AUTOMOBILE ACCIDENTS

There a number of very important things you should know about automobile accidents.  Car accidents are always traumatic, both physically and mentally.  You need to be sure your rights are protected during this trying time.  While most people do not wish to file claims or institute litigation, the unscrupulous practices of some insurance companies may cause honest people to be treated very unfairly if they are unaware of the benefits they may be entitled to after a car accident.

Be sure you DO NOT SIGN ANY LEGAL DOCUMENT BEFORE CONSULTING WITH AN ATTORNEY.  Some dishonest insurance carriers have been known to offer unsuspecting people a quick settlement immediately after an accident.  You should never accept this type of settlement.  You have no idea of either your injuries or your property damage at this early stage.  It is also advisable to be seen at an emergency room as soon as possible after your accident.  If you wait too long, insurance companies will suspect that you are feigning your injuries.  They will look for any reason to deny your claim or decrease your damage award.  Even if you do not intend to file a claim, be sure you haven’t been injured.  Seek medical treatment as soon as possible after any symptoms arise.  Whip lash and other related “soft tissue” injuries that are often caused by auto accidents may not surface immediately.  Often, you may feel much worse the day after an accident.  Be sure to protect yourself by obtaining medical care immediately after any symptoms develop.  Don’t wait to see if you’re OK before seeking medical treatment.  Most insurance companies will hold it against you, claiming that if you were really injured you would have sought medical treatment sooner.

Be sure to get information from the other driver(s) involved in the accident.  You will need their TAG number as well as their name(s), address(es), phone number(s) and insurance information.  TAG numbers are very important as you can trace their insurance coverage if you have this vital information.  Be sure to get the names, addresses and phone numbers of any witnesses to the accident.  Their later statements or testimony may be vital to your case if liability is contested.

Be sure also to call the police if you have sustained personal injury or property damage.  It is important to document exactly what happened.  The police report will include all the above information.  It is very helpful to have the police collect this information for you at a time when you will be very upset or may be physically unable to obtain this information yourself.  If the police issue the other driver a traffic ticket, it will be very helpful to your case when later dealing with an insurance company.  People will sometimes admit fault when talking to you immediately after the accident, but change their stories later.  It’s always helpful to have a police officer memorialize the incident in an official report.  The police are not obligated to take a report if there is no personal injury or property damage.  They may be unwilling to make a report if you are not injured and the damage is slight.  If there is substantial damage, it is your right to tactfully insist that the police make a report.  Even if they do not make a report, they do have simple forms that will help you to collect all the information necessary.  These forms will help you to obtain all the necessary information at a stressful time when you may not be aware what will be needed later.

Be sure you do not admit fault after the accident.  It may be held against you later.  Don’t discuss the accident.  You can check on the status of the other driver and be very civil without admitting any fault on your part.

Let’s spend a minute discussing what you should or shouldn’t do before an accident and also what you need to do beforehand to be sure you get the most bang for your expensive insurance premiums to adequately protect yourself if you or your automobile are involved in an accident. 

Maryland drivers are obligated to have liability insurance to cover personal injury or property damage sustained by others as a result of their negligent driving, and maybe even permitting  another driver to operate your car in some circumstances.  For example, if you know a certain individual is intoxicated, has a history of reckless driving, or is not covered under your insurance policy, and you nevertheless give him/her permission to operate your vehicle, you and/or your insurance carrier, in some instances, may be liable for any damage caused by that person’s negligent driving.  Be very careful who you allow to operate your car.

Although you are not required to carry Personal Injury Protection (PIP) insurance under Maryland law, it is advisable NOT to waive your PIP coverage even though you are not required to carry PIP coverage in Maryland.  PIP coverage is usually very inexpensive when compared to other automobile insurance coverage.  PIP will cover your medical expenses and 80% of your lost wages up to the amount of your insurance coverage limits no matter who is at fault.   It will not cause your premiums to be increased no matter who is at fault.  Your own PIP coverage will come in handy if liability is contested or if you need medical care.  Many physicians will be happy to accept you as a patient without immediate payment if they know you have PIP coverage.  They will send guarantee forms to your attorney and agree to bill your insurance company for your medical care without you having to front any money.  The same is true of some drug stores and medical supply businesses.  Your attorney can direct you to physicians and businesses that will accept your PIP benefits and not charge you immediately for services rendered.

PIP benefits also cover any passengers in your car and in some instances, pedestrians or people injured in other cars involved in your accident.  Be advised that the bad news is that if you are involved in an accident where you are a passenger and you have waived PIP coverage under your policy, you will be precluded from receiving PIP benefits under the PIP coverage of the driver/owner of the car in which you were a passenger.  DON’T WAIVE YOUR PIP BENEFITS.  It may come back to haunt you.

In today’s world, the reality is that insurance companies look for any reason to deny benefits or to keep insurance awards as low as possible.  It may be very helpful to have your own PIP coverage so that any eventual settlement you do receive from an insurance company of the at-fault driver will not be decreased by your own medical bills.

If you can afford it, it is also beneficial to have car rental coverage.  It will come in very handy after an accident if your vehicle is out of commission and if you need a car while your claim is being initially processed.  It may take as long as a week even under the

best of circumstances to establish a claim.  If you need your vehicle immediately, as most of us do, you can use your own rental insurance coverage.  Your insurance company will know exactly what to do to collect this expense from the liability carrier at a later date.  Be advised that even if you have this coverage, insurance companies only pay nominal rates.  Be sure any rental company will accept insurance payments and only charges you insurance company rates.  Further, it is not necessary to purchase additional  insurance from the rental company.  Your own insurance policy will cover you and any vehicle you are legally driving.

So what does the at-fault driver’s insurance company cover?  Why don’t they pay my medical bills?  If you have PIP coverage, this will result in an extra insurance benefit, again, no matter who is at fault.  Once you have completed your medical treatment, your attorney will begin settlement negotiations with the liability carrier; i.e.,  the insurance company that covers the at-fault driver.  If negotiations are successful, the liability carrier will pay you a lump sum to cover your medical bills, 80% of lost wages and the pain and suffering you experienced as a result of the accident.   

Any property damage you sustain as a result of another insured driver’s negligence will also be covered by the liability carrier.  Your attorney should usually not receive any portion of your property damage settlement or any PIP benefits, unless for instance, these benefits are contested.  But it is very unusual for attorneys to receive any portion of either property damages or PIP benefits.

Most attorneys are not paid until the end of the case.  In most cases, your attorney will agree to accept 1/3 of the lump sum settlement from the liability carrier and will not receive any payment from you unless they have been able to negotiate a settlement for you.  Most attorneys will require the reimbursement of any expenses they have paid on your behalf, such as the cost of police and/or medical reports.  Reimbursement will also be taken from the proceeds of your lump sum settlement.