Articles Posted in Insurance Issues

Car accidents can leave injured motorists, passengers, and pedestrians with substantial property damage, physical injuries, and psychological trauma. After seeking medical attention, one of the first steps a Florida car accident victim should take is to file a claim with the at-fault driver’s insurance company. Many Floridians assume that insurance companies operate swiftly and fairly; however, this is often far from the truth.

In most instances, car accident victims will attempt to recover damages from the at-fault party or their insurance company. This requires filling out lengthy forms, providing detailed information, and explicitly requesting appropriate compensation. Insurance companies rarely agree to the amount the victim claims and will either counteroffer, deny, or even delay deciding the clam. If an insurance company is engaging in unlawful practices or countering an inadequate amount, injury victims should contact an attorney to file a complaint

To initiate a lawsuit against an insurance company, potential plaintiffs should file a complaint in court. Attorneys can assist the plaintiff in including all relevant and pertinent details, including a demand for damages. During pre-trial pleadings, both parties will have the opportunity to file motions to support their claims. If the case survives pre-trial proceedings, the parties will then engage in discovery and then trial.

Florida motorists should engage in a comprehensive and thorough review of their available insurance policies to ensure that they have adequate protection in the event they are involved in an accident. One area of coverage that deserves close scrutiny is the terms of the insurance company’s uninsured and underinsured motorist (UIM) coverage. UIM coverage protects Florida drivers that suffer injuries because of a negligent driver who does not have adequate vehicle insurance. A shocking 25 percent of Florida drivers do not have insurance, and this can have disastrous consequences for injury victims.

Florida’s no-fault insurance rules require that insurance companies protect their own policyholders in minor accidents, so long as the drivers purchase personal injury protection. However, issues arise when a driver sustains serious injuries in a Florida collision. In these instances, Florida drivers must file a claim with the at-fault driver’s insurance company. Filing a complaint with the negligent driver’s insurance company often raises challenges because Florida law does not require drivers to purchase insurance coverage that protects them from liability if they injure someone else.

Appropriate UIM coverage can provide a motorist with extra protection in case the other party is under or uninsured. However, policyholders often face difficulty evoking this policy because insurance companies are reluctant to pay out substantial amounts. Insurance companies will sometimes wrongfully delay claims, or assert specific provisions to avoid paying out claims.

Florida law requires motorists to carry a minimum amount of insurance coverage to cover property damage and personal injuries that may result after an accident. In some situations, Florida injury victims are unable to recover for their losses because the at-fault driver cannot pay. To address this issue, lawmakers require Florida insurance companies to offer their policyholders optional uninsured/underinsured motorist (UIM) coverage.

Uninsured/underinsured motorist coverage protects motorists, relatives they reside with, and people who occupy their vehicles. In most cases, insurance companies offer UIM coverage in the same amount that the policyholder has bodily injury coverage. This coverage is essential in instances where a driver is involved in an accident with a negligent driver that does not have enough insurance coverage to cover the victim’s injuries. This coverage typically covers damages related to medical expenses, lost wages, rehabilitative or nursing care, medical devices, pain and suffering, and death.

This coverage is vital because, despite laws requiring insurance coverage, Florida has a high rate of uninsured drivers. Additionally, Florida has a very low minimum amount of necessary coverage. These two facts can have devastating financial and physical consequences for car accident victims. Injury victims who wish to evoke this coverage may face difficulties because insurance companies are often reluctant to pay out damages. When this happens, injury victims may incur a delay in obtaining appropriate medical treatment, which can contribute to additional serious health conditions.

A Florida appellate court recently issued an opinion in a lawsuit stemming from an insurance dispute between a Florida policyholder and her car insurance provider. For several years, the plaintiff exercised with the assistance of a personal trainer out of a mobile gym. The gym used the woman’s electricity to power various equipment and machinery. On one occasion, the woman suffered injuries during her workout. She filed a negligence lawsuit against the trainer and the mobile gym’s owner, ultimately settling the claim.

That settlement did not fully compensate the plaintiff for her injuries, however. Thus, to cover her remaining damages, she filed a claim with her insurance company under her uninsured/underinsured motorist (UIM) policy. The insurance company refused to pay the costs, claiming that the policy did not extend to the circumstances surrounding her injuries. She filed a claim against the Florida car insurance company. Although these facts are admittedly unusual, the case presents a common issue that arises when a policyholder attempts to collect compensation from an insurance company.

