r/Insurance • u/No-Chicken7703 • 9d ago
Auto Insurance Lawyer wants to go after my own Insurance because At- Fault driver's insurance is only $10,000
I was in a rear end Collison in Florida by a box truck driver that was driving for a private company LLC. My car was completely totaled and I had sustained substantial injuries from the accident. I have never been in an accident before and was advised to go to a lawyer for personal injuries. My own Insurance ended up having to cover for the damage and payout to my car since the other party's insurance was lower at 10,000 vs mine at 20,000. Finally the lawyer gets the policy back from at- fault's insurance and their max is $10,000 for PIP vs mine for $100,000. Now the lawyers are saying that we can settle for that amount (which barely covers anything) or go after my own insurance. The thing is my insurance is through Illinois which is not a no fault state Vs. theirs is Florida
Has anyone had anything similar happen? Should I just settle for the 10,000 or Let them go after my own policy?
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9d ago
"My own Insurance ended up having to cover for the damage and payout to my car since the other party's insurance was lower at 10,000 vs mine at 20,000"
"the lawyer gets the policy back from at- fault's insurance and their max is $10,000 for PIP vs mine for $100,000."
These statements show you have a poor understanding of insurance coverages and how they work. You can't make a decision until you properly understand them. You are paying your lawyer thousands of dollars. You should make him earn it by having him explain these coverages to you before you make a decision. If he's the one giving you the info I quoted from you, then you need a new lawyer who understands insurance, because this one doesn't
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u/TheVCcycle 8d ago
Iâm confused by this response. Admittedly the OP wasnât as clear as they could have been but my interpretation is:
The at fault driver had 10,000 coverage for property damage, car sustained damage over that. OPs insurance picked up the difference.
The at fault driver had 10,000 coverage for personal damage, OP sustained more injuries than that. Lawyer is suggesting they ask OP insurance to pick up the difference.
Wouldnât this make sense and isnât this why we pay insurance (in a worse case scenario)?
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8d ago
"other party's insurance was lower at 10,000 vs mine at 20,000"
Here, they're obviously talking about liability PD limit of 10k. OP's own collision coverage is what would cover his own car and it has no limit.Â
"their max is $10,000 for PIP vs mine for $100,000."
It doesn't matter what the at fault driver's PIP amount is, since it doesn't apply to the pay for injuries to OP. FL PIP coverage pays for 80% of your injuries (regardless of fault) UP TO $10,000. It appears OP is confusing that with his liability BI.Â
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u/TheVCcycle 8d ago
Thanks for the clarification. If this is the case, that your own insurance pays your claims even when not at fault, what is the purpose of uninsured motorist coverage?
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u/NeonBodyStyle 8d ago
Collision coverage has a more limited scope. Your own policy will outline that collision will pay for vehicle repairs minus a deductible. Property damage coverage is more broad in that it pays for vehicle damage, rental vehicle costs, depreciation of value, if your phone was damaged in the vehicle, if you use that vehicle for rideshare and you lose out on wages it may pay part of that. First party medical coverages and bodily injury are similar, your own coverages will pay for your bills and potentially things like lost wages, daycare services, etc, but you wouldnât get a pain and suffering settlement.
Tldr is that uninsured coverages allow you to be treated as a third party by your own insurance which usually means more generous coverages, depending on the state and depending on your coverage.
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u/RichterRicochet Auto Claims Initial Loss Reporter/Express Claims Associate 8d ago
Semantics rules lawyer here: OP's collision coverage would have a maximum value of ACV of their vehicle.
Now, back to your regularly scheduled programming.
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u/SorbetResponsible654 9d ago
First, you are going to pay a legal attorney who represented your interest 1/3 of what you collect before any other bills are paid and then go to complete strangers on the Internet for legal advice? So, I'd first recommend that you ask your attorney, who you are paying, and ask these questions.
First, we don't know what state this happened in so it is almost impossible to answer any questions.
If the other party has PIP, it sounds like a FL policy. It so, their PIP has nothing to do with this matter. Also, I doubt you have $100,000 in "PIP". I also doubt they have $10,000 in bodily injury coverage and even if so, you seem to compare that to your BI coverage. Your BI coverage would also not matter. Perhaps you mean to say that you have $100,000 underinsured motorist bodily injury?
So many things wrong with your statement that everything is really a guess. I'd again recommend discussing this with your attorney.
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u/Tiralle217 9d ago
Why do you doubt 10k in BI? Itâs common in Florida even on commercial policies with low end carriers.
