Let’s look at the top 10 myths surrounding automobile liability insurance and their implications for car accident claims. These issues are something I encounter quite often as a car accident lawyer. The focus of this post is on auto liability insurance. It does not address other types insurance like comprehensive or collision coverage. Let’s look at a simple example: An auto accident. Let’s assume you were in a car accident with the other driver. You are given the insurance information of the other driver. You should contact the insurance company of the other driver and file a claim for personal injuries and damage to your car. This is known as a Third-party liability claim. Because you are not covered under the insurance policy of the other driver, you are considered a “third party”. You are claiming the other driver is legally liable for the incident. These are my “Top 10 Myths of Liability Insurance” to help you better understand the relationship between the claimants.
Myth 1. My insurance company is there for me. Wrong! The policy-holder purchases liability insurance to cover the policy-holder from the injured person’s claims. Because you claim that the other driver was at fault for the accident, the insurance company of the other driver will cover your claim. This is why it’s called “liability” coverage. It is used to insure and protect the other driver’s liability, but not to provide protection for the injured person.
Myth #2. I must make a recorded statement. You do not have to provide a recorded statement in a liability claim. The other driver’s insurance is the liability carrier. They do not have any legal obligations towards you. The only reason an insurance company would want to record your statement is to make it illegal. They can talk to you if they really want to investigate the accident. Do not believe any insurance company that you must give a recorded statement. It is not required.
Myth #3. They must provide a car rental. You are not entitled to rental car. They may offer a rental car if the insured’s liability for damages is quite clear. They want you to be happy. You might not hire them otherwise. car accident attorney which is something the insurance company always wants to avoid.
Myth #4. Their repair shop is required. No. No. The best thing you can do is to take your car and give the manager of the adjuster the contact information. Since they deal with these matters every day, let the shop handle the insurance company.
Myth #5. I need to present a medical authorization. Do not give the insurance company any authorization, especially a medical authorization. They will usually send one along with the usual claims paperwork and ask for you to sign it. It is not necessary to sign it. If you do, you are giving the adjuster global permission for any of your previous medical records to be obtained. It is just another way to find out more about you. It’s better to gather your own medical records and bills related to the accident, and then send them to an adjuster.
Myth #6. I must consult their doctor. If you are injured in an accident, then it’s your decision which doctor use. The claims adjuster may not recommend that you see the doctor. You can visit any doctor you like, including a hospital or minor emergency clinic.
Myth #7. My claim can be closed by the adjuster. Sure they can close your claim. But what good is that? It doesn’t matter! The legal statutes of limitations are the only time limit for your claim that has any real consequence. Texas law grants you two years to decide whether you want to settle the case or file suit. The insurance company should not pressure you into following their timetable. They will pressure you into settling the claim quickly before your medical bills become too high.
Myth #8. They must make a fair settlement offer. The insurance company has no duty to make any kind of settlement offer. Two main factors might, and I do not mean “might”, prompt an adjuster or broker to attempt to settle your claim. In order to minimize their legal exposure and work load, insurance companies prefer to close claims. If they refuse to settle, you may hire a lawyer. If they refuse to settle, the insurance company may know that it could cost more.
Myth #9. Myth #9. In an auto liability claim, it is the other driver that caused your injuries or damages. Your lawsuit will be filed against the other driver. In some states, you can bring a direct action against the insurance company to file a claim for liability. Texas law, however, does not allow direct actions against an insurance company for a liability claim.
Myth #10. My claim will be denied if I hire a lawyer. Of course not. It would be a detriment to your claim, which is what insurance companies want you to believe. They will tell you that a personal injury attorney will take a percentage of your settlement and you will end up with less. There are many factors that go into the calculation of attorneys fees other than what an adjuster says. A lawyer is there to defend your rights. The adjuster represents the other driver and will defend your claim. Who do you need to believe?
