California Personal Injury and Insurance Blog

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.

Settling a Property Damage Claim

Okay, so hypothetically lets say you are leasing a 2007 Lamborghini. Nice car. Very nice. You have collision coverage on it, as is required by the lease. And some guy driving a 1972 Ford Pinto rear ends you. After all, if you rear end him, there is a good chance of an explosion! Now, you have $25,000 in damage to your car and he has a $5,000 property damage limit. What do you do?

This is an easy one. You report it to your insurance company and you let them fix your car. Why? Because if you settle with the other party, you have to sign a release. When you sign the release, you are not entitled to anything else. If the lessor decides to come back to you for "diminished value," you could be on the hook for it. If, however, you have not signed a release, you let your insurance company and the lessor fight this one out. You get to sit on the sidelines.

Remember, if you are not at fault, the smart claim is to your insurance company and let them fight to get the money back. That is not a fight you are equipped to deal with in either time or money.

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.