California Personal Injury and Insurance Blog

Judgments and Insurance

Remember that the typical auto insurance policy lets the insurance company settle your case without your consent. But, more importantly, it also lets them choose not to settle a case. What does this mean to you?

If your insurance company chooses not to settle a case and take it to trial, you could have a judgment against you. So? Well, for a period of time, this may appear on your credit report. And, if you want to buy a house, get a car, etc... you may have a difficult time with a judgment against you.

Remember that you should talk to your attorney if you are sued. Yes, the insurance company will pay for the attorney, but the attorney represents you. Get him or her to explain to you the consequences of decisions that are made. You have a right to be involved, especially since the judgment is against you and not the insurance company.

Buying Insurance Online

So I talked to someone recently who bought insurance online. She said it was fast and cheap. That was important to her. And she got what she wanted.

But, and you knew there had to be a but, she didn't understand everything she bought. And, because there was no one to talk to, she ended up with an issue on her coverage. So, she had a question and couldn't get an answer. Then, when a problem arises, she has to call me. And, I don't mind helping her, but it costs money. If she had dealt with an agent first, she would not have had this issue and she would have saved herself a few dollars.

Remember, sometimes having an agent is a good thing. Make sure you know EXACTLY what you are doing if you buy insurance online!

FAQ: What are the steps after I settle my claim?

A reader asked what happens when he settles his personal injury claim.

Let me explain the process. First, you must sign a release. You know that from reading my blog.

Second, your attorney may want you to sign a power of attorney so he/she can deposit the check from the insurance company. The check comes as a two party check made out to you and your attorney. The attorney wants to speed up the process by having you sign a power of attorney. It is up to you if you do it. Some attorneys ask you to do it, and some do not. It depends on your situation. I have done it when a client is out of state or out of the country. However, I prefer to have the client sign the check.

Once the check is deposited, your attorney should have you sign a disbursement sheet that tells you where every cent of the settlement is going. After the disbursement sheet is signed and approximately seven days after the check is deposited, you should receive your money. Why the delay? We have to make sure the check from the insurance company clears first!!

Agreed Value: But is it?

I was on a car bulletin board today reading about car repairs. One of the threads was on insurance. There were a few people who had "agreed value" policies, or so they thought. But, do you really have an agreed value policy?

There are two different types of policies when an appraisal is needed. The first type requires the insurance company to pay the replacement cost UP TO the appraisal amount. The second type requires the insurance company to pay exactly the appraisal amount. (And while this came up with cars, the same rules apply with things like jewelry.) Let me give you some examples.

Policy 1: You have an appraisal for $5,000. The replacement cost is $3,000. The insurance company will only pay you $3,000.

Policy 2: You have an appraisal for $5,000. The replacement cost is $5,000. The insurance policy is required to pay you $5,000.

Read your policy and ask questions. Make sure you know what you are buying.

New Blog Worth Reading

My good friend and Texas lawyer extraordinaire Bob Kraft has released a new personal injury and social security blog.

This should be added to your list of blogs to read. Bob is very knowledgeable and has been doing this a long, long time. He is a good guy and one of the smartest attorneys I have had the pleasure of interacting with. Give it a read.