| Getting a "policy limits" offer is great. Especially if | | | | insurance paid your medical bills under Med-Pay or |
| it comes before filing suit. A lot of time and | | | | PIP (personal injury protection) it may be able to |
| expense is saved. But there are pitfalls. And you | | | | collect that money from the at-fault driver's |
| must deal with them successfully to avoid | | | | insurance company. |
| shooting yourself in the foot. Here are some tips | | | | If the at-fault driver's insurance company pays |
| to help you through the process. | | | | subrogation, that amount is deducted from the |
| 1. Verify Coverage | | | | bodily injury coverage policy limits--thereby |
| In auto accident cases if your injuries are severe | | | | reducing the money available for you. Ask your |
| and the at-fault driver had minimal coverage, it is | | | | own auto insurance to give up its claim for |
| common to receive a "policy limits offer." In this, | | | | subrogation. If they agree, and they usually will, it |
| the at-fault driver's insurance is offering you the | | | | means more money in your pocket. |
| available coverage in exchange for your full and | | | | 5. Obtain Consent to Settle |
| final release of all rights against the at-fault driver. | | | | If you have UIM coverage you may need to ask |
| You can verify that the amount offered is all that | | | | for consent from your own auto insurance before |
| is available by examining the "declaration page." | | | | you can settle with the at-fault driver's company. |
| The declaration page" is a computer printout that | | | | Check your policy. Failure to get consent could |
| lists the coverage of the at-fault driver at the | | | | harm your claim. |
| time of the accident. | | | | 6. Modify Release (If Needed) |
| Even more certain is a "certificate of coverage" | | | | If you are insured with Allstate, for example, and |
| which you can request and obtain from the | | | | the at-fault driver was also insured with Allstate |
| at-fault driver's insurance. | | | | there is another factor to consider. You will be |
| 2. Check Availability of Under Insured Motorist | | | | asked to sign a "Release." By signing the Release |
| Coverage | | | | you give up your claim against the at-fault driver. |
| Once you are satisfied as to the amount of | | | | Some Releases also include the name of the |
| coverage of the at-fault driver you need to | | | | at-fault insurance company. When you sign the |
| examine your own coverage. Did you purchase | | | | Release you give up your claims against Allstate |
| "under insured motorist coverage?" (Also known | | | | from this particular accident. Unless you modify |
| as "UIM.") Hopefully so. The more the better. If | | | | the Release you could be giving up your UIM |
| you have plenty of UIM coverage then you can | | | | claims also. |
| skip the next step i.e. obtaining an "asset search." | | | | So read the Release carefully, and, if you have |
| 3. Perform An Asset Search | | | | not yet spoken with an experienced injury |
| If you have no UIM coverage then you can | | | | attorney, this would be a good time to do so. |
| recover money only from the at-fault driver (or | | | | Conclusion |
| his insurance.) An asset search looks at the real | | | | There you go: verify coverage, check for UIM |
| estate and cars owned by the at-fault driver. If | | | | insurance, perform an asset search if needed, get |
| he was under insured in comparison to his assets | | | | a waiver of subrogation, obtain consent to settle |
| you may want to hire a lawyer to sue him | | | | and read the Release. Modify it as needed. |
| directly. Once you have obtained a judgment you | | | | Disclaimer |
| can use it to sell his cars and real estate. | | | | This article is intended to acquaint you with the |
| 4. Ask For Waiver of Subrogation | | | | issues that arise when handling a policy limits offer |
| "Subrogation" is the reimbursement an insurance | | | | in an injury case. For best results seek advice |
| company seeks after paying a claim. An insurance | | | | from an experienced injury attorney to help you |
| company will seek this from the person at-fault | | | | through the policy limits minefield. |
| or his insurance company. So, if your auto | | | | |