What to do when medical bills exceed responsible party's policy limits?

Question

The person responsible for the accident has a personal injury policy limit of $20,000. A friend's medical bills are over that. She suffered a broken leg, arm, clavicle, 2 ribs and has had extensive PT. She also has permanent scars on her face. The insurance company is telling her that they can only give her the policy limits. She wanted to know if hiring a lawyer would be best before she actually did so because you know they have to take at least 30% of the settlement and if all she can get is policy limits, she doesn't want to go that route.

Answer 1

A lawyer cannot increase the other party's liability limit, so she would collect the $20,000 LESS the attorney's fees (30-40% plus expenses).  With her injuries, the other party's insurance will offer the limits of the policy without an attorney.  An attorney MAY take it to court & be able to get a judgement against the other party (but his fees will be 30-40% of the JUDGEMENT, not what is collected - so if the judgement is $50,000, the attorney would get probably $20,000 leaving your friend with NOTHING).  If the other party has no assets, good luck collecting the balance of the judgement.

Her best bet would be to look on her own policy, see what her PIP & medical payments are.  Also, see if she has UNDERinsured motorist bodily injury & file a claim there.  She can get up to her underinsured motorist limit (say she has $50,000, that would be the most she could collect, not a total of the 2 limits).

Good luck to your friend & speedy recovery.

Answer 2

It would be best for her to hire a lawyer. Her medical bills, and PT should definitely be covered.

Answer 3

having an attorney will not make a difference. The insurance company will not pay over the policy limits. it's not the insurance companys fault. you'll have to establish a law suit against the other party. good luck!

Answer 4

The insurance company cannot pay more than the policy limits.

If she has auto insurance she can make an UNDERInsured Motorist Claim (UIM), meaning the at fault person did not have enough coverage.

She can also make a UIM claim on her parents auto policy, if she still lives at home with them.

if she retains an atty, the insurance company is still only going to offer her the policy limits

Answer 5

If the other party only has $20k, then that is all the insurance company can offer.  She can sue the other party, but if they do not have any assets, it is unlikely she will recover anything from them.  

If the driver of the vehicle was not the owner of the vehicle, then in some states you can stack these available coverages.

If your friend has underinsured coverage, then she should file a claim under this coverage for additional benefits.  If another household member has underinsured coverage, she may be entitled to their coverage.  Again, it varies from state to state.  Some states allowing "stacking" others don't.