The LAW TEAM recently settled a case for $50,000 for a pedestrian who was hit by a car. The settlement involved 2 insurance companies – 21st Century and AAA.
The pedestrian was hit by a car that had only $25,000 of insurance through 21st Century Insurance. She sustained fractures of 2 vertebrae in her neck. Miraculously, she did not need surgery, and she felt almost completely fine within weeks of the accident. Even with this incredible recovery, fractures beat the Serious Injury Threshold and are thus taken seriously by companies that insure cars for New York accidents. Click-Here-To Read More About Serious Injury
21st Century insurance paid their $25,000 as soon as they saw the medical evidence corroborating that the injured person sustained fractures.
Fortunately for the injured pedestrian, she had her own car insurance that had $50,000 of uninsured/underinsured motorist coverage. This is insurance coverage that covers the policyholder when she is injured by someone who has either no insurance, or not enough insurance to pay for injuries sustained.
The uninsured/underinsured motorist coverage carrier steps into the shoes of the uninsured/underinsured driver and defends the case as if it insured that car. In the case of underinsured coverage, the underinsured carrier is potentially on the hook for only the difference between what the tortfeasor (at fault driver) paid, and what is left on their policy.
In this case, for instance, the pedestrian had $50,000 of insurance through AAA. The at fault driver’s insurance paid $25,000. So, AAA was theoretically on the hook for the difference: $50k-$25k = $25k.
AAA initially fought the claim, insisting that the accident was the pedestrian’s fault, and she made a good recovery. The LAW TEAM at Haicken Law refused to accept anything less than the full value of all available insurance. Within 2 months, both insurance companies paid their maximum amount of available compensation. $25k + $25k for a total settlement of $50,000.
This case highlights the importance of having underinsured motorist coverage. The coverage is not expensive, and is extremely important.