Insurance

March 24, 2011

What Does It Mean When You Have Uninsured Motorist Insurance Policy Limits of $250,000 / $500,000?

I live in Tennessee. I was in a car wreck in Lebanon, Tennessee and got hurt. It was the other driver’s fault. The other driver has no insurance. I looked at my automobile insurance policy and it says that I have uninsured motorist insurance of $250,000 / $500,000. What does that mean?

It means that for any one car wreck that is the fault of another driver who does not have any insurance your insurance company will pay you up to $250,000 in losses and damages you suffer. If more than one person in your vehicle is injured in the wreck, the company will pay up to $500,000 to all of the persons in your vehicle who were injured and covered under the policy but no more than $250,000 for any one person.

Note that each person who is injured does not automatically get $250,000 – they must demonstrate amount of their damages and can recover up to $250,000 each.

Your policy also provides your protection if the at-fault driver was underinsured. For example, assume that the driver that hit you had a liability insurance policy that provided the driver $100,000 / $300,000 in liability insurance coverage. That means that for any one car wreck that was the other driver’s fault his insurance company will pay a person injured in the wreck up to $100,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on the at-fault driver’s behalf, up to $300,000 but no more than $100,000 for any one person.

March 17, 2011

What Does It Mean When You Have Uninsured Motorist Insurance Policy Limits of $25,000 / $50,000?

by The Law Offices of John Day, P.C.

I live in Tennessee. I was in a car wreck in Nashville and got hurt. It was the other driver’s fault. The other driver has no insurance. I looked at my automobile insurance policy and it says that I have uninsured motorist insurance of $25,000 / $50,000. What does that mean?

It means that for any one car wreck that is the fault of another driver who does not have any insurance your insurance company will pay you up to $25,000 in losses and damages you suffer. If more than one person in your vehicle is injured in the wreck, the company will pay up to $25,000 to all of the persons in your vehicle who were injured and covered under the policy but no more than $50,000 for any one person.

Note that each person who is injured does not automatically get $25,000 – they must demonstrate amount of their damages and can recover up to $25,000 each.

March 11, 2011

What Does It Mean When You Have Uninsured Motorist Insurance Policy Limits of $100,000 / $300,000?

by The Law Offices of John Day, P.C.

I live in Tennessee. I was in a car wreck in Nashville and got hurt. It was the other driver’s fault. The other driver has no insurance. I looked at my automobile insurance policy and it says that I have uninsured motorist insurance of $100,000 / $300,000. What does that mean?

It means that for any one car wreck that is the fault of another driver who does not have any insurance your insurance company will pay you up to $100,000 in losses and damages you suffer. If more than one person in your vehicle is injured in the wreck, the company will pay up to $300,000 to all of the persons in your vehicle who were injured and covered under the policy but no more than $100,000 for any one person.

Note that each person who is injured does not automatically get $100,000 – they must demonstrate amount of their damages and can recover up to $100,000 each.

March 10, 2011

What Does It Mean When You Have Liability Insurance Policy Limits of $250,000 / $500,000?

by The Law Offices of John Day, P.C.

I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $250,000 / $500,000. What does that mean?

It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $250,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on your behalf, up to $500,000 but no more than $250,000 for any one person.

So, if one person was hurt in the wreck, the insurer will pay no more than $250,000 in damages. If two people were hurt, the insurer will pay up to $500,000, but no more than $250,000 per person. If three people were hurt, the insurer will pay up to $500,000, but no more than $250,000 per person. Note that each person who is injured does not automatically get $250,000 – they must demonstrate amount of their damages and can recover up to $250,000 each.

March 1, 2011

What Does It Mean When You Have Liability Insurance Policy Limits of $300,000?

by The Law Offices of John Day, P.C.

I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $300,000. What does that mean?

It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $300,000 in losses and damages they suffer. This is true whether one person is injured or five people are injured: the most the insurance company will pay is $300,000.

To the extent that a person injured in the wreck has claim worth more than $300,000 you are personally responsible for the amount of damages over $300,000 if the wreck was your fault. Likewise, if more than one person is injured and the total damages caused by your negligence exceeds $300,000, you are personally responsible for the amounts over $300,000.

