California Personal Injury and Insurance Blog

Go to the Doctor After A Car Accident!

I have had quite a few people call me lately wanting to talk to me about their car accident that is 2 or 3 months old. I ask them about medical treatment and I get the same response: I haven't been to the doctor yet.

As I wrote in my report, "10 Fatal Mistakes In Filing An Auto Insurance Claim:"

Even if you are not sure if you are hurt, go to the doctor. Let them examine you. It could take a few days or weeks for you to feel pain. Once you do, go to the doctor. If your airbags went off, go right away. The powder from the airbags can cause small burns.

Most insurance companies will only consider treatment if it occurs within 4 to 6 weeks of the accident. If you wait longer than that, most insurance companies will argue that the injury is not accident related. And, juries usually agree. Jurors want to see that you treated within days or weeks after an accident, not months. As the time grows between the auto accident and the treatment, it becomes harder to prove your case.    

Multiple Policies on 1 Car

This has come up a few times lately in my personal injury cases so I thought I would discuss it with you. Here is the scenario: Bob is driving his Aunt Sally's car. Bob is 25 and has an insurance policy. Sally is 43 and has an insurance policy as well. If Bob rear ends Paul, which policy pays for Paul's personal injury damages?

This is an interesting question and one which doesn't have an easy answer. (And one which most attorneys do not know the answer to!) The first answer is to read the policy. Most policies will have a provision explaining what happens when there is more than 1 policy in effect. The options are simple:

1. A policy may say that it is primary. This policy will pay first up to the policy limit.
2. A policy may say that it is excess. This policy will pay only after the other policy pays.
3. A policy may say that it shares on a pro-rata basis. This means that each policy pays based on its share of the limits. A few examples:

A. If each policy has a $100,000 policy limit, than each policy pays 50% of the claim.
B. If Bob's policy is $50,000 and Sally's policy is $100,000, then Bob's policy pays 1/3 of the claim and Sally's policy pays 2/3 of the claim.
C. If Bob's policy is $300,000 and Sally's policy is $100,000, then Bob's policy pays 75% and Sally's policy pays 25%.

When you are driving a friend's car, or a friend is driving your car, is pays to see which policy is going to pay for the damages if someone is involved in an accident.

What is used to determine your medical bills?

This is an important question. Why? Because your medical bills are part of the settlement of your case. When you are injured, you are entitled to recover your medical bills, both past and future, as well as your pain and suffering.

This should be relatively straightforward, right? After all, add up your medical bills and you have your number. At least, that is what most of us would do. But, in law, there is more to it.

Plaintiff's attorneys, people who represent the injured party, take the side that most of you take: it is the amount of the medical bills. Insurance companies believe that your medical bills are actually only the amount paid by your health insurance, Medi-cal or Medi-Care. In other words, the insurance companies want to pay as little as possible. Is anyone really surprised? Probably not!

If you are injured, you need to demand payment in full for your medical bills. Do not let them reduce the bills down to the amount paid. There is no authority in the law for them to do this, especially if you have private insurance. If they refuse, you should talk to an attorney.

FAQ: Homeowners and Auto Insurance Together?

Q: I have auto and homeowners insurance. Do they need to be with the same insurance company?

A: Need to be? No. Should they be? Yes. Done. Oh wait, you want an explanation too, right? Okay, that is where it gets interesting.

There are some "gaps" in insurance coverage. For example, what if you have a very expensive car seat in your car that is also used as a stroller? If it is stolen, which policy covers it? If you have auto insurance with company A, they will tell you that it is not part of the car and not covered. If you have homeowners insurance with company B, they will tell you it is for the car and not covered. But, if you have auto insurance and homeowners insurance with company A, then it will be covered.

Granted, there are not a lot of times when this comes up, but when it does, it is important to make sure you have the most coverage available to you. Not only do you get a discount from most insurers, but you also get peace of mind in knowing that you have the maximum coverage available.

FAQ: Reporting Auto Accidents

I have written about this before, but it has been some time. So, I thought I would do it again.

Q: I have been involved in a car accident. Must I report it to my insurance company?

A: The simple answer is yes. Your insurance policy says that any accident must be reported. The policy is clear that you do not have to report a claim, but rather anything that may lead to a claim. So, if your car is vandalized, it must be reported. If you hit a mailbox, it must be reported.

But, the reality is different. If you have a small ding from someone hitting your car in a parking lot, you may elect to repair it yourself. If you have a small accident where you hit your neighbor's mailbox, you may decide to pay for it out of pocket.

