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October's LawTip
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LawTip
December's LawTip
Question:
I was injured in an automobile accident because of another driver's
negligence. The other driver's insurance, however, is not sufficient
to pay for my damage. What can I do?
Answer: Ohio law requires
insurance companies to offer uninsured / underinsured motorist coverage
to every automobile insurance policy holder. This coverage can usually
be obtained for a relatively inexpensive premium. It is designed
to provide compensation to motorists who have suffered a loss at
the hands of another when the other person's insurance does not
provide adequate coverage.
Many people misunderstand how uninsured / underinsured motorist
coverage works. Perhaps this can be explained by the fact that the
law has changed in recent years. In 1993, the Ohio Supreme Court
determined that insurance policies of this type had to provide compensation
up to the full limits of the injured person's policy, to the extent
that his or her damages exceeded the amount paid by the other driver's
insurance policy. This rule allowed the "stacking" of
benefits. To illustrate how this worked, let us assume that Betty
Broken was struck by an automobile driven by Roger Reckless. Betty
suffered $100,000 in damages. Roger's insurance policy had a limit
of $30,000. Betty's uninsured / underinsured motorist policy had
a limit of $50,000. If Betty settled with Roger for his policy limit
of $30,000, she would also be entitled to receive $50,000 from her
own uninsured / underinsured motorist policy. This would allow Betty
to recover a total of $80,000.
However, in response to the 1993 Supreme Court ruling, the Ohio
General Assembly amended the section of the Revised Code dealing
with these types of insurance policies. Now, insurance companies
may prevent "stacking." The example from above will be
used to illustrate how the law currently works. Under the new system,
Betty's insurance company could set off the $30,000 she received
from Roger against the amount of her uninsured / underinsured motorist
policy. She would still be compensated $30,000 by Roger's insurance
company. However, her insurance policy would reduce its $50,000
limit by the $30,000 she received from Roger, providing her only
$20,000 in coverage. Thus, Betty would only recover a total of $50,000,
much less than under the old law.
Another area of confusion surrounding these types of insurance
policies is when claims under such policies must be made. For injuries
sustained in an automobile accident, a lawsuit must be filed within
two years of the date of the incident. However, to recover from
your uninsured / underinsured motorist policy, you may have up to
fifteen years in which to file a claim.
Personal injury and insurance laws are very complex. Considering
that significant expenses and damages are often involved in injury
cases, it is wise to contact an attorney right away. Many attorneys
offer free consultations and contingency fees for personal injury
cases.
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