Accident Lawyer Tips Dealing with Insurance Companies 2 — Questions and Answers
Question 1: What is the difference between a 'first-party' and 'third-party' insurance claim after an accident?
- First-party is a claim against your own insurer; third-party is against the at-fault driver's insurer (Correct answer)
- First-party is filed in court; third-party is filed directly with the insurer
- First-party covers medical bills; third-party covers property damage only
- First-party is for drivers; third-party is for pedestrians
Correct answer: First-party is a claim against your own insurer; third-party is against the at-fault driver's insurer
A first-party claim is filed under your own policy, while a third-party claim is filed against the insurance of the driver who caused the accident.
Question 2: When can you sue the at-fault driver's insurance company directly?
- Generally you cannot sue the insurer directly; you sue the at-fault driver instead (Correct answer)
- Anytime the insurer denies your claim
- Only in small claims court for property damage
- Only if the at-fault driver is deceased
Correct answer: Generally you cannot sue the insurer directly; you sue the at-fault driver instead
In most states, you sue the negligent driver, and their insurer defends the case and pays any judgment up to policy limits.
Question 3: What is 'med-pay' (medical payments) coverage in an auto insurance policy?
- Coverage that pays your medical expenses regardless of fault (Correct answer)
- Coverage that only applies if you are not at fault
- A government subsidy for uninsured accident victims
- Coverage that pays the other driver's medical bills
Correct answer: Coverage that pays your medical expenses regardless of fault
Med-pay coverage reimburses your medical expenses up to policy limits regardless of who caused the accident.
Question 4: What should you do if the at-fault driver was uninsured at the time of the accident?
- File an uninsured motorist (UM) claim with your own insurance company (Correct answer)
- Accept that you cannot recover any compensation
- Sue the driver personally in criminal court
- File a claim with the state government insurance pool
Correct answer: File an uninsured motorist (UM) claim with your own insurance company
Uninsured motorist coverage in your own policy provides compensation when the at-fault driver has no insurance.
Question 5: What is an insurance company's duty to defend in an accident lawsuit?
- The obligation to provide legal defense to its insured against covered claims (Correct answer)
- The insurer's duty to pay all damages awarded by a jury
- An obligation to negotiate settlements on behalf of accident victims
- A requirement to appear at every court hearing
Correct answer: The obligation to provide legal defense to its insured against covered claims
The duty to defend requires the insurer to provide and pay for a lawyer to defend its insured against any covered claim, even if disputed.
Question 6: How does PIP (Personal Injury Protection) coverage differ from liability coverage?
- PIP pays your own medical bills and lost wages regardless of fault; liability covers damages you cause to others (Correct answer)
- PIP only applies to pedestrians; liability covers drivers
- PIP pays property damage; liability covers bodily injury only
- PIP requires fault determination; liability does not
Correct answer: PIP pays your own medical bills and lost wages regardless of fault; liability covers damages you cause to others
PIP is no-fault coverage that pays your own losses quickly, while liability coverage compensates others when you are at fault.
Accident Lawyer Tips Dealing with Insurance Companies 2
What is the difference between a 'first-party' and 'third-party' insurance claim after an accident?