"Ask a Lawyer" - Do I need Rental Car Insurance?

My family is taking a vacation to Disney World this summer.  We are flying down there and renting a car.  I never know what to do regarding insurance on the rental car.  Am I covered if I have an accident?  
Bradford L., Sumiton

Renting a car is not something most people do on a regular basis unless you travel frequently. A person renting a car may risk being involved in an accident in a rental car due to being unfamiliar with both the vehicle and the area where they are driving. Accidents can also be more difficult to report because people there are more people involved including the rental car company and its insurance company.

Right to Assume Rental Vehicle Is Safe to Operate

There is a special duty placed upon on a rental company to ensure that the vehicles they rent are in a roadworthy and safe condition. The car company should inspect vehicles prior to rental since it is responsible for injuries directly caused by known defects or those that a reasonable inspection should have discovered.

It is also wise for you to perform a quick inspection of the vehicle before driving it. Do this before leaving the agency’s grounds and report any dents or damage to the car that do not affect its drivability. You are not obligated to do this, but if the agency attempts to charge you for damage to the vehicle when you return it, you will have protected yourself by reporting the damage ahead of time.

Insurance when Renting

Your current insurance policy will most likely provide some coverage when renting a car.  However, check with your insurance agent before you rent a car. There may be some gaps in coverage.  If you do not have any coverage, you can usually buy additional coverage from the rental company. If a credit card is used to pay for the vehicle, the card company may also offer some limited protection.

If you have an Accident

Reporting an accident with a rental car is very much the same as reporting an accident in your own vehicle:

·      Report the incident to the police.

·      Report the incident to the rental car company.

·      Do not offer to pay or settle without the consent of the rental car company.

·      Do not admit liability.

·      Assist the rental car company with any statement or information that they may need.

·      Call your insurance agent also and make a claim under your personal car insurance policy.

·      Seek medical treatment immediately if you are injured.

How a Lawyer Can Help

If a problem with the rental car caused or contributed to the cause the accident, a personal injury attorney can help you determine if you have grounds for filing a negligence lawsuit against a car rental company. Also, a lawyer can assist you in getting full compensation for your injuries.

Nelson, Bryan and Jones represents clients in the following areas: Social Security Disability, Motor Vehicle Accidents, Wrongful Death Cases, Personal Injury Actions, Defective Products, Insurance Disputes and Bad Faith, Fire Loss cases, Trucking Accidents, Worker’s Compensation, Drug Recalls, Employment Law and Property Damage Claims.

"Ask a Lawyer" - What to expect if you have an insurance claim or lawsuit.

Unless you have been a party to a lawsuit before, it is difficult to know what to expect. There is an understandable level of apprehension about the litigation process. We receive many questions about how litigation works and hope this explains the process.

The Screening & Investigatory Process

The first step in any lawsuit is to obtain the facts and conduct a thorough investigation. The investigatory stage includes: interviewing witnesses, gathering and preserving evidence, hiring experts, and contacting insurance companies. This stage can take up to six months. After that, a lawyer can make a final determination about whether a claim can be pursued.

Settlement Negotiations

Next, we engage in settlement negotiations with the responsible party or their insurance company to determine whether a fair settlement can be obtained without filing suit. In this stage, we collect and put together the physical evidence about the incident, documents regarding damages (including medical bills and lost wage documents) and necessary expert reports from physicians, economists, accident reconstructionists and others. An offer is sent setting forth the facts, explaining why the other party is responsible and providing documentation about damages and injuries. Negotiations continue until either a settlement is obtained or an impasse is reached.

The Litigation Process

We will move quickly to file a lawsuit in the event that a fair settlement cannot be negotiated. Generally, lawsuits in state court proceed in the following manner:

Complaint & Answer

A Complaint is filed which sets forth what happened and the damages sustained. The Complaint is personally served on each defendant. The Answer is the defendant’s response. Defendants have thirty days to file an Answer. Discovery begins once the Answer is served.

Discovery

Discovery is the phase in which parties obtain information, testimony, documents & other evidence from each other and from third parties. Written discovery is exchanged between the parties including interrogatories and requests for documents. Depositions are taken of the parties, witnesses and experts. A deposition is when the attorneys ask questions under oath that are transcribed by a court reporter. Discovery generally lasts from nine months to one year.

Motions

Defendants may file motions after discovery is complete in an effort to convince the Court to dismiss some or all of the case. Once a motion is filed, the opposing party has time to respond. Scheduling of a hearing on the motion is in the complete control of the Court.

Mediation

If the parties or the Court believes it would be helpful, a mediation may be scheduled. Mediation is a meeting between the parties, their attorneys and a mediator, who is a neutral attorney. Mediations are non-binding attempts to settle cases.

Trial

Unfortunately, there is no simple answer to how long it will take to get a trial setting. The caseloads of different courts and different judges vary. It will usually take a year or more. On average it takes between eighteen months to two years from filing to the start of trial.

Nelson, Bryan and Jones represents clients in the following areas: Social Security Disability, Motor Vehicle Accidents, Wrongful Death Cases, Personal Injury Actions, Defective Products, Insurance Disputes and Bad Faith, Fire Loss cases, Trucking Accidents, Worker’s Compensation, Drug Recalls, Employment Law and Property Damage Claims.

