Insurance Tips

Things to know about Insurance and 9 tips to help

Disclaimer: Nothing on this page is to be considered legal advise. To protect yourself, you may want to consult with an attorney.

Dealing with insurance companies is always interesting. Your insurance is there for a reason. It is to help you in an emergency. There are several parts of your policy that are important here.

1. Property Damage/Collision: This is the part of your policy that covers damage to things other than people (car, house, light pole, etc.)
   
2. Medical Payments/ MedPay: This is the part of your policy that covers your medical bills from the accident whether no matter if you are at fault or not. It is a separate amount for each person in your vehicle. There is usually a limit (1K, 5K, 10K, 25K or 100K). Wisconsin now requires at least $10,000 coverage per person. There is no deductible for this part of your policy. If you are not at fault and the other person has insurance, their company should reimburse your company the amount they paid.
3. Liability: This is the part of the insurance (usually the “at fault” driver’s insurance) that covers who ever was injured in the accident. It does not cover the person at fault for the accident, but will cover the other people in their car. So even if you were riding in the car that was at fault, you would still be covered under this portion.
4. Uninsured/Underinsured: Highly recommended to have, because not every person out there has insurance. If you are hit by someone with very little or no insurance at all, this part of your policy steps in and takes care of you and your passengers.
   

Insurance can be complicated, so here are some important tips:

1. Do not be afraid to use your insurance. You paid the premiums all those years for a reason. If you never use it, you might have well just “gifted” them the money.

2. Your claims will be broken up into 2 parts. Each portion will be settled separately. “Property Damage” (covers the car, contents and everything not related to your body) and “Bodily Injury/Personal Injury” Covers everything related to you. (See #4).

3. Do not settle until you know how badly you are hurt. Some symptoms do not show up right away, or seem like they are getting better only to return again later. (See section on “timeline” for more information. Get a thorough examination and see a Chiropractor.

4. Never let an insurance company tempt or intimidate you into settling before you have fully recovered. Once you settle, you can’t go back and tell them it was not enough to cover everything. Some people have settled with the insurance company for $500-1000 in the first week or two, only to discover that their injuries were worse than they thought, will take longer to recover or even that they now need surgery and the $1000 won’t cover all their bills. Once you sign the settlement papers, it is too late to go back. Insurance companies are in business for one reason, to make money. The reason they want to settle your claim so quickly is that they are hoping to close the case before you find out what is wrong and it costs them more money. If they didn’t think the bills would be higher, wouldn’t they take their time and keep the money as long as possible? The reason they want to settle so quickly is it puts all the risk on you.

5. The insurance company has a legal responsibility to “Make You Whole.” This means that your Personal Injury claim will cover: . You should be compensated for:

a. Medical bills

b. Future medical bills

c. Time missed from work

d. Mileage to and from appointments

e. Lost wages (present and future)

f. Pain and suffering

g. Pain and suffering of family members (or inability to perform household or spousal activities). Although difficult to talk about, if it is affecting your performance or enjoyment in the bedroom, it should be discussed and compensated.

h. Any increase in insurance premiums.

There are other items that can be added here, and consulting with an attorney is

recommended. You do not have to hire the attorney, but it is recommended that you talk

to one. (This is the part the insurance company will try to negotiate the most).

6. Never lie to the insurance company. It will destroy your credibility. They will be able to go back and check all your medical records, so don’t say this is your first accident if you have been in other accidents in the past. On the other side, don’t be a “Chatty Cathy” and go on and on about old injuries or accidents. Treat them like the police, “Anything you say can and will be used against you.” They are on a fishing trip, looking for reasons to deny your claim. If you don’t know an answer, say “I don’t remember right now.” If they are asking questions that make you uncomfortable, stop answering the questions and consult an attorney (most will have a free initial consultation).

7. Remember when you settle, that the final amount must cover everything (including paying back any MedPay that was paid by your company). Example: If you are planning on keeping $5000 and your insurance company already paid $4000, you need to settle for at least $9000. If you settle for $5000, by the time your insurance company collects what is paid, you are only left with $1000.

8. In Wisconsin, you have a 3 year statute of limitations to settle the claim with the other driver’s insurance company or file suit, otherwise the statue of limitations expires and they do not have to pay anything.

9. If you are the passenger in a car where your driver was determined to be at fault, you are still entitled to full compensation, just as if you were in the other car. (Your treatment is not limited to Med-Pay limits and you should be compensated for everything in item #5).