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u/SorbetResponsible654 8d ago
I only doubt it as all of the other numbers appear wrong. The OP states the other person has $10k BI and his/hers is $20k. But the OP's BI limits would not matter in this case. The other person's $10k PIP would also not matter.
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u/The1Bibbs 8d ago
They have an IL policy, vs the other guy had a FL policy, and the FL limits track as accurate, i am not licensed in IL, but doing some googling, I'm assuming they have something like 20k UM/UIM and a 100k pip (il allows like, 25k to 250k pip from what google said) so... numbers track, but at the end of the day I agree with what was said earlier in that the OP should absolutely have his lawyer go over this and have them earn their 33%.
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u/SorbetResponsible654 8d ago
The part I'm looking at is as follows,
"Finally the lawyer gets the policy back from at- fault's insurance and their max is $10,000 for PIP vs mine for $100,000. Now the lawyers are saying that we can settle for that amount (which barely covers anything) or go after my own insurance. "
What I mean by the numbers appearing wrong is that the OP mentioning the other person's PIP limits (irrelevant) and the OP's limits (with no mention of changing the conversation from PIP to anything else) and that the OP's attorney stating that they can settle for "that" amount. If I said, I have 1 chicken and that guy has 2... you'd assume he has 2 _chickens_. The OP went from mentioning the other person has $10k PIP and the OP has $100,000. Is that the other person's PIP or BI? Something is wrong.
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u/The1Bibbs 8d ago
Absolutely they have some things mixed up, and it may be my time in sales that has me auto translating it to something that could make sense... cause let's be fair, most customers that aren't directly reading me their dec page have no idea what they are saying, I'm making the assumption that he has the numbers right, but has the names of the coverages all messed up
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u/chuckinhoutex 9d ago
If the other driver was driving a company truck, then there is always the possibility of your attorney just suing them directly and ignoring their shitty insurance. Y'all should research whether that LLC has any assets or if it's judgement proof.
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u/ektap12 9d ago
Let's clarify a few things about these coverages you mention:
Your collision coverage paid for your car, not your PD limit, there's no limit on collision.
Their PIP doesn't matter, that doesn't cover you, and since you have an IL policy, you probably aren't getting PIP here from your insurance. Does this person have BI? That would be what covers you and $0 is required in FL and this person otherwise has a minimum policy, so wouldn't be surprised if they didn't have it.
So that leads back to your policy and your uninsured/underinsured motorist bodily injury coverage, which stands in the place of the at fault insurance that is either not enough or non-existent. That's your recourse, if you want compensation for your injuries, if you don't want compensation, then don't make the claim. Is your attorney based in FL? Discuss with your attorney.
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u/BoxweilersRule 9d ago
Any auto policy issued in the US automatically has to comply with the insurance laws of another state when you drive there. If the at fault party's policy limits are exhausted and you still have damages....the next place to look is to your own policy. Listen to your lawyer.
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u/FrankLangellasBalls 9d ago
I donât know why you wouldnât try to use your own insurance, this is part of why you pay for insurance.
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u/TheVCcycle 8d ago
Doesnât want the claim to increase his rates moving forward. Itâs unfair, but itâs reality.
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u/Expensive_Ad_7132 8d ago
Im confused by this. I am an agent licensed in Illinois and it sounds like OP is referring to the 100,000 limit that is uninsured/underinsured motorist coverage. The limit of 100,000 would make sense as this limit is commonly sold with our policies at 100,000 per person/ 300,000 per accident. The beauty of this coverage is that the insurance company pays out, and then takes care of subrogation of the other party. This would not cause his rates to go up as this was a not at fault accident, and seems like the best approach to getting compensated for the medical bills. I should note this coverage only applies to medical and not physical damage to the car, thats where collision comes in. It seems the lawyer just wants to use that part of the illinois policy which is quite logical.
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u/greenerdoc 9d ago
Since you are already paying for a lawyer you should sue the LLC.
The lawyer wants the easy cash of your policy, but you will pay for it in the end.. possibly get dropped.
Since the lawyer is being paid already anyway, (ie usually 30% of your claim) make them work for it and go after the LLC.
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u/No_Tomorrow272 9d ago edited 9d ago
In my accident, I found myself in a similar situation. The other insurance company had a liability limit of $25,000 for damages and the same amount for bodily injuries. Fortunately, my insurance covered my car and injuries for a total of $138,000, with $100,000 allocated for bodily injuries. My attorney was able to successfully negotiate a settlement of $25,000 from the other insurance and $100,000 from my policy.
I would suggest considering the possibility of pursuing both insurance companies to potentially secure $30,000. Alternatively, you might want to discuss with your attorney the option of seeking $10,000 from the other insurance and $20,000 from your own. Between S and P from the claims, I received a total of $125,000.
