Uninsured/Underinsured Auto Coverage - Part 2

Uninsured or Underinsured claims, in addition to what we discussed last week, have some other issues which can be become problems. One of them could prevent you from recovering under your own policy, despite all the money you have paid in over the years. You must get written permission to settle and release the other driver from your carrier before you settle your case. To illustrate this let's take a basic rear end collision. You are hit from behind by a driver insured with DenyAll Insurance and your insurance is Regressive. The other drive is ticketed for the wreck and your medical expenses are over $35,000.00. The other driver's coverage through DenyAll is only $25,000.00. They provide proof of the policy only being $25,000.00 and send you a check and release to sign. Putting aside all the issues with medical bills, etc., you sign the release and take the money. You may have just cut off any recovery you may have against your own company to recover your additional damages because you did not get their written permission to settle and release the other driver. The real kicker is that there is no requirement that your insurance company tell you about the requirement. The moral of the example is what should be simple is filled with traps and before you settle any case, make sure you know who it could impact other issues. As with any legal discussion, this is just general information and not specific legal advice for any case.