Why? Because if you have an at fault accident and the insurance company pays out $750 or more, your rates will go up.

So, yes, technically you have to report every accident, but in reality no one does.

FAQ: Your Car is a Total What?

Q: My car was involved in a collision. I can still drive it. The insurance company is calling it a total loss. Why?

A: A car can be a total loss in one of two ways. The first way is simple: if the car is completely demolished. You know, the type where the car burns up completely or you cannot tell the front from the back.

The second way is more complicated: the cost to repair the car is 75 to 80% or more of the value of the vehicle. So, if you are involved in a collision and the repair costs are $7,500 and your car is worth $10,000, then the car is a total loss. For more expensive cars, this is clearly harder as it requires substantially more damage. But, if your car is worth $1,000, it only takes $750 in repairs to consider your vehicle a total loss. This could be replacing a bumper or a door.

Remember, you can have a total loss with the car not looking like it is completely damaged.

One final note: if your car is a total loss, it will have a salvaged title. You do not want a car with a salvaged title. You may not be able to insure it and you sure will not be able to sell it.

Read the policy

I know I have said this before, but I have had a rash of phone calls lately from people with some obscure coverage questions. The questions have ranged from "Am I covered if I drive another car?" to "Am I covered if I run from the police and get in a car accident?"

My answer is always the same: I don't know. Why do I not know? Is there some character flaw? Is it because I am not that smart? Maybe. But the real reason I do not know is because I do not know what that person's specific policy says.

Most policies follow the ISO standard policy. However, not every policy does. In fact, even within an insurance company, there are two or three or four auto policies. And, some insurance companies write their own policies. When I was an adjuster for CIGNA, we had these "plain English" policies that were written to be understood by people. Unfortunately, they were so different from every other policy that no one really knew what was covered!

So, if you have a question on what is covered by your insurance policy, start with the basics: read the policy. If you are having problems with that, and most people do, then contact an attorney. And bring your policy!

Your Insurer Must Take a Claim

In the last two days, I have come across the same story twice: I have been involved in a car collision that was not my fault and my auto insurance told me I had to file a claim with the other party. WRONG!

In fact, this could not be more wrong. There are three reasons this is wrong:

1. Your insurance policy requires you to report all claims to the insurance company. You MUST report a claim. So, why would they refuse to take it?
2. Your insurance company has an obligation to pay any claim that is covered. By law in California, they cannot tell you no.
3. Your rates do not go up for filing a claim.

The simple truth is that insurance companies do not want to take your claim because they do not want to pay out money. They want to keep their money as long as possible. If they can discourage you from filing a claim, it is one less claim to deal with and more money for them to keep.

If you have been in a collision, report it to your insurance company. If they tell you no, tell them you want to anyway.

Buying Insurance for the Wrong Reasons

Okay, so when you watch tv these days, you are bombarded with insurance commercials.  You hear about accident forgiveness, pet coverage, coverage if your car is beamed up by Scotty. It is amazing how many different coverages you can get for your car.

Remember, however, that car insurance is meant to cover two things: your car and any damage you cause to anyone else. Any other coverage you get is called "throw away coverage." Why? Because the insurance companies give it to you and throw away any money it costs them. Why? Because they get people to change their insurance company based on these coverages. Yes, people actually change to a new insurance company because they can get pet coverage.

Look, if insurance companies, or more importantly, insurance regulators thought it was important, it would be offered by every insurance company or even required. But it is not. It is a marketing ploy. And a bad one at that.

You do not need any insurance coverage. If you do not know what coverage you need, email me at insbook@jonathangstein.com and I will send you the Consumers Guide to Auto Insurance FREE (a $20 value).

Auto Insurance Zip Codes Matter

No, not for rating reasons. At least, not this time. When you complete your insurance application, you have to list the zip code where the vehicle will be garaged. This is information the insurance company uses.

When you move, you need to let the insurance company know. This may be a temporary move. For example, maybe you move for college. Or, your child goes off to college. You need to let the insurance company know. Maybe it is a permanent move and you have a PO Box for your mailing, but you move from zip code 12345 to 12346. It may not seem like much, but it is important.

What happens if you do not notify the insurer of your move? Your claim could be denied. The insurance company will consider it a "material misrepresentation." This means they can deny your claim and even cancel your policy.

Make sure you give the insurance company this information as the potential downside outweighs the amount of time it will take to give it to them.