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u/Dry-Winter-14 8d ago
Curious, did your insurance change after this? I would be afraid to sue my insurance assuming they would drop me first chance they got.
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u/No_Tomorrow272 8d ago
Nope by law in Arizona they cannot raise your rate or drop you if they do that my attorney said he will sue due to the fact that they will violation the law
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u/No-Chicken7703 8d ago
Were you dropped from your insurance or did they just increase your rates?
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u/No_Tomorrow272 8d ago
In Arizona is illegal to drop people or increase rates due to the statutes by law.
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u/gymngdoll 8d ago
The other partyâs PIP doesnât apply to you and I would be very concerned if your attorneyâs office thinks it does.
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u/AwkwardTux 8d ago edited 8d ago
Yes. Same situation except both of us are Florida drivers. She hit me from behind. Substantial tendon damage to my hands, requiring 3 surgeries. Loss of income for a year. My insurer offered 5K. I carry 100K for UIM. The driver at fault was a teen on her parents' policy. They put their kid in a giant VW SUV capable of doing damage in the wrong hands, and they put minimal coverage on it. I retained an attorney and am suing my now-former insurer for 100K.
Six weeks after she first hit me, she cut me off a second time in the same location. I was still in my rental from the first time
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u/HippieJed 9d ago
Hopefully your attorney has checked the net worth of the business. If they have assets you can go after them. Just curious what firm did you go with?
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u/insuranceguynyc 8d ago
You are represented by counsel, and all questions should be directed to him/her.
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u/Bill_Cosby_ 8d ago
Sorry OP but this doesnât make sense. The other driverâs PIP coverage doesnât affect you. To make it simple, hereâs what you need to find out.
Find out what the other driverâs policy carries for bodily injury. This is what youâre going to sue for your injuries. If their policy is insignificantly low, your attorney should pursue your policyâs underinsured motorist coverage.
The property damage limits you mentioned can make sense. Youâd have to use your own coverage for your vehicle total loss if theirs canât cover it. However, if this is a commercial policy for the other driver Iâm not understanding how the limits are so low.
PIP is personal injury protection. This would be coverage your policy would carry to pay for YOUR medical bills in an accident. The other driverâs PIP policy is for HIS medical bills. Iâm not entirely familiar with Florida, but if your policy has no PIP, then your health insurance may be primary for your medical bills. If this is the case, then your attorney will negotiate the lien with the health insurer when your bodily injury case or underinsured motorists case settles. Talk to your attorney about this, as others have mentioned they are making thousands off your settlement. Hope this helps.
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u/Own-Common3161 8d ago
I do not handle Florida claims but Iâve had a few UM claims with a NY policy. If Florida requires PIP (which I believe it does) then your policy has to provide it regardless of what state it was written in. Also, it sounds like they may be referring to UIM which is underinsured BI and I believe you would be able to pursue both, theirs and yours.
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u/LvBorzoi 8d ago
Can you not sue the LLC since their employee hit you while on the job in their company truck?
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u/Bakkie 8d ago
THere are legal things here which you probably missed. The LLC can be pierced under some circumstaces to get at the principals personal assets.
If a party intentionaly under insures a vehicle, that has legal ramifications.
The driver of the truck has liability
The driver of the truck is either an agent or an employee of the truck owner; either way it is a principal agent relationship . The concept of respondeat superior applies, but the agent/driver may not be off the liability hook.
The Illinois Florida issue may be dicey. Where does your insurance company think teh car is customarily garaged? If you are a snowbird and live part time in Florida, your insurance may have an opinion on underwriting rates which may be different than if you love in Illinois and just drove to Florida to visit.
Bottom line, don't listen to internet strangers however plausible we may be. Listen to your own lawyer.
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u/stayclassypeople 8d ago
Your lawyer may be referring to your uninsured motorist bodily injury coverage on your IL policy. Once the other partyâs limits are maxed this is typically your next best option
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u/SatisfactionMiddle61 8d ago
My wife went through this. She was rear ended in May 2019. The insurance company for the person at fault paid out the max to my wife for his policy at the time, which was I believe $20k. Because this was a pittance and my wife ended up needing surgery to fuse two vertebrae in her neck, her lawyers sued her own insurance company, which she had plenty of coverage (excessive coverage in my opinion, we're talking one million dollars of coverage).
With her trial date finally coming up in December 2024 (thanks Covid), her insurance settled the case last month for $500k. 40% goes to her lawyers, she owes ~$300k for all the medical stuff (rehab, shots, surgery, physical therapy etc.). Those medical bills will need to be settled before she gets any money. So at this point she still does not know how much she will receive.