If you have any questions about any other legal issue, give us a call (205-387-7777) at Nelson, Bryan and Jones for a free consultation.

"Ask a Lawyer" - A Settlement is FINAL

I had a car accident ten months ago and I went to the ER and saw my family doctor a few times.  I felt better, so I took $2500 that the other driver’s insurance offered.  Now, I am going to have surgery because of the accident. On top of that, Blue Cross is asking for money back that they paid for treatment from this accident.  Can I go back and get more money from the other driver’s insurance? Rudy K., Empire

If you signed a release when you accepted the money from the other party in the accident, you cannot recover anything further. A settlement with the other party is complete when a release is signed. This means you will not receive anything more, even if your condition gets dramatically worse. Settlements are for all of your damages both past and future. Damages covered by settlement include: past medical treatment costs, future medical treatment costs, lost wages, future lost wages, past and future pain and suffering, mental anguish and other out of pocket damages you incur. When you settle and sign a release with the other party, you are settling for all of those damages at that time. 

Before you settle with an insurance company, you should be absolutely certain of your future medical condition. Insurance adjusters often offer a small amount right after an accident in order to close out the possibility of paying a lot more later. The adjuster will often pressure you to take the settlement quickly and tell you that the offer will only be available for a short period of time. Sometimes, an adjuster may even tell you that he will withdraw the offer if you consult an attorney.

It surprises the vast majority of personal injury claimants that if they recover from an accident, they are almost always required to reimburse their own health insurance carrier for amounts paid because of the accident. None of us read our health insurance policies, and it comes as a surprise to learn that buried somewhere in these documents are several paragraphs providing that if an insured party makes a recovery in a personal injury case, he or she is required to reimburse the insurance company.

Some clients are angry to find out about these provisions. My clients often feel that they paid a substantial premium for the coverage and should not be required to reimburse the health insurance company to whom they paid monthly premiums. Some people even feel these insurance company recoveries constitute a windfall for greedy insurance companies!

If a person has their medical bills paid for by Medicare or Medicaid, they also have to reimburse these entities as well. Dealing with Medicaid, Medicare, BlueCross or other insurers can be extremely complicated. Most claimants need an attorney to help them through the complicated paperwork. We can always negotiate a reduction in the amount claimed by Medicare, Medicaid, BlueCross or other health insurance providers.

Nelson, Bryan and Jones represent clients in the following areas: Social Security Disability, Motor Vehicle Accidents, Wrongful Death Cases, Personal Injury Actions, Defective Products, Insurance Disputes and Bad Faith, Fire Loss cases, Trucking Accidents, Worker’s Compensation, Drug Recalls, Employment Law and Property Damage Claims.

Ask a Lawyer - Underinsured Motorist Coverage

My wife was in a horrible car wreck on Smith Lake Dam Road.  The man who caused the wreck’s insurance company is hinting they have small policy.  The adjuster says “minimal.”  I am not sure what he means but my wife has over $80,000 in medical bills.  She has missed 6 months of work.  Am I going to get stuck with a lot of unpaid bills that our health insurance won’t cover?  

Paul L., Jasper

Alabama law only requires that a person carry $25,000 in liability insurance.  That is probably what the adjuster means by “minimal” coverage.

Fortunately, there may be other insurance coverage available to cover your damages.

Underinsured motorist ("UIM") insurance allows a person’s own insurance policy to cover damages above the at fault driver’s coverage limits.  This happens when the person causing the injuries does not have enough insurance to cover all your wife’s damages.

The original party who caused the accident will be the defendant, but your own insurance will pay, by verdict or settlement, anything above the coverage amount of the at fault driver.  This happens when your wife’s damages exceed those minimal limits. Her damages will include past and future medical bills, past and future lost wages, pain, suffering, and mental anguish. In the event of a trial, the jury cannot be told that either of the parties even have insurance. That is true for both the liability coverage for the at fault party and your very own Underinsured Motorist coverage that you paid for to cover any excess damages.

At Nelson, Bryan and Jones, we often see at fault drivers who carry only the state minimum of $25,000 while our clients wisely bought plenty of UIM coverage. In a catastrophic accident, BOTH the at fault person's coverage AND our own UIM coverage will be available, even though a jury cannot be told about either.

In Alabama, underinsured (and uninsured) motorist coverage is automatically included in your general car insurance policy unless you specifically reject it.  Alabama law requires that you can only reject UIM coverage in writing and if coverage has not been rejected according to state law procedures, you will automatically have that coverage.

How Much Can Be Recovered?

Although the policy limits usually define how much in underinsured motorist benefits an insured can be paid, there are several things that can increase those amounts.

If you have insurance coverage for more than one vehicle with the same company, you can use the UIM coverage from each policy to “stack” coverage to recover damages from one incident.  For example, you have two cars that Company X insures and you're in an accident with an underinsured driver and you have damages of $500,000 above the other driver’s coverage. Even if each policy contains coverage for only $250,000, you can “Stack” the UIM coverage from both cars covered under the policies to cover the full $500,000 in damages.

UIM insurance is relatively inexpensive. Call today and ask your local agent for full coverage.