California Personal Injury and Insurance Blog

FAQ: I caused an accident and have no insurance. What can I do?

Q: I was in an accident. It was my fault. I don't have insurance. What can I do?

A: You have a few options:

A - You pay him the amount of the estimate.

B - You ask him to get two or three estimates and you pay off of one of those estimates.

C - You make him sue you in small claims court and, when you lose, the judge sets the amount of damages.

D - You make him file a claim with his auto insurance and then they sue you for the damages. They may also report it to a collection agency and let the collection agency ding your credit report.

E - You tell him you have no money and offer to make payments to him. Then, you make the payments.

Remember, if you choose option D, you need to make sure that you know your rights. You may want to check out my debt blog that discusses your rights. Also, look for my prior posts about dealing with the insurance company and the bully tactics that they use.

FAQ: When do I get my money from a settlement?

Q: I settled a case with the insurance. When do I get my money?

A: It depends. (Good lawyer-like answer, isn't it?) If you settled with an insurance company, it can be anywhere from immediately to 14 days. If there was a lawsuit, it can take up to 30 days, depending on the language in the release, getting paperwork done, etc.... If you have an attorney, ask him or her. Usually these things are agreed upon by the attorneys if you have an attorney.

FAQ: Don't I get a rental car?

Q: My car was in a wreck. The insurance is XXX. Don't they owe me transportation or a rental car while my car is being repaired without anything coming out of my pocket or whether or not I have a credit card?

A: (Since this was an actual question, I am giving you the actual answer. The lesson here: be a bit clearer in your question to an attorney!)

Assuming XXX insures the other party (and its not that clear), then they are obligated to pay you either loss of use or rental of a like, kind and quality automobile. However, they only pay for the car, not the insurance, gas, etc.... If you have your own auto insurance policy, that should provide you coverage while you are in the vehicle. If you do not have your own auto insurance, you will have to pay for the insurance. As for the credit card, I would suggest you ask someone you know who has a credit card if they will rent with you. Or, you can shop around and see if you can find a rental agency that will not require a credit card. Your other solution would be to borrow a car from a friend and pay them a fair amount for rental. You could then collect this back from XXX. Finally, you could collect loss of use, if you do not rent a vehicle at all.

If XXX is your insurance company, the most they will pay is the amount in the policy. If it is $20 per day, that is the most they will pay, but again, they will not pay for the insurance, gas, etc.... They will also not be responsible if you do not have a credit card.

FAQ: Who pays for my medical bills?

Q: I was involved in a car crash (formerly called a car accident) and I was injured. I need medical treatment but do not have medical insurance. Who is responsible for paying the bills and providing me treatment?

A: The at fault party should be responsible for her medical treatment. However, our system is one in which they do not pay until there is a settlement of some sort.

I would start by calling the other party and asking if they have insurance. If they do, ask them for that information. If they do not, you will need to determine if they have assets and a lawsuit may need to be filed.

If there is insurance, you should file a claim. The insurance company will conduct an investigation, but as I said, they will not pay until the case is resolved.

So how to resolve your dilemma? Call Medi-Cal or a local social services agency and ask them if they have any resources to help you. Maybe you can qualify for care at an inpatient facility or maybe there is a social services agency that will help you. They may need to be reimbursed if there is a case that settles, but that will get you the most immediate treatment.

Finally, you can see if your attorney can set up a "lien" where a doctor provides treatment now and gets paid when your case settles.

FAQ: Can filing a homeowners claim be a bad idea?

This came from a reader and you can read it here.

Answer: Yes. If you have a low deductible, you may think you should file smaller claims. However, as discussed in this article from United Policyholders, there is a phenomenon known as "use it and lose it." Basically, if you file a claim, your homeowners insurance may cancel you. So, yes, it can be a bad idea to file a claim, especially a smaller claim.

MUST SEE TV: Insurance Style

For those of you who missed the Anderson Cooper story about State Farm, Allstate and McKinsey, here is a chance for you to watch it again:

Monday February 26 during the 2 hour Anderson Cooper show which starts at 10:00pm Eastern time [8pm Mountain time]

This is must see TV if you want to learn about how the insurance companies are handling claims!

New Free Report - Small Claims Court

If you are in California and need information on small claims court, I have released a new report. Well, this one is actually an ebook. It explains small claims court, the process, the costs, who can testify, who cannot testify, etc.... It provides an example and walks you through the process step by step. The example is a personal injury case arising out of an auto accident. However, it works for any type of case.

And, it is yours FREE. Just send me an email and I will get you this new ebook right away.

FAQ: Which insurance pays for the damage?

Q: I lent my car to someone. He got in a car wreck. Which insurance pays: his or mine or both?

A: The answer is not both! You are only entitled to be paid once for the damage to your car. If you get paid twice, send one check back!

The simple answer is that the other person was a permissive user of your car. In California, insurance follows the car. Therefore, the insurance on the car would pay for the damage to the car. Now, that insurance company may have a case against the driver, but that is a different post.

FAQ: What is fair market value?

Q: What is fair market value? How does it differ from the depreciated amount?

A: Fair market value is the cost to replace the item in its pre-loss condition. So, if the item is a 4 year old 40" tv, then you can determine the fair market value.

Depreciation is technically an accounting term. It refers to a reduced value of an item. So, some people will say that a tv, for example, has a useful life of 5 years. Therefore, the tv loses 20% of its value every year.

Ultimately, the fair market value should also be the depreciated amount as California does not allow an insurance company to use set depreciation schedules. However, they are two different concepts. Make sure that the insurance company is not just depreciating your items, but giving you fair market value!

FAQ: Who pays my hospital bill?

Q: I was in an accident. I have a hospital bill of $5,000. Who pays the bill?

A: As for getting the bill paid, you have a few choices:

A - If you qualify, Medi-Cal will pay.

B - If you have health insurance, they will pay the bill.

C - If you have Uninsured motorist coverage and the at fault driver does not have insurance, then your UM coverage will pay for it.

D - If the other driver was at fault, their insurance will include it in the settlement.