Florida insurance companies often take on an adversarial role, even with their own policyholders. Claims adjusters often receive training to negotiate settlements and deny claims in the insurance company’s favor. Several issues commonly arise when a policyholder tries to collect from an insurance company. First, there may be issues surrounding causation. Insurance companies often require motorists to provide evidence of what caused the accident. After establishing causation, they will usually need the party to prove fault. Adjusters will often deny claims based on who they find to be at fault for the accident. If a policyholder overcomes the initial hurdles, they will then need to claim their damages. Insurance companies may try and limit payouts by contending that the policyholder’s injuries were not as severe as they suggest.

Anyone who has ever tried to read a Florida car insurance policy knows that they are lengthy, complex, and do not clearly outline what coverage is provided. Most Florida motorists end up purchasing insurance after answering a series of questions online about their vehicles, driving habits, and desired coverage amounts. However, few drivers truly know what their insurance policy covers.

After a Florida car accident, most injured motorists rely on insurance coverage to reimburse them for the expenses associated with the accident, including medical bills and lost wages. Florida car accident victims may have also endured significant pain and suffering as a result of the crash. Unfortunately, too often, the at-fault driver does not have enough insurance coverage to fully compensate an accident victim. In this situation, the accident victim may need to file a claim with their own insurance company under the underinsured/uninsured motorist (UIM) clause.

A UIM clause provides motorists with additional insurance coverage in the event that the at-fault driver does not have insurance or does not have enough insurance coverage to fully compensate them for their injuries. This is especially important in Florida, where it is estimated that approximately 23 percent of drivers are uninsured. Due to the importance of UIM insurance, Florida lawmakers determined that an insurance company most provide UIM coverage in the same amount as bodily injury coverage unless the insured specifically waives UIM coverage. The burden rests with the insurance company to ensure that they obtain a valid waiver of coverage; otherwise, the insurance company may still be on the hook for providing UIM coverage.

While insurance is supposed to provide a motorist with peace of mind after a Florida car accident, in reality, the opposite is often true. Because insurance companies are for-profit corporations, they rely on taking in more money each month in premiums than they pay out in claims. Thus, insurance companies approach each claim with the same goal: expending as little money as possible to resolve the claim.

In some cases, insurance adjusters will offer low-ball settlement agreements knowing the claim is worth much more in hopes of catching an accident victim in a moment of desperation. In other situations, insurance companies will outright deny a claim based on their interpretation of the policy language. For this reason, it is critical that Florida motorists take care to ensure that they understand their insurance coverage and that it meets their needs. A recent opinion issued by a state appellate court illustrates just one type of issue that may arise after a Florida car accident.

According to the court’s written opinion, the plaintiff was killed in a traffic accident when he was struck while riding a moped. The moped was powered by a small 49cc motor, similar to that which would power a scooter. The motorist’s family initially filed a claim with the other driver’s insurance company. However, because that policy only provided $100,000 in benefits, the family then filed a claim with their insurance company under the underinsured motorist (UIM) provision of the policy.

Earlier this month, a state appellate court issued a written opinion in a Florida car accident case discussing whether the plaintiff’s claim that her insurance company acted in bad faith should be permitted to proceed towards trial. Ultimately, the court held that although the insurance company eventually made payment under the plaintiff’s policy, the payment was too late. Thus, the court permitted the plaintiff’s case to proceed.

Bad-Faith Claims Against Insurance Companies

Under Florida law, insurance companies must provide timely payment to policyholders. If an insurance company does not make payment on an insured’s claim, the insured can pursue a bad-faith claim against the insurer. However, before this type of claim can be pursued, the insured must file a civil remedy notice (CRN), giving the insurance company 60 days to respond and cure the bad faith.

The Facts

In its opinion, the court explained that the plaintiff and another driver was involved in a Florida car accident in the summer of 2013. For the purposes of this opinion, it was agreed that the plaintiff was not at fault. Both the plaintiff and the at-fault driver were insured by the same insurance company. Because the plaintiff’s injuries were serious and exceeded the coverage limits of the at-fault driver’s policy, the plaintiff filed a claim under the at-fault driver’s policy as well as her own underinsured motorist (UIM) policy.

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