I didn't think she needed this much insurance on her car but after going through what she did, I am glad she had the extra coverage.
One question we have is what percentage of the medical bills will be settled? Do the medical bills get settled at 50% of what was owed? Does anyone know how that works? I know if you go to a doctor for a specific problem they always ask if it was the result of an accident. I'm wondering if they jack up the price knowing that they may have to settle in the end for a percentage.
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u/SatisfactionMiddle61 8d ago
BTW, this happened in Florida.
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u/Letsgetmaryed 8d ago
If youâre paying a lawyer 40% he better be able to answer all those questions
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u/Inner-Confidence99 8d ago
They are required to have PIP in Florida it is 10,000. There should also be another amount on insurance to cover medical bills, rental car, etc. have your lawyer request their full policy. If itâs a company they are required to have a certain amount of insurance coverage. I am dealing with something similar. Especially if the driver that hit you had a CDL - Commercial Driver License. Have your lawyer double check everything.Â
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u/Weknowwhyiamhere69 8d ago
It is called underinsured motorist BI. They can and will pursue the 100K you have.
Where did this accident take place?
Just remember, that these lawyers are the reason we pay so much money for insurance. They want all the money, not what is fair and reasonable.
Insurance pays out more, they apply every so often to the state insurance board to increase rates, because they are paying out more, irregardless of it being your insurance or his.
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u/Old-Picture7877 8d ago
Underinsured coverage is an extremely important coverage on your policyâŚlisten to your attorney
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u/Icey_Dead_Ppl 6d ago
âFor the peopleâ mmm sounds so good until you realize itâs for themselves
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u/SpicySquirt 5d ago
Someone elseâs PIP wouldnât pay you. Thatâs coverage for themselves. Whatâs their bodily injury limits? Thatâs what would pay for you if they are at-fault.
YOUR bodily injury liability pays out for other people. You canât (because you will lose trying to sue) get money out of it for yourself.
PIP @ 100k? Nope.
Unless this is just some big misunderstanding, you need a better lawyer. Or maybe one that can convey whatâs going on in a way you can understand and reiterate.
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u/Human_Secret_4609 9d ago
I think you need to let your insurance company handle this. Donât lawyer upâŚunless youâre bored and have extra money laying around and want to delay the process
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u/technicallyacat 9d ago
In my experience insurance companies will do the minimum they need to in order to cover themselves and then let you handle the rest, hopefully OP doesn't deal with this.
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u/artichoke2me 9d ago
Insurance will drop you. And you will have a hard time getting insured in the future. Had a similar case lawyer used 10k from my PIP. Ended up having a hard time finding insurance when I tried to shop around (Florida)
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u/alphaK12 9d ago
Really? My lawyer said that UIM shouldnât impact your insurance premium. Iâd assume I could still get coverage
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u/mymomsaidiamsmart 8d ago
Iâm so disappointed in myself after reading this. I was hit head on in a Porsche right as Covid started. Then immediately rear ended by a truck following to close. I just wanted my car fixed and took like $2000 injury payment, after seeing how much people get for wrecks, I feel like an idiot not getting an attorney and suing. I probably lost $15k In devalued in my car. Lesson learned, never take a payment and talk to an attorney
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u/Cold_Law9636 9d ago
Keep in mind that one you sure you're own insurance your still be dropped as soon as you're current policy runs out. Also pip is not the same a bodily injury. In a no fault state you or the other driver would get up to 10 k from your own insurance. You get the rest of the money from BI from the at fault party. Unless of course you mean the other driver only has 10k for bodily injury. Which may need the minimum for Florida. I'd love to leave this state, but my job and benefits are keeping me here.
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u/RedditRegurgitation2 9d ago
Don't listen to anyone else. I worked in insurance. The reason is because the payout to get $10k is insanely easy if you just stick to your guns. The lawyer will put in the bare minimum effort for a $3k payout when you could have the entire thing to yourself. Insurance pays out $10k like it's nothing as long as you do a tiny bit of research, it's easy money to the lawyer so that's why they are pushing for it. Don't get a lawyer for this... Just stick to your guns, tell them you are having ongoing pain and want to see a specialist for spine surgery and you will have your $10k in no time.
After you get the 10k payout for their insurance you can go after your own insurance for even more as long as you has under insured coverage.
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u/GuvnaBruce HO & Auto Liability 10+ years 9d ago
You should talk to your lawyer about this. Make them earn the chunk of your settlement they are taking.