California Personal Injury and Insurance Blog

FAQ: Where does 1/3 of the settlement go?

I have been asked lately about how a settlement breaks down. A lot of people seem to think that there is about 1/3 of the settlement that they never see. Let me see if I can help.

When you settle a case, there is a fee agreement with your attorney. Your attorney may take anywhere from 25 percent to 40 percent (some take more). Assume that your attorney takes thirty three percent (1/3) of the settlement. That leaves 67 percent (2/3) of the settlement. Then the attorney tells you that you get half of that, or 1/3 of the settlement. Where does that other 1/3 go?

Well, in most cases, your doctor or health insurance must be reimbursed. You received treatment for your injuries. The doctor may have treated you on a lien. In that case, the doctor gets paid back. Or, your health insurance may have paid for your treatment. In that case, it may need to be paid back.

In any event, you should ask your attorney for a breakdown of the settlement. He or she should show you where ever cent of your settlement goes.

FAQ: What do I do after a hit and run?

Q: I was hit by a car and they left the scene. I have the license plate. What do I do?

A: Step by step instructions:

1. Call back the police and file a report.
2. Fill out an SR-1 with DMV.
3. Report it to your insurance company.
4. Get an estimate.
5. Have your insurance company fix your car under your collision coverage.
6. If you have uninsured motorist property damage, that will reimburse your deductible assuming you follow these steps.
7. Tell your insurance company to submit an SR-19.
8. Your rates cannot go up unless you are either at fault or receive a point. So as long as you are not at fault, do not worry about reporting it to your insurance company.

Good luck

FAQ: Am I responsible for my child?

Q: My child is 19. Can I be sued for anything he does?

A: Anything is a broad term. If, for example, a parent negligently gives a car to their child, they could be sued even if the child is over 18. Also, you can be sued if your child is driving a car you own and involved in a crash or walking a dog you own and it bites someone.

However, the short answer is that there are situations where a parent can be sued for acts of an adult child.

FAQ: How do I get someone's address?

Q: My car was damaged. The person left their name, but not their number. How can I find them?

A: The internet is a great resource. Go to Google and type in someone's name and you will get a hit. You can also type in a phone number and see if you can get their address. Otherwise, you should file an SR-1 with DMV. Follow that up with an SR-19 and the fee to get her address.

FAQ: Do they have to disclose their insurance to me?

Q: I was involved in an accident. Does the other person have to tell me the details of their insurance?

A: No. The Insurance Privacy Act protects this information unless the insured specifically authorizes the release of the information. However, they do have to tell you who the insurance company is and the policy number. Anything beyon that is confidential unless they choose to share it with you.

FAQ: How do I prove wage loss?

Q: I was injured in an accident. How do I prove my wage loss?

A: You should get a letter from your employer verifying that you missed time from work and your hourly wage. This, along with the doctor's note taking you off of work, would be sufficient proof of your wage loss.

FAQ: Do I have to give a recorded statement?

Q: I filed a homeowners insurance claim for damage to my house. The adjuster told me they want a recorded statement. Do I have to give them a recorded statement?

A: Probably not. Read your policy. You have a duty to cooperate. That usually does not include a recorded statement, but you do have to complete a proof of loss and give them any information they ask for. If you do not give them a recorded statement, they will probably demand an Examination Under Oath. For that, you should have an attorney present.

FAQ: Is the employer responsible?

Q: I left my car with a mechanic. One of his employees hit my car when he was driving his personal car. Is the mechanic/employer responsible?

A:  This hinges on whether the employee was working at the time.

Was he working at the time? If so, the dealer would be responsible for the actions of the employee. If he was not working at the time, you can either deal with your insurance company, the employee's insurance company or the employee directly.

They are not responsible just because it occurred on their property. You need to show that he was working or that the employer was benefitting from him being there at the time.

FAQ: What is an act of God?

Q: A tree fell on my car. Is this an act of God?

A: An act of God is basically a way of saying mother nature caused the accident. For example, in the middle of a tornado, a tree may land on your car. No one is responsible. It is an act of God. Sometimes, just because the wind blows it over, it is not an act of God. For example, if you do not maintain a tree and let it die, then a breeze comes by and the tree falls over, this is not an act of God.

It is always a question of fact, but ask yourself if other trees in the area are down. If so, it is more likely an act of God.

FAQ: Can they have to make me keep my car?

Q: My car was a total loss. Can they make me keep my car?

A: It depends. Sorry, I wish I had a definitive answer for you.

If it is the other person's insurance, then they can deduct the salvage value and make you keep it. They have to tell you where they got the quote from and if you cannot sell it for that price, they owe you the difference.

If it is your insurance company, then they will take the car for you.