Underinsured Motorists coverage that can be offered is $50,000 per person or $100,000 per accident.

As with all insurance polices, there are a number of things in the “fine print” to be aware of.  First, if the insurance company for the person who caused the crash is offering to pay their liability insurance policy limits to the injured person, the injured person must first get permission from their own auto insurance company to accept this policy limits offer.  If this permission is not obtained first, then any coverage for Underinsured Motorists benefits is voided.

The rational for this provision is that if the insured person signs a release of all claims in favor of the at fault driver without first getting this permission from their own insurer, then the insurer which provides Underinsured Motorists coverage has no chance of being reimbursed for what they may have to pay in the claim from the personal assets of the at fault motorist.  I see this as a somewhat questionable rationale, since in the vast majority of cases the at fault motorist doesn’t have any assets anyway other than the proceeds of their liability insurance policy.  Nevertheless, Indiana courts have upheld this provision.

The other caveat to be aware of is that whatever Underinsured Motorists a person may have is reduced by the amount of liability insurance that the person had that caused the crash.  Thus, for example, if the person who caused the crash had $25,000 in liability insurance and the person who was injured had $100,000 in Underinsured Motorists coverage, then there would only be $75,000 in Underinsured Motorists coverage available, even if the value of the claim is worth substantially more than $100,000.

As all insurance claims and especially Underinsured Motorists claims can be complex, give me a telephone call for a free consultation regarding what insurance coverage is available and what you are rightfully entitled to receive in your claim. As an Indiana accident attorney, I make it a priority to educate people about their legal rights.

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Uninsured Motorists Automobile Coverage in Indiana

Wednesday, May 25th, 2011

Indiana law requires that everyone who buys a policy of automobile insurance be offered a minimum of $25,000 in uninsured motorists bodily injury coverage as part of the policy.  If the policyholder does not want this coverage, they must sign a written waiver.  Otherwise, it is automatically included.

Uninsured motorists coverage is designed to pay the injured person the same amount of money that the individual who caused the wreck would have paid if they had been insured.  Most policies provide this coverage even if the person who is injured was in someone else’s car at the time of the crash or even if they were struck as a pedestrian.

Most policies of uninsured motorists coverage also provide for property damage coverage that pays for damage to the insured’s car or truck if it is damaged by a motorist who had no liability insurance.   Although most auto policies also have collision coverage that will pay for property damage, there is usually a deductible for collision coverage, whereas there is no deductible for uninsured motorists property damage coverage.

This fact is something that many claims adjustors neglect to mention if an uninsured motorist causes a crash, but since many collision policies have a deductible of $500 or more, it is not something that should be overlooked.

A question that often arises in uninsured motorists claims is how does the policyholder prove that the person who caused the crash had no insurance?  I have had some cases in which the police arrested the person who caused the crash because they were drunk.  Amazingly enough, the insurance company for the person that was injured then tells them that before their insurance company will pay anything under the uninsured motorists coverage of their policy, it is up to them to get proof from the drunk driver that they didn’t have insurance.  Obviously, this is not an easy thing to accomplish.

Fortunately, Indiana law provides that if a policyholder has made reasonable efforts to obtain proof of insurance from the other motorist, but that person has been uncooperative, an insurer must assume that the other motorist had no insurance unless the insurance company can prove otherwise.  “Reasonable efforts” include attempting to contact the other individual by telephone or letter, with no response.

If you or a loved one has been injured by a motorist who had no liability insurance, give me a call to discuss what legal rights you may have under your own auto policy.

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Bad Faith Insurance Law In Indiana Explained By Indianapolis Car Accident Attorney

Monday, May 16th, 2011

Like many people, every month I write a check to an insurance company for a variety of policies, ranging from homeowners insurance to car insurance to health insurance, but rarely have a claim.  If I do have a claim, I expect my insurance company to pay what is legally owed in a reasonably prompt fashion without a great deal of hassle and wrangling.  In my view, this is what people have a right to expect in any business transaction.

Unfortunately, it is all too common for people to have an experience where their insurance company won’t return their phone calls and moves with the swiftness of a tree stump in processing their claim.  Under Indiana law, such insurers may be guilty of the tort, or legal wrong, of bad faith.

In Indiana, an insurer owes their insured or policyholder a duty of good faith and fair dealing.  This includes the concept of “equal consideration” where an insurer must give equal consideration to the interests of its policyholder as it gives to its own interests. The duty of good faith also includes refraining from making an unreasonable refusal to pay a claim, lying to its insured, or using an unfair advantage over an insured.  Erie Ins. Co. v. Hickman by Smith, 622 N.E.2d 515, 519 (Ind.  1993).

If an insurer has violated these principles, it had committed the tort or legal wrong of bad faith against its insured.  If a jury finds that such a legal wrong has been committed, a policyholder is owed compensation for this wrong, in addition to whatever benefits are owed under the insurance policy.

As an example of a bad faith claim, in a case entitled Lumbermen’s Ins. Co. v. Combs, 873 N.E.2d 692 (Ind. Ct. App. 2007), a woman became disabled and made a claim for lost income under a disability policy that she had purchased that had a maximum benefit of $25,000.  The insurance company refused to pay the claim, despite clear evidence that the woman was in fact physically disabled and unable to work.

Evidence was introduced at trial regarding the woman’s medical condition and the rather extreme financial hardship that she had suffered because of the denial of her claim.  The jury also heard evidence that the insurance company rewarded its claims adjustors based upon how many disability claims they had denied, and that this insurer’s claims process was designed to favor a denial of a claim, regardless of its merit.  In awarding damages, an Indianapolis jury awarded the woman policyholder $25,000 for the disability benefits that she was due under the policy, plus $1,500,000 in compensation for the bad faith conduct of this insurer.

If you’ve been treated unfairly by an insurance company, give me a call for a free consultation regarding your claim.

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Claims For Diminished Value of A Wrecked Car or Truck By Indianapolis Car Accident Attorney James Ludlow

Monday, May 9th, 2011

Most people whose car or truck has been wrecked understand that the insurance company for the person who caused the crash must pay to repair their vehicle.  However, many people don’t realize that they are also owed compensation for the diminished value of their vehicle in addition to the costs of repair.  This reflects that the fact that even when a vehicle has been properly repaired, it is not worth as much as compared to the same make and model of vehicle that had never been damaged.

The amount of a diminished value claim depends upon the age of the vehicle, its original value, and the extent of the collision damage.  For a car or truck with a significant value, it is often worth the cost to hire a licensed automobile appraiser to provide an opinion regarding diminished value.

If your car or truck has suffered significant property damage in a crash that was someone else’s fault, give me a call.  As an Indianapolis car accident attorney that has handled numerous car accident claims, we can advise you about your totaled car or truck and diminished value claims.

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