Kentucky Injury Lawyers Blog

Are you really in good hands with Allstate?  Cyndi Crocker from Crocker Law Offices sat down with Whitney Ray from WBKO in Bowling Green, Kentucky to discuss whether car insurance companies treat injury victims better when they put their claims in the hands of a lawyer.

Whitney:     It's been said that people represented by lawyers get three times as much money as people who aren't represented at all. Cindy, what it is that lawyers know that the rest of us don't?

Cyndi:        Well, Whitney, that quote you just gave about three times the money, that actually comes from an Allstate Insurance Company training manual. Their point is, they're trying to teach adjusters: get in there early; act friendly; keep them from getting lawyers because we know we'll pay them more money if they're represented. 

Why? Well, you know, there are several reasons. One is that insurance adjusters are professional negotiators. Lawyers are professional negotiators. So it's a more of an even match up. Not only is the average person in an accident not used to doing this, they're at the worst time in their life. You know, they've just been in an accident, they're very vulnerable, they want to get this over with. 

The second thing I would say is, knowledge is power, and the lawyers working the case know what you're supposed to get. They know the kind of damages we should be looking to get you compensated for. 

And finally, they expect you to prove it, so if I'm going to say, this person's going to have a life time of medical care or this person had a lot of medical bills already, I've got to put that proof together, and at Crocker Law, we have a whole staff of people, this is what they do. They get your bills, they get your records, they order these narrative reports I need from doctors to make that case and get you that money that's fair.

Whitney:     But what if I think that I am getting a fair offer?

Cyndi:         Well, that would be my final word of caution. I think one reason people take too little money is because they make the offers a little bit confusing. You know, I had a guy in my office the other day and he'd been offered $10,000. And he said, you know, I'm satisfied with this, but what do think? And when I looked at it, I pointed out to him that you have $4,000 in medicals that haven't been paid and won't be paid. He didn't know that. So, understanding the offer is important too.

Whitney:    All right, very good. Thank you so much and please join us again next time for Legally Speaking.

If you watch an hour of television these days you are likely to see an advertisement for car insurance.  I know, lawyers are fine ones to talk about advertising.   It is worth noting, though, that we are seeing a shift in how insurance is sold and in the type of products being offered.  Increasingly ads are promoting policies that "keep you legal" or provide "state minimum coverage". You are told that you don't need an agent. You can sign up online, or you can call the 800 number.  There is even an ad that depicts an insurance agent as a middle man just adding to the cost of the transaction.  

An agent is more than a sales person. A good insurance agent will review with you what your needs are and how various policy options will work.  Increasingly I see clients with poor insurance coverage and no understanding of how it works.   The least helpful time to have someone explain your coverage to you is AFTER you have been in a car accident.
The ads don't really explain what it means to have state minimum coverage.  In Kentucky that means that you have $25,000 of liability insurance, which is insurance to pay someone else if you cause a bodily injury or death.  That is what the law requires.  What happens if you hurt someone badly and their claim is worth more than $25,000? You can be responsible for the difference.  Some people are what we call "judgment proof", which means that they have no income, money or property that could be taken to satisfy a judgment.  If you are judgment proof you may be comfortable with minimum liability coverage.  If, on the other hand, you have wages that can be garnished and property that can be seized, you should really think about procuring better coverage to protect your assets and to keep yourself from being embroiled in the litigation of a car accident claim.

A really cheap car insurance policy might include deductibles, including a $1,000 deductible on your no-fault (PIP) coverage.  A no-fault deductible leaves you without coverage on your first $1,000 of wage loss or medical bills, which your health insurance may or may not pick up.  "Insurance for less" may not include uninsured or underinsured motorist coverage, and is unlikely to include collision coverage for damages to your own car.  

In a tough economy people make tough choices and you may not be able to afford the best policy available, but I do recommend that you at least meet with a respected agent and review your options.  Know what you are giving up for every dollar saved.

In an official press release on March 31, United States Vice President Joe Biden, along with Social Security Commissioner Michael J. Astrue, announced that economic recovery payments of $250 would be sent to those who receive Social Security and Supplemental Security Income (SSI) benefits in early May 2009 and will continue through that month.  Beneficiaries will not need to take any action to receive this payment.  It will be sent automatically and will come as a separate payment from the recipient's regular benefits check.

This $250 payment stems from the American Recovery and Reinvestment Act of 2009.  It provides for a one-time payment to adult Social Security beneficiaries, along with SSI recipients, with the exception of those who receive Medicaid in a care facility.  The qualifying factor for an individual to receive this one-time payment is that they must be eligible for Social Security or SSI during November 2008, December 2008 or in January 2009.

This legislation also allows for a payment to Veterans Affairs (VA) and Railroad Retirement Board (RRB) beneficiaries.  However, if those recipients also receive Social Security or SSI, they will only receive the $250 payment one time.  People receiving Social Security or SSI are asked not contact the agency unless they have not received this payment by June 4, 2009.