Accident Lawyer Tips Insurance Claims and Negotiations 2 — Questions and Answers
Question 1: What does 'liability limits' mean in an auto insurance policy?
- The maximum amount the insurer will pay for a covered claim (Correct answer)
- The minimum deductible you must pay
- The number of claims allowed per year
- The geographic area where coverage applies
Correct answer: The maximum amount the insurer will pay for a covered claim
Liability limits cap the insurer's payment obligation; amounts above those limits must be recovered from the at-fault driver personally or through other coverage.
Question 2: What is 'medpay' coverage in auto insurance?
- Insurance for your vehicle's GPS device
- Medical payments coverage that pays medical bills regardless of fault (Correct answer)
- A government Medicare supplement for accident victims
- Coverage exclusively for prescription medications
Correct answer: Medical payments coverage that pays medical bills regardless of fault
Medical payments (MedPay) coverage pays for medical expenses of you and your passengers regardless of who caused the accident.
Question 3: Why is it dangerous to give a recorded statement to the opposing insurance company?
- It violates your Miranda rights
- Statements can be taken out of context or used to minimize your claim (Correct answer)
- It automatically settles the case in their favor
- It reveals your lawyer's strategy
Correct answer: Statements can be taken out of context or used to minimize your claim
Opposing insurers use recorded statements to identify inconsistencies or admissions that reduce their liability exposure.
Question 4: What is an 'Independent Medical Examination' (IME) in an insurance claim?
- A free medical checkup offered by your insurer as a benefit
- A medical exam ordered by the insurance company to evaluate your injuries (Correct answer)
- An examination conducted by your own chosen doctor
- A psychological evaluation required for all accident claims
Correct answer: A medical exam ordered by the insurance company to evaluate your injuries
IMEs are conducted by doctors selected by the insurer and often used to challenge the extent of claimed injuries.
Question 5: What does 'comparative fault' mean for your insurance claim in a shared-fault accident?
- Both parties split all costs 50/50 regardless of fault
- Your compensation is reduced by the percentage of fault attributed to you (Correct answer)
- Comparative fault only applies in criminal cases
- You lose all rights to compensation if any fault is assigned to you
Correct answer: Your compensation is reduced by the percentage of fault attributed to you
In comparative fault states, compensation is proportionally reduced based on the victim's percentage of responsibility for the accident.
Question 6: What is an 'umbrella policy' and why does it matter in accident claims?
- Coverage for weather-related vehicle damage
- Extra liability coverage above the at-fault party's standard auto policy limits (Correct answer)
- A discounted multi-vehicle insurance policy
- Coverage activated only when it rains
Correct answer: Extra liability coverage above the at-fault party's standard auto policy limits
Umbrella policies provide an additional layer of liability coverage beyond standard auto policy limits, which is crucial when damages are severe.
Accident Lawyer Tips Insurance Claims and Negotiations 2
What does 'liability limits' mean in an auto insurance policy?