February 21, 2011

What Does It Mean When You Have Liability Insurance Policy Limits of $25,000 / $50,000?

by The Law Offices of John Day, P.C.

I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $25,000 / $50,000. What does that mean?

It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $25,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on your behalf, up to $50,000 but no more than $25,000 for any one person.

So, if one person was hurt in the wreck, the insurer will pay no more than $25,000 in damages. If two people were hurt, the insurer will pay up to $50,000, but no more than $25,000 per person. If three people were hurt, the insurer will pay up to $50,000, but no more than $25,000 per person. Note that each person who is injured does not automatically get $25,000 – they must demonstrate amount of their damages and can recover up to $25,000 each.

February 14, 2011

What Does It Mean When You Have Liability Insurance Policy Limits of $50,000 / $100,000?

by The Law Offices of John Day, P.C.

I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $50,000 / $100,000. What does that mean?

It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $50,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on your behalf, up to $100,000 but no more than $50,000 for any one person.

So, if one person was hurt in the wreck, the insurer will pay no more than $50,000 in damages. If two people were hurt, the insurer will pay up to $100,000, but no more than $50,000 per person. If three people were hurt, the insurer will pay up to $100,000, but no more than $50,000 per person. Note that each person who is injured does not automatically get $50,000 – they must demonstrate amount of their damages and can recover up to $50,000 each.

January 10, 2011

Why Do I Need Uninsured Motorist Insurance Coverage?

by The Law Offices of John Day, P.C.

I live in Tennessee and I understand state law requires that everyone who owns a car or truck have liability insurance coverage on the vehicle. Why should I spend money to purchase uninsured motorist insurance coverage if everyone already has liabilty insurance?

Because (a) some people don’t follow the law; (b) some people buy liability insurance coverage but do not purchase an amount that will protect you from losses you sustain in a car or truck wreck; and (c) you may get hit by a hit-and-run driver (and unisured motorist coverage gives you some protection in such cases).

Despite the law that mandates insurance coverage, 20% of the people in Tennessee have no insurance on their vehicle. That means that 1/5th of the people you meet on the highway have virtually no way of meeting their financial obligation to you if they cause an accident and you are hurt. You need uninsured motorist coverage to protect you from that risk.

December 4, 2010

Can I Tell From How Much Insurance Someone Has By Knowing What Type of Car They Have?

by The Law Offices of John Day, P.C.

I was in a car wreck and was hurt bad. The other driver was driving a new car. I have been talking with the insurance company for the other driver. I asked how much insurance was on the car and the insurance adjuster would not tell me. I guess the other driver has lots of insurance because she was driving a new car, right?

Maybe. There is no way to know for sure how much insurance someone has just by looking at the type of car they are driving. It is reasonable to assume that a person who has a new car has enough money to purchase a responsible amount of liability insurance, but some people spend all of their money on their car and buy the minimum insurance they are required to have in Tennessee – $25,000 per person, $50,000 per accident.

Because Tennessee has no formal way of insisting that insurance companies reveal how much insurance coverage they have until after a judgment is obtained, I often look at the type of car, the at-fault driver’s home, the at-fault driver’s job and other factors to make an educated guess about how much insurance is available. Sometimes my guess is right, sometimes my guess is wrong. At the end of the day, however, if my client has a case that is worth more than the offer the insurance company has given and has represented that no more insurance is available, I insist (with my client’s permission) that the insurance company prove that the at-fault driver has no more insurance applicable to the claim. The is accomplished by requiring a copy of the declarations page for the insurance policy and an affidavit from the insured stating that no additional insurance is available.

November 24, 2010

What Does It Mean When You Have Liability Insurance Policy Limits of $100,000 / $300,000

by The Law Offices of John Day, P.C.

I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $100,000 / $300,000. What does that mean?

It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $100,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on your behalf, up to $300,000 but no more than $100,000 for any one person.

So, if one person was hurt in the wreck, the insurer will pay no more than $100,000 in damages. If two people were hurt, the insurer will pay up to $200,000, but no more than $100,000 per person. If three people were hurt, the insurer will pay up to $300,000, but no more than $100,000 per person. Note that each person who is injured does not automatically get $100,000 – they must demonstrate amount of their damages and can recover up to $100,000 each.