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Cash Settlements and Policy Limits

HOW TO GET CASH SETTLEMENTS THAT EXCEED POLICY LIMITS IN AUTO ACCIDENT CLAIMS

(Understanding Underinsured & Bad Faith Auto Insurance Claims)

If you have suffered serious injuries in an Auto Accident, you had better read this report to learn some CRITICAL information about your rights and how they may be affected by certain things you do or say in your case to the insurance company. In many serious injury cases I have handled, the injured person really didn't know that they could actually recover more than the other guy's insurance policy limits. It can be a false conclusion that you are limited in your cash recovery by the other guy's wealth or insurance limits. There are many cases that have been lost or underpaid because the injured party didn't understand that there was more money on the table but they needed to find it first and the insurance companies involved were not just going to hand it to them no matter how good a case they had or how severely injured they were.

Insurance companies are in the business to make money and that is okay except you must understand that they make money three different ways: 1. There is a profit built into your premium dollar which is regulated by the State of Kansas and there is nothing wrong with that profit. 2. They make money by investing your premium dollar in the stock market and other investments which are also regulated and there is nothing wrong with that way of making money. 3. But they also make money when you settle your claim for less insurance money than it is worth by leaving money on the table. While this manner of making money on claims is legal, it is not fair to those that do not know HOW TO GET CASH SETTLEMENTS THAT EXCEED POLICY LIMITS IN AUTO ACCIDENT CLAIMS.

Here are three ways that you can use to get more than the policy limits of a negligent driver:

1. If you have suffered serious injuries in an auto accident due to the negligence of another driver and that driver's insurance company knows that your case is worth well in excess of their policy limits and they are negligent in adjusting your claim in a timely fashion, you may have a bad faith claim against them that would allow you to collect the entire amount of the value of your case from that insurance company even though they only have minimum policy limits of $25,000.00. A quick example is a case where the negligent driver was drunk and three eyewitnesses reported to the police that he rear ended the victim at a stop sign and this accident caused the victim to be paralyzed for life and you have $250,000.00 in medical bills and more coming. The victim is in a real pickle if all they are able to collect from the drunk driver's insurance company is their policy limit of $25,000.00. However, if the victim has served upon that insurance company all of the appropriate documentation supporting the claim and given the insurance company enough time, usually 30 days, and the insurance company doesn't pay their policy limits within this reasonable time frame, the entire claim amount could be collected from that insurance company. However, you must have proof of submission of the appropriate documentation and an appropriate demand by the victim before you may use this method. You really should get an attorney for such a maneuver sooner than later in your case so that the attorney who is familiar with this maneuver can be sure that it is done properly to secure your rights.

2. If you have a serious injury in an auto accident, you may get a policy limits offer from the other driver's insurance company. Your first reaction must not be an acceptance of that offer. Your rights include getting other insurance monies that may apply to your accident. The other type of insurance that may apply to your accident is usually called "Underinsured Coverage." The law in Kansas requires almost all motor vehicles to have this type of coverage. But in order to actually get any cash out of this policy you must serve the Underinsured Insurance Carrier with an appropriate letter that describes what has happened and give them 60 days to decide what to do. If you don't take this critical step of writing the Underinsured Insurance Carrier with the right letter, you could lose thousands of dollars on your claim. If you use the right letter and the right timing on that letter, your claim could be worth thousands of dollars more and be paid by the appropriate Underinsured Carrier. There are enough complications and land mines in this strategy that I always suggest that you would be wise to consult or hire a lawyer. Just remember never to accept policy limits without looking at this method and talking to a knowledgeable lawyer about this method.

3. If you have a serious injury in an auto accident case, many people and insurance companies who have paid your bills may want their money back once you settle your case. These people or insurance companies are called potential lien holders. If you settle your case without considering those that may want their money back, you are going to lose cash you thought you were going to get. BEFORE you settle any case always consider each potential lien that anyone may have against your case. Negotiate that lien's reduction if you are not getting paid every dime your case is worth. For example: Your own auto insurance company may have paid your medical bills under a policy called PIP and expect to be reimbursed from your settlement. However, they are only entitled to be reimbursed from your settlement if your settlement is a duplication of those benefits you have already been paid by your insurance company. If the value of your claim is $725,000.00 and there is only $100,000.00 in insurance proceeds to pay for your damages then the $20,000.00 in PIP medical bills that were paid are not considered duplicated whenever you only recover $100,000. 00. Your own insurance company needs to waive their lien rights in this set of facts. Getting your liens waived or reduced will result in more cash in your pocket but is often a complicated and paper intensive project. Consult or hire an attorney to look into this very important legal right or you may be throwing money away.

These three tips are just some of the SECRETS insurance companies don't want you to be educated about and they will use against you to take money out of your pocket. If you want to know more, get a free copy of our book: "HOW TO AVOID WRECKING YOUR ACCIDENT CASE" and, of course, watch LAWYER ON THE LINE every Sunday night at 11:05 on KAKE Channel 10. If you would like a free no-obligation consultation with me, give us a call at (toll free) 1-888-263-0001.


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Location: 300 W Douglas Avenue | Wichita, Kansas (KS) 67202 | 1-316-263-0001 | 1-888-263-0001